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Check Before You Invest : Expo Engineering And Projects Ltd

BSE: 526614 NSE: ISIN: INE561D01025
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Expo Engineering And Projects Ltd belong to?
Expo Engineering And Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Expo Engineering And Projects Ltd a good quality company?
Expo Engineering And Projects 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 Expo Engineering And Projects Ltd undervalued or overvalued?
Expo Engineering And Projects 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 5-year
Historic Median
Price to Earnings 38.92 33.47
Price to Book 4.51 1.48
Price to Sales 1.7 0.39
EV to EBITDA 20.26 11.30
Q.4 Is Expo Engineering And Projects Ltd a good buy now?
Expo Engineering And Projects 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 Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd revenue growth is 51.6% for FY-2025, which is above its 5-year CAGR of 18.49%, indicating faster growth.

Q.2 Gross Profit margin of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.4% for FY-2025, which is above its 5-year median of 2.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.26% for FY-2025, which is in line with its 5-year median of 7.62% indicating stable margins.

Q.4 Net Profit Margin of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Net Profit Margin is 2.77% for FY-2025, is above its 5-year median of 0.82%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.4 2.1
Operating Profit Margin (%) 7.26 7.62
Net Profit Margin (%) 2.77 0.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Return on Asset is 3.96%, which is above its 5-year historical median of 0.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Return on capital employed is 12.83% for FY-2025, which is above its 5-year historical median of 8.17%. 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 Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Return on equity is 12% for FY-2025, which is above its 5-year historical median of 2.7%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Cash conversion cycle is 126 days, below its 5-year historical median of 174 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.68 1.13
ROE (%) 12 2.7
ROCE (%) 12.83 8.17
Cash Conversion Cycle 126 days 174 days

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

Q.9 Debt to Equity ratio of Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Debt-to-Equity ratio is 0.98, 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 Expo Engineering And Projects Ltd?
Expo Engineering And Projects Ltd Debt to cash flow from operations is 5.71, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Expo Engineering And Projects Ltd?

Q.1 Promoter shareholding and pledge status of Expo Engineering And Projects Ltd?
Promoters hold 56.95% of the Expo Engineering And Projects Ltd, with 0.77% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Expo Engineering And Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Expo Engineering And Projects Ltd vs industry peers?
Expo Engineering And Projects Ltd revenue CAGR is 18.49%, 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 (%) 51.6 0
Gross Profit Growth (%) 150 16.3
Operating Profit Growth (%) 33.3 13.9
Net Profit Growth (%) 200 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.68 0.62
ROE (%) 12 6.32
ROCE (%) 12.83 10.58
Cash Conversion Cycle (days) 125.75 51

Valuation & price assessment

Q.1 Stock return of Expo Engineering And Projects Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.6% 59.2% 74.9% 11%
Q.2 Valuation ratios of Expo Engineering And Projects Ltd vs historical?
The current P/E ratio of 38.92 is higher than its historical median of 33.47, indicating that the stock is trading above 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 38.92 33.47 21.52
Price to Book 4.51 1.48 1.74
Price to Sales 1.7 0.39 1.51
EV to EBITDA 20.26 11.30 11.49

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