🔍 At a Glance

Ceigall India is not another NBCC. It builds bridges, highways, rail overpasses, tunnels – and even runways. But here’s the twist: it’s growing like crazy, profitable, and yet burning cash faster than Noida’s roads get relaid. At a ₹4,600 Cr market cap, it’s the newest smallcap infra darling… but is this L&T-in-the-making or just another EPC sugar rush?

🧱 Business Model – WTF Do They Even Do?

Ceigall = hardcore EPC contractor. Business lines include:

• 🛣️ Highways & Expressways (Core EPC + HAM)
• 🌉 Bridges, Flyovers & Tunnels
• 🚧 Rail Overbridges
• 🛬 Runways (for defense and airports)
• 🛠️ Maintenance contracts (steady annuity cash flows incoming)

They bag contracts from NHAI, PWDs, Railways, and State Infra bodies. Think HG Infra but with tighter execution timelines and a higher operating margin.

📊 Financials Snapshot

📈 This is what EPC dreams are made of – 4x revenue in 4 years, and margins >15% = elite execution.
But read on… the balance sheet has its own punchlines.

💰 Valuation – Cheap, Reasonable, or Crack?

🧠 Compared to other EPC players like HG Infra (P/E 12–14), KNR (P/E 15), and IRB (P/E ~30 with toll income), Ceigall is fairly valued. Not cheap. Not crack. Just clean EPC vibes.

🔥 What’s Cooking – Orders, Events & Drama

• 🛣️ ₹1,199 Cr Ayodhya Bypass HAM project appointed date: July 2025
• 🏁 Completion certificate received for ₹127 Cr Punjab PWD road
• ⚖️ ₹6.2 Cr arbitration award won in DRB dispute
• 📞 2024–25 had 6+ earnings con-calls – management is very vocal, which is rare for smallcap EPCs

They’re not just building roads. They’re building investor confidence too.

🧾 Balance Sheet – How Much Debt, How Many Dreams?

🧱 Reserves 5x in 4 years
💥 Debt shot up from ₹30 Cr to ₹990 Cr – pure capex & execution leverage
⚠️ Gearing is fine as long as order execution is smooth – which it currently is

💸 Cash Flow – Sab Number Game Hai

They’re basically saying: “Profit hai, cash nahi hai”

Why? It’s simple:

• Rising debtors (72 days)
• Receivables from govt infra bodies = delays galore
• New projects need initial outflows before milestone payments

📉 Key Ratios – Sexy or Stressy?

✅ ROE > 20% is top tier
🚨 Cash burn is the red flag – if they mess up collections, working capital could choke them

🧾 P&L Breakdown – Show Me the Money

• Revenue: ₹3,437 Cr
• Operating Profit: ₹518 Cr
• Net Profit: ₹287 Cr
• OPM: 15.08%
• EPS: ₹16.88
• Dividend? 0.19% yield – i.e., peanuts

They believe in building roads, not rewarding shareholders (yet).

🥊 Peer Comparison

Ceigall’s valuations are mid-range, but earnings and ROCE are top-tier. If cash flows improve – re-rating potential exists.

🗃️ Shareholding

• 🧑‍💼 Promoters: 82.05%
• 🏦 DIIs: 8.2% (growing!)
• 🌏 FIIs: 1.5%
• 🧑‍🤝‍🧑 Public: <9%

Clean structure. No pledging. Decent institutional interest for a smallcap.

🧠 EduInvesting Verdict™

“Ceigall’s building roads for India… but potholes in free cash flow remain.”

🟢 Pros:

• High growth
• Solid ROCE/ROE
• Clean promoter holding
• Fair valuations

🔴 Cons:

• Massive cash burn
• Rising receivables
• No dividend despite ₹287 Cr PAT

🧮 Fair Value Estimate

Let’s assume steady-state PAT of ₹300 Cr and assign:

• 15x conservative P/E → ₹4,500 Cr mcap
• 20x re-rated P/E (if FCF improves) → ₹6,000 Cr mcap

Fair Value Range = ₹258–₹345/share

At ₹267 CMP, it’s fairly priced with upside optionality.

🏷️ Tags:

Ceigall India, smallcap infra stocks, road construction stocks, HAM project EPC, Ceigall vs HG Infra, undervalued EPC stocks, EduInvesting infra pick

✍️ Written by Prashant | 📅 July 3, 2025