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Check Before You Invest : A2Z Infra Engineering Ltd

BSE: 533292 NSE: A2ZINFRA ISIN: INE619I01012
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does A2Z Infra Engineering Ltd belong to?
A2Z Infra Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is A2Z Infra Engineering Ltd a good quality company?
A2Z Infra Engineering 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 A2Z Infra Engineering Ltd undervalued or overvalued?
A2Z Infra Engineering 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 5-year
Historic Median
Price to Earnings 16.92 -
Price to Book -700.86 2.09
Price to Sales 3.29 2.58
EV to EBITDA 114.3 -4.12
Q.4 Is A2Z Infra Engineering Ltd a good buy now?
A2Z Infra Engineering Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd revenue growth is -43.6% for FY-2025, which is below its 5-year CAGR of -33.92%, indicating slower growth.

Q.2 Gross Profit margin of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.3% for FY-2025, which is above its 5-year median of -41.7%, indicating increasing margins.

Q.3 Operating Profit Margin of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -9.41% for FY-2025, which is above its 5-year median of -44.26% indicating increasing margins.

Q.4 Net Profit Margin of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Net Profit Margin is -2.17% for FY-2025, is above its 5-year median of -44.26%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.3 -41.7
Operating Profit Margin (%) -9.41 -44.26
Net Profit Margin (%) -2.17 -44.26

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Return on Asset is -0.26%, which is above its 5-year historical median of -5.33%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Return on capital employed is 3.56% for FY-2025, which is above its 5-year historical median of -4.74%. 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 A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Return on equity is -37.55% for FY-2025, which is above its 5-year historical median of -93.07%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Cash conversion cycle is -926 days, below its 5-year historical median of -329 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.12 0.12
ROE (%) -37.55 -93.07
ROCE (%) 3.56 -4.74
Cash Conversion Cycle -926 days -329 days

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

Q.9 Debt to Equity ratio of A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Debt-to-Equity ratio is 24.22, 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 A2Z Infra Engineering Ltd?
A2Z Infra Engineering Ltd Debt to cash flow from operations is 1.67, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of A2Z Infra Engineering Ltd?

Q.1 Promoter shareholding and pledge status of A2Z Infra Engineering Ltd?
Promoters hold 28.14% of the A2Z Infra Engineering Ltd, with 99.68% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does A2Z Infra Engineering Ltd performance compare with that of its Peers?

Q.1 Revenue growth of A2Z Infra Engineering Ltd vs industry peers?
A2Z Infra Engineering Ltd revenue CAGR is -33.92%, 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 (%) -43.6 0
Gross Profit Growth (%) 0 16.3
Operating Profit Growth (%) 0 13.9
Net Profit Growth (%) 0 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.12 0.62
ROE (%) -37.55 6.32
ROCE (%) 3.56 10.58
Cash Conversion Cycle (days) -926.29 51

Valuation & price assessment

Q.1 Stock return of A2Z Infra Engineering Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-4.5% 31.2% 35.7% 28%
Q.2 Valuation ratios of A2Z Infra Engineering Ltd vs historical?
The current P/E ratio of 16.92 is higher than its historical median of , 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 16.92 - 21.52
Price to Book -700.86 2.09 1.74
Price to Sales 3.29 2.58 1.51
EV to EBITDA 114.3 -4.12 11.49

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