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Check Before You Invest : Prerna Infrabuild Ltd

BSE: 531802 NSE: ISIN: INE426H01014
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Prerna Infrabuild Ltd belong to?
Prerna Infrabuild Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Prerna Infrabuild Ltd a good quality company?
Prerna Infrabuild 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 Prerna Infrabuild Ltd undervalued or overvalued?
Prerna Infrabuild 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 25.81 14.34
Price to Book 0.8 1.02
Price to Sales 18.44 5.09
EV to EBITDA 13.61 8.99
Q.4 Is Prerna Infrabuild Ltd a good buy now?
Prerna Infrabuild 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 Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd revenue growth is -78.7% for FY-2025, which is below its 5-year CAGR of -12.22%, indicating slower growth.

Q.2 Gross Profit margin of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Gross profit margin which is the profit after deduction of direct costs, is 36.8% for FY-2025, which is above its 5-year median of 32.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -31.4% for FY-2025, which is below its 5-year median of 20.16% indicating decreasing margins.

Q.4 Net Profit Margin of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Net Profit Margin is 26.46% for FY-2025, is in line with its 5-year median of 25.29%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 36.8 32.7
Operating Profit Margin (%) -31.4 20.16
Net Profit Margin (%) 26.46 25.29

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Return on Asset is 1.2%, which is below its 5-year historical median of 5.62%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Return on capital employed is 1.69% for FY-2025, which is below its 5-year historical median of 7.83%. 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 Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Return on equity is 1.32% for FY-2025, which is below its 5-year historical median of 6.99%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Cash conversion cycle is 2307 days, above its 5-year historical median of 736 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.05 0.26
ROE (%) 1.32 6.99
ROCE (%) 1.69 7.83
Cash Conversion Cycle 2307 days 736 days

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

Q.9 Debt to Equity ratio of Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Debt-to-Equity ratio is 0.00, 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 Prerna Infrabuild Ltd?
Prerna Infrabuild Ltd Debt to cash flow from operations is 0.01, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Prerna Infrabuild Ltd?

Q.1 Promoter shareholding and pledge status of Prerna Infrabuild Ltd?
Promoters hold 72.58% of the Prerna Infrabuild Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Prerna Infrabuild Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Prerna Infrabuild Ltd vs industry peers?
Prerna Infrabuild Ltd revenue CAGR is -12.22%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -78.7 0
Gross Profit Growth (%) -73.7 14.9
Operating Profit Growth (%) -133.3 10.4
Net Profit Growth (%) -74.3 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.05 0.1
ROE (%) 1.32 1.36
ROCE (%) 1.69 3.88
Cash Conversion Cycle (days) 2307.41 439

Valuation & price assessment

Q.1 Stock return of Prerna Infrabuild Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 2.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
2.7% 14.6% 0.5% -9.1%
Q.2 Valuation ratios of Prerna Infrabuild Ltd vs historical?
The current P/E ratio of 25.81 is higher than its historical median of 14.34, 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 25.81 14.34 33.43
Price to Book 0.8 1.02 1.53
Price to Sales 18.44 5.09 5.23
EV to EBITDA 13.61 8.99 14.43

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