1. At a Glance – Blink and You’ll Miss the Contradictions
Ganesh Infraworld is a 2017-born EPC player that has gone from being a subcontractor’s subcontractor to flashing ₹538 Cr FY25 revenue, ₹40 Cr PAT, and a ₹2,262 Cr order book—which is ~4.2× trailing sales. Market cap sits around ₹463 Cr, stock price has been beaten down from ₹280 to ~₹108, and valuation screams cheap with P/E ~9.7 when peers are chilling at 20–40x like it’s a Goa shack.
Margins? OPM ~10%, inching up every quarter. Debt? ₹74.8 Cr, manageable. Promoters? 59.38% holding, zero pledge (important, because EPC + pledge = horror movie).
But here’s the spice: despite strong execution numbers, the stock is down ~50% in 6 months. Why? Preferential issue drama, SME-to-mainboard jitters, and classic “smallcap EPC = trust issues”.
So is this a misunderstood compounder or just another order-book flex merchant? Let’s open the file.
2. Introduction – Smallcap EPCs: Where Dreams Meet Working Capital
Ganesh Infraworld operates in that dangerous Indian market zone where execution speed matters more than PowerPoint decks. This is not a brand-led L&T-style EPC. This is boots-on-ground, engineers-in-helmets, vendor-chasing, payment-follow-up EPC.
Founded in 2017, the company scaled aggressively post-COVID, riding India’s infra binge—roads, rails, water, industrial civil works—basically everything the government loves to announce before elections.
What separates Ganesh Infra from your average “EPC lottery ticket” is repeat clients (88% in H1 FY25) and a
steady shift from micro projects to ₹100+ Cr contracts. But what keeps investors awake at night is subcontractor dependence, working capital cycles, and order concentration risk.
So the real question isn’t growth. It’s quality of growth.
3. Business Model – WTF Do They Even Do?
Ganesh Infraworld is an integrated EPC execution company, not a developer.
They operate via:
- Item-rate contracts (paid per unit of work)
- Percentage-rate / schedule contracts (cost-plus-ish)
Translation:
👉 Low asset ownership
👉 Medium margins
👉 High execution risk
👉 Cash flow discipline required (otherwise game over)
Business Segments
- Civil & Electrical Infrastructure
- Industrial buildings, plants, warehouses
- Power infrastructure
- This is the cash cow (~69% FY24 revenue)
- Road & Rail Infrastructure
- Roads, highways
- Railway OHE systems
- Execution-heavy, margin-sensitive
- Water Infrastructure
- Har Ghar Jal projects
- Long O&M tails but slow payments
This is a volume game, not a margin flex.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Quarterly
