Ceigall India Limited

1

Founded in 2002, Ceigall India Limited is an infrastructure construction company with expertise in specialized structural projects, including elevated roads, flyovers, bridges, railway overpasses, tunnels, highways, expressways, and runways.[1]

Key Points [ edit ]

Business Profile [1] Ceigall has expertise in constructing state and national highways, specialized structures such as elevated corridors, bridges, flyovers, and rail over-bridges, along with maintenance of highways

Business Model [1] Their operations comprise EPC and HAM projects across 10 Indian states. It also handles independent and contractual O&M projects and subcontracts. In FY24, revenue was 66.05% from EPC, 26.34% from HAM, and 0.32% from O&M.[2]

Project Details [3] The company has completed over 34 projects, including 16 EPC, 1 HAM, 5 O&M, and 12 Item Rate projects in the roads and highways sector. Currently, it has 18 ongoing projects, comprising 13 EPC and 5 HAM projects.

Rapid Growth & Transition [1] They have grown at a CAGR of 50.13% between FY21 and FY24. Over the last two decades, the company has transitioned from a small construction firm to an established EPC player, showcasing expertise in the design and construction of various road and highway projects, including specialized structures.

Enhanced Bidding Capabilities [3] The company is eligible to bid for single NHAI EPC projects up to Rs 5,700 crore and single NHAI HAM projects up to Rs 5,500 crore. Additionally, it is empaneled with the Delhi Metro Rail Corporation Limited for upcoming tenders.

Clientelle [4] Since its inception, Ceigall has executed numerous projects with the Public Works Department (PWD) in Punjab, the National Highways Authority of India, and the Ministry of Road Transport and Highways (MoRTH) through tenders. Other notable public sector clients include IRCON, Military Engineer Services (MES), and Bihar State Road Development Corporation Limited (BSRDCL).

Geographical Revenue Bifurcation [5]

  • Punjab: 51%
  • Jammu and Kashmir: 14%
  • Haryana: 9%
  • Himachal Pradesh: 1%
  • Maharashtra: 1%
  • Bihar: 1%
  • Uttar Pradesh: 23%

Strong Order Book [6] Their order backlog stood at Rs 9470.84 crore as of June 30, 2024. This is 3.13 times the FY2024 revenue. As of June 30, 2024, projects awarded by NHAI contributed 80.31% to the Order Book

1 Like
2

Company has just received an additional order approx 1000 crore from Kanpur Central Bus Terminal and the Bhubaneswar Metro project.

Please update any red flag against the company or promotors.

2 Likes
3

Just on a high level analysis, I saw that the cash conversion cycle is negative, however, the operating cashflow is also negative (-211 cr) even after profit from operations of 523 cr. Happy to hear your thoughts if I am missing something.

image
image1767×593 45.8 KB

image
image1756×541 38.3 KB

2 Likes
5

Please read forum guidelines properly before initiating a thread.
https://forum.valuepickr.com/faq

To nurture a vibrant community ValuePickr does not restrict anyone from starting a thread on a stock of his/her choice. Only Caveat is if you are going to introduce a discussion on a stock, we expect you to do your homework and start the thread with some basic info-set, and 1st level analysis such as growth drivers, a few positives & negatives, immediate triggers if any, and enumerate some RISKS. Nothing very heavy is required, but enough to set the tone for 2nd level of discussions.

Thread initiators are usually alerted to edit their post, and make necessary changes before thread is opened up again. So you/colleague and look to edit the post in order to meet prescribed guidelines. We have the responsibility - especially the thread initiator (assumption is he/she is a savvy investor) - to cater to bringing everyone on same page - quickly - if you know what we mean.

1 Like