š¢At a Glance
SRM Contractors Ltd is an infrastructure company that specializes in roads, bridges, tunnels, and slope stabilizationāespecially in Indiaās most treacherous terrains like J&K, Ladakh, and Arunachal. With a 5-year profit CAGR of 69% and ROCE of 31%, this stock has quietly become a multibagger since IPO. But is it still worth climbing?
šŖ 1. Introduction with Hook
From mountain passes to investor dashboards, SRM is climbing fast.
While most infra companies are stuck waiting for payments or approval files to move, SRM Contractors is sprinting across Indiaās most unstable terraināliterally. Be it tunnels in the Himalayas or roads across riverbeds, these guys are building infrastructure where Google Maps doesnāt dare to go.
And itās paying off. The stock is up171% in the past year, and with FY25 PAT jumping126% YoY, the Street is finally noticing this ā¹1,100 Cr microcap.
šļø 2. WTF Do They Even Do? (Business Model)
SRM Contractors is an EPC and HAM contractor that specializes in:
- Roads & Bridges(including complex hilly
- terrains)
- Tunnels(a big deal in J&K and Northeast India)
- Slope Stabilization(think landslide prevention, not HR conflict resolution)
- Flood Control & Irrigation Projects
- Housing & Drainage Worksfor government agencies
š§ Fun fact:Most of their projects come from tough states where very few infra players are willing to operate. That means less competition and better pricing power.
š° 3. Financials Overview ā Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (ā¹ Cr) | 161 | 264 | 300 | 342 | 527 |
| EBITDA (ā¹ Cr) | 18 | 30 | 38 | 42 | 81 |
| Net Profit (ā¹ Cr) | 8 | 18 | 19 | 22 | 50 |
| ROCE | ā | 37% | 33% | 25% | 31% |
| ROE | ā | 29% | 27% | 26% | 25.6% |
| OPM | 11% | 11% | 13% | 12% | 15% |
š5-Year CAGR:
- Revenue:30%+
- PAT:69%
- EPS (TTM):ā¹21.86
This isnāt just high growthāitās high growthwith discipline.
šø 4. Valuation ā Is It Cheap, Meh, or Crack?
- CMP:ā¹494
- Market Cap:ā¹1,132 Cr
- P/E (TTM):22.6
- Book Value:ā¹116
- P/B:4.26
š§®EduFair Value Rangeā¢: ā¹460 ā ā¹580
Based on 20ā25x
