SRM Contractors Limited IPO
The company’s overview reveals a specialized and strategic focus on engineering construction and development, particularly within the challenging terrains of the Union Territories of Jammu & Kashmir and Ladakh. This focus on roads, tunnels, slope stabilization, and miscellaneous civil construction activities positions the company as a key player in a niche yet critical segment of the infrastructure construction industry. The mention of successful execution of projects in difficult terrains not only showcases the company’s operational excellence and resilience but also highlights the specialized expertise and know-how, which are crucial in such environments.
They strategic approach to leverage government initiatives and support for infrastructure development in Jammu & Kashmir and Ladakh demonstrates foresight and adaptability. Expanding into other infrastructure projects, such as standalone bridges and larger slope stabilization works, is a testament to your ability to capitalize on emerging opportunities, ensuring sustained growth and diversification of their portfolio.
The comprehensive services offered as an EPC contractor, covering detailed engineering, procurement, construction, execution, and maintenance, underscore their ability to deliver turnkey solutions. This end-to-end service model, supported by a robust manpower, a fleet of machinery and equipment, and engineering capabilities, enables you to undertake and execute multiple projects simultaneously, a key competitive advantage in the infrastructure sector.
The formation of project-specific joint ventures to meet specific eligibility requirements for large projects indicates a strategic collaborative approach to expand their project execution capabilities and access new opportunities. This flexibility in undertaking projects, either independently or through collaborations, enhances their ability to adapt to the diverse demands of large-scale infrastructure projects.
The company’s growth trajectory, from executing smaller projects like the Sakhi-Maidan-Kalai road widening to handling significantly larger projects such as the realignment on road Zozila-Kargil-Leh under project Vijayak, showcases impressive scaling of their execution capabilities over time. This progression not only reflects their operational maturity and expertise in managing complex projects but also their increasing influence and prominence within the infrastructure construction sector, especially in regions characterized by challenging terrains.
In conclusion, the company’s strategic focus on infrastructure projects in challenging terrains, coupled with a comprehensive service offering as an EPC contractor, positions you as a distinguished entity in the construction industry. Their ability to leverage government initiatives, adapt to emerging opportunities, and execute large-scale projects through both independent efforts and strategic partnerships speaks volumes of their potential for sustained growth and leadership in the infrastructure construction domain.
Objects of the SRM Contractors Limited IPO:
SRM Contractors Limited IPO Details:
Open Date: | Mar 26 2024 |
Close Date: | Mar 28 2024 |
Total Shares: | 6,200,000 |
Face Value: | ₹ 10 Per Equity Share |
Issue Size: | 130.20 Cr. |
Lot Size: | 70 Shares |
Issue Price: | ₹ 200 - 210 Per Equity Share |
Listing At: | NSE,BSE |
Listing Date: | Apr 03 2024 |
Promoters And Management:
Financials of SRM Contractors Limited IPO:
Particular (In Lakhs) | Mar-21 | Mar-22 | Mar-23 |
Equity Share Capital | 152.22 | 152.22 | 1,674.42 |
Reserves | 2,532 | 4,289 | 4,641 |
Borrowings | 3,196 | 3,152 | 4,716 |
Trade Payables | 4,220 | 2,720 | 1,115 |
Other Liabilities | 1,147 | 1,708 | 1,589 |
Total Liabilities | 8,563 | 7,581 | 7,421 |
Net Block | 3,000 | 2,938 | 3,947 |
Investments | 164 | 146 | 179 |
Total NC Assets | 3,164 | 3,083 | 4,126 |
Receivables | 2,254 | 1,621 | 1,538 |
Inventory | 466 | 843 | 1,037 |
Cash & Bank | 1,585 | 1,665 | 2,067 |
Other Assets | 3,778 | 4,809 | 4,969 |
Face value | 10 | 10 | 10 |
Particular (In Lakhs) | Mar-21 | Mar-22 | Mar-23 |
Sales | 16,006 | 26,361 | 30,029 |
Raw Material Cost | 11,097 | 18,552 | 21,758 |
Employee Cost | 692 | 875 | 1,132 |
Other Expenses | 2,572 | 3,923 | 3,310 |
Other Income | 189 | 190 | 36 |
Depreciation | 517 | 616 | 781 |
EBITDA | 1,833 | 3,201 | 3,866 |
EBITDA Margin | 11.45% | 12.14% | 12.87% |
Interest | 233 | 255 | 580 |
Profit before tax | 1,083 | 2,329 | 2,505 |
Tax | 256 | 573 | 630 |
Net profit | 827 | 1,757 | 1,875 |
NPM (%) | 5.11% | 6.62% | 6.24% |
Particular (In Lakhs) | Mar-21 | Mar-22 | Mar-23 |
Cash From Operating Activity | |||
Profit From Operation | 1,894 | 3,260 | 3,928 |
Receivable | -1,580 | 633 | 83 |
Inventory | 739 | -376 | -194 |
Payable | 729 | -1,500 | -1,605 |
Loans And Advances | -85 | 0.1 | -331 |
Other WC Items | -18 | -529 | -24 |
Working Capital Changes | -216 | -1,772 | -2,070 |
Direct Taxes | 260 | 514 | 554 |
Net Cash Inflow from Operating Activity | 1,419 | 973 | 1,305 |
Cash from Investing Activity | |||
Fixed assets purchased | -1,099 | -554 | -1,790 |
Investments purchased | -164 | 18 | -34 |
Other investing items | -62 | -58 | -63 |
Net cash inflow from investing activities | -1,325 | -594 | -1,887 |
Cash from Financing Activity | |||
Proceeds from borrowings | 1,002 | 145 | 1,563 |
Repayment of borrowings | -317 | -188 | 0 |
Intrest paid fin | -233 | -255 | -580 |
Net Cash Flow | 546 | 81 | 401 |
Comparison With Peers:
Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
SRM Contactors Limited | 300 | 19 | 8.17 | 25.7 | 210 | 482 |
Man Infraconstruction limited | 1,890 | 289 | 6.96 | 24.2 | 204 | 7,572 |
ITD cementation India Limited | 5,091 | 125 | 7.23 | 23.8 | 307 | 5,270 |
Likhitha Infrastructure Limited | 351 | 60 | 15.22 | 15.6 | 251 | 991 |
Udayshivakumar Infra Ltd | 287 | 16 | 2.9 | 13.1 | 49.6 | 275 |
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