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Check Before You Invest : Active Infrastructures Ltd

BSE: 0 NSE: ACTIVEINFR ISIN: INE0KLO01025
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Active Infrastructures Ltd belong to?
Active Infrastructures Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Active Infrastructures Ltd a good quality company?
Active Infrastructures Ltd is a weak quality company, based on a inconsistent 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 Active Infrastructures Ltd undervalued or overvalued?
Active Infrastructures Ltd appears 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 3-year
Historic Median
Price to Earnings 47.79 44.88
Price to Book 2.55 2.40
Price to Sales 7.53 7.08
EV to EBITDA 28.51 26.74
Q.4 Is Active Infrastructures Ltd a good buy now?
Active Infrastructures Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Active Infrastructures Ltd?
Active Infrastructures Ltd revenue growth is -38.7% for FY-2025, which is below its 3-year CAGR of 220.07%, indicating slower growth.

Q.2 Gross Profit margin of Active Infrastructures Ltd?
Active Infrastructures Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.8% for FY-2025, which is above its 3-year median of 17.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Active Infrastructures Ltd?
Active Infrastructures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.59% for FY-2025, which is above its 3-year median of 17.39% indicating increasing margins.

Q.4 Net Profit Margin of Active Infrastructures Ltd?
Active Infrastructures Ltd Net Profit Margin is 15.77% for FY-2025, is above its 3-year median of 12.94%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 20.8 17.5
Operating Profit Margin (%) 19.59 17.39
Net Profit Margin (%) 15.77 12.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Active Infrastructures Ltd?
Active Infrastructures Ltd Return on Asset is 6.23%, which is below its 3-year historical median of 9.08%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Active Infrastructures Ltd?
Active Infrastructures Ltd Return on capital employed is 9.16% for FY-2025, which is below its 3-year historical median of 12.94%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Active Infrastructures Ltd?
Active Infrastructures Ltd Return on equity is 8.6% for FY-2025, which is below its 3-year historical median of 34.61%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Active Infrastructures Ltd?
Active Infrastructures Ltd Cash conversion cycle is 466 days, above its 3-year historical median of 424 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 0.4 0.78
ROE (%) 8.6 34.61
ROCE (%) 9.16 12.94
Cash Conversion Cycle 466 days 424 days

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

Q.9 Debt to Equity ratio of Active Infrastructures Ltd?
Active Infrastructures Ltd Debt-to-Equity ratio is 0.07, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Active Infrastructures Ltd?
Active Infrastructures Ltd Debt to cash flow from operations is 1, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Active Infrastructures Ltd?

Q.1 Promoter shareholding and pledge status of Active Infrastructures Ltd?
Promoters hold 73.31% of the Active Infrastructures Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Active Infrastructures Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Active Infrastructures Ltd vs industry peers?
Active Infrastructures Ltd revenue CAGR is 220.07%, compared to the industry median CAGR of 15.92%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) -38.7 15.9
Gross Profit Growth (%) -20 40.5
Operating Profit Growth (%) -30 34.4
Net Profit Growth (%) -25 53.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.4 0.82
ROE (%) 8.6 11.66
ROCE (%) 9.16 14.75
Cash Conversion Cycle (days) 466.46 53

Valuation & price assessment

Q.1 Stock return of Active Infrastructures Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 6.47% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 6.5%
Q.2 Valuation ratios of Active Infrastructures Ltd vs historical?
The current P/E ratio of 47.79 is higher than its historical median of 44.88, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 47.79 44.88 22.41
Price to Book 2.55 2.40 1.92
Price to Sales 7.53 7.08 1.65
EV to EBITDA 28.51 26.74 12.04

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