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Check Before You Invest : Meghna Infracon Infrastructure Ltd

BSE: 538668 NSE: ISIN: INE898Q01015
  |   Sector:  BFSI   |   Industry:  Finance - Stock Broking

Snapshot

Q.1 Which industry/sub-sector does Meghna Infracon Infrastructure Ltd belong to?
Meghna Infracon Infrastructure Ltd belongs to the BFSI sector, operating specifically within the Finance - Stock Broking segment.
Q.2 Is Meghna Infracon Infrastructure Ltd a good quality company?
Meghna Infracon Infrastructure 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 Meghna Infracon Infrastructure Ltd undervalued or overvalued?
Meghna Infracon Infrastructure Ltd appears Overvalued, as its key valuation ratios are higher 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 225.17 129.16
Price to Book 64.69 20.33
Price to Sales 357.09 13.60
EV to EBITDA 208.22 113.24
Q.4 Is Meghna Infracon Infrastructure Ltd a good buy now?
Meghna Infracon 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 Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd revenue growth is -73.4% for FY-2025, which is below its 5-year CAGR of -8.96%, indicating slower growth.

Q.2 Gross Profit margin of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Gross profit margin which is the profit after deduction of direct costs, is 72.6% for FY-2025, which is above its 5-year median of 6.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.07% for FY-2025, which is above its 5-year median of 2.43% indicating increasing margins.

Q.4 Net Profit Margin of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Net Profit Margin is 65.87% for FY-2025, is above its 5-year median of 6.01%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 72.6 6.3
Operating Profit Margin (%) 18.07 2.43
Net Profit Margin (%) 65.87 6.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Return on Asset is 49.2%, which is above its 5-year historical median of 4.5%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Return on capital employed is 54.9% for FY-2025, which is above its 5-year historical median of 9%. 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 Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Return on equity is 52.6% for FY-2025, which is above its 5-year historical median of 14.4%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Cash conversion cycle is 159 days, in line with its 5-year historical median of 159 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.75 1.04
ROE (%) 52.6 14.4
ROCE (%) 54.9 9
Cash Conversion Cycle 159 days 159 days

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

Q.9 Debt to Equity ratio of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Debt-to-Equity ratio is 0.04, which is lower the industry average of 0.05, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Meghna Infracon Infrastructure Ltd?
Meghna Infracon Infrastructure Ltd Debt to cash flow from operations is 0.05, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Meghna Infracon Infrastructure Ltd?

Q.1 Promoter shareholding and pledge status of Meghna Infracon Infrastructure Ltd?
Promoters hold 47.01% of the Meghna Infracon Infrastructure Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Meghna Infracon Infrastructure Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Meghna Infracon Infrastructure Ltd vs industry peers?
Meghna Infracon Infrastructure Ltd revenue CAGR is -8.96%, compared to the industry median CAGR of 16.32%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -73.4 16.3
Gross Profit Growth (%) 233.3 24.7
Operating Profit Growth (%) 200 36
Net Profit Growth (%) 200 24.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.75 0.26
ROE (%) 52.6 7.6
ROCE (%) 54.9 10.2
Cash Conversion Cycle (days) 158.79 -82

Valuation & price assessment

Q.1 Stock return of Meghna Infracon Infrastructure Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 63.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
63.3% 178.5% 123.5% 50.2%
Q.2 Valuation ratios of Meghna Infracon Infrastructure Ltd vs historical?
The current P/E ratio of 225.17 is higher than its historical median of 129.16, 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 225.17 129.16 19.96
Price to Book 64.69 20.33 1.64
Price to Sales 357.09 13.60 5.31
EV to EBITDA 208.22 113.24 6.93

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