WEBSITE BSE:543375 NSE: PROMAX Inc. Year: 2017 Industry: Engineering - Construction My Bucket: Add Stock
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1. Business Overview
Promax Power Ltd. operates in the Engineering - Construction sector in India. Typically, companies in this industry are engaged in providing engineering, procurement, and construction (EPC) services or undertaking infrastructure projects on a contract basis. This can include civil construction, power infrastructure, roads, bridges, industrial structures, and other large-scale development projects. The company's core business model involves bidding for and securing contracts from government agencies, public sector undertakings (PSUs), and private clients. Revenue is generated through the execution of these projects, with payments received in stages based on project milestones and completion.
2. Key Segments / Revenue Mix
Without specific financial disclosures, the exact key segments and their revenue contributions for Promax Power Ltd. are not available. However, based on the "Engineering - Construction" industry, potential segments could include:
Civil Infrastructure: Roads, bridges, buildings, airports.
Power Infrastructure: Power generation plants, transmission lines, substations.
Industrial Projects: Construction for manufacturing units, process plants.
Water & Environmental Projects: Water treatment, irrigation, sanitation.
The revenue mix would largely depend on the types of contracts the company successfully secures and executes.
3. Industry & Positioning
The Indian Engineering - Construction industry is vast, complex, and highly competitive, characterized by a significant number of players ranging from large multinational corporations to mid-sized and smaller regional contractors. It is heavily influenced by government infrastructure spending, private sector capital expenditure, and economic cycles. Competition is intense, often leading to price-sensitive bidding, which can pressure margins. Positioning for a company like Promax Power Ltd. would depend on its specific niche (e.g., specialized skills, geographic focus, type of infrastructure), its track record of project execution, client relationships, and its ability to manage large-scale projects effectively within budget and timelines. Without specific project details or market share data, its precise positioning against larger, more diversified peers is challenging to ascertain.
4. Competitive Advantage (Moat)
Durable competitive advantages (moats) in the construction sector are often less about traditional factors like brand or network effects, and more about:
Execution Capabilities & Track Record: A demonstrated ability to deliver complex projects on time and within budget, especially for government clients.
Specialized Expertise: Niche skills in specific types of construction (e.g., power transmission, complex civil structures).
Client Relationships: Long-standing relationships with key government bodies or large industrial clients.
Access to Capital & Equipment: Ability to secure financing for large projects and own specialized construction equipment.
Efficient Project Management: Robust systems for cost control, supply chain management, and risk mitigation.
Promax Power Ltd. would need to consistently demonstrate these operational efficiencies and build a strong reputation to establish a sustainable advantage in a fragmented market.
5. Growth Drivers
Key factors that can drive growth for Promax Power Ltd. over the next 3-5 years include:
Government Infrastructure Push: Continued high allocation of funds in successive Union Budgets towards infrastructure development (roads, railways, ports, airports, urban infrastructure).
"Make in India" & Industrial Growth: Increase in industrial construction activity driven by manufacturing sector expansion and investment.
Renewable Energy Transition: Growth in power generation projects (solar, wind) and associated transmission infrastructure.
Urbanization: Demand for housing, commercial spaces, and urban utilities.
Smart City Initiatives: Projects related to modernizing urban infrastructure and services.
Water & Sanitation Programs: Government emphasis on water security and sanitation infrastructure.
6. Risks
Execution Risk: Project delays, cost overruns, and quality issues can lead to penalties, reputational damage, and lower profitability.
Working Capital Management: Long project cycles and potential delays in client payments (especially from government bodies) can strain working capital and cash flow.
Input Cost Volatility: Fluctuations in prices of key raw materials like steel, cement, and fuel can impact project margins, particularly for fixed-price contracts.
Competition & Margin Pressure: Intense bidding and competition can drive down contract values and profit margins.
Regulatory & Political Risks: Changes in government policies, environmental regulations, land acquisition challenges, and obtaining various clearances can delay projects.
Economic Downturn: A general economic slowdown can lead to reduced infrastructure spending and fewer project awards.
Interest Rate Fluctuations: As projects often require significant debt, rising interest rates can increase financing costs.
