Large Engineering & Capital Goods
Market Cap
₹1,52,932 ₹1.53 L Cr.
P/E
62.87
PEG
3.38
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

The base case is powered by execution of the ₹2.2L Cr order book and a structural industry-segment margin inflection, while the bull case adds >18% industry CAGR and material cost below 70% through centralized procurement.

The bear path triggers if material cost surpasses 73% for multiple quarters, old low-margin orders persist, and contract-asset liquidation stalls — compressing EBITDA margin to 9.0%.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The base case is powered by execution of the ₹2.2L Cr order book and a structural industry-segment margin inflection, while the bull case adds >18% industry CAGR and material cost below 70% through centralized procurement.
  • The bear path triggers if material cost surpasses 73% for multiple quarters, old low-margin orders persist, and contract-asset liquidation stalls — compressing EBITDA margin to 9.0%.
Bear : 2.6% CAGR • ₹3,651 Cr
Base: 13.4% CAGR • ₹6,037 Cr
Bull: 27.0% CAGR • ₹10,619 Cr
Buy Report $5
Management Credibility Report
TRACK RECORD
  • Management can be trusted on quantified one-year financial targets — every FY25 revenue, margin, and cash-flow commitment was delivered — but project-completion dates and balance-sheet normalization promises consistently slip by 12+ months.
  • The strategic pledge to reach a 50:50 thermal/non-thermal mix has moved backwards, and non-thermal margins are thin, making the diversification narrative aspirational rather than investable.
Met : 5
Progress: 1
Missed : 7
Buy Report $5
WORST-CASE SCENARIO
  • Despite zero high-risk flags, the forensic profile is anchored by contract assets at 117% of net worth — a hard-to-verify concentration that could amplify any revenue-recognition misstep.
  • The most severe stress scenario is LD claims crystallization on delayed supercritical projects, which could erase 37–50% of annual profit, while the board-level audit committee remains inoperative due to a single independent director.
High Risk : 0
Medium Risk : 7
Low Risk : 10
Buy Report $5
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