SRM contractors prepared for growth in the Indian infrastructure sector, promoted by its experience in construction and infrastructure projects
Objective: ₹ 694
CMP: ₹ 375.40
SRM CONTRACTS LTD It is a specialization of the Infrastructure Development Company based in JAMMU on challenging land and projects in EPC/HAM.
SRM prepared for the growth of the infrastructure sector, promoted by its experience in construction and infrastructure projects. The company’s solid history to build more than 100 km of roads annually, including four lanes roads and urban development projects, positions it for long -term growth. SRM competitive strengths include equipment ownership, solid financial performance and an internal integrated model, which allows you to capitalize on market opportunities and maintain a FR ROB financial position.
The robust order book of the company and LOA, for a total of ₹ 1,663,69 million rupees, equivalent to 4.89 times its income for fiscal year 200, provides medium -term visibility with a diversified portfolio of projects, including roads, bridges and small. With a stellar growth of 440.14 percent year -on -year in YTD orders intake, size ₹ 1,336.65 million rupees, SRM is well positioned for sustained growth.
Khandwala Securities has initiated SRM coverage with a strong ‘purchase’ rating, driven by its attractive perspectives of valuation and growth. The price of the company’s shares is currently traded at a direct P/E level of 13.07x FY26E EPS, which represents a significant discount on the average P/E ratio of the Indian Construction Industry (TTM) or 28x.
Posted on April 15, 2025