At a Glance
Abhishek Integrations Ltd (AIL) is a low-profile airport and infra systems contractor, listed on NSE SME. While revenue is slow and steady, it just bagged a ₹2.96 Cr BARC contract, maintains 67% promoter holding, and clocks double-digit ROE. Is this a quiet compounder or a side character in the infra drama?
1. 👋 Introduction – Electricals, Airports, and BARC Bombshells
This isn’t an EPC giant like L&T or IRCON. Abhishek Integrations quietly works behind the scenes on electrical & mechanical infra projects across airports and government buildings.
Think:
- Surveillance setups
- Firefighting systems
- HVAC wiring
- Electrical panels
- Public sector contracts (read: late payments, small margins, but steady flow)
Bonus: They got their hands on a work order from BARC Trombay in June 2025. Not bad for a ₹40 Cr mcap stock.
2. 🏗️ Business Model – WTF Do They Even Do?
📦 Core Business:
- Electrical + Mechanical Infra installation
- AMC & O&M for critical systems
- Focus on Airports Authority of India (AAI) projects
📆 History:
- Incorporated in 2017
- Acquired “Abhishek Associates” and 16 AAI projects in 2021
- Mostly project-based revenue; not product-selling
🧾 Clients:
- AAI
- BARC
- NTPC and other PSU bodies (rumored pipeline)
3. 💰 Financials – Profit, Margins, ROE, Growth
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹26.36 Cr | ₹25.45 Cr | ₹22.55 Cr |
| Net Profit | ₹1.03 Cr | ₹0.77 Cr | ₹0.67 Cr |
| OPM | 8.35% | 7.03% | 6.08% |
| ROE | 10.57% | 9.5% | ~8.2% |
🟢 Sales CAGR (5Y): 105%
🟢 PAT CAGR (5Y): 103%
🟠 TTM growth: Low single digit – flat zone
Still, margins and ROE are slowly improving.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹69 |
| Market Cap | ₹41.6 Cr |
| P/E | 40x |
| P/B | 4.05x |
| Book Value | ₹17 |
| FV | ₹10 |
High on P/E for infra, low on absolute valuation.
🎯 Fair Value Range: ₹35–₹50
Assuming normalized EPS of ₹1.7–2.2, 20–25x forward P/E is justified given consistent execution.
5. 🧨 What’s Cooking – News, Triggers, Drama
- ✅ June 2025: ₹2.96 Cr BARC project to manage 110KV station
- ✅ FY25: Net profit hits ₹1.03 Cr – all-time high
- ✅ Infra tailwinds from airport capex, Smart City upgrades
- 🔄 No dividends yet, reinvesting profits
- 👷♂️ New contracts expected from state-level PSUs and CPWD
Wildcard Trigger? Orders from Indian Railways or Metro Rail.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity | ₹6.02 Cr |
| Reserves | ₹4.24 Cr |
| Borrowings | ₹7.83 Cr |
| Total Liabilities | ₹20.18 Cr |
| Fixed Assets | ₹2.08 Cr |
🧮 D/E Ratio: ~0.65 → Moderate
⚠️ No major capex, but borrowings rising every year – keep an eye.
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹1.14 Cr | -₹0.05 Cr | -₹1.30 Cr | -₹0.21 Cr |
| FY24 | ₹0.74 Cr | ₹0.45 Cr | -₹0.89 Cr | ₹0.30 Cr |
💡 Positive CFO after 3 years of operating cash burn.
This is healthy – means profits are translating into real cash, finally.
8. 📐 Ratios – Sexy or Stressy?
| Metric | FY25 | Comments |
|---|---|---|
| ROE | 10.6% | Decent for SME |
| ROCE | 13.4% | Slowly improving |
| Debtor Days | 54 | Worsening YoY |
| Cash Conversion | 54 days | Good, but volatile historically |
| Dividend Yield | 0% | Still stingy 😒 |
—
9. 💹 P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹22.5 Cr | ₹1.37 Cr | ₹0.67 Cr |
| FY24 | ₹25.4 Cr | ₹1.79 Cr | ₹0.77 Cr |
| FY25 | ₹26.3 Cr | ₹2.20 Cr | ₹1.03 Cr |
EBITDA and PAT both inching upward = signs of operating leverage playing out.
10. 🔍 Peer Comparison – Who Else in the Game?
| Company | P/E | ROE | OPM | Remarks |
|---|---|---|---|---|
| NBCC | 51x | 26% | 5% | PSU, high margin |
| IRCON | 25x | 12% | 7.8% | Rail EPC |
| Kalpataru | 35x | 9.6% | 9.1% | Private player |
| Abhishek Integrations | 40x | 10.6% | 8.35% | SME, high growth |
⚠️ P/E is high, but margins are similar to peers. SME premium or risk discount? You decide.
11. 🧠 Misc – Shareholding, Promoters, Auditors
- 🔒 Promoter Holding: 67.72% (stable for 3 years)
- 🧑💼 Board reshuffle: Multiple changes in 2025
- ✅ Auditors appointed for FY26
- 💼 RPT Disclosure Exemption: Still SME-listed, so less transparency
Number of shareholders is rising – from 200 to 330+ in FY25.
12. ⚖️ EduInvesting Verdict™
Abhishek Integrations is the Govt Contractor NPC of the Indian infra story – not flashy, but diligent.
✅ Consistent sales
✅ Profitable for 5 straight years
✅ Healthy OPM
✅ Small equity base = high EPS impact
🚩 High P/E, low liquidity, rising debt
So what is it?
Not a multibagger rocket. But a stable compounding story for infra nerds and smallcap collectors. With even one ₹10–20 Cr order, PAT can double.
Edu Tagline™:
“Small contractor with big circuits — may shock you yet.”
✍️ Written by Prashant | 📅 8 July 2025
Tags: Abhishek Integrations, airport infra, BARC contract, SME stocks, electrical EPC, O&M services, government contractor, high ROE SME, infra midcap, EduInvesting
