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INVESTMENT INSIGHTS

Check Before You Invest : Shah Construction Company Ltd

BSE: 509870 NSE: ISIN: INE02C301011
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Shah Construction Company Ltd belong to?
Shah Construction Company Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Shah Construction Company Ltd a good quality company?
Shah Construction Company Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Shah Construction Company Ltd undervalued or overvalued?
Shah Construction Company Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Shah Construction Company Ltd a good buy now?
Shah 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 Shah Construction Company Ltd?
Shah Construction Company Ltd revenue growth is 32.5% for FY-2025 , which is above its 5 year CAGR of -3.2% , indicating faster growth.
Q.2 Gross Profit margin of Shah Construction Company Ltd?
Shah Construction Company Ltd Gross profit margin which is the profit after deduction of direct costs, is -68.8% for FY-2025 , which is above its 5 year median of -101.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Shah Construction Company Ltd?
Shah Construction Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -1.61% for FY-2025 , which is above its 5 year median of -18.99% indicating increasing margins.
Q.4 Net Profit Margin of Shah Construction Company Ltd?
Shah Construction Company Ltd Net Profit Margin is -72.47% for FY-2025 , is above with its 5 year median of -107.28%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin -68.8 -101.6
Operating Profit Margin -1.61 -18.99
Net Profit Margin -72.47 -107.28
Q.5 Return on Asset of Shah Construction Company Ltd?
Shah Construction Company Ltd Return on Asset is -3.3%, which is above its 5 year historical median of -4.23%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Shah Construction Company Ltd?
Shah Construction Company Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Shah Construction Company Ltd?
Shah Construction Company Ltd Return on capital employed is 20.62% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Shah Construction Company Ltd?
Shah Construction Company Ltd Cash conversion cycle is 2145 days, below its historical median of 2694 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.05 0.04
ROE - -
ROCE 20.62 18.11
Cash Conversion Cycle 2145 days 2694 days
Q.9 Debt to Equity ratio of Shah Construction Company Ltd?
Shah Construction Company Ltd Debt-to-Equity ratio is -1.12 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Shah Construction Company Ltd?
Shah Construction Company Ltd Debt to cash flow from operations is -17.64 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Shah Construction Company Ltd?
Promoters hold 74.60% of the Shah Construction Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Shah Construction Company Ltd vs industry peers?
Shah Construction Company Ltd revenue CAGR is -3.22% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 3.7 103.6
Gross Profit -2.6 5.2
Operating Profit -0.1 6
Net Profit -2.7 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.05 0.63
ROE - 6.64
ROCE 20.62 11.13
Cash Conversion Cycle (days) 2145.09 51

Valuation & price assessment

Q.1 Stock return of Shah Construction Company Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 1.5% 2% 3.3% -
Q.3 Valuation ratios of Shah Construction Company Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 27.03
Price to Book -0.01 -0.01 1.70
Price to Sales 0.28 0.39 1.45
EV to EBITDA 57.82 72.45 11.36

Check more companies

1. IRB Infra.&Developer
2. Kalpataru Projects
3. KEC International
4. Techno Electric &Eng
5. Ircon International
6. Engineers India
7. Afcons Infra
8. Waaree Renewables
9. Cemindia Projects
10. NCC
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