One thing that sets apart smart investors from the average investor is that they don’t just chase noise. They chase numbers and their own research. So, if a newly listed stock catches the eye of one of India’s most watched investors within a month of its debut, it deserves your attention.
According to the latest bulk deal data, Vijay Kedia’s Kedia Securities Pvt Ltd has purchased about 9 lakh shares of Mahamaya Lifesciences Ltd. The deal, valued at Rs 12.48 cr, was executed at an average price of Rs 140. This 3.81% stake purchase says a lot about Kedia’s trust in the company.
The SME Trap: Why Most Retail Investors Stay Away
Given that the company is listed on BSE’s SME Exchange, there are risks involved. Buying SME stocks comes with a significant warning: buyer beware. The requirement to trade in fixed lots creates a liquidity bottleneck, often leaving investors stranded when prices crash. Additionally, the tiny equity base of these companies invites manipulation, fuelling ‘pump and dump’ schemes designed to trap retail capital. To make matters worse, lenient reporting standards frequently mask poor financial health, which the investors only come to know about when it’s too late.
So, what is it that has attracted the master of “Smile Investing” towards this SME agrochemical player? Does this stock clear his SMILE criteria – Small in size, Medium in experience, Large in aspiration, and Extra-large in market potential?
You see, stock market investing is often about spotting potential before it becomes obvious. Most retail investors look at the SME tag or the recent volatility and stay away. They fear the “liquidity trap.” But the Warren Buffett’s of India like Vijay Kedia see things in stock that miss the eye of the average investor. And currently he has found a stock that probably checks all the boxes for him. And despite the associated risks with SME stocks, Kedia has decided to buy in to the company. So, let us look at what this stock is all about.
The Fundamentals: Decoding Mahamaya’s Business Model
If you look at Mahamaya Lifesciences Ltd on a screener, you see a stock trading near its all-time high of Rs 187 (as on 18th December 2025), up over 60% from its IPO price of Rs 114. A PE ratio of roughly 31x might look reasonable, but in the volatile agro-chemical sector, is it justified? Especially when the industry faces headwinds from erratic monsoons and global inventory chaos.
Let us try and understand what might have caught Kedia’s interest in the stock.
Incorporated in 2002, Mahamaya Lifesciences Limited is engaged in manufacturing, registration and export of finest crop protection products and bioproducts for crop & soil health management.
With a current market cap of Rs 432 cr, the company manufactures pesticide formulations and supplies bulk products to Indian agrochemical companies and multinational corporations (MNCs). The company supplies bulk formulations and technicals to multinational giants in countries like Egypt, Ethiopia, UAE, and Turkey.
Not to forget, the company has its own portfolio of branded products for insecticides, fungicides, herbicides, etc that are sold directly to farmers.
Let us look at the financials of the company to get a deeper understanding of what Kedia sees in the company that fits his SMILE strategy.
The Numbers: 57% EBITDA Growth & Margin Expansion
The company has logged some enviable growth numbers.
The sales of the company have grown at a compounded rate of 43% in the last 3 years, from Rs 90 cr in FY22 to Rs 264 cr in FY25. In H1 FY26 (April-Sept 2025), the company’s sales jumped to Rs 163 cr, up 11.5% on a YoY basis.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) went from Rs 6 cr in FY22 to Rs 23 cr in FY25, logging a compound growth of 57%. For the first half of FY26, EBITDA of Rs 15 cr has been logged already. Company’s EBITDA margins have improved to over 9%, hinting at greater operating leverage as they scale.
When it comes to net profits, the company’s bottom line is growing even faster. Net Profit for FY25 grew 148% to Rs 12.94 cr. For the first half of FY26 alone, they have already logged Rs 8.52 cr in profit, a growth of 17.6%.
Efficiency Check: Beating the Industry on ROE & ROCE
The company has efficiently managed its cash and proved its expertise in doing so. With a current ROCE (Return on Capital Employed) of about 26%, the company beats the industry median of 13%. Which means for every Rs 100 the company uses as capital, it makes a profit of Rs 26, while the industry peers average around Rs 13.
Add to this the company’s current ROE (Return on Equity) of 35%. This is exceptional efficiency. It means for every Rs 100 of equity, they generated Rs 35 in profit. This while the industry median is 10%.
The company has borrowings of roughly Rs 58 cr, with a Debt-to-Equity ratio of roughly 1.18. While not debt-free, this is manageable for a high-growth manufacturing company, provided the growth rate sustains.
As for valuations, the company’s share is trading at a PE of 31x while the industry median is 28x.
The Price Action: From IPO to All-Time High
The company was listed hardly a month ago in November 2025, where it raised Rs 67 cr through an IPO. These proceeds are be used for purchase of equipment, capital expenditure towards setting up of a new technical manufacturing plant, construction of warehouse, working capital requirements and general corporate purposes as per the company.
But what has caught the attention of many investors is the big jump Mahamaya’s share prices have recorded since listing. The IPO price of the company was Rs 114, and it was listed at Rs 116 on 18th November 2025.
Currently as on 18th December 2025, the stock is trading at Rs 187 which is a 61% jump over its listing price of Rs 116.
The price was around Rs 140 when the news of Kedia’s entry came in, and the price has since been climbing steadily.
The Warning Signs: Negative Cash Flow & Client Concentration
The growth of the company is alluring but investors must not ignore the red flags that many ignore. While the company reported strong profits, the financials still recorded a negative cash flow from operating activities to the tunes of Rs 22.7 cr in FY24. This means that the company’s earnings are stuck in working capital and are not going to the bank.
Then comes the concentration risk the company carries, as 10 of its top customers contribute over 70% of its revenue. Which simply means that even if a single top client decides to leave, the growth trajectory could be in a downward spiral.
Mahamaya operates without long-term contracts for raw materials or sales, which leaves it exposed to sudden price shocks or global supply chain issues.
The Verdict: Kedia’s Genius or a Liquidity Trap?
Mahamaya Lifesciences fits the classic Kedia criteria: Small cap, reasonable valuation, high growth rates (60%+), and a transition from trading to manufacturing. The smart money has entered at Rs 140. With the stock now at Rs 187.
The big question for investors now is if the train is still at the station? The 60% run-up since listing might deter some, but if the company continues to deliver 20-30% profit growth, the current PE of 26x could look cheap in hindsight a year from now.
Only time will tell whether this turns out to be Kedia’s next multibagger or another mistake to learn from. But for now, adding this stock to a watchlist and monitoring it closely seems like an intelligent idea.
Note: We have relied on data from www.Screener.in and www.trendlyne.com throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.
Disclaimer:
The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.
Suhel Khan has been a passionate follower of the markets for over a decade. During this period, he was an integral part of a leading Equity Research organisation based in Mumbai as the Head of Sales & Marketing. Presently, he is spending most of his time dissecting the investments and strategies of the Super Investors of India.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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