Ratio Summary
Market Cap ₹ 338 Cr.
Current Price ₹ 276
Stock P/E 19.8 (as on 9 June 2025)
ROCE 29.3 %
Qtr Sales Var 185 %
Qtr Profit Var 221 %
Pledged percentage 0.00 %
Debt To Profit 3.21
What got my attention was the YoY Profit surge of 221%.
Possible red flags are increase in receivables and debt.
So, I started studying the company - how long can the growth sustain or was this just a one off event.
So, the company was listed recently on January 5, 2024. The issue is entirely a fresh issue of 29.50 lakh shares of ₹15.93 crores. That is the first positive sign, no FPO, entirely a fresh issue. The whole money is going in our company.It is an SME IPO.
The company is mainly EPC contractor. Such companies need lots of working capital for growth. And it has got it from IPO.
According to company presentation dated 12 May, 2025, The organisation specializing in EPC projects dedicated to power sector. Here are the screenshots from the presentation pointing out to the growth:
And here is the picture of their Factory that I clicked from outside, I have seen the construction happening when it was being constructed:
Here are the highlights from May 13, 2025 concall:
on question why cash flow is negative:
Lokendra Jain: Your first is why cash flow is negative. The main reason for this is the deposit which is released from tender it goes into the big orders because our order book is getting increased regularly. And the payment from the government is normally 60%, full payment is not received until the contact gets closed. So money goes into retention, it goes into receivable.
He further points out to his efforts to remedy:
Lokendra Jain: We have done QIP now. With this, we will try to make the cash flow positive. We have done QIP that is why. We have raised Rs. 25 crore through QIP.
The company is hopeful of moving up in the value chain:
Lokendra Jain: Sir, we do Rs. 100 crores, Rs. 150 crores. Means Rs. 150 crore is a single tender; we will apply for tenders worth Rs. 500 crores, Rs. 700 crores in next six months.
The company is Rajasthan Focussed and will remain so in the near future:
Reena: Sir, my next question is basically now you are operating in Rajasthan and as you told that good business is going here so is there any plan in any other area?
Lokendra Jain: No, we work in other area as well. We work in Haryana as well. We are also doing some work in UP. These are on small scale. We are also working in railway in Balaghat, Kerala. These are small contracts. We try to take big contracts in Rajasthan.
The turnover target for this year is between Rs. 275 crore to Rs. 300 crore and let us see how much we will achieve.
For the year ending March 2025, the turnover was 153 crores. 275 - 300 crores means nearly double possibility of growth.