7. Management & Ownership
As an Indian company, Promax Power Ltd. is likely promoter-led, meaning the founding family or individuals hold a significant stake and play a crucial role in strategic decision-making and operations. The quality of management in the construction sector is critical, encompassing expertise in project management, financial discipline, risk assessment, and strong client relationships. Without specific details on the promoter group or key management personnel, it's generally understood that experience, integrity, and a long-term vision are essential for navigating the complexities of the infrastructure sector. The ownership structure typically involves a significant promoter holding, with the remainder held by public shareholders and potentially institutional investors.
8. Outlook
The outlook for Promax Power Ltd. is closely tied to the broader Indian infrastructure growth story. The government's continued thrust on capital expenditure in infrastructure provides a robust pipeline of opportunities. If the company can demonstrate strong execution capabilities, effectively manage working capital, and maintain healthy client relationships, it stands to benefit from this secular growth trend.
However, the sector is also fraught with challenges. Intense competition, the cyclical nature of project awards, potential for cost overruns, and the inherent risks associated with large-scale project execution mean that profitability can be volatile. The ability to secure new orders at favorable margins, timely completion of projects, and efficient financial management will be crucial for sustainable performance amidst a competitive and capital-intensive environment.
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Market Cap ₹38 Cr.
Stock P/E 16
P/B 1.2
Current Price ₹15
Book Value ₹ 12
Face Value 10
52W High ₹36.5
Dividend Yield 0%
52W Low ₹ 11.8
Price goes above X
Price falls below X
PE goes above X
PE falls below X
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| Profit Before Tax |
| Provision for Tax |
| Profit After Tax |
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| Profit After Adjustments |
| Adjusted Earnings Per Share |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | TTM |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 0 | 8 | 37 | 40 | 55 | 60 | 66 | |
| Other Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total Income | 0 | 8 | 37 | 40 | 55 | 61 | 67 | |
| Total Expenditure | 0 | 7 | 36 | 38 | 53 | 57 | 62 | |
| Operating Profit | 0 | 0 | 1 | 2 | 2 | 4 | 5 | |
| Interest | 0 | 0 | 1 | 1 | 2 | 2 | 2 | |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit Before Tax | -0 | 0 | 1 | 0 | 1 | 2 | 3 | |
| Provision for Tax | 0 | 0 | 0 | 0 | -0 | 0 | 1 | |
| Profit After Tax | -0 | 0 | 0 | 0 | 1 | 1 | 2 | |
| Adjustments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit After Adjustments | -0 | 0 | 0 | 0 | 1 | 1 | 2 | |
| Adjusted Earnings Per Share | -0 | 155.7 | 0.5 | 0.2 | 0.3 | 0.5 | 0.9 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 10% | 18% | 53% | 0% |
| Operating Profit CAGR | 25% | 36% | 0% | 0% |
| PAT CAGR | 100% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -54% | -10% | NA% | NA% |
| ROE Average | 8% | 6% | 8% | 32% |
| ROCE Average | 11% | 10% | 11% | 9% |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Shareholder's Funds | 0 | 0 | 5 | 7 | 23 | 28 | 30 |
| Minority's Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Borrowings | 0 | 7 | 3 | 1 | 1 | 0 | 2 |
| Other Non-Current Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total Current Liabilities | 0 | 14 | 12 | 20 | 17 | 33 | 35 |
