Revenue and Profitability Trends
Stanpacks(India)'s net sales have shown notable volatility over the past seven years. The company recorded its peak sales in the fiscal year ending March 2022 at ₹40.20 crores, followed by a sharp decline to ₹29.22 crores in March 2025. Prior to this peak, sales fluctuated between ₹27.31 crores and ₹36.58 crores, indicating a somewhat inconsistent revenue stream. The absence of other operating income throughout this period suggests the company relies solely on its core business activities for revenue generation.
Operating profit margins have mirrored this volatility. The operating profit margin excluding other income ranged from a high of 8.31% in March 2020 to a low negative margin of -0.66% in March 2023. The fiscal year 2022 saw a modest margin of 3.63%, which slightly improved to 4.24% by March 2025. Gross profit margins have been particularly erratic, peaking at 21.52% in 2022 but dipping into negative territory in 2023. This inconsistency reflects challenges in managing raw material costs and other expenses.
Profit after tax (PAT) margins have also been unstable. The company posted a strong PAT margin of 16.67% in 2022, but this was preceded and followed by negative margins in several years, including -4.44% in 2021 and -5.74% in 2023. The latest fiscal year ended with a marginal PAT margin of 0.41%, indicating a return to modest profitability.
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Cost Structure and Expenses
The company’s raw material costs have generally tracked sales trends, peaking at ₹22.79 crores in 2022 before declining to ₹17.44 crores in 2025. Employee costs have steadily increased from ₹2.59 crores in 2019 to ₹5.34 crores in 2025, reflecting possible expansion or wage inflation. Other expenses have fluctuated significantly, reaching a high of ₹12.05 crores in 2022 and falling to ₹3.19 crores in 2025. Notably, the company reported no power, manufacturing, or selling and distribution expenses during these years, which may indicate classification or reporting nuances.
Balance Sheet and Financial Position
Stanpacks(India) has maintained a stable equity capital base of ₹6.10 crores throughout the period. Shareholders’ funds increased from ₹1.57 crores in 2021 to ₹7.00 crores in 2025, aided by a turnaround in reserves from a negative ₹4.52 crores in 2021 to a positive ₹0.90 crores in 2025. This improvement signals a strengthening net worth position.
However, the company’s debt profile remains a concern. Total debt peaked at ₹16.26 crores in 2021 before declining to ₹7.76 crores in 2025. Both long-term and short-term borrowings have reduced, with long-term borrowings dropping from ₹7.55 crores in 2021 to ₹0.39 crores in 2025, and short-term borrowings fluctuating but remaining elevated at ₹7.28 crores in 2025. The reduction in debt levels suggests efforts to deleverage, though the company still carries a significant debt burden relative to its equity.
Asset and Working Capital Management
On the asset side, net block values have remained relatively stable, hovering around ₹3 crores, indicating limited capital expenditure or asset turnover changes. Inventories have decreased from ₹14.17 crores in 2021 to ₹7.46 crores in 2025, which may reflect improved inventory management or reduced production. Sundry debtors have remained steady around ₹3.5 crores, while cash and bank balances are negligible, suggesting tight liquidity.
Net current assets have declined from ₹9.96 crores in 2022 to ₹3.21 crores in 2025, indicating a contraction in working capital. This could be a result of the company’s efforts to optimise operational efficiency or a response to lower sales volumes.
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Cash Flow and Liquidity
Cash flow statements reveal modest operating cash inflows of ₹2 to ₹3 crores in recent years, with no significant investing or financing cash flows recorded in the latest fiscal years. The company’s net cash inflow/outflow has remained neutral, indicating a balanced cash position but limited liquidity reserves. The absence of cash and cash equivalents on the balance sheet further underscores tight liquidity conditions.
Overall, Stanpacks(India) has demonstrated resilience in navigating fluctuating market conditions, with a recovery in profitability and net worth after periods of losses. However, the company continues to face challenges related to sales volatility, cost management, and debt reduction. Investors should weigh these factors carefully when considering the stock’s potential.
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