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K2 Infragen Overview

1. Business Overview

K2 Infragen Ltd. is an India-based engineering and construction company primarily engaged in providing comprehensive infrastructure development services. The company specializes in executing projects across various domains including civil construction, roads, highways, bridges, and other related infrastructure works. Its core business model revolves around securing contracts from government bodies, public sector undertakings, and private clients, executing these projects, and generating revenue through project completion and billing milestones.

2. Key Segments / Revenue Mix

K2 Infragen Ltd. operates primarily within the infrastructure development segment. Based on available public information, its revenue is predominantly derived from civil construction and road projects. A specific detailed breakdown of revenue contribution by sub-segment (e.g., roads vs. bridges vs. buildings) is not readily available in public filings, but its focus is broad within the construction of public infrastructure.

3. Industry & Positioning

The Indian Engineering - Construction industry is vast, fragmented, and highly competitive, characterized by numerous regional and national players. It is significantly influenced by government spending on infrastructure. K2 Infragen operates as a mid-sized player within this landscape. It competes with larger, more established national EPC (Engineering, Procurement, and Construction) firms for larger contracts, while also facing competition from smaller, regional contractors for local projects. Its positioning suggests a focus on specific regional markets or project types where it has built expertise and relationships.

4. Competitive Advantage (Moat)

K2 Infragen operates in a highly commoditized sector where strong, durable competitive advantages are difficult to establish. While it may possess certain operational efficiencies, client relationships, or regional expertise, these are generally not considered long-term "moats." The company's competitive advantages are likely derived from its project execution capabilities, timely completion records, cost management, and ability to secure repeat orders, rather than unique intellectual property, brand power, or significant switching costs for clients.

5. Growth Drivers

Government Infrastructure Push: Continued high levels of government spending on infrastructure development (roads, highways, urban infrastructure) in India, driven by initiatives like the National Infrastructure Pipeline (NIP) and Gati Shakti program.

Urbanization & Industrialization: Growing demand for civic infrastructure, industrial parks, and connectivity as India urbanizes and industrializes.

Order Book Growth: Ability to secure new, larger, and more complex projects, expanding its order book value and execution capacity.

Geographic Expansion: Diversifying project locations beyond its current primary operational areas within India.

6. Risks

Execution Risk: Delays in project execution, cost overruns, and unforeseen site conditions impacting profitability.

Regulatory & Environmental Risks: Changes in government policies, environmental regulations, and land acquisition hurdles.

Competition: Intense competition from both larger national players and smaller regional contractors, leading to pricing pressure and reduced margins.

Working Capital Management: High working capital requirements inherent in construction, potential for delayed payments from clients, impacting liquidity.

Interest Rate Sensitivity: Reliance on debt for project financing makes it vulnerable to fluctuations in interest rates.

Dependence on Government Contracts: A significant portion of revenue may be linked to government spending, making it susceptible to shifts in public policy or budgetary allocations.

7. Management & Ownership

K2 Infragen Ltd. is a promoter-driven company. Information from its public filings indicates that the promoters hold a significant stake, reflecting a concentrated ownership structure. Key management personnel typically bring experience in the construction sector, project management, and business development. The quality of management is often assessed by their ability to secure new projects, execute existing ones efficiently, manage working capital, and maintain healthy financial metrics.

8. Outlook

K2 Infragen Ltd. operates in a sector poised for growth given India's massive infrastructure deficit and ongoing government push for development. This provides a favorable demand environment for the company's services. The ability to secure new contracts, execute them efficiently within budget and timelines, and manage working capital will be critical for sustained performance. However, the company faces inherent risks associated with the cyclical nature of the construction industry, intense competition, and potential for project-specific challenges. Its future trajectory will depend on its capacity to scale operations, diversify its client base, manage financial leverage effectively, and consistently replenish its order book in a highly competitive and often complex operating landscape.

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K2 Infragen Key Financials

Market Cap ₹68 Cr.

