STANROSE MAFATLAL

Stanrose Mafatlal Investments and Finance, formerly known as Sandeep Holdings Limited is a NBFC, primarily engaged in the business of Inter-corporate investments, financing and capital market related activities. Today, it is a part of the Standard Industries group while earlier, when it began, it was a subsidiary of the Mafatlal Industries.

This debt free company, had a good run in Q1 and after that Q2 as well as Q3 have shown pressure. The problem is always the drop in topline which dents the bottomline, which no amount of cost cutting helps. In current Q3FY17, net sales dropped 33% (YoY) at Rs.2 crore and despite a 12% decrease in costs, net profit was down 53% at Rs.91 lakh.  9MFy17 net profit stands at Rs.5 crore v/s Rs.6 crore of entire FY16 and this can be attributed entirely to net profit of Rs.3.5 crore in current Q1.

Once again, typical of these olden times companies, its equity is tiny at Rs.3.97 crore and reserve is at Rs.49 crore. Promoters hold a 48.37% stake and insurance companies – LIC, GIC, New India, all together hold a 10% stake.