| Total Liabilities | 0 | 21 | 20 | 28 | 41 | 61 | 67 |
| Fixed Assets | 0 | 2 | 3 | 2 | 0 | 0 | 0 |
| Other Non-Current Assets | 0 | 0 | 1 | 0 | 0 | 5 | 5 |
| Total Current Assets | 0 | 19 | 17 | 26 | 40 | 56 | 62 |
| Total Assets | 0 | 21 | 20 | 28 | 41 | 61 | 67 |
| #(Fig in Cr.) | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Opening Cash & Cash Equivalents | 0 | 0 | 3 | 3 | 4 | 3 | 5 |
| Cash Flow from Operating Activities | 0 | -7 | 3 | -5 | -17 | 2 | -3 |
| Cash Flow from Investing Activities | 0 | -2 | -2 | 0 | 2 | -5 | 0 |
| Cash Flow from Financing Activities | 0 | 11 | -1 | 5 | 15 | 5 | 4 |
| Net Cash Inflow / Outflow | 0 | 3 | 0 | 1 | -0 | 2 | 2 |
| Closing Cash & Cash Equivalent | 0 | 3 | 3 | 4 | 3 | 5 | 7 |
| # | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|---|---|---|---|
| Earnings Per Share (Rs) | -0.01 | 155.74 | 0.49 | 0.17 | 0.28 | 0.55 | 0.94 |
| CEPS(Rs) | -0.01 | 156.78 | 0.6 | 0.25 | 0.3 | 0.57 | 0.96 |
| DPS(Rs) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Book NAV/Share(Rs) | 4.98 | 160.72 | 5.56 | 5.58 | 9.32 | 11.08 | 12.02 |
| Core EBITDA Margin(%) | 0 | 5.39 | 2.87 | 3.91 | 3.32 | 5.52 | 6.97 |
| EBIT Margin(%) | 0 | 5.36 | 3.63 | 4.1 | 3.97 | 5.86 | 7.48 |
| Pre Tax Margin(%) | 0 | 5.36 | 1.87 | 0.77 | 1 | 2.96 | 4.71 |
| PAT Margin (%) | 0 | 4.01 | 1.18 | 0.51 | 1.3 | 2.28 | 3.53 |
| Cash Profit Margin (%) | 0 | 4.04 | 1.44 | 0.75 | 1.39 | 2.36 | 3.6 |
| ROA(%) | -0.11 | 3.01 | 2.11 | 0.83 | 2.06 | 2.7 | 3.66 |
| ROE(%) | -0.12 | 187.97 | 16.64 | 3.5 | 4.74 | 5.38 | 8.11 |
| ROCE(%) | 0 | 7.22 | 11.88 | 11.83 | 8.7 | 9.52 | 11.01 |
| Receivable days | 0 | 333.1 | 67.45 | 78.84 | 74.63 | 108.09 | 123.97 |
| Inventory Days | 0 | 387.76 | 74.93 | 78.87 | 76.41 | 82.61 | 98.79 |
| Payable days | 0 | 224.71 | 99.67 | 101.06 | 54.13 | 76.01 | 90.72 |
| PER(x) | 0 | 0 | 0 | 72.02 | 79.14 | 124.73 | 33.72 |
| Price/Book(x) | 0 | 0 | 0 | 2.18 | 2.41 | 6.17 | 2.63 |
| Dividend Yield(%) | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EV/Net Sales(x) | 0 | 1.09 | 0.2 | 0.52 | 1.15 | 2.97 | 1.37 |
| EV/Core EBITDA(x) | 0 | 20.21 | 6.95 | 12.03 | 28.38 | 49.94 | 18.18 |
| Net Sales Growth(%) | 0 | 0 | 374.94 | 7.35 | 37.88 | 10.42 | 10.23 |
| EBIT Growth(%) | 0 | 0 | 221.06 | 21.39 | 33.55 | 62.82 | 40.68 |
| PAT Growth(%) | 0 | 0 | 39.17 | -53.29 | 251.07 | 92.97 | 70.79 |
| EPS Growth(%) | 0 | 0 | -99.68 | -65.75 | 68.5 | 92.97 | 70.8 |
| Debt/Equity(x) | 0 | 34.86 | 1.25 | 1.46 | 0.43 | 0.47 | 0.65 |
| Current Ratio(x) | 15.98 | 1.37 | 1.38 | 1.29 | 2.42 | 1.69 | 1.79 |
| Quick Ratio(x) | 15.98 | 0.77 | 0.82 | 0.78 | 1.66 | 1.25 | 1.17 |
| Interest Cover(x) | 0 | 1619.89 | 2.06 | 1.23 | 1.33 | 2.02 | 2.7 |
| Total Debt/Mcap(x) | 0 | 0 | 0 | 0.67 | 0.18 | 0.08 | 0.25 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 64.8 | 64.8 | 71.2 | 69.24 | 69.24 | 69.25 | 69.26 | 69.25 | 69.25 | 68.97 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0.02 | 0.11 | 0.11 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Public | 35.2 | 35.18 | 28.69 | 30.65 | 30.67 | 30.66 | 30.65 | 30.66 | 30.66 | 30.94 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 0.81 | 0.81 | 1.78 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.73 | 1.72 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 0.44 | 0.44 | 0.72 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 | 0.77 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 1.25 | 1.25 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 | 2.5 |
* The pros and cons are machine generated.
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