Check Before You Invest : Goel Construction Company Ltd

Snapshot

Q.1 Which industry/sub-sector does Goel Construction Company Ltd belong to?

Goel Construction Company Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Goel Construction Company Ltd a good quality company?

Goel Construction Company Ltd is a average quality company, based on a somewhat consistent 4-year financial track record.

Q.3 Is Goel Construction Company Ltd undervalued or overvalued?

Goel Construction Company Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Goel Construction Company Ltd a good buy now?

Goel Construction Company 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

Q.1 Revenue growth of Goel Construction Company Ltd?

Goel Construction Company Ltd revenue growth is 52.8% for FY-2025, which is above its 3-year CAGR of 42%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Goel Construction Company Ltd?

Goel Construction Company Ltd Return on capital employed is 38.53% for FY-2025, which is above its 3-year historical median of 29.76%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Goel Construction Company Ltd?

Goel Construction Company Ltd Return on Asset is 15.82%, which is above its 3-year historical median of 10.67%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Goel Construction Company Ltd?

Goel Construction Company Ltd Return on equity is 34.09% for FY-2025, which is above its 3-year historical median of 27.63%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Goel Construction Company Ltd?

Goel Construction Company Ltd Cash conversion cycle is 3 days, below its 3-year historical median of 24 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	3-year Historic Median
Asset Turnover	2.87	2.15
ROE	34.09	27.63
ROCE	38.53	29.76
Cash Conversion Cycle	3 days	24 days

Q.6 Gross Profit margin of Goel Construction Company Ltd?

Goel Construction Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.5% for FY-2025, which is above its 3-year median of 8%, indicating increasing margins.

Q.7 Operating Profit Margin of Goel Construction Company Ltd?

Goel Construction Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.83% for FY-2025, which is in line with its 3-year median of 9.41% indicating stable margins.

Q.8 Net Profit Margin of Goel Construction Company Ltd?

Goel Construction Company Ltd Net Profit Margin is 6.5% for FY-2025, is above with its 3-year median of 5.87%, indicating increasing margins.

	Current Level	3-year Historic Median
Gross Profit Margin	8.5	8
Operating Profit Margin	9.83	9.41
Net Profit Margin	6.5	5.87

Q.9 Debt to Equity ratio of Goel Construction Company Ltd?

Goel Construction Company Ltd Debt-to-Equity ratio is 0.22, which is lower with the industry average of 0.41, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Goel Construction Company Ltd?

Goel Construction Company Ltd Debt to cash flow from operations is 0.75, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Goel Construction Company Ltd?

Promoters hold 71.83% of the Goel Construction Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Goel Construction Company Ltd vs industry peers?

Goel Construction Company Ltd revenue CAGR is 42.00%, compared to the industry median CAGR of 19.09%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	3-year Industry Median
Revenue Growth	52.8	19.1
Gross Profit Growth	63.9	38.2
Operating Profit Growth	61.1	32.6
Net Profit Growth	65.2	52.7

Operating Efficiency

	Current Level	3-year Industry Median
Asset Turnover	2.87	0.85
ROE	34.09	15
ROCE	38.53	15.97
Cash Conversion Cycle (days)	3.21	56

Valuation & price assessment

Q.1 Stock return of Goel Construction Company Ltd over the last decade?

Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-

Q.3 Valuation ratios of Goel Construction Company Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	12.5	11.55	22.41
Price to Book	2.25	2.05	1.92
Price to Sales	0.81	0.75	1.67
EV to EBITDA	7.26	6.68	12.09

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