The stock, trading at ₹9.17 on January 23, 2026, has underperformed dramatically across all timeframes, declining 26.87% over the past year against the Sensex's 6.53% gain—a staggering negative alpha of 33.40 percentage points. Over three years, the stock has lost 52.24% whilst the benchmark surged 33.76%, reflecting sustained investor exodus. The company's proprietary Mojo Score stands at a dismal 12 out of 100, warranting a "STRONG SELL" rating as operational deterioration shows no signs of stabilisation.
Financial Performance: A Collapse in Revenue and Profitability
Yash Management & Satellite's Q2 FY26 results reveal a company in severe operational distress. Net sales of ₹3.48 crores represent a 22.84% quarter-on-quarter decline from ₹4.51 crores in Q1 FY26 and a precipitous 56.72% year-on-year collapse from ₹8.04 crores in Q2 FY25. This marks the sixth consecutive quarter of revenue decline, with sales plummeting from ₹23.21 crores in Mar'24 to current levels—an 85% erosion in just six quarters.
| Quarter | Net Sales (₹ Cr) | QoQ Change | Net Profit (₹ Cr) | QoQ Change | Operating Margin |
|---|---|---|---|---|---|
| Sep'25 | 3.48 | -22.84% | -0.85 | -547.37% | -29.02% |
| Jun'25 | 4.51 | +8.15% | 0.19 | -126.39% | -2.22% |
| Mar'25 | 4.17 | -23.49% | -0.72 | +554.55% | -20.62% |
| Dec'24 | 5.45 | -32.21% | -0.11 | -94.66% | -9.91% |
| Sep'24 | 8.04 | -34.21% | -2.06 | -323.91% | -26.99% |
| Jun'24 | 12.22 | -47.35% | 0.92 | -45.88% | 4.91% |
| Mar'24 | 23.21 | — | 1.70 | — | 9.78% |
Operating profit before depreciation, interest, tax, and other income (PBDIT excl OI) stood at a loss of ₹1.01 crores in Q2 FY26, resulting in an operating margin of -29.02%—the worst performance in the trailing seven quarters. This compares to -2.22% in Q1 FY26 and -26.99% in Q2 FY25, indicating that core business operations are haemorrhaging cash at an accelerating rate. The company's inability to control costs relative to shrinking revenues highlights fundamental business model challenges.
Profit after tax (PAT) margin deteriorated to -21.26% in Q2 FY26 from 5.10% in Q1 FY26, with the consolidated net loss of ₹0.85 crores marking the fourth loss-making quarter in the past five. The brief profitability in Q1 FY26 (₹0.19 crores) now appears an aberration rather than a turnaround signal. For the first half of FY26, the company accumulated losses of ₹0.66 crores on revenues of ₹7.99 crores, compared to losses of ₹1.14 crores on revenues of ₹20.26 crores in H1 FY25—a 60.56% revenue decline year-on-year.
Operational Distress: Structural Challenges and Weak Returns
The company's operational metrics paint a picture of fundamental business deterioration. Return on equity (ROE) averaged a meagre 1.49% over recent periods, with the latest ROE at -6.83%—indicating the company is destroying shareholder value rather than creating it. For context, higher ROE values signal better capital efficiency and profitability; Yash Management's weak ROE reflects poor asset utilisation and persistent losses. Return on capital employed (ROCE) stands at -14.88%, confirming that the company generates negative returns on the capital invested in its operations.
Critical Operational Red Flags
Persistent Operating Losses: Six consecutive quarters of declining revenue, with operating margins deeply negative at -29.02% in Q2 FY26. The company's core trading and distribution business is structurally unprofitable.
Weak Capital Efficiency: ROE of 1.49% (average) and -6.83% (latest) indicates chronic value destruction. ROCE at -14.88% confirms negative returns on invested capital.
Balance Sheet Concerns: Shareholder funds declined from ₹23.54 crores in Mar'24 to ₹21.96 crores in Mar'25 as accumulated losses erode equity. Current assets of ₹18.31 crores provide some liquidity buffer, but declining revenues threaten sustainability.
The balance sheet reveals gradual erosion of shareholder value. Total shareholder funds stood at ₹21.96 crores as of Mar'25, down from ₹23.54 crores in Mar'24, as losses depleted reserves and surplus from ₹6.54 crores to ₹4.96 crores. The company maintains minimal debt with no long-term borrowings reported in Mar'25, though this reflects limited access to credit rather than financial prudence. Book value per share stands at ₹12.92, with the stock trading at 0.63 times book value—a discount that reflects market scepticism about asset quality and future profitability.
