🔍 At a Glance
Giriraj Civil Developers started as a railway contractor in Maharashtra. It’s now a ₹595 Cr SME stock that grew revenue by 119% YoY and PAT by 92% in FY25. The company’s graduating from the SME platform to NSE & BSE mainboards – and investors are asking if this is the next PNC or the next pipe dream. With P/E of 33x and margins under pressure, let’s dig in (with a JCB).
🧩 1. WTF Do They Even Do?
Giriraj Civil is not laying roads for Adani or airports for Modi. It does the real Bharat infra:
🚉 Specialization in Railway Infra Construction:
- Railway station buildings
- Officer/residential buildings
- ROBs, FOBs, car sheds, yards
- Earthwork, track laying, railway bridges
🏘️ Also does:
- Local authority infra: roads, gardens, schools, halls
- Repair & maintenance contracts
📍 Active mostly in Maharashtra and nearby states.
🧠 It’s not glitzy. It’s not asset-heavy. But it’s been profitable, fast-growing, and lean.
📊 2. Financials – Profit, Margins, ROE
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 64 | 83 | 95 | 135 | 295 🚀 |
| EBITDA (₹ Cr) | 5 | 6 | 7 | 14 | 25 |
| PAT (₹ Cr) | 3 | 4 | 4 | 10 | 18 |
| OPM (%) | 8% | 7% | 8% | 11% | 8% |
| ROE (%) | 5% | 7% | 8% | 15% | 14.6% |
🧠 Key takeaway:
- Revenue and PAT have nearly tripled in 2 years
- Margins are average, but execution speed and low base helped scale
- ROE improved, but still lags Tier-1 infra peers
💸 3. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹249 |
| Market Cap | ₹595 Cr |
| P/E | 33.3x |
| P/B | 4.54x |
| EPS (FY25) | ₹7.47 |
| Book Value | ₹54.8 |
🎯 EduFair Value Range:
Assume sustainable EPS of ₹7.5
Assign P/E band of 18–25x for small profitable infra cos
➡️ Fair Value = ₹135 – ₹187
At ₹249, you’re paying premium for growth – and betting it scales post-mainboard listing.
🍿 4. What’s Cooking – News, Triggers, Drama?
🚨 Major Trigger: NSE Mainboard Migration
- Shareholders approved June 27, 2025
- Migration likely = better liquidity, FII entry, rerating chances
✅ FY25 PAT up 92% YoY
✅ Revenue up 119%
✅ Balance sheet stable, no scary debt
⚠️ No dividend payout yet
⚠️ Promoter holding has reduced from 69% → 51% in 3 years
🏦 5. Balance Sheet – How Much Debt, How Many Dreams?
| Year | Equity | Reserves | Debt | Total Assets |
|---|---|---|---|---|
| FY21 | ₹3 Cr | ₹27 Cr | ₹15 Cr | ₹76 Cr |
| FY24 | ₹24 Cr | ₹89 Cr | ₹10 Cr | ₹172 Cr |
| FY25 | ₹24 Cr | ₹107 Cr | ₹17 Cr | ₹291 Cr 🚧 |
- Debt is manageable at <₹20 Cr
- Networth doubled in 2 years
- Balance sheet expansion supports the infra pipeline story
💰 6. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net |
|---|---|---|---|---|
| FY23 | ₹(23) Cr | ₹14 Cr | ₹30 Cr | ₹12 Cr |
| FY24 | ₹(28) Cr | ₹(9) Cr | ₹4 Cr | ₹(0) Cr |
| FY25 | ₹(7) Cr | ₹2 Cr | ₹4 Cr | ₹(0.6) Cr |
🧠 Free cash flow is consistently negative, but expected in EPC businesses.
Receivables and working capital cycles eat up operating cash.
📏 7. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| OPM | 8% |
| NPM | 6.1% |
| ROE | 14.6% |
| ROCE | 20.3% |
| Debt/Equity | 0.16x |
| Interest Coverage | >5x |
👍 ROCE = ✅
👍 Debt-light = ✅
👎 Cash Flow = 🚧
👎 Margins = okay-ish
📈 8. P&L Breakdown – Show Me the Money
| Component | FY25 |
|---|---|
| Sales | ₹295 Cr |
| EBITDA | ₹25 Cr |
| Depreciation | ₹1 Cr |
| Interest | ₹3 Cr |
| PBT | ₹24 Cr |
| PAT | ₹18 Cr |
| EPS | ₹7.47 |
✅ Clean income statement
✅ No complex other income tricks
✅ No ESOP nonsense
🧠 Execution-heavy, no tech/IP moat — but profitable nonetheless
🧊 9. Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | Sales (Cr) | Mcap (Cr) |
|---|---|---|---|---|
| Giriraj | 33x | 14.6% | ₹295 | ₹595 |
| NBCC | 54x | 25.9% | ₹12,038 | ₹33,264 |
| Rail Vikas | 64x | 14% | ₹19,923 | ₹82,369 |
| KEC Intl | 42x | 12.1% | ₹21,846 | ₹24,119 |
| Kalpataru | 37x | 9.6% | ₹22,316 | ₹20,953 |
🧠 Giriraj trades at peer P/E multiples, despite being tiny in size. The rerating may be priced in.
👥 10. Shareholding – Promoters, Public, Trend
| Date | Promoter % | Public % |
|---|---|---|
| Mar 2020 | 59.6% | 40.4% |
| Sep 2022 | 69.2% | 30.8% |
| Mar 2025 | 51.1% | 48.9% 📈 |
- Promoters diluted by ~18% over 3 years
- Public + Retail holding ballooned ahead of mainboard move
- FII/Insti holding = negligible (but may change post NSE migration)
🧠 EduInvesting Verdict™
Giriraj Civil: The railway contractor that made its own tracks to NSE.
📈 Profitable ✔
📊 Growing fast ✔
🏦 Debt-light ✔
💸 Free cash missing ❌
🧾 Margin meh ❌
🏗️ Asset-light infra story ✔
It’s not the next L&T. But it could be a strong ₹500 Cr regional infra play with NSE migration acting as an optionality booster.
🎯 EduFair Value Range: ₹135 – ₹187
Current CMP: ₹249 = Fully priced, may rally on liquidity hype but fundamentals say wait.
Not a buy/sell reco. Just some good ol’ construction-site wisdom.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Giriraj Civil Developers, Railway Infra Stocks, SME to Mainboard, Civil Construction Stocks, EduInvesting, Infra Multibagger, NSE Migration
