1. At a Glance
India’s largest crane rental company with 346 cranes and a niche moat in heavy-duty lifting. Record profits in FY25, rebounding from FY24’s accounting hiccups. But the stock’s been halved in a year. Opportunity or operator exit?
2. Introduction with Hook
Imagine a company that doesn’t build roads or bridges—but without it, nothing gets built. That’s Sanghvi Movers Ltd. Like the roadie who sets the stage before the rockstar performs, Sanghvi rents out its mammoth fleet of 20–1000 MT cranes to infra giants like L&T, NTPC, and Tata Projects.
- Asia’s largest crane rental player
- FY25 Net Profit: ₹157 Cr (Up 40% YoY)
- Stock price down 50% from 52-week high of ₹604
The heavy lifting is real—both operationally and financially.
3. Business Model (WTF Do They Even Do?)
Sanghvi Movers operates on a B2B rental model—cranes rented to power, steel, wind energy, and infra projects across India.
Key Revenue Streams:
- Crane Rentals: 100% of revenue (FY25)
- Geography: India-wide presence with 13 operational depots
- Fleet: 346 cranes, 20 MT to 1000 MT capacity
Unique Selling Proposition:
- Zero competition in ultra-heavy cranes
- 80%+ repeat clients
- Long-term rental contracts ensure cash predictability
4. Financials Overview
Consolidated Snapshot (₹ Cr)
FY | Sales | EBITDA | Net Profit | OPM (%) | EPS (₹) |
---|---|---|---|---|---|
FY21 | 224 | 87 | -22 | 39% | -2.59 |
FY22 | 335 | 138 | 29 | 41% | 3.39 |
FY23 | 456 | 257 | 112 | 56% | 12.94 |
FY25 | 782 | 330 | 157 | 42% | 18.08 |
Q4 FY25 Sales: ₹267 Cr | Q4 PAT: ₹54 Cr
Margins dropped due to higher opex & depreciation
5. Valuation
CMP: ₹268
EPS (TTM): ₹18.08
P/E: ~14.8x
Book Value: ₹132 → P/B: 2.03x
Fair Value Range: ₹330 – ₹400
Assuming 15–18x sustainable earnings for niche B2B business with strong OPM and upcoming infra tailwinds.
6. What-If Scenarios
Scenario | FY26 EPS (Est) | Target P/E | Target Price |
---|---|---|---|
Conservative (5% growth) | ₹19 | 14x | ₹266 |
Base Case (15% growth) | ₹21 | 16x | ₹336 |
Bull Case (25% growth + rerating) | ₹23 | 18x | ₹414 |
Trigger: Wind energy capex, railways modernization, private infra BOOM.
7. What’s Cooking (SWOT Analysis)
Strengths:
- Largest crane fleet in Asia
- Strong OPM (42%+)
- Long-term client relationships
Weaknesses:
- High depreciation
- Dependence on infra cycle
Opportunities:
- Green hydrogen infra push
- Nuclear, wind power rollout
- Capacity utilization jump
Threats:
- Equipment obsolescence
- Capex debt traps
- CFO resignation in Jun 2025 raises governance radar
8. Balance Sheet 💰
Metric | FY23 | FY25 |
---|---|---|
Reserves | ₹833 Cr | ₹1134 Cr |
Borrowings | ₹183 Cr | ₹438 Cr |
Net Worth | ₹842 Cr | ₹1143 Cr |
Fixed Assets | ₹858 Cr | ₹1116 Cr |
Investments | ₹35 Cr | ₹150 Cr |
Leverage Up: Gross debt doubled in 2 years, mostly to expand crane fleet.
9. Cash Flow – Sab Number Game Hai
Cash Flow Item | FY23 | FY25 |
---|---|---|
Operating Cash Flow | ₹257 Cr | ₹162 Cr |
Investing Cash Flow | ₹-237 Cr | ₹-286 Cr |
Financing Cash Flow | ₹-15 Cr | ₹+89 Cr |
Net Cash Flow | ₹5 Cr | ₹-36 Cr |
Comment: Positive OCF but aggressive reinvestment into fleet and infra capex.
10. Ratios – Sexy or Stressy?
Metric | FY23 | FY25 |
---|---|---|
ROCE | 15% | ~15% est |
ROE | 13.3% | 14%+ |
Debt/Equity | 0.21 | 0.38 |
OPM | 56% | 42% |
Dividend Yield | 1.12% | 1.1% |
Verdict: Healthy return ratios. OPM has dropped due to accounting changes and fleet expansion, but core strength intact.
11. P&L Breakdown – Show Me the Money
FY | Sales | OPM % | PAT | EPS |
---|---|---|---|---|
FY21 | 224 | 39% | -22 | -2.6 |
FY22 | 335 | 41% | 29 | 3.4 |
FY23 | 456 | 56% | 112 | 12.9 |
FY25 | 782 | 42% | 157 | 18.1 |
Revenue has nearly tripled since FY21. Profit margin peaked in FY23, but earnings still at record high.
12. Peer Comparison
Company | P/E | OPM % | ROE % | Mcap (Cr) |
---|---|---|---|---|
Sanghvi Movers | 14.8 | 42% | 14% | ₹2322 |
CMS Info Systems | 23.5 | 25.8% | 17.7% | ₹8764 |
Quess Corp | 23.1 | 1.75% | 10.4% | ₹4660 |
AWFIS Space | 107.0 | 33.3% | 23.6% | ₹4613 |
NESCO | 23.2 | 59.8% | 15.8% | ₹9027 |
Sanghvi wins on margin + P/E combo. Undervalued vs peers.
13. EduInvesting Verdict™
Sanghvi Movers is what we call a “capex enabler stock”—you won’t find it on the ribbon-cutting ceremony, but without it, nothing stands. With the infra boom, RE push, and nuclear dreams loading, SML stands to gain… if it can manage the high depreciation and ramp up utilization.
Track the debt, the CFO successor, and utilization of that ₹438 Cr capex.
If those align, the heavy metal may just lift your portfolio too.
Metadata
– Written by EduInvesting Research | 20 July 2025
– Tags: Sanghvi Movers, Infra Capex, Heavy Cranes, India Infra, Capex Cycle, Earnings, BSE Smallcap