Regulatory resilience tested: Heera Ispat's extended listing amidst the operational void

The steel sector, home to competitors such as Welspun Corp and Ratnamani Metals, features a notable player that, intriguingly, lacks a registered address and website. Despite this unconventional characteristic, the company is listed and has demonstrated exceptional performance, delivering an impressive 350% return over the past five years.

Let’s delve into the sales performance of the renowned multi-bagger, none other than Heera Ispat. Our analysis will scrutinize the financials and annual reports, seeking insights into how the company has achieved a remarkable streak of 11 consecutive years without any sales, all while being under the watchful eyes of SEBI.


Source: Screener

Heera Ispat has reported no revenue since 2012

Having scrutinized the profit and loss statement for the company, it’s now imperative to shift our focus towards examining its cash flows. Understanding the cash dynamics becomes crucial in untying the financial intricacies surrounding Heera Ispat, particularly in light of its absence of revenue since 2012.

Cash Flows

Source: Screener

Evaluating Regulatory Strength

As anticipated, a closer examination of Heera Ispat’s cash flows reveals a notable absence, raising pertinent questions about the company’s listing status and active trading on the exchange. This prompts a deeper inquiry into the regulatory oversight of SEBI, as the company’s prolonged listing for 11 years, devoid of operations, a registered address, and cash flows, brings to light potential concerns about the efficacy of regulatory mechanisms in ensuring the integrity of listed entities.

Unmasking the Operator Behind the Scenes

The plot thickens as we ponder the enigma of who holds the reins in the buying and selling of Heera Ispat’s stocks. The storyline gains sharper focus with a glimpse into the shareholding pattern, shedding light on the characters steering the narrative.

Source: Screener

With a staggering 82% of shares held by the public, the landscape is ripe for manipulation. With a modest market cap of Rs 5 crore, a simple calculation reveals that operating the shares would require only Rs 1 crore. For an operator with a substantial portfolio, Heera Ispat is nothing more than a small pawn in the larger game.

Source: Screener

curious about the contents of their annual reports, consistently released with precision? Fret not, as we’ve delved into the intricacies on your behalf.

Source: Heera Ispat, AR ‘23

Here are some intriguing excerpts we’ve unearthed from the annual reports: not only has the company already incurred fines from BSE Ltd and a closer examination of the auditors’ opinions.


The company’s prolonged absence of revenue, coupled with the lack of a registered address and website, raises serious questions about its operational legitimacy. The ease with which the shares can be manipulated, given the significant public holding and modest market cap, poses a considerable risk.

The history of fines from BSE Ltd. and the auditors’ opinions further underscores the dubious nature of the company’s financial practices. In light of these red flags, prospective investors are strongly advised to exercise prudence and consider the high level of uncertainty and risk associated with investing in such shares.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.