MoneyWorks4Me

Check Before You Invest : Srinibas Pradhan Constructions Ltd

BSE: 0 NSE: SPCON ISIN: INE0TPJ01019
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Srinibas Pradhan Constructions Ltd belong to?
Srinibas Pradhan Constructions Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Srinibas Pradhan Constructions Ltd a good quality company?
Srinibas Pradhan Constructions 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 Srinibas Pradhan Constructions Ltd undervalued or overvalued?
Srinibas Pradhan Constructions Ltd appears Fair, as its key valuation ratios are in line with 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 3-year
Historic Median
Price to Earnings 14.84 20.92
Price to Book 2.96 3.29
Price to Sales 1.35 1.97
EV to EBITDA 9.16 13.87
Q.4 Is Srinibas Pradhan Constructions Ltd a good buy now?
Srinibas Pradhan Constructions Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd revenue growth is 154.3% for FY-2025, which is below its 3-year CAGR of 175.05%, indicating slower growth.

Q.2 Gross Profit margin of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.8% for FY-2025, which is in line with its 3-year median of 12.8%, indicating stable margins.

Q.3 Operating Profit Margin of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.76% for FY-2025, which is in line with its 3-year median of 14.76% indicating stable margins.

Q.4 Net Profit Margin of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Net Profit Margin is 7.34% for FY-2025, is in line with its 3-year median of 7.34%, indicating stable margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 12.8 12.8
Operating Profit Margin (%) 14.76 14.76
Net Profit Margin (%) 7.34 7.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Return on Asset is 17.2%, which is below its 3-year historical median of 26%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Return on capital employed is 49.47% for FY-2025, which is below its 3-year historical median of 81.81%. 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 Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Return on equity is 55.76% for FY-2025, which is below its 3-year historical median of 68.36%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Cash conversion cycle is 40 days, above its 3-year historical median of 20 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.34 2.58
ROE (%) 55.76 68.36
ROCE (%) 49.47 81.81
Cash Conversion Cycle 40 days 20 days

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

Q.9 Debt to Equity ratio of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Debt-to-Equity ratio is 1.08, which is above the industry average of 0.38, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Srinibas Pradhan Constructions Ltd?
Srinibas Pradhan Constructions Ltd Debt to cash flow from operations is -1.25, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Srinibas Pradhan Constructions Ltd?

Q.1 Promoter shareholding and pledge status of Srinibas Pradhan Constructions Ltd?
Promoters hold 62.10% of the Srinibas Pradhan Constructions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Srinibas Pradhan Constructions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Srinibas Pradhan Constructions Ltd vs industry peers?
Srinibas Pradhan Constructions Ltd revenue CAGR is 175.05%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 154.3 0
Gross Profit Growth (%) 140 38.7
Operating Profit Growth (%) 116.7 34
Net Profit Growth (%) 75 44.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.34 0.81
ROE (%) 55.76 11.78
ROCE (%) 49.47 15.38
Cash Conversion Cycle (days) 40.15 53

Valuation & price assessment

Q.1 Stock return of Srinibas Pradhan Constructions Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Srinibas Pradhan Constructions Ltd vs historical?
The current P/E ratio of 14.84 is lower than its historical median of 20.92, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 14.84 20.92 22.41
Price to Book 2.96 3.29 1.92
Price to Sales 1.35 1.97 1.65
EV to EBITDA 9.16 13.87 12.04

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