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Check Before You Invest : Globe Civil Projects Ltd

BSE: 544424 NSE: GLOBECIVIL ISIN: INE0V3U01015
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Globe Civil Projects Ltd belong to?
Globe Civil Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Globe Civil Projects Ltd a good quality company?
Globe Civil 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 Globe Civil Projects Ltd undervalued or overvalued?
Globe Civil Projects Ltd appears 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 3-year
Historic Median
Price to Earnings 12.12 14.95
Price to Book 1.25 1.59
Price to Sales 0.84 1.10
EV to EBITDA 6.95 8.07
Q.4 Is Globe Civil Projects Ltd a good buy now?
Globe Civil Projects 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 Globe Civil Projects Ltd?
Globe Civil Projects Ltd revenue growth is 10.5% for FY-2025, which is below its 3-year CAGR of 18.37%, indicating slower growth.

Q.2 Gross Profit margin of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.4% for FY-2025, which is above its 3-year median of 8.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.55% for FY-2025, which is above its 3-year median of 15.14% indicating increasing margins.

Q.4 Net Profit Margin of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Net Profit Margin is 7.38% for FY-2025, is above its 3-year median of 5.21%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 11.4 8.3
Operating Profit Margin (%) 16.55 15.14
Net Profit Margin (%) 7.38 5.21

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Return on Asset is 7.12%, which is above its 3-year historical median of 5.54%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Return on capital employed is 23.19% for FY-2025, which is in line with its 3-year historical median of 23.19%. 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 Globe Civil Projects Ltd?
Globe Civil Projects Ltd Return on equity is 26.14% for FY-2025, which is above its 3-year historical median of 21.93%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Cash conversion cycle is 198 days, above its 3-year historical median of 170 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) 0.96 0.96
ROE (%) 26.14 21.93
ROCE (%) 23.19 23.19
Cash Conversion Cycle 198 days 170 days

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

Q.9 Debt to Equity ratio of Globe Civil Projects Ltd?
Globe Civil Projects Ltd Debt-to-Equity ratio is 1.39, 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 Globe Civil Projects Ltd?
Globe Civil Projects Ltd Debt to cash flow from operations is -13.28, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Globe Civil Projects Ltd?

Q.1 Promoter shareholding and pledge status of Globe Civil Projects Ltd?
Promoters hold 63.41% of the Globe Civil Projects Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Globe Civil Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Globe Civil Projects Ltd vs industry peers?
Globe Civil Projects Ltd revenue CAGR is 18.37%, 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 (%) 10.5 15.9
Gross Profit Growth (%) 48 40.5
Operating Profit Growth (%) 20 34.4
Net Profit Growth (%) 60 53.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.96 0.82
ROE (%) 26.14 11.66
ROCE (%) 23.19 14.75
Cash Conversion Cycle (days) 198.29 53

Valuation & price assessment

Q.1 Stock return of Globe Civil Projects Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Globe Civil Projects Ltd vs historical?
The current P/E ratio of 12.12 is lower than its historical median of 14.95, indicating that the stock is trading below 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 12.12 14.95 22.41
Price to Book 1.25 1.59 1.92
Price to Sales 0.84 1.10 1.65
EV to EBITDA 6.95 8.07 12.04

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