Crown Lifters was founded in 1984 by Shri Kamruddin V. Jaria as a partnership firm engaged in crane rental business. The company represents a generational handover, with the founder’s family members joining as partners in 1986 and continuing to manage operations today. Crown Lifters is a professional construction equipment rental company specializing in crane leasing and heavy equipment hiring. The company serves blue-chip clients including Reliance Industries, Larsen & Turbo, BHEL, Ultratech Cement, and Tata Projects.
- Crown Lifters Limited reports that the lifespan of their cranes generally ranges from 18 to 30 years.
- Regarding depreciation, Crown Lifters Limited uses the straight-line method (SLM) for depreciation.
- Rental yields range from 30% to 36% for their owned cranes, and lower margins for subcontracted cranes (10% for smaller ones, 5-6% for larger ones) .
- The sale of some older cranes which contributes to reducing the average age of their fleet
- Crown Lifters Limited currently operates a fleet of 34 active cranes, out of which 24 are owned cranes, and the remaining 10 are subcontracted.
- Looking ahead to FY26, the company anticipates another promising year with plans to maintain similar CAPEX targets, in the range of INR 60 crores.
- Crown Lifters Limited consistently achieves a fleet utilization rate of over 90%
- June 2024 includes a one time profit of 12.5 crore which derives from asset sale .
NOTES : The working model of the crown filter is good . They work on a monthly billing cycle ,however they do not stop renting cranes in case of payment delay as big companies’ operation and payment often get delayed due to approvals and government payments . So more or less revenue is certain and margin will increase with capacity addition . Right now their margin is 59% but let’s assume it to maintain between 40-50% in next few quarters. Right now they are working on 90% capacity utilization .Considering all these points , current valuation of 170 cr at PE 15.8 seems reasonable .