WEBSITE BSE:0 NSE: Inc. Year: 2017 Industry: Engineering - Construction My Bucket: Add Stock
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1. Business Overview
Sonu Infratech Ltd. is an Indian company operating in the Engineering - Construction sector. The company primarily engages in undertaking various civil construction projects. This typically involves activities such as the construction of roads, bridges, buildings, water infrastructure, irrigation projects, and other related urban and rural infrastructure development. The core business model involves bidding for contracts tendered by government bodies, public sector undertakings, and private developers, and subsequently executing these projects. The company makes money by earning a profit margin on the total value of the contracts upon successful completion and delivery of the projects.
2. Key Segments / Revenue Mix
While specific detailed revenue breakdowns are not publicly available, given its classification, Sonu Infratech's revenue is entirely derived from its construction activities. This would encompass income from various civil engineering projects. It is common for such companies to diversify across different infrastructure sub-segments like roads & highways, urban infrastructure (buildings, utilities), and water management projects, depending on their expertise and project opportunities.
3. Industry & Positioning
The Indian Engineering - Construction industry is vast, highly competitive, and largely driven by government spending on infrastructure development. The industry is characterized by a mix of large national players and numerous regional and local contractors. Sonu Infratech likely operates as a regional or specialized contractor, focusing on specific types of projects or geographies within India. Its positioning against larger, more established peers would be based on factors like competitive bidding, local expertise, project execution capabilities, and client relationships, potentially focusing on smaller to mid-sized projects or specific regional tenders.
4. Competitive Advantage (Moat)
As a construction company, Sonu Infratech operates in an industry where durable competitive advantages (moats) are generally challenging to establish for general contractors. The business is often project-based and highly price-sensitive. Potential, though often less durable, advantages might include a strong reputation for timely project delivery, quality execution, efficient cost management, specific technical expertise in a niche area of construction, or robust relationships with government agencies and local authorities. However, these advantages are susceptible to market dynamics, competition, and individual project performance, making them less structural compared to moats seen in other sectors.
5. Growth Drivers
Government Infrastructure Spending: The Indian government's continued thrust on capital expenditure and infrastructure development (e.g., National Infrastructure Pipeline, Gati Shakti master plan) provides a significant pipeline of projects.
Urbanization & Industrialization: Growing urbanization requires new residential, commercial, and civic infrastructure, while industrial growth drives demand for industrial parks, logistics hubs, and connectivity.
Increased Budgetary Allocations: Consistent allocation of funds towards roads, railways, water supply, and housing projects in Union and State budgets.
Focus on Specific Sectors: Growth in specific infrastructure sub-sectors such as renewable energy infrastructure, smart cities, and digital connectivity also creates opportunities.
6. Risks
Project Execution Risks: Delays in project completion, cost overruns due to unforeseen circumstances (e.g., land acquisition issues, regulatory hurdles, material price fluctuations, labor shortages), and quality control issues.
Intense Competition: The highly fragmented and competitive nature of the industry puts pressure on profit margins and tender success rates.
Working Capital Management: Construction projects are capital-intensive and often involve long cycles, leading to significant working capital requirements and risks associated with delayed client payments.
Regulatory & Environmental Risks: Changes in government policies, environmental regulations, or obtaining various clearances can impact project timelines and costs.
Economic Downturns: A general economic slowdown can lead to reduced government spending on infrastructure and deferment of private projects, impacting order inflows.
7. Management & Ownership
Sonu Infratech, like many Indian companies of its size, is likely promoter-driven, meaning the founding family or individuals hold a significant stake and play a crucial role in strategic decision-making and day-to-day operations. The quality of management is critical for a construction company, hinging on their ability to secure profitable contracts, manage project execution efficiently, control costs, and maintain healthy client relationships. Ownership structure would typically involve a dominant promoter group with a minority stake held by public shareholders.
8. Outlook
Sonu Infratech operates in a sector with substantial tailwinds, driven by India's aggressive infrastructure development agenda. The government's consistent focus on capital expenditure in roads, urban development, and other core infrastructure areas presents a robust opportunity for order book growth. However, the company faces significant challenges inherent to the construction industry, including fierce competition, potential for project delays and cost overruns, and working capital intensity. Its ability to leverage its execution capabilities, manage financial health prudently, and strategically bid for and win profitable contracts will be key to navigating the competitive landscape and capitalizing on the broader infrastructure growth story.
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Market Cap ₹61 Cr.