Stock P/E 5.9

P/B 0.9

Current Price ₹54.2

Book Value ₹ 60.4

Face Value 10

52W High ₹90.9

Dividend Yield 0%

52W Low ₹ 40.8

K2 Infragen Share Price

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Volume
Price

K2 Infragen Quarterly Price

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K2 Infragen Peer Comparison

K2 Infragen Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

K2 Infragen Profit & Loss

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 35 37 75 109 147
Other Income 0 0 0 1 2
Total Income 36 37 75 109 149
Total Expenditure 33 36 56 88 128
Operating Profit 3 1 19 21 20
Interest 1 2 2 3 3
Depreciation 1 2 2 2 2
Exceptional Income / Expenses 0 0 0 0 0
Profit Before Tax 1 -3 15 17 15
Provision for Tax 0 0 4 4 3
Profit After Tax 0 -3 11 12 12
Adjustments 0 0 0 0 -0
Profit After Adjustments 0 -3 11 12 12
Adjusted Earnings Per Share 0.4 -3.7 13 13.5 9.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 35% 58% 0% 0%
Operating Profit CAGR -5% 171% 0% 0%
PAT CAGR 0% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -28% NA% NA% NA%
ROE Average 21% 75% -5% -5%
ROCE Average 18% 38% 23% 23%

K2 Infragen Balance Sheet

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 1 1 14 45 76
Minority's Interest 0 0 0 0 0
Borrowings 11 9 3 3 3
Other Non-Current Liabilities 0 1 -0 -2 -1
Total Current Liabilities 10 15 40 53 103
Total Liabilities 22 26 56 100 182
Fixed Assets 10 10 8 9 10
Other Non-Current Assets 0 0 4 2 8
Total Current Assets 12 16 44 89 163
Total Assets 22 26 56 100 182

K2 Infragen Cash Flow

#(Fig in Cr.) Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 0 0 1 0 0
Cash Flow from Operating Activities -3 -1 -1 5 -43
Cash Flow from Investing Activities -5 -1 -2 -22 -1
Cash Flow from Financing Activities 9 3 2 17 46
Net Cash Inflow / Outflow -0 1 -1 -0 2
Closing Cash & Cash Equivalent 0 1 0 0 2

K2 Infragen Ratios

# Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.43 -3.7 12.96 13.52 9.15
CEPS(Rs) 1.97 -1.82 15 15.65 10.84
DPS(Rs) 0 0 0 0 0
Book NAV/Share(Rs) 1.81 1.44 15.91 34.51 60.44
Core EBITDA Margin(%) 6.82 0.63 25.61 19.21 12.52
EBIT Margin(%) 4.59 -3.07 23.46 17.86 12.31
Pre Tax Margin(%) 1.42 -8.36 20.49 15.37 10.13
PAT Margin (%) 0.63 -8.51 15.14 11.46 7.86
Cash Profit Margin (%) 3.42 -4.12 17.55 13.26 9.32
ROA(%) 1.01 -12.94 27.53 15.98 8.2
ROE(%) 20.16 -269.61 149.8 54.48 21.37
ROCE(%) 8.38 -5.45 58.9 35.94 17.9
Receivable days 82.13 89.8 113.57 163.29 236.79
Inventory Days 9.41 9.96 0 0 0
Payable days 38.38 32.98 104.71 270.7 540.26
PER(x) 0 0 0 0 8
Price/Book(x) 0 0 0 0 1.21
Dividend Yield(%) 0 0 0 0 0
EV/Net Sales(x) 0.53 0.55 0.32 0.12 0.83
EV/Core EBITDA(x) 7.18 39.59 1.23 0.6 6.02
Net Sales Growth(%) 0 3.09 104.52 45.36 35.04
EBIT Growth(%) 0 -168.93 1662.34 10.62 -6.94
PAT Growth(%) 0 -1483.99 463.79 9.99 -7.31
EPS Growth(%) 0 -966.49 450.04 4.33 -32.35
Debt/Equity(x) 16.42 17.27 1.71 0.8 0.73
Current Ratio(x) 1.23 1.09 1.11 1.67 1.58
Quick Ratio(x) 1.14 1.02 1.11 1.67 1.58
Interest Cover(x) 1.45 -0.58 7.9 7.2 5.66
Total Debt/Mcap(x) 0 0 0 0 0.6

K2 Infragen Shareholding Pattern

# Sep 2024 Mar 2025 Sep 2025 Mar 2026
Promoter 40.36 40.36 39.66 40.7
FII 0.88 0.87 0.85 0.85
DII 0.01 0 0 0
Public 58.75 58.77 59.5 58.45
Others 0 0 0 0
Total 100 100 100 100

K2 Infragen News

K2 Infragen Pros & Cons

Pros

  • Stock is trading at 0.9 times its book value
  • Company has a good return on equity (ROE) track record: 3 Years ROE 75%

Cons

  • Promoter holding is low: 40.7%.
  • Debtor days have increased from 270.7 to 540.26days.
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