The curious case of a company that sells both toys and three-wheelers

In our 30 years of researching the Indian market, we have spotlighted some quality companies and some that make most investors pinch their noses. But recently, we discovered a company that warrants its own category - The jack of all trades but master of none. Introducing OK Play India , a small-cap company that manufactures toys. However, it is also present in commercial vehicle fuel tanks and electric three-wheelers. Surprised? We were, too. The markets though are loving this eccentric diversification. The stock has grown nearly 3x in two years! The euphoria is also visible in its mind-boggling 348 times price-to-earnings ratio . Our initial research left us with more questions than answers. Are we missing something? Is the market aware of some secrets? Is it giving free toys with its electric three-wheelers? So, we decided to dive into the books of this bizarre company. What we found left us bewildered. Projections or pipedreams? If you thought only politicians make promises bordering on pipedreams, fasten your seatbelts. OK Play believes it can double its revenue from the toy segment every year for the next five years! Not only that, but it also expects its electric three-wheeler and commercial vehicle tank segment to grow 15 to 20 per cent annually. While we're not saying it's impossible, its historical performance does not work in its favour. A history of losses It has incurred losses in four of the last five financial years FY24 FY23