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Check Before You Invest : Giriraj Civil Developers Ltd

BSE: 0 NSE: GIRIRAJ ISIN: INE614Z01017
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Giriraj Civil Developers Ltd belong to?
Giriraj Civil Developers Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Giriraj Civil Developers Ltd a good quality company?
Giriraj Civil Developers 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 Giriraj Civil Developers Ltd undervalued or overvalued?
Giriraj Civil Developers 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 21.09 29.35
Price to Book 2.88 3.66
Price to Sales 1.28 1.65
EV to EBITDA 13.31 17.93
Q.4 Is Giriraj Civil Developers Ltd a good buy now?
Giriraj Civil Developers 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 Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd revenue growth is 118.8% for FY-2025, which is above its 5-year CAGR of 64.54%, indicating faster growth.

Q.2 Gross Profit margin of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.4% for FY-2025, which is above its 5-year median of 5.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.37% for FY-2025, which is in line with its 5-year median of 8.18% indicating stable margins.

Q.4 Net Profit Margin of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Net Profit Margin is 6.07% for FY-2025, is above its 5-year median of 4.74%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 7.4 5.8
Operating Profit Margin (%) 8.37 8.18
Net Profit Margin (%) 6.07 4.74

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Return on Asset is 7.77%, which is above its 5-year historical median of 4.75%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Return on capital employed is 20.32% for FY-2025, which is above its 5-year historical median of 14.04%. 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 Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Return on equity is 14.64% for FY-2025, which is above its 5-year historical median of 11.66%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Cash conversion cycle is 53 days, above its 5-year historical median of 50 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) 1.51 1.13
ROE (%) 14.64 11.66
ROCE (%) 20.32 14.04
Cash Conversion Cycle 53 days 50 days

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

Q.9 Debt to Equity ratio of Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Debt-to-Equity ratio is 0.13, 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 Giriraj Civil Developers Ltd?
Giriraj Civil Developers Ltd Debt to cash flow from operations is -2.67, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Giriraj Civil Developers Ltd?

Q.1 Promoter shareholding and pledge status of Giriraj Civil Developers Ltd?
Promoters hold 54.96% of the Giriraj Civil Developers Ltd, with 2.16% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Giriraj Civil Developers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Giriraj Civil Developers Ltd vs industry peers?
Giriraj Civil Developers Ltd revenue CAGR is 64.54%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 118.8 -
Gross Profit Growth (%) 85.7 17
Operating Profit Growth (%) 78.6 14
Net Profit Growth (%) 80 20.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.51 0.63
ROE (%) 14.64 6.16
ROCE (%) 20.32 10.5
Cash Conversion Cycle (days) 53.38 52

Valuation & price assessment

Q.1 Stock return of Giriraj Civil Developers Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 17.48% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 17.5% -6.7% -53.4%
Q.2 Valuation ratios of Giriraj Civil Developers Ltd vs historical?
The current P/E ratio of 21.09 is lower than its historical median of 29.35, 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 21.09 29.35 21.52
Price to Book 2.88 3.66 1.74
Price to Sales 1.28 1.65 1.51
EV to EBITDA 13.31 17.93 11.49

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