ScoreWhy is SRM Contractors Ltd ?
1
The company is Net-Debt Free
2
Healthy long term growth as Net Sales has grown by an annual rate of 73.81% and Operating profit at 116.68%
3
Flat results in Jun 26
- INTEREST(Latest six months) At Rs 8.98 cr has Grown at 139.47%
- NET SALES(Q) At Rs 196.26 cr has Fallen at -23.5% (vs previous 4Q average)
- PBT LESS OI(Q) At Rs 23.35 cr has Fallen at -34.3% (vs previous 4Q average)
4
With ROE of 29.9, it has a Attractive valuation with a 2.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -2.17%, its profits have risen by 86.8% ; the PEG ratio of the company is 0.1
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.21% over the previous quarter and collectively hold 0.34% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Below par performance in long term as well as near term
- Along with generating -2.17% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to SRM Contractors should be less than 10%
- Overall Portfolio exposure to Construction should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is SRM Contractors for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
SRM Contractors
-2.38%
-0.05
45.37%
Sensex
-4.88%
-0.36
13.50%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
73.81%
EBIT Growth (5y)
116.68%
EBIT to Interest (avg)
9.67
Debt to EBITDA (avg)
0.77
Net Debt to Equity (avg)
-0.13
Sales to Capital Employed (avg)
1.78
Tax Ratio
24.87%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.34%
ROCE (avg)
32.90%
ROE (avg)
24.98%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
0
Price to Book Value
2.86
EV to EBIT
6.26
EV to EBITDA
5.45
EV to Capital Employed
3.15
EV to Sales
0.94
PEG Ratio
0.10
Dividend Yield
NA
ROCE (Latest)
47.15%
ROE (Latest)
29.92%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PAT(9M)
At Rs 97.91 cr has Grown at 85.33%
NET SALES(9M)
At Rs 873.22 cr has Grown at 67.79%
ROCE(HY)
Highest at 31.72%
-22What is not working for the Company
INTEREST(Latest six months)
At Rs 8.98 cr has Grown at 139.47%
NET SALES(Q)
At Rs 196.26 cr has Fallen at -23.5% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 23.35 cr has Fallen at -34.3% (vs previous 4Q average
PAT(Q)
At Rs 19.71 cr has Fallen at -29.0% (vs previous 4Q average
OPERATING PROFIT TO INTEREST (Q)
Lowest at 8.36 times
Loading Valuation Snapshot...
Here's what is not working for SRM Contractors
Interest - Latest six months
At Rs 8.98 cr has Grown at 139.47%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Net Sales - Quarterly
At Rs 196.26 cr has Fallen at -23.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 256.40 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 23.35 cr has Fallen at -34.3% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 35.56 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 19.71 cr has Fallen at -29.0% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 27.76 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Lowest at 8.36 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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