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Check Before You Invest : Max Heights Infrastructure Ltd

BSE: 534338 NSE: ISIN: INE393F01010
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Max Heights Infrastructure Ltd belong to?
Max Heights Infrastructure Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Max Heights Infrastructure Ltd a good quality company?
Max Heights Infrastructure 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 Max Heights Infrastructure Ltd undervalued or overvalued?
Max Heights Infrastructure 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 19.47 17.38
Price to Book 0.61 0.93
Price to Sales 2.56 5.01
EV to EBITDA 14.24 41.90
Q.4 Is Max Heights Infrastructure Ltd a good buy now?
Max Heights Infrastructure 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 Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd revenue growth is -79.4% for FY-2025, which is below its 5-year CAGR of 5.41%, indicating slower growth.

Q.2 Gross Profit margin of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Gross profit margin which is the profit after deduction of direct costs, is -4.3% for FY-2025, which is below its 5-year median of 6.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -0.55% for FY-2025, which is below its 5-year median of 20% indicating decreasing margins.

Q.4 Net Profit Margin of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Net Profit Margin is -8.73% for FY-2025, is below its 5-year median of 3.46%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) -4.3 6.4
Operating Profit Margin (%) -0.55 20
Net Profit Margin (%) -8.73 3.46

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Return on Asset is -1.06%, which is below its 5-year historical median of 0.77%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Return on capital employed is -0.5% for FY-2025, which is below its 5-year historical median of 2.55%. 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 Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Return on equity is -1.22% for FY-2025, which is below its 5-year historical median of 0.94%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Cash conversion cycle is 1677 days, below its 5-year historical median of 2281 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) 0.12 0.13
ROE (%) -1.22 0.94
ROCE (%) -0.5 2.55
Cash Conversion Cycle 1677 days 2281 days

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

Q.9 Debt to Equity ratio of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Debt-to-Equity ratio is 0.21, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Max Heights Infrastructure Ltd?
Max Heights Infrastructure Ltd Debt to cash flow from operations is -1.01, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Max Heights Infrastructure Ltd?

Q.1 Promoter shareholding and pledge status of Max Heights Infrastructure Ltd?
Promoters hold 54.15% of the Max Heights Infrastructure Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Max Heights Infrastructure Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Max Heights Infrastructure Ltd vs industry peers?
Max Heights Infrastructure Ltd revenue CAGR is 5.41%, 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 (%) -79.4 0
Gross Profit Growth (%) -130.3 14.9
Operating Profit Growth (%) -108.6 10.4
Net Profit Growth (%) -229 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.12 0.1
ROE (%) -1.22 1.36
ROCE (%) -0.5 3.88
Cash Conversion Cycle (days) 1677.5 439

Valuation & price assessment

Q.1 Stock return of Max Heights Infrastructure Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -13% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-13% 2% -46.9% -17.4%
Q.2 Valuation ratios of Max Heights Infrastructure Ltd vs historical?
The current P/E ratio of 19.47 is higher than its historical median of 17.38, 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 19.47 17.38 33.43
Price to Book 0.61 0.93 1.53
Price to Sales 2.56 5.01 5.23
EV to EBITDA 14.24 41.90 14.43

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