1. At a Glance
Simplex Infra, a 100-year-old civil contractor, is in the middle of a turnaround drama that makes soap operas look dull. Stock at ₹307, P/E at 596, ROCE at 0.44%—basically, it’s running on hope, debt conversions, and a prayer.
2. Introduction with Hook
Imagine a veteran marathon runner now gasping for breath but still trying to sprint past newbies. That’s Simplex. Two hard truths:
- Debt pile once ₹7,000 Cr, now being chipped away
- Promoter stake down to 36.9% (confidence leak?)
3. Business Model (WTF Do They Even Do?)
Simplex builds everything—roads, ports, metros, power plants. EPC contracts across transport, energy, mining, marine, and real estate. Think L&T, but with fewer resources, thinner margins, and way more headaches.
4. Financials Overview
- FY25 Revenue: ₹1,076 Cr (down from ₹1,874 Cr FY23)
- Net Profit: ₹12 Cr (after years of losses)
- OPM: 2% (ouch)
- Market Cap: ₹2,363 Cr
The financials look like a post-storm construction site—messy but salvageable.
5. Valuation
- P/E: 596 (logic took a coffee break)
- CMP/BV: 3.9x
Fair Value Range: ₹80–₹120 unless growth or order book skyrockets.
6. What’s Cooking – News, Triggers, Drama
- Loan-to-equity conversions: ICICI Bank, NARCL took shares recently.
- Preferential issues at ₹289 to Quant MF and others.
- Turnaround hope post debt restructuring.
- Contingent liabilities of ₹966 Cr (gulp).
The drama includes banks, funds, and legacy debt skeletons.
7. Balance Sheet
| Particulars | FY24 | FY25 |
|---|---|---|
| Assets | ₹10,414 Cr | ₹4,339 Cr |
| Liabilities | ₹10,194 Cr | ₹3,829 Cr |
| Borrowings | ₹7,180 Cr | ₹2,174 Cr |
| Net Worth | ₹231 Cr | ₹523 Cr |
Liabilities halved thanks to conversions, but still a long road.
8. Cash Flow – Sab Number Game Hai
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | ₹-432 Cr | ₹-83 Cr | ₹208 Cr |
| Investing CF | ₹206 Cr | ₹2 Cr | ₹-24 Cr |
| Financing CF | ₹259 Cr | ₹83 Cr | ₹-127 Cr |
Positive operating cash in FY25—a small light at the end of a very dark tunnel.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 1.05% |
| ROCE | 0.44% |
| P/E | 596 |
| D/E | ~4x (still high) |
| PAT Margin | 1.1% |
Stress levels higher than a civil engineer’s site inspection.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹1,874 Cr | ₹12 Cr | ₹-471 Cr |
| FY24 | ₹1,388 Cr | ₹30 Cr | ₹-72 Cr |
| FY25 | ₹1,076 Cr | ₹23 Cr | ₹12 Cr |
A rare positive PAT in FY25—thanks to exceptional income, not core ops.
11. Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| L&T | 255,734 | 15,224 | 31 |
| Rail Vikas | 19,923 | 1,281 | 59 |
| NBCC | 12,038 | 610 | 48 |
| Simplex Infra | 1,076 | 12 | 596 |
Simplex is like the underdog in an IPL team—popular for the wrong reasons.
12. Miscellaneous – Shareholding, Promoters
- Promoter holding: 36.9% (falling)
- Public holding: 59%
- FIIs & DIIs: negligible
- Banks: now equity holders post loan conversions
13. EduInvesting Verdictâ„¢
Simplex is fighting a tough battle—deleveraging, restructuring, and rebuilding. Stock is priced for a heroic comeback that’s not guaranteed. High risk, high drama, low sleep.
Written by EduInvesting Team | 27 July 2025
Tags: Simplex Infrastructures, Debt Restructuring, Turnaround Stock, Civil Engineering Sector, Edu Style Analysis, Premium Research
