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Check Before You Invest : AB Infrabuild Ltd

BSE: 544281 NSE: ABINFRA ISIN: INE00YB01025
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does AB Infrabuild Ltd belong to?
AB Infrabuild Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is AB Infrabuild Ltd a good quality company?
AB Infrabuild Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is AB Infrabuild Ltd undervalued or overvalued?
AB Infrabuild Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 46.87 29.52
Price to Book 5.77 3.05
Price to Sales 3.86 1.69
EV to EBITDA 22.66 16.39
Q.4 Is AB Infrabuild Ltd a good buy now?
AB Infrabuild Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of AB Infrabuild Ltd?
AB Infrabuild Ltd revenue growth is 13.3% for FY-2025, which is below its 5-year CAGR of 26.75%, indicating slower growth.

Q.2 Gross Profit margin of AB Infrabuild Ltd?
AB Infrabuild Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.4% for FY-2025, which is above its 5-year median of 7.3%, indicating increasing margins.

Q.3 Operating Profit Margin of AB Infrabuild Ltd?
AB Infrabuild Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.87% for FY-2025, which is above its 5-year median of 10.31% indicating increasing margins.

Q.4 Net Profit Margin of AB Infrabuild Ltd?
AB Infrabuild Ltd Net Profit Margin is 7.74% for FY-2025, is above its 5-year median of 6.12%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.4 7.3
Operating Profit Margin (%) 15.87 10.31
Net Profit Margin (%) 7.74 6.12

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of AB Infrabuild Ltd?
AB Infrabuild Ltd Return on Asset is 7.99%, which is above its 5-year historical median of 6.67%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of AB Infrabuild Ltd?
AB Infrabuild Ltd Return on capital employed is 18.02% for FY-2025, which is in line with its 5-year historical median of 18.02%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of AB Infrabuild Ltd?
AB Infrabuild Ltd Return on equity is 16.88% for FY-2025, which is in line with its 5-year historical median of 16.88%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of AB Infrabuild Ltd?
AB Infrabuild Ltd Cash conversion cycle is 125 days, in line with its 5-year historical median of 125 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.03 1.03
ROE (%) 16.88 16.88
ROCE (%) 18.02 18.02
Cash Conversion Cycle 125 days 125 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of AB Infrabuild Ltd?
AB Infrabuild Ltd Debt-to-Equity ratio is 0.78, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of AB Infrabuild Ltd?
AB Infrabuild Ltd Debt to cash flow from operations is -3.64, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of AB Infrabuild Ltd?

Q.1 Promoter shareholding and pledge status of AB Infrabuild Ltd?
Promoters hold 30.95% of the AB Infrabuild Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does AB Infrabuild Ltd performance compare with that of its Peers?

Q.1 Revenue growth of AB Infrabuild Ltd vs industry peers?
AB Infrabuild Ltd revenue CAGR is 26.75%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 13.3 0
Gross Profit Growth (%) 47.4 16.3
Operating Profit Growth (%) 37.5 13.9
Net Profit Growth (%) 45.5 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.03 0.62
ROE (%) 16.88 6.32
ROCE (%) 18.02 10.58
Cash Conversion Cycle (days) 124.91 51

Valuation & price assessment

Q.1 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 46.87 29.52 21.52
Price to Book 5.77 3.05 1.74
Price to Sales 3.86 1.69 1.51
EV to EBITDA 22.66 16.39 11.49
Q.2 Stock return of AB Infrabuild Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 19.22% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 19.2% -26.4% 54.2%
Q.3 Valuation ratios of AB Infrabuild Ltd vs historical?
The current P/E ratio of 46.87 is higher than its historical median of 29.52, indicating that the stock is trading above its historical average valuation.

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