Fixed assets have declined dramatically from ₹17.77 crores in Mar'23 to ₹0.13 crores in Mar'25, suggesting asset disposals or write-downs. Current assets of ₹18.31 crores as of Mar'25 (down from ₹23.84 crores in Mar'24) provide some liquidity cushion, but with negative operating cash flows, this buffer is being steadily depleted. The company's inability to generate positive operating cash flow—₹4.00 crores inflow in FY25 came primarily from working capital changes rather than core operations—raises sustainability concerns.
Industry Context: Lagging Sector Performance by Wide Margin
Yash Management & Satellite operates in the Trading & Distributors sector, which has delivered a 18.20% return over the past year. In stark contrast, Yash Management's stock has declined 26.87% over the same period, resulting in underperformance of 45.07 percentage points versus its sector. This massive underperformance reflects company-specific challenges rather than broader industry headwinds, as peers have generally maintained profitability and growth.
The company's 5-year sales growth of 80.75% appears impressive on the surface but masks the recent collapse in revenues. From a low base of near-zero sales in FY20-FY21, the company scaled up to ₹41.00 crores in FY24 before crashing to ₹29.00 crores in FY25 (a 29.30% decline). More concerning, the current run-rate of ₹3.48 crores quarterly revenue suggests FY26 sales could fall below ₹15 crores—a 48% decline from FY25 levels. The 5-year EBIT growth of -197.56% confirms that revenue expansion came without profitability, and recent revenue contraction has exposed the unsustainable business model.
Sector Positioning Analysis
Yash Management's dramatic underperformance versus its sector peers (45.07 percentage points over one year) signals deep structural issues. Whilst the Trading & Distributors sector delivered positive 18.20% returns, the company's 26.87% decline reflects investor concerns about business viability, operational losses, and lack of competitive positioning. The company's micro-cap status (₹14.00 crores market cap) and absence of institutional investors further limit access to capital and market confidence.
Peer Comparison: Weakest Fundamentals in Peer Group
Comparative analysis against Trading & Distributors peers reveals Yash Management's relative weakness across key metrics. Whilst most peers in the sector are also loss-making (reflected in "NA" P/E ratios), Yash Management exhibits the lowest return on equity at 1.49% compared to peers like Dhyaani Trade (16.86%) and Fruition Venture (5.50%). The company's price-to-book ratio of 0.63x, whilst appearing attractive, reflects market concerns about asset quality and future earnings potential rather than genuine value.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt/Equity |
|---|---|---|---|---|
| Yash Mgmt & Sat. | NA (Loss Making) | 0.63x | 1.49% | 0.15 |
| Fruition Venture | NA (Loss Making) | 3.06x | 5.50% | 0.28 |
| Mihika Industrie | NA (Loss Making) | 0.59x | 0.94% | 0.01 |
| Dhyaani Trade | 153.17x | 0.44x | 16.86% | 0.15 |
| Muller & Phipps | 179.65x | -10.05x | 0.00% | -0.51 |
Yash Management's ROE of 1.49% significantly lags behind Dhyaani Trade's 16.86%, highlighting inferior capital efficiency and profitability. The company's debt-to-equity ratio of 0.15 indicates conservative leverage, but this reflects limited creditworthiness rather than deliberate financial strategy. With the largest market capitalisation in this peer group at ₹14.00 crores (though still micro-cap), the company's size advantage has not translated into operational superiority or profitability.
Valuation Analysis: Discount Reflects Distress, Not Opportunity
Yash Management & Satellite's valuation metrics reflect severe market scepticism about the company's prospects. Trading at ₹9.17, the stock is valued at 0.63 times book value—a 37% discount to net asset value. However, this apparent "value" is a distress signal rather than an opportunity. The company's P/E ratio is not applicable given persistent losses, whilst EV/EBITDA of -3.71x and EV/EBIT of -3.60x are meaningless for a loss-making entity.
The company's valuation grade has oscillated between "Risky" and "Expensive" over recent months, currently classified as "RISKY" as of October 2025. This assessment reflects the combination of operational losses, declining revenues, and uncertain business viability. The EV/Sales ratio of 0.53x might appear attractive, but with negative operating margins of -29.02%, revenue alone provides no value without profitability. The market's 37% discount to book value suggests investors doubt whether reported assets can be realised at carrying values given the company's operational distress.
No dividend has been paid, and dividend yield is not applicable—unsurprising given the company's loss-making status. The stock trades 29.46% below its 52-week high of ₹13.00 (achieved in better times) and 23.09% above its 52-week low of ₹7.45 (touched in October 2025). The current price of ₹9.17 reflects a market struggling to assess fair value for a company with deteriorating fundamentals and no clear path to profitability.
