At a Glance
Twamev Construction, once buried under debt and delays, has pulled off a surprise FY25 profit of ₹56 Cr — driven partly by ₹35 Cr in “other income.” With high debtor days, a 5-year sales decline, and a surprise earnings spike, the market is still trying to figure out: Is this a real infra turnaround or just bridge-to-nowhere accounting?
1. 🧨 Introduction: A Civil Rebound or Financial Jugaad?
Twamev Construction (formerly Tantia Infra) is one of those infra stocks that existed for decades, made some flyovers, and then vanished into oblivion.
But FY25? Profit of ₹56 Cr
Market Cap? ₹404 Cr
P/E? 4.12x
ROE? 35.6%
Suddenly, everyone’s asking:
“Is this the next Capex multibagger?”
But dig deeper and the cracks start showing. Because while the earnings look like Ambani, the revenue still looks like a local PWD contractor.
2. 🏗️ WTF Do They Even Do?
- Sector: Civil Infrastructure
- Backed by: Tantia Group
- Business lines include:
- 🚆 Railways
- 🛣️ Roads & Highways
- 🌉 Bridges & Flyovers
- 🧱 Urban Infrastructure
- ⚡ Power, 🛳️ Marine, ✈️ Aviation
- 🏗️ Ready Mix Concrete (RMC)
So they’re basically a one-stop contractor for any public work where NHAI, IRCON, or NBCC has budget.
But past execution issues and bad debt management meant they missed India’s last infra boom. Is this time different?
3. 📊 Financials: From Potholes to Profit?
| Year | Sales (₹ Cr) | Net Profit (₹ Cr) | OPM % | ROCE | ROE |
|---|---|---|---|---|---|
| FY23 | ₹94 Cr | -₹2 Cr | -11% | 0.00% | – |
| FY24 | ₹53 Cr | -₹22 Cr | -10% | -1% | – |
| FY25 | ₹85 Cr | ₹56 Cr | 33% | 17.2% | 35.6% |
🤨 How did a company with declining sales swing to ₹56 Cr in profit?
🧾 Because ₹34.7 Cr came from “Other Income.”
That’s over 60% of total FY25 profit.
4. 💸 Valuation – PE Looks Cheap, But So Does the Trick
| Metric | Value |
|---|---|
| Market Cap | ₹404 Cr |
| CMP | ₹26.5 |
| P/E | 4.12x |
| Book Value | ₹19.6 |
| P/B | 1.35x |
Looks cheap?
Maybe.
But once you strip out “other income” and see the -9% sales CAGR over 5 years, it’s not really undervalued — it’s “under growth.”
5. 🔥 What’s Cooking?
- 📉 Stock is down 51% in 1 year
- 📈 But reported a 1146% YoY Q4 profit jump in March 2025
- 📜 OFS notice dropped in June 2025 — promoter may be offloading at peak
- 🧾 FY25 earnings call hinted at:
- Revival in infra projects
- Focus on debt rationalization
- Better receivables discipline (lol sure)
6. 🧾 Balance Sheet: Still Heavy
| FY | Equity (₹ Cr) | Reserves (₹ Cr) | Debt (₹ Cr) | CWIP (₹ Cr) |
|---|---|---|---|---|
| FY23 | ₹16 | ₹232 | ₹334 | ₹422 |
| FY25 | ₹16 | ₹288 | ₹339 | ₹422 |
So yes, debt remains stubborn. Reserves have grown… mostly due to one fat other income line.
Still carrying ₹422 Cr in Capital Work In Progress.
That’s either a mega project in progress or a warehouse full of old invoices.
7. 💰 Cash Flow: Yeh Infra Hai Ya Illusion?
| FY | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY24 | -₹35 | ₹16 | ₹8 | -₹12 |
| FY25 | -₹4 | ₹0 | ₹3 | -₹2 |
CFO has remained negative or weak despite FY25 profits.
This means money is being “earned on paper”, not in the bank.
8. 📈 Ratios – Sexy on Surface, Stressy Underneath
- ROE (FY25): 35.6% 💥
- ROCE (FY25): 17.2% ✅
- Debtor Days: 193 😬
- Inventory Days: 697 😱
- Cash Conversion Cycle: 470 days ❌
So while they’ve booked profit, actual cash recovery is a long-term hope.
9. 💸 P&L Breakdown
| Year | Sales | Other Income | EBITDA | Net Profit |
|---|---|---|---|---|
| FY23 | ₹94 Cr | ₹14 Cr | -₹10 Cr | -₹2 Cr |
| FY24 | ₹53 Cr | -₹9 Cr | -₹5 Cr | -₹22 Cr |
| FY25 | ₹85 Cr | ₹35 Cr | ₹28 Cr | ₹56 Cr |
Basically:
🧮 Infra margin + 🔮 Other income = 📈 Boom
Remove other income = 📉 Meh
10. ⚔️ Peer Comparison
| Company | CMP (₹) | P/E | ROE (%) | Sales (₹ Cr) | Mcap/Sales |
|---|---|---|---|---|---|
| L&T | ₹3583 | 32.3 | 16.5 | ₹2.5 L Cr | ~1.9x |
| IRB Infra | ₹49.5 | 29.9 | 5.9 | ₹7,613 Cr | ~0.4x |
| NBCC | ₹117.5 | 52.0 | 25.9 | ₹12,039 Cr | ~2.6x |
| Twamev Infra | ₹26.5 | 4.1 | 35.6 | ₹85 Cr | 4.7x |
So yes, the mcap/sales is already above L&T, despite sales being 1/300th.
11. 👥 Shareholding – Promoter in Control
| Category | Jun ’23 | Mar ’25 |
|---|---|---|
| Promoters | 58.6% | 94.32% |
| Public | 41.4% | 5.67% |
That’s right.
Promoters now hold 94.32%.
Retail? Almost locked out.
Which makes price movements… suspiciously smooth.
12. 🪓 Misc: OFS + Floor Price Clue
📰 On 27 June, company issued a Notice of Offer for Sale (OFS).
That means:
- Promoters may be trimming stake
- Likely to meet SEBI’s minimum public shareholding norms
🚨 This is often when operator-fueled stocks dump liquidity on unsuspecting retail.
13. 🧠 EduInvesting Verdict™
Twamev is that classic infra stock with a:
- 📉 Long-term downtrend in sales
- 📈 Sudden “turnaround” thanks to accounting magic
- 🤫 94% promoter holding (aka liquidity black hole)
- 🔁 Repeated past of losses and balance sheet stress
Is it improving? Maybe.
Is it a clean, consistent infra compounder? Not yet.
At best, it’s a speculative bet on infra orders and debt reduction actually happening.
At worst, it’s a financial stunt show dressed up in contractor khakis.
💰 Fair Value Range: ₹12 – ₹20/share
Why?
- Based on 8–10x on core earnings only (excluding other income)
- High debtor days + no cash flow = valuation discount
- Also adjusting for low float and potential OFS supply
✍️ Written by Prashant | 📅 July 3, 2025
Tags: Twamev Construction, Tantia Infra, infra stocks, other income red flags, low float stocks, operator stocks, EduInvesting
