Check Before You Invest : K2 Infragen Ltd

Q: Which industry/sub-sector does K2 Infragen Ltd belong to?

K2 Infragen Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q: Is K2 Infragen Ltd a good quality company?

K2 Infragen 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: Is K2 Infragen Ltd undervalued or overvalued?

K2 Infragen 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. Price to Earnings, Current: 5.86, Historic Median: 8.17. Price to Book, Current: 0.89, Historic Median: 2.46. Price to Sales, Current: 0.47, Historic Median: 0.90. EV to EBITDA, Current: 4.84, Historic Median: 5.52

Q: Is K2 Infragen Ltd a good buy now?

K2 Infragen 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

Q: Gross Profit margin of K2 Infragen Ltd?

K2 Infragen Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.7% for FY-2025, which is in line with its 5-year median of 11.7%, indicating stable margins.

Q: Operating Profit Margin of K2 Infragen Ltd?

K2 Infragen Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.7% for FY-2025, which is in line with its 5-year median of 12.7% indicating stable margins.

Q: Net Profit Margin of K2 Infragen Ltd?

K2 Infragen Ltd Net Profit Margin is 7.94% for FY-2025, is in line with its 5-year median of 7.94%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 11.7, Historic Median: 11.7. Operating Profit Margin (%), Current: 12.7, Historic Median: 12.7. Net Profit Margin (%), Current: 7.94, Historic Median: 7.94

Q: Return on Asset of K2 Infragen Ltd?

K2 Infragen Ltd Return on Asset is 8.27%, which is in line with its 5-year historical median of 8.27%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of K2 Infragen Ltd?

K2 Infragen Ltd Return on capital employed is 17.99% for FY-2025, which is in line with its 5-year historical median of 17.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q: Return on Equity (ROE) of K2 Infragen Ltd?

K2 Infragen Ltd Return on equity is 21.51% for FY-2025, which is below its 5-year historical median of 26.76%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : K2 Infragen Ltd

Snapshot

Q.1 Which industry/sub-sector does K2 Infragen Ltd belong to?

K2 Infragen Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is K2 Infragen Ltd a good quality company?

K2 Infragen 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 K2 Infragen Ltd undervalued or overvalued?

K2 Infragen 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	5-year Historic Median
Price to Earnings	5.86	8.17
Price to Book	0.89	2.46
Price to Sales	0.47	0.90
EV to EBITDA	4.84	5.52

Q.4 Is K2 Infragen Ltd a good buy now?

K2 Infragen 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.

Q.1 Gross Profit margin of K2 Infragen Ltd?

K2 Infragen Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.7% for FY-2025, which is in line with its 5-year median of 11.7%, indicating stable margins.

Q.2 Operating Profit Margin of K2 Infragen Ltd?

K2 Infragen Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.7% for FY-2025, which is in line with its 5-year median of 12.7% indicating stable margins.

Q.3 Net Profit Margin of K2 Infragen Ltd?

K2 Infragen Ltd Net Profit Margin is 7.94% for FY-2025, is in line with its 5-year median of 7.94%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	11.7	11.7
Operating Profit Margin (%)	12.7	12.7
Net Profit Margin (%)	7.94	7.94

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of K2 Infragen Ltd?

K2 Infragen Ltd Return on Asset is 8.27%, which is in line with its 5-year historical median of 8.27%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of K2 Infragen Ltd?

K2 Infragen Ltd Return on capital employed is 17.99% for FY-2025, which is in line with its 5-year historical median of 17.99%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of K2 Infragen Ltd?

K2 Infragen Ltd Return on equity is 21.51% for FY-2025, which is below its 5-year historical median of 26.76%, indicating the business is making worse use of its shareholders capital.

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

Q.7 Debt to Equity ratio of K2 Infragen Ltd?

K2 Infragen Ltd Debt-to-Equity ratio is 0.72, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of K2 Infragen Ltd?

K2 Infragen Ltd Debt to cash flow from operations is -1.28, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of K2 Infragen Ltd?

Q.1 Promoter shareholding and pledge status of K2 Infragen Ltd?

Promoters hold 40.70% of the K2 Infragen Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does K2 Infragen Ltd performance compare with that of its Peers?

Q.1 Revenue growth of K2 Infragen Ltd vs industry peers?

K2 Infragen Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	-
Gross Profit Growth (%)	-8.7	17
Operating Profit Growth (%)	-12	14
Net Profit Growth (%)	-6.8	20.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.04	0.63
ROE (%)	21.51	6.16
ROCE (%)	17.99	10.5
Cash Conversion Cycle (days)	131.52	52

Valuation & price assessment

Q.1 Stock return of K2 Infragen Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of -23.28% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-23.3%

Q.2 Valuation ratios of K2 Infragen Ltd vs historical?

The current P/E ratio of 5.86 is lower than its historical median of 8.17, 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	5.86	8.17	21.52
Price to Book	0.89	2.46	1.74
Price to Sales	0.47	0.90	1.51
EV to EBITDA	4.84	5.52	11.49

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Check Before You Invest : K2 Infragen Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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