SRM Contractors Limited IPO

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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:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding capital expenditure requirements for the purchase of equipment/machinery; ii. Full or part repayment and/or prepayment of certain outstanding secured borrowings availed by the company; iii. Funding the working capital requirements of the company; iv. Investment in Project Specific Joint Venture Projects; and v. General Corporate Purpose.

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:

Sanjay Mehta is the Managing Director cum Promoter of the Company. He completed the degree of Bachelor of Medicine and Bachelor of Surgery from the University of Jammu in the year 1994. He also completed his degree of Master of Health Administration from the Tata Institute of Social Sciences in 2001. His prior work experience involves working as an Assistant Surgeon for the J&K Health Services, Jammu from the year 1998 till the year 2000 and then from the year 2004 till the year 2007. He has been associated with the Company since its incorporation in 2008. He has over 14 years of experience in the construction industry, particularly, in the infrastructure sector. His other ventures include SRM Realties Private Limited and Revya Technologies LLP. He oversees the day-to-day activities of the Company. Ashley Mehta is a Non-executive Director cum Promoter of the Company. She completed the degree of Bachelor of Science in Civil Engineering from Rutgers, The State University of New Jersey, in the year 2023. She is presently employed at Weeks Marine, Inc. as a Field Engineer - Dredging. She has been associated with the Company since the year 2018. She has over 3 years of experience in the business of the Company. Puneet Pal Singh is a Whole-time Director cum Promoter of the Company. He completed the degree of Bachelor of Technology in Civil Engineering from Jaypee University of Information Technology, Waknaghat, Himachal Pradesh, in the year 2019. He has been associated with the Company since April 1, 2020 as a Project Coordinator – Civil till September 30, 2022. On October 1, 2022, he was appointed on the Board of the Company. He has over 3 years of experience in the construction industry, particularly, in the infrastructure sector. He oversees planning, designing and execution of construction activities at multiple sites of the Company.

Financials of SRM Contractors Limited IPO:

A. Balance Sheet
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
B. Profit & Loss Statement
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%
C. Cash Flow Statement
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
* All the data is as per FY23.

Recommendation on SRM Contractors Limited IPO:

Review and Recommendation of SRM Contractors by team IZ is 4/10. 1. The overview presents a detailed profile of an engineering construction and development company specialized in the construction of roads, tunnels, slope stabilization works, and various civil construction activities predominantly within the challenging terrains of the Union Territories of Jammu & Kashmir and Ladakh. This company positions itself as a leader in infrastructure projects, with a particular niche in executing projects in difficult terrains, a testament to its technical expertise and operational know-how. 2. Key Highlights of the Business Overview: Specialization and Services :- The company is engaged primarily in EPC (Engineering, Procurement, and Construction) contracts and item rate basis projects, focusing on infrastructure developments such as roads, tunnels, and slope stabilization. Its expertise extends to managing the complexities of construction in difficult terrains, showcasing a significant track record of successful project executions. Expansion and Growth :- The growth trajectory of the company is marked by its diversification into other infrastructure projects beyond its traditional focus areas, driven by government initiatives and support for infrastructure development in its operational territories. The company has shown adaptability by venturing into projects like standalone bridges and larger scale slope stabilization works, capitalizing on the increasing infrastructure opportunities. Project Execution and Partnerships :- The company executes projects independently and through strategic joint ventures to meet specific project requirements, including sub-contracting from major infrastructure entities. This flexible operational approach has facilitated the company’s participation in significant projects and expanded its portfolio and experience. Project Portfolio :- Since its incorporation in 2008, the company has significantly increased its project execution capabilities, as evidenced by its evolving project scale and value. The diversity and scale of projects undertaken—from early road construction projects to major tunnel and road realignment projects—illustrate its growing expertise and capacity. Order Book and Ongoing Projects :- The company’s order book and ongoing project details highlight its active involvement in a broad range of infrastructure projects, underscoring its operational strength and market position. The substantial increase in the value of contracts over the years indicates a robust pipeline of projects and a strong market demand for its services. Strategic Focus Areas :- The company focuses on a select range of construction activities, with specialized divisions for road projects, tunnel projects, and slope stabilization works, each equipped with the necessary technical and operational capabilities to manage the unique challenges of each sector. Competitive Landscape :- Operating in a competitive environment, the company recognizes the importance of service quality, technical ability, and performance record in securing projects. Despite facing competition from other construction entities in the region, the company’s specialized focus and project execution record position it favorably in the market. 3. The Revenue has Increased from Rs.160 Crore in FY21 to Rs.300 Crore in FY23. 4. The EBITDA has Increased from 18 Crore in FY21 to 38 Crore in FY23. 5. The PAT has Increased from 8 Crore in FY21 to 18 Crore in FY23. 6. As per FY23, CFO/EBITDA is 1.01, As per FY24, EPS is 12.24, 7. Market Capitalization is 482 Crore & P/E is 17.15x based on FY24.

Lead Manager of SRM Contractors Limited IPO:

  1. Interactive Financial Services

Registrar of SRM Contractors Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

SRM Contractors Limited Sector 3, Near BJP Head Office, Trikuta Nagar, Jammu -180012 Phone: +91 84918 77114 Email: Website:

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