1. At a Glance – The Comeback Nobody Ordered?
If Bollywood made a sequel called “Company That Refuses to Die”, Simplex Infrastructures Ltd would be the lead actor.
Founded in 1924 (yes, before your great-grandfather discovered LIC policies), this company has built bridges, ports, airports, tunnels… basically everything except shareholder wealth in the last decade.
Now here’s the masala:
- Revenue shrinking faster than your patience in a traffic jam
- Debt so large it needs its own Aadhaar card
- Credit rating at CARE D (default category)
- Promoters diluting stake like tea at a railway station
- Yet… suddenly reporting profits again
And the stock?
Still trading at a P/E of ~21.
Matlab… loss-making history + default rating + debt restructuring + still premium valuation?
Tell me honestly—
Is this a turnaround story… or financial jugaad on steroids?
2. Introduction – From Engineering Giant to Financial Gymnast
Simplex wasn’t always this… complicated.
Once upon a time, this was a serious infrastructure company executing:
- Metro rail projects
- Ports
- Power plants
- Airports
- Highways
Basically, the kind of stuff that makes politicians cut ribbons and take credit.
But then reality hit.
Over the last decade:
- Sales crashed from ₹5,600+ Cr (FY14) to ₹1,020 Cr (TTM)
- Net worth eroded
- Debt ballooned
- Cash flows turned negative
- And finally… defaults happened
Classic infrastructure sector tragedy:
Build big → get delayed payments → take loans → pay interest → repeat → collapse
But wait… plot twist.
Recently:
- Company reported profits again
- Debt reduced significantly (₹7,180 Cr → ₹1,844 Cr)
- Preferential allotments + debt conversion underway
So now investors are asking:
“Is this a phoenix… or just smoke from a fire?”
3. Business Model – WTF Do They Even Do?
Simplex is basically India’s “we build everything” contractor.
Their verticals include:
- Roads, railways & bridges
- Buildings (residential, hospitals, IT parks)
- Power & transmission
- Marine construction (ports, underwater piling)
- Urban infra (airports etc.)
- Ground engineering (piling, soil work)
Translation:
If it involves concrete, steel, and government payments… they are in.
Revenue mix (FY23):
- 77% from construction contracts
- 17% mining services
- Rest from other income
So essentially:
👉 They
