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Check Before You Invest : Shri Krishna Devcon Ltd

BSE: 531080 NSE: SHRIKRISH ISIN: INE997I01012
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Shri Krishna Devcon Ltd belong to?
Shri Krishna Devcon Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Shri Krishna Devcon Ltd a good quality company?
Shri Krishna Devcon Ltd is a weak quality company, based on a inconsistent 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 Shri Krishna Devcon Ltd undervalued or overvalued?
Shri Krishna Devcon Ltd appears Somewhat 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 20.37 21.30
Price to Book 1.34 1.15
Price to Sales 4.71 3.35
EV to EBITDA 14.62 15.12
Q.4 Is Shri Krishna Devcon Ltd a good buy now?
Shri Krishna Devcon 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 Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd revenue growth is 5.7% for FY-2025, which is below its 5-year CAGR of 9.59%, indicating slower growth.

Q.2 Gross Profit margin of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Gross profit margin which is the profit after deduction of direct costs, is 25.1% for FY-2025, which is in line with its 5-year median of 25.1%, indicating stable margins.

Q.3 Operating Profit Margin of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 33.4% for FY-2025, which is in line with its 5-year median of 33.4% indicating stable margins.

Q.4 Net Profit Margin of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Net Profit Margin is 18.3% for FY-2025, is in line with its 5-year median of 17.48%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 25.1 25.1
Operating Profit Margin (%) 33.4 33.4
Net Profit Margin (%) 18.3 17.48

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Return on Asset is 2.52%, which is above its 5-year historical median of 2.28%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Return on capital employed is 7.22% for FY-2025, which is in line with its 5-year historical median of 7.22%. 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 Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Return on equity is 5.85% for FY-2025, which is in line with its 5-year historical median of 5.6%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Cash conversion cycle is 1657 days, in line with its 5-year historical median of 1657 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) 0.14 0.13
ROE (%) 5.85 5.6
ROCE (%) 7.22 7.22
Cash Conversion Cycle 1657 days 1657 days

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

Q.9 Debt to Equity ratio of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Debt-to-Equity ratio is 0.45, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Shri Krishna Devcon Ltd?
Shri Krishna Devcon Ltd Debt to cash flow from operations is 3.84, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Shri Krishna Devcon Ltd?

Q.1 Promoter shareholding and pledge status of Shri Krishna Devcon Ltd?
Promoters hold 54.88% of the Shri Krishna Devcon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Shri Krishna Devcon Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Shri Krishna Devcon Ltd vs industry peers?
Shri Krishna Devcon Ltd revenue CAGR is 9.59%, 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 (%) 5.7 0
Gross Profit Growth (%) - 14.9
Operating Profit Growth (%) - 10.4
Net Profit Growth (%) 25 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.14 0.1
ROE (%) 5.85 1.36
ROCE (%) 7.22 3.88
Cash Conversion Cycle (days) 1657.05 439

Valuation & price assessment

Q.1 Stock return of Shri Krishna Devcon Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.1% 27% 23.6% 32.8%
Q.2 Valuation ratios of Shri Krishna Devcon Ltd vs historical?
The current P/E ratio of 20.37 is in line with than its historical median of 21.30, indicating that the stock is trading near 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 20.37 21.30 33.43
Price to Book 1.34 1.15 1.53
Price to Sales 4.71 3.35 5.23
EV to EBITDA 14.62 15.12 14.43

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