Suspicious auditor, dodgy website: Dissecting this micro-cap's phoney 7x revenue jump

Few tales in the stock market are as startling as that of Pressure Sensitive Systems (India), a micro-cap adhesive industrial tape manufacturer that briefly dazzled investors before collapsing under the weight of its improbabilities. The company, which had spent over a decade in obscurity, consistently reporting almost negligible revenues, suddenly began posting extraordinary financial performance a few years ago. Only for the remarkable story to unravel recently. Here's a timeline of its zero-to-hero-to-again-zero saga and the red flags the market could have spotted early on: The dubious origins The gala began in Q4 FY23. Pressure Sensitive Systems shocked the market with revenue of Rs 41.09 crore in the quarter, after years of negligible income. A gobsmacking net profit margin of 94 per cent was no less jolting. The stock took off, rallying fivefold between July 2022 and March 2023. The momentum didn't stop there. In FY24, the company's revenue multiplied sevenfold! If the sudden stream of income after years of near-zero business wasn't enough of a red flag, the reasons it cited for this meteoric rise should have raised eyebrows. On a wild ride Company's financials have seen giant fluctuations over the last few years Quarter Revenue (Rs cr) Profit after tax (Rs cr) PAT margins (%) September 2024 5.5 1.0 18.4 June 2024 1.1 0.0 0.3 March 2024 70.8