WEBSITE BSE:0 NSE: Inc. Year: 2015 Industry: Engineering - Construction My Bucket: Add Stock
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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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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
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(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 |
| #(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 |
| # | 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% |
| #(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 |
| #(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 |
| # | 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 |
| # | 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 |
| # | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|
| Promoter | 0.51 | 0.51 | 0.5 | 0.51 |
| FII | 0.01 | 0.01 | 0.01 | 0.01 |
| DII | 0 | 0 | 0 | 0 |
| Public | 0.74 | 0.74 | 0.75 | 0.74 |
| Others | 0 | 0 | 0 | 0 |
| Total | 1.26 | 1.26 | 1.26 | 1.26 |
* The pros and cons are machine generated.
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