Shareholding Pattern: Stable Promoter Holding, Zero Institutional Interest
The shareholding pattern reveals a completely stagnant structure with zero institutional participation. Promoter holding has remained absolutely static at 60.38% across the last five quarters from December 2024 through December 2025, with no sequential changes whatsoever. Non-institutional investors hold the remaining 39.62%, also unchanged quarter after quarter. This frozen shareholding structure suggests limited trading activity and absence of any investor interest—either positive or negative.
| Quarter | Promoter % | QoQ Change | FII % | MF % | Insurance % | Non-Inst % |
|---|---|---|---|---|---|---|
| Dec'25 | 60.38% | 0.00% | 0.00% | 0.00% | 0.00% | 39.62% |
| Sep'25 | 60.38% | 0.00% | 0.00% | 0.00% | 0.00% | 39.62% |
| Jun'25 | 60.38% | 0.00% | 0.00% | 0.00% | 0.00% | 39.62% |
| Mar'25 | 60.38% | 0.00% | 0.00% | 0.00% | 0.00% | 39.62% |
| Dec'24 | 60.38% | — | 0.00% | 0.00% | 0.00% | 39.62% |
Most alarmingly, institutional holdings stand at absolute zero—no foreign institutional investors (FIIs), no mutual funds, no insurance companies, and no other domestic institutional investors (DIIs) hold any stake in the company. This complete absence of institutional participation reflects the company's micro-cap status, poor liquidity, weak fundamentals, and lack of investment appeal. Institutional investors typically conduct rigorous due diligence and avoid companies with persistent operational losses and uncertain business models.
The promoter group, led by Anurag Hargovind Gupta (22.35%), Anurag Gupta HUF (19.50%), and Saujanya Trading Private Limited (10.59%), maintains control but has shown no inclination to increase stake or provide capital support despite mounting losses. Positively, there is no promoter pledging reported, indicating promoters are not leveraging their holdings for personal borrowings. However, the static shareholding structure and zero institutional interest underscore the company's status as an illiquid, neglected micro-cap with minimal market following.
Stock Performance: Severe Underperformance Across All Timeframes
Yash Management & Satellite's stock performance has been dismal across virtually every timeframe, with the company dramatically underperforming both the Sensex benchmark and its sector. Over the past year, the stock has declined 26.87% whilst the Sensex gained 6.53%, resulting in negative alpha of 33.40 percentage points. This underperformance accelerates over longer periods: three-year returns show a 52.24% decline versus Sensex gains of 33.76% (negative alpha of 86.00 percentage points), and five-year returns reveal a 29.57% loss against Sensex gains of 66.77% (negative alpha of 96.34 percentage points).
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | +13.77% | -0.96% | +14.73% |
| 1 Week | +5.16% | -2.46% | +7.62% |
| 1 Month | -4.08% | -4.69% | +0.61% |
| 3 Month | -6.24% | -3.60% | -2.64% |
| 6 Month | -13.08% | -1.47% | -11.61% |
| YTD | -0.22% | -4.35% | +4.13% |
| 1 Year | -26.87% | +6.53% | -33.40% |
| 2 Years | -35.69% | +15.84% | -51.53% |
| 3 Years | -52.24% | +33.76% | -86.00% |
| 5 Years | -29.57% | +66.77% | -96.34% |
The stock's recent one-day surge of 13.77% (as of January 23, 2026) appears to be a technical bounce from oversold levels rather than fundamental improvement, given the dismal Q2 FY26 results. The stock trades below all key moving averages—5-day (₹8.24), 20-day (₹8.79), 50-day (₹9.24), 100-day (₹9.76), and 200-day (₹10.18)—indicating a firmly established downtrend. Technical indicators across weekly and monthly timeframes remain uniformly bearish, with MACD, Bollinger Bands, and KST all flashing sell signals.
The stock's risk profile is concerning: with an adjusted beta of 1.50, it exhibits 50% higher volatility than the broader market, yet delivers negative returns. This "high beta, negative return" combination represents the worst possible scenario for investors. Volatility stands at 49.97% over the past year—more than four times the Sensex's 11.24% volatility—whilst the risk-adjusted return is -0.54 compared to the Sensex's positive 0.58. The stock is classified as "HIGH RISK LOW RETURN," making it unsuitable for any investor profile.
Investment Thesis: Multiple Red Flags, No Catalysts
The investment thesis for Yash Management & Satellite is overwhelmingly negative across all four critical parameters. The company's Mojo Score of 12 out of 100 places it firmly in "STRONG SELL" territory, with the score declining from 26 in May 2025 and 48 in September 2024. This deterioration reflects worsening fundamentals, continued technical weakness, and absence of any positive catalysts.
The quality assessment rates the company as "BELOW AVERAGE" based on long-term financial performance. Whilst 5-year sales growth of 80.75% appears impressive, this came from a near-zero base and has reversed sharply in recent quarters. More tellingly, 5-year EBIT growth of -197.56% confirms that revenue expansion was unprofitable, and the company has destroyed value over time. Average ROE of 1.49% ranks amongst the weakest in the sector, whilst zero institutional holdings (0.00%) reflect lack of professional investor confidence.
