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INVESTMENT INSIGHTS

Check Before You Invest : SRM Contractors Ltd

BSE: 544158 NSE: SRM ISIN: INE0R6Z01013
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does SRM Contractors Ltd belong to?
SRM Contractors Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is SRM Contractors Ltd a good quality company?
SRM Contractors Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is SRM Contractors Ltd undervalued or overvalued?
SRM Contractors Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is SRM Contractors Ltd a good buy now?
SRM Contractors 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

Q.1 Revenue growth of SRM Contractors Ltd?
SRM Contractors Ltd revenue growth is 53.8% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of SRM Contractors Ltd?
SRM Contractors Ltd Gross profit margin which is the profit after deduction of direct costs, is 15.3% for FY-2025 , which is above its 5 year median of 11.3% , indicating increasing margins.
Q.3 Operating Profit Margin of SRM Contractors Ltd?
SRM Contractors Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 15.43% for FY-2025 , which is above its 5 year median of 12.75% indicating increasing margins.
Q.4 Net Profit Margin of SRM Contractors Ltd?
SRM Contractors Ltd Net Profit Margin is 9.53% for FY-2025 , is above with its 5 year median of 6.48%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 15.3 11.3
Operating Profit Margin 15.43 12.75
Net Profit Margin 9.53 6.48
Q.5 Return on Asset of SRM Contractors Ltd?
SRM Contractors Ltd Return on Asset is 16.04%, which is above its 5 year historical median of 14.04%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of SRM Contractors Ltd?
SRM Contractors Ltd Return on equity is 28.48% for FY-2025 , which is below its historical median of 29.61%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of SRM Contractors Ltd?
SRM Contractors Ltd Return on capital employed is 31.01% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of SRM Contractors Ltd?
SRM Contractors Ltd Cash conversion cycle is 22 days, above its historical median of 19 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.68 1.87
ROE 28.48 29.61
ROCE 31.01 28.24
Cash Conversion Cycle 22 days 19 days
Q.9 Debt to Equity ratio of SRM Contractors Ltd?
SRM Contractors Ltd Debt-to-Equity ratio is 0.15 , which is lower with the industry average of 0.37 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of SRM Contractors Ltd?
SRM Contractors Ltd Debt to cash flow from operations is 37.94 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of SRM Contractors Ltd?
Promoters hold 72.59% of the SRM Contractors Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of SRM Contractors Ltd vs industry peers?
SRM Contractors Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0% , indicating stable growth and maintaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 526.6 101.5
Gross Profit 80.6 5.2
Operating Profit 81 6
Net Profit 50 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.68 0.63
ROE 28.48 6.64
ROCE 31.01 11.13
Cash Conversion Cycle (days) 22.34 52

Valuation & price assessment

Q.1 Stock return of SRM Contractors Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 42.54% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - 42.5%
Q.3 Valuation ratios of SRM Contractors Ltd vs historical?
The current P/E is lower 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 15.69 22.18 27.03
Price to Book 3.67 3.15 1.70
Price to Sales 1.53 1.88 1.45
EV to EBITDA 8.71 11.73 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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