At a glance:
Yash Optics & Lens Ltd clocked a FY25 net profit of ₹958.8 lakh, up from ₹902.3 lakh last year. But the real story? Their reserves skyrocketed from ₹1,163 lakh to ₹6,560 lakh — thanks to a juicy IPO. Revenue rose modestly to ₹4,320.8 lakh (from ₹4,111 lakh), and EBITDA margin stood solid. But with IPO money in the bank and capex swelling, investors must ask: Is this growth sustainable, or is the lens foggy beyond FY25?
🏢 About the Company
Yash Optics & Lens Ltd manufactures and trades vision correction solutions — think lenses, not LinkedIn influencers. The company was recently listed post-IPO and has moved into a new Mumbai office, riding high on its public debut.
They are also working on backward integration at their Vapi facility to manufacture both semi-finished and finished lenses in-house — targeting import substitution and “Make in India” cred.
👤 Key Managerial Personnel (KMP)
- Tarun Doshi – Managing Director
- Adrata Anil Srivastav – Company Secretary & Compliance Officer
📊 FY25 Financials (Standalone)
| Particulars | FY25 | FY24 | Change (%) |
|---|---|---|---|
| Revenue from Operations | ₹4,320.8 lakh | ₹4,111.0 lakh | +5.1% |
| Other Income | ₹283.5 lakh | ₹9.4 lakh | 🔥 +2915% |
| Total Income | ₹4,604.4 lakh | ₹4,120.4 lakh | +11.7% |
| EBITDA (approx) | ₹1,541.9 lakh | ₹1,469.7 lakh | +4.9% (est.) |
| Profit Before Tax (PBT) | ₹1,298.9 lakh | ₹1,211.9 lakh | +7.2% |
| Net Profit (PAT) | ₹958.8 lakh | ₹902.3 lakh | +6.3% |
| EPS (Basic/Diluted) | ₹3.89 | ₹18.76* | Post IPO base |
*EPS drop due to increased share capital post-IPO (share base rose from 1.82 cr to 2.47 cr shares)
🧮 Forward-Looking Fair Value (FV) Estimate
- Trailing EPS: ₹3.89
- Assumed P/E Range: 18x – 22x
- Fair Value Estimate: ₹70 – ₹85
- Current CMP: ₹82
🔎 Verdict: Stock is trading near upper FV band, pricing in strong execution of backward integration + growth narrative. Upside hinges on delivery.
🔋 Growth & Business Outlook
Here’s where it gets interesting:
🏗️ Capex & Backward Integration:
- Vapi project to begin trial runs in Q2 FY26
- Target: Reduce import dependence, control margins
- Long-term game: Higher margins from in-house lens production
💸 IPO Fund Utilization:
- Proceeds: ₹5,095 lakh raised via IPO at ₹81/share
- Cash & Bank Balances: ₹3,167 lakh vs ₹80 lakh last year
- Fixed assets jumped to ₹2,957 lakh from ₹1,924 lakh (+53%)
📦 Inventory & Receivables:
- Inventory rose slightly to ₹2,204 lakh
- Receivables at ₹1,561 lakh (vs ₹1,179 lakh), indicating ongoing demand
🧾 Balance Sheet Highlights
| Metric | FY25 | FY24 |
|---|---|---|
| Equity Capital | ₹2,476.6 lakh | ₹1,820.4 lakh |
| Reserves & Surplus | ₹6,560.2 lakh | ₹1,163.1 lakh |
| Long-term Borrowings | ₹1,231.0 lakh | ₹1,674.6 lakh |
| Total Assets | ₹11,197.8 lakh | ₹6,057.7 lakh |
💡 Major change: Strong deleveraging and equity boost post-IPO.
📉 Cash Flow Check
| Particulars | FY25 | FY24 |
|---|---|---|
| Operating Cash Flow | ₹567.7 lakh | -₹1,239.3 lakh |
| Investing Cash Flow | -₹3,709.4 lakh | -₹1,880.2 lakh |
| Financing Cash Flow | ₹3,136.7 lakh | ₹3,139.3 lakh |
| Net Cash (Year-end) | ₹67.2 lakh | ₹72.1 lakh |
🧠 Note: Heavy capex and deposits dent cash, despite IPO windfall.
🧠 EduInvesting Take
This is what happens when you go public:
- You get rich (reserves 6x up)
- You go broke (cash flow -₹3,709 lakh in investing)
- You get ambitious (Vapi facility, ‘Make in India’, backward integration)
- And you live with pressure (public scrutiny, EPS reset)
But we like it.
Yash Optics is behaving like a startup that just got Series B funding — expansion-mode, asset-heavy, cash-light. Whether it builds a lens empire or becomes just another capex graveyard depends on FY26 execution.
⚠️ Risks & Red Flags
- 👀 High receivables — must monitor working capital stress
- 💣 Burn rate post-IPO is aggressive — cash flow discipline needed
- 🧮 FY24 EPS of ₹18.76 vs FY25 EPS ₹3.89 — IPO diluted earnings base, needs consistent profit compounding
🏁 Final Thoughts
Yash Optics is trading at ₹82 — nearly fair value based on trailing earnings, but future upside depends on execution of its Vapi integration, margin improvement, and scaling post-IPO.
As they say in finance…
“It’s not about how clearly you see the future — it’s whether you’ve got the lenses to correct it.” 🕶️
Author: Prashant Marathe
Date: 31 May 2025
Tags: Yash Optics FY25, IPO Results, Lens Manufacturer India, Vapi Project, SME IPO 2025, Vision Correction Stocks