The financial trend is classified as "FLAT" as of December 2025, having deteriorated from "VERY POSITIVE" in March 2023. This flatness masks underlying deterioration—revenue has collapsed 85% from peak levels, operating margins remain deeply negative, and losses are mounting. Technical indicators are uniformly "BEARISH" across all timeframes, with the stock trading below all moving averages and showing no signs of bottoming. The bearish trend has been in place since October 2025, with previous attempts at recovery quickly reversed.
Key Strengths & Risk Factors
Key Strengths ✓
- Minimal Debt Burden: No long-term debt and low leverage (Debt/Equity: 0.15) provides financial flexibility, though this reflects limited creditworthiness rather than deliberate strategy.
- Adequate Liquidity: Current assets of ₹18.31 crores provide short-term liquidity buffer, though this is being depleted by ongoing losses.
- No Promoter Pledging: Promoters have not pledged their 60.38% stake, indicating no immediate financial distress at promoter level.
- Stable Promoter Holding: Promoter holding unchanged at 60.38% shows commitment, though lack of capital infusion is concerning.
- Historical Growth Base: 5-year sales CAGR of 80.75% demonstrates the company once achieved scale, though this has reversed dramatically.
Key Concerns ⚠
- Persistent Operating Losses: Six consecutive quarters of declining revenue with deeply negative operating margins (-29.02% in Q2 FY26) indicate fundamental business model failure.
- Revenue Collapse: Sales plunged 56.72% YoY to ₹3.48 crores in Q2 FY26, with no signs of stabilisation. Revenue has fallen 85% from peak levels.
- Value Destruction: ROE of 1.49% (average) and -6.83% (latest) confirms chronic shareholder value destruction. ROCE at -14.88% shows negative returns on capital.
- Zero Institutional Interest: Complete absence of FII, MF, insurance, or DII holdings reflects lack of investment appeal and rigorous due diligence concerns.
- Severe Underperformance: Stock down 26.87% over one year vs Sensex +6.53%, with negative alpha of 33.40 percentage points. Three-year decline of 52.24% vs Sensex gain of 33.76%.
- High Volatility, Negative Returns: Beta of 1.50 with 49.97% volatility delivers "HIGH RISK LOW RETURN" profile—worst possible combination for investors.
- Illiquid Micro-Cap: Market cap of ₹14.00 crores with minimal trading volumes limits exit options for investors.
Outlook: What to Watch—No Positive Catalysts Visible
The outlook for Yash Management & Satellite remains deeply concerning with no visible catalysts for improvement. The company must urgently stabilise revenues, achieve positive operating margins, and demonstrate a viable path to profitability. However, six consecutive quarters of deterioration suggest structural rather than cyclical challenges. Investors should monitor whether management can articulate and execute a credible turnaround strategy, though the absence of any such communication to date is telling.
Positive Catalysts (Unlikely)
- Revenue stabilisation above ₹5 crores quarterly
- Return to positive operating margins
- Capital infusion or promoter support
- Strategic partnerships or business pivot
Red Flags (Highly Probable)
- Continued revenue decline below ₹3 crores quarterly
- Operating margins remaining below -20%
- Depletion of current assets to fund losses
- Further deterioration in ROE and ROCE
- Inability to attract institutional investors
The Verdict: Exit Recommended—Value Trap, Not Value Opportunity
Score: 12/100
For Fresh Investors: Avoid completely. The company exhibits persistent operating losses, collapsing revenues, negative returns on capital, zero institutional interest, and no visible path to profitability. The 37% discount to book value is a distress signal, not a buying opportunity. With a "HIGH RISK LOW RETURN" profile, high volatility (49.97%), and severe underperformance across all timeframes, there is no investment case for fresh capital.
For Existing Holders: Exit at current levels or on any technical bounce. The stock's 13.77% one-day gain appears to be a temporary relief rally rather than fundamental improvement. With six consecutive quarters of revenue decline, operating margins at -29.02%, and mounting losses, the risk of further value destruction significantly outweighs any potential recovery. The company's Mojo Score of 12/100 and "STRONG SELL" rating reflect multiple structural red flags with no positive catalysts visible.
Fair Value Estimate: Given persistent losses and negative cash flows, assigning a fair value is challenging. Current price of ₹9.17 may not represent a floor given ongoing operational deterioration. Book value of ₹12.92 per share is likely overstated given asset quality concerns. Downside risk remains substantial.
Note— ROCE = (EBIT - Other Income) / (Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Investments in micro-cap stocks carry substantial risk including illiquidity, volatility, and potential loss of capital.
