EduInvesting.in | May 12, 2025

If you’ve ever wondered what a classic “pump-and-hold-your-breath” chart looks like, take a gander at Sunita Tools Ltd. This one’s been passed around more than a fake multibagger tip in a trader WhatsApp group.

From “ESG play” to “defence angle” to “hidden aerospace subsidiary” — the only thing truly hidden here is sustainable margin growth.

Let’s cut through the promo posters and see what the numbers say.

📉 FY25: Performance Recap (Or Lack Thereof)

Revenue grew 15%, sure. But after 12 months of hype, defence deals, mergers, and “watch this space” tweets — only a 5% EPS growth? That’s not multibagger. That’s multi-yawner.

🤡 The “Consolidation” Distraction

Sunita Tools announced the acquisition of a controlling interest in Sunita Leocuja Airspace Ltd. in FY25. Great. More subsidiaries = more confusion = more excuses.

Suddenly, they’ve switched to consolidated accounting like a magician pulling a rabbit out of a loss-making hat. Neat trick.

But here’s what it really means: When standalone margins look tired, consolidate and confuse.

🚩 Red Flags, or Just the New Logo?

1. EPS barely moved despite all the expansion drama.
2. Expenses outpaced revenue growth. If this were a movie, the budget exploded but the box office flopped.
3. The stock was pumped all over social media, SME chatrooms, and Telegram “gurus” as the next HAL, but turns out it’s barely outgrowing inflation.
4. Exceptional items = ₹0.00. That means no one-off reasons for the underperformance. It’s all core. And it’s all… meh.

🎭 EduInvestor’s Satirical Take:

“Sunita Tools is like that guy in your society who suddenly wears aviators and talks defence strategy after reading one newspaper article. A lot of flash, zero combat readiness. If it’s the next HAL, then I’m the next Rakesh Jhunjhunwala.”

🛑 Should You Stay Invested?

Only if:

• You enjoy watching charts bleed while promoters smile on CNBC.
• You’re into corporate storytelling over real earnings.
• You bought in early and want to test your luck with exit pumps.

⚠️ Final Verdict: Exit While the Lights Are Still On

📉 EduInvesting’s Sell Warning 🔔

• Current EPS: ₹8.58
• If CMP > ₹180, P/E > 20 = overpriced for slow-growth SME
• Sell Zone: Anything above ₹160–170 if you’re sitting on gains
• Buyback? Merger? Consolidation? Ask: “But where is the margin?”