📈 CMP: ₹362.30 | 🔺 +4.85% today
🏗️ Sector: Construction | 🏙️ Focus: Buildings EPC | 💰 FY25 PAT Up 69%
📌 At a Glance
Capacit’e just clocked its highest-ever revenue and profit, with FY25 PAT surging 69% to ₹204 Cr. Revenues hit ₹2,407 Cr (up 23%), and the order book sits fat at ₹10,545 Cr. But amidst all this success, auditors dropped a mild warning: ₹63.6 Cr of receivables may need divine intervention (or property litigation) to recover.
So… capex king or receivable risk?
🏢 About the Company
- Founded: 2012
- Business: Pure-play construction player focused solely on buildings
- Segments:
- High-Rise & Super High-Rise Residential
- Commercial IT Parks & Offices
- Institutional (Hospitals, MLCPs, Educational)
- Geography: MMR, Pune, Goa, Chennai, Bengaluru, Hyderabad, NCR, Gandhinagar
Clients include India’s biggest real estate developers. The company stays far from roads, power, and bridges. It only builds actual buildings — like a specialist in a world of general contractors.
👨💼 Key Management
- Rohit Katyal – Executive Chairman & “Cashflow Crusader”
- Rajesh Das – CFO, handling investor nerves and debt numbers
- Auditor – The guy who casually flags ₹63.6 Cr as “maybe, maybe not” recoverable.
📊 FY25 Financials (Consolidated)
| Metric | FY24 | FY25 | YoY Growth |
|---|---|---|---|
| Total Income (₹ Cr) | 1,964 | 2,407 | +23% |
| EBITDA (₹ Cr) | 363 | 437 | +20% |
| EBITDA Margin (%) | 18.5% | 18.2% | 🔻 -30bps |
| EBIT (₹ Cr) | 262 | 342 | +30% |
| PBT (₹ Cr) | 167 | 265 | +58% |
| PAT (₹ Cr) | 120 | 204 | +69% |
| PAT Margin (%) | 6.1% | 8.5% | ✅ +240bps |
| Cash PAT (₹ Cr) | 229 | 285.4 | +25% |
🧾 Q4FY25
- Revenue: ₹705 Cr (↑16%)
- PAT: ₹53 Cr (↑2%)
- EBITDA Margin fell to 16.9% from 19.8%
So yes, margins dipped. But absolute numbers soared. PAT’s rising even as EBITDA % dips? Classic case of better execution, fewer cost shocks.
🧱 Order Book & Execution
| Metric | Value |
|---|---|
| Total Order Book | ₹10,545 Cr |
| Public Sector Share | 68% 🏛️ |
| Private Sector Share | 32% 🏢 |
| FY25 New Orders Won | ₹2,823 Cr |
✅ Order book now equals 4.4x of FY25 revenue. That’s decent visibility.
⚠️ However, execution speed + margin discipline = what turns order book into shareholder value.
🧮 Auditor’s Footnote: What’s Up with ₹63.6 Cr?
📢 Emphasis of Matter (aka polite red flag):
- ₹63.6 Cr in receivables/contract assets flagged by auditor
- Company claims: “We have legal agreements + flats in lieu + property worth ₹98.7 Cr”
- Action: Taken legal steps via RERA, NCLT, High Court
EduTranslation: “Yes, the money’s stuck. But we have apartments. And lawyers.”
🚨 Not a crisis, but keep it on your watchlist.
📊 Forward Value Estimate
Assuming PAT continues at ₹204 Cr and grows 20% in FY26:
- FY26E PAT: ₹245 Cr
- Shares: ~6.05 Cr
- EPS FY26E = ₹40.5
- Applying 12x P/E (infra midcap average) → Fair Value = ₹486
📌 CMP = ₹362.30 → Implied upside: ~34%
🧠 EduInvesting Take
Capacit’e has gone from niche builder to serious profit machine:
✅ Focused EPC play with no distractions
✅ Solid client base + execution reputation
✅ Low leverage (Net D/E 0.11x = clean books)
✅ ₹10K+ Cr orders = multi-year revenue base
⚠️ But watch those receivables, legal recoveries, and margin compression.
Verdict: This isn’t a hype stock. It’s a “steady-boring-multibagger” that builds the buildings where future unicorns will get funded.
⚠️ Risks to Track
- Auditor flag on receivables — small but not trivial
- Margin dip in Q4 could worsen if costs spike
- Public sector delays can delay billing
- Infra sentiment highly cyclical
🏁 Final Word
With FY25 profit nearly doubling, debt in control, and execution strength intact, Capacit’e might just be the best building EPC story in the ₹300–₹400 range.
The only red brick? Auditor’s emoji-less warning. But if that clears in FY26, this becomes a cleaner, leaner, more valuable infra story.
🗓️ Published: May 27, 2025
✍️ By: Prashant Marathe
🔖 Tags: Capacit’e Infraprojects, Infra Stocks India, FY25 Results, Building EPC, Auditor Observations, Order Book Growth, Construction Stocks, EduInvesting
