At a Glance
Active Infrastructure Ltd builds roads, bridges, and commercial buildings. FY25 profit hit ₹13 Cr on ₹90 Cr revenue — with 26% OPM. But debtor days just hit 212, working capital cycle is 368 days, and the stock is trading at a steep 27x P/E. Is this just infra-FOMO or real value?
1️⃣ Introduction with Hook
The name is Active Infrastructure.
The P/E is hyperactive.
The debtor cycle is lethargic.
And the promoter just offloaded 28.6% stake in a quarter.
In a sector known for slow payments and high execution risk, is Active Infra too small to matter… or small enough to scale?
2️⃣ WTF Do They Even Do?
- 👷 Founded: 2007
- 🏗️ Core Business:
- Infrastructure projects: Roads, bridges, flyovers, irrigation, water systems
- Commercial buildings: Offices, malls, institutions, exhibition spaces
- 🔧 Clients: Likely government and semi-private contracts
- 💼 Recent update: ₹10 Cr sub-consultancy order in water resources from Innovinc (June 2025)
They’re contractors with side quests in planning.
3️⃣ Financials – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹89 Cr | ₹97 Cr | ₹90 Cr ↓ |
| Net Profit | ₹10 Cr | ₹10 Cr | ₹13 Cr ⬆️ |
| OPM | 15% | 18% | 26% 🚀 |
| ROE | — | — | 13.6% |
| EPS | ₹14.6 | ₹8.5 | ₹6.3 ⬇️ on dilution |
⚠️ Sales are down YoY, profit up — but only because of margin spike, not volume. Caution: contract-driven profits are cyclical.
4️⃣ Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹170
- P/E: 26.9x
- Book Value: ₹74.4 → P/B = 2.28x
- Market Cap: ₹255 Cr
- FY25 PAT: ₹13 Cr
🎯 Fair Value Range:
Infra EPC companies (even efficient ones) typically trade at 10–15x earnings:
iniCopyEditFV = ₹6.3 (EPS) × 10–15 = ₹63 – ₹94.5/share
💥 Stock is trading 80–160% above its realistic range, unless it can double revenue soon.
5️⃣ What’s Cooking – News, Triggers, Drama
- 🧾 ₹10 Cr contract win in June
- 🧨 FY25 results under SEBI scrutiny (Reg 33 clarification sought)
- 🤐 Zero dividend
- 🚨 Promoter holding down 28.6% last quarter
- 🤝 No encumbrance disclosed — but not reassuring
The company is active… but so are the red flags.
6️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹8 Cr |
| Reserves | ₹104 Cr |
| Debt | ₹56 Cr (moderate) |
| Assets | ₹194 Cr |
| Fixed Assets | ₹31 Cr |
| Cash & Other Assets | ₹162 Cr |
🧾 Clean capex; most asset growth in receivables and other current assets.
7️⃣ Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | ₹18 Cr | -₹7 Cr | -₹11 Cr | ₹0 |
| FY24 | ₹32 Cr | -₹27 Cr | -₹5 Cr | ₹0 |
| FY25 | ₹5 Cr | -₹6 Cr | ₹63 Cr | ₹61 Cr |
📉 CFO is falling, funding is rising — could be pre-IPO or capex-led, but needs explanation. Also, 682 working capital days = time-bomb.
8️⃣ Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 15.5% ✅ |
| ROE | 13.6% ✅ |
| OPM | 26% ✅ |
| Debtor Days | 212 ❌ |
| Cash Conversion Cycle | 368 days ❌ |
| Promoter Pledge | 0% ✅ |
| Dividend Yield | 0% ❌ |
Long working capital cycles + no dividend + low promoter skin = watch your six.
9️⃣ P&L Breakdown – Show Me the Money
- Revenue: ₹90 Cr
- Operating Profit: ₹24 Cr
- Net Profit: ₹13 Cr
- Interest: ₹3 Cr
- Depreciation: ₹4 Cr
EBITDA margin is great. But project timing + receivables are eating up the gains. Infra accounting is always tricky.
🔟 Peer Comparison – Who Else Is in the Game?
| Company | P/E | ROE | Revenue | Market Cap |
|---|---|---|---|---|
| Brigade | 39.8x | 14.6% | ₹5,074 Cr | ₹27,114 Cr |
| Oberoi Realty | 32.2x | 14.7% | ₹5,286 Cr | ₹69,768 Cr |
| Active Infra | 26.9x | 13.6% | ₹90 Cr | ₹255 Cr |
🧨 The big boys are trading at similar P/Es — but doing 50x the revenue.
1️⃣1️⃣ Miscellaneous – Shareholding, Promoters
| Holder | Mar 2025 |
|---|---|
| Promoters | 71.36% ↓ |
| FIIs | 2.72% |
| Public | 25.92% |
| Promoter movement | -28.6% in just 1 quarter 👀 |
That’s either pre-IPO stake adjustment… or a warning.
🧠 EduInvesting Verdict™
🚧 Active Infra is like a low-budget NHAI contractor pitching at DLF valuations.
- ⚒️ Real work is being done
- 📊 But scale is small
- 📉 Sales declining
- 🔻 Promoter selling
- 🧾 Receivables choking liquidity
- 🧨 Stock trading at a rich 27x P/E
It’s not bad. It’s just already priced for perfect execution in an industry that’s anything but perfect.
🎯 Fair Value Range: ₹63 – ₹94
✍️ Written by Prashant | 📅 30 June 2025
Tags: Active Infrastructure Ltd, SME Infra Stocks, EPC Stocks, Promoter Exit, Working Capital Risk, Infra India, EduInvesting Deep Dive, Civil Construction, SME IPO Watch
