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Check Before You Invest : Bhanderi Infracon Ltd

BSE: 538576 NSE: ISIN: INE336Q01016
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Bhanderi Infracon Ltd belong to?
Bhanderi Infracon Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Bhanderi Infracon Ltd a good quality company?
Bhanderi Infracon Ltd is a quality company, based on a 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 Bhanderi Infracon Ltd undervalued or overvalued?
Bhanderi Infracon Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 39.09 66.81
Price to Book 1.42 1.47
Price to Sales 41.78 31.55
EV to EBITDA 32.32 50.11
Q.4 Is Bhanderi Infracon Ltd a good buy now?
Bhanderi Infracon 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 Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd revenue growth is 40.3% for FY-2025, which is above its 5-year CAGR of -30.69%, indicating faster growth.

Q.2 Gross Profit margin of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Gross profit margin which is the profit after deduction of direct costs, is 139.1% for FY-2025, which is above its 5-year median of 66.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -3.45% for FY-2025, which is below its 5-year median of 4% indicating decreasing margins.

Q.4 Net Profit Margin of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Net Profit Margin is 106.9% for FY-2025, is above its 5-year median of 51.35%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 139.1 66.7
Operating Profit Margin (%) -3.45 4
Net Profit Margin (%) 106.9 51.35

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Return on Asset is 3.03%, which is above its 5-year historical median of 1.38%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Return on capital employed is 4.26% for FY-2025, which is above its 5-year historical median of 2.18%. 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 Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Return on equity is 3.69% for FY-2025, which is above its 5-year historical median of 1.67%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Cash conversion cycle is 8942 days, above its 5-year historical median of 7681 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.03 0.04
ROE (%) 3.69 1.67
ROCE (%) 4.26 2.18
Cash Conversion Cycle 8942 days 7681 days

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

Q.9 Debt to Equity ratio of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Debt-to-Equity ratio is 0.11, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Bhanderi Infracon Ltd?
Bhanderi Infracon Ltd Debt to cash flow from operations is -2.75, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Bhanderi Infracon Ltd?

Q.1 Promoter shareholding and pledge status of Bhanderi Infracon Ltd?
Promoters hold 56.98% of the Bhanderi Infracon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bhanderi Infracon Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Bhanderi Infracon Ltd vs industry peers?
Bhanderi Infracon Ltd revenue CAGR is -30.69%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 40.3 0
Gross Profit Growth (%) 86.2 14.9
Operating Profit Growth (%) -275 10.4
Net Profit Growth (%) 126.8 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.03 0.1
ROE (%) 3.69 1.36
ROCE (%) 4.26 3.88
Cash Conversion Cycle (days) 8941.74 439

Valuation & price assessment

Q.1 Stock return of Bhanderi Infracon Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 0.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
0.7% 1.7% 2.8% 17.2%
Q.2 Valuation ratios of Bhanderi Infracon Ltd vs historical?
The current P/E ratio of 39.09 is lower than its historical median of 66.81, indicating that the stock is trading below its historical average valuation.
Q.3 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 39.09 66.81 33.43
Price to Book 1.42 1.47 1.53
Price to Sales 41.78 31.55 5.23
EV to EBITDA 32.32 50.11 14.43

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