Twamev Constructions Reports Strong Short-Term Growth Amid Long-Term Challenges

Twamev Constructions & Infrastructure, a microcap player in the capital goods sector, has recently undergone an adjustment in evaluation. This revision reflects a complex interplay of financial metrics and market dynamics.
In the latest quarter, Q3 FY24-25, Twamev reported a notable growth in net sales, reaching Rs 15.07 crore, which represents an increase of 86.28%. Additionally, the company achieved its highest PBDIT at Rs 2.97 crore, with an operating profit to net sales ratio of 19.71%. These figures indicate a strong operational performance in the short term.

However, the company faces challenges in long-term fundamentals, evidenced by a -23.10% CAGR in net sales over the past five years. The debt servicing capability is also a concern, highlighted by a high Debt to EBITDA ratio of -1.00 times. Furthermore, the average return on equity stands at a modest 0.41%, suggesting limited profitability relative to shareholder funds.

Despite these challenges, Twamev has demonstrated market-beating performance over various time frames, outperforming the BSE 500 index in the last three years, one year, and three months.

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