Stock P/E 5.5
P/B 0.8
Current Price ₹51.8
Book Value ₹ 68.3
Face Value 10
52W High ₹145
Dividend Yield 0%
52W Low ₹ 38
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(Fig in Cr.) | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Net Sales | 91 | 39 | 33 | 32 | 90 |
| Other Income | 0 | 0 | 0 | 0 | 0 |
| Total Income | 91 | 39 | 33 | 32 | 90 |
| Total Expenditure | 82 | 32 | 26 | 25 | 81 |
| Operating Profit | 9 | 7 | 7 | 7 | 9 |
| Interest | 2 | 2 | 2 | 2 | 1 |
| Depreciation | 1 | 1 | 1 | 2 | 1 |
| Exceptional Income / Expenses | 0 | 0 | 0 | 0 | 0 |
| Profit Before Tax | 7 | 4 | 4 | 4 | 6 |
| Provision for Tax | 2 | 1 | 1 | 1 | 2 |
| Profit After Tax | 5 | 3 | 3 | 3 | 5 |
| Adjustments | 0 | 0 | 0 | 0 | -0 |
| Profit After Adjustments | 5 | 3 | 3 | 3 | 5 |
| Adjusted Earnings Per Share | 5.1 | 2.7 | 2.6 | 2.5 | 3.9 |
| #(Fig in Cr.) | Mar 2025 | TTM |
|---|---|---|
| Net Sales | 170 | 194 |
| Other Income | 0 | 0 |
| Total Income | 171 | 194 |
| Total Expenditure | 146 | 164 |
| Operating Profit | 24 | 30 |
| Interest | 5 | 7 |
| Depreciation | 4 | 5 |
| Exceptional Income / Expenses | 0 | 0 |
| Profit Before Tax | 15 | 18 |
| Provision for Tax | 4 | 5 |
| Profit After Tax | 11 | 14 |
| Adjustments | 0 | 0 |
| Profit After Adjustments | 11 | 14 |
| Adjusted Earnings Per Share | 10.7 | 11.7 |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Sales CAGR | 0% | 0% | 0% | 0% |
| Operating Profit CAGR | 0% | 0% | 0% | 0% |
| PAT CAGR | 0% | 0% | 0% | 0% |
| # | 1 Year | 3 Year | 5 Year | 10 Year |
|---|---|---|---|---|
| Share Price CAGR | -61% | 2% | NA% | NA% |
| ROE Average | 19% | 19% | 19% | 19% |
| ROCE Average | 16% | 16% | 16% | 16% |
| #(Fig in Cr.) | Mar 2025 |
|---|---|
| Shareholder's Funds | 60 |
| Minority's Interest | 0 |
| Borrowings | 24 |
| Other Non-Current Liabilities | 0 |
| Total Current Liabilities | 97 |
| Total Liabilities | 181 |
| Fixed Assets | 25 |
| Other Non-Current Assets | 9 |
| Total Current Assets | 148 |
| Total Assets | 181 |
| #(Fig in Cr.) | Mar 2025 |
|---|---|
| Opening Cash & Cash Equivalents | 1 |
| Cash Flow from Operating Activities | -19 |
| Cash Flow from Investing Activities | -21 |
| Cash Flow from Financing Activities | 48 |
| Net Cash Inflow / Outflow | 8 |
| Closing Cash & Cash Equivalent | 9 |
| # | Mar 2025 |
|---|---|
| Earnings Per Share (Rs) | 10.67 |
| CEPS(Rs) | 14.83 |
| DPS(Rs) | 0 |
| Book NAV/Share(Rs) | 56.8 |
| Core EBITDA Margin(%) | 14.11 |
| EBIT Margin(%) | 11.74 |
| Pre Tax Margin(%) | 8.72 |
| PAT Margin (%) | 6.48 |
| Cash Profit Margin (%) | 9.01 |
| ROA(%) | 6.08 |
| ROE(%) | 18.78 |
| ROCE(%) | 15.92 |
| Receivable days | 182.13 |
| Inventory Days | 82.59 |
| Payable days | 357.06 |
| PER(x) | 9.64 |
| Price/Book(x) | 1.81 |
| Dividend Yield(%) | 0 |
| EV/Net Sales(x) | 0.96 |
| EV/Core EBITDA(x) | 6.75 |
| Net Sales Growth(%) | 0 |
| EBIT Growth(%) | 0 |
| PAT Growth(%) | 0 |
| EPS Growth(%) | 0 |
| Debt/Equity(x) | 1.12 |
| Current Ratio(x) | 1.52 |
| Quick Ratio(x) | 1.12 |
| Interest Cover(x) | 3.89 |
| Total Debt/Mcap(x) | 0.66 |
| # | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Promoter | 65.45 | 65.45 | 65.45 | 65.45 | 65.45 | 54.4 | 54.4 | 52.7 |
| FII | 0 | 2.22 | 2.37 | 0.11 | 0.31 | 0.46 | 0.38 | 0.05 |
| DII | 0 | 0 | 0 | 0 | 0 | 0.93 | 0.93 | 0.82 |
| Public | 34.55 | 32.33 | 32.18 | 34.43 | 34.24 | 44.21 | 44.29 | 46.43 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |
| # | Sep 2022 | Mar 2023 | Sep 2023 | Mar 2024 | Sep 2024 | Mar 2025 | Sep 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Promoter | 0.51 | 0.51 | 0.51 | 0.51 | 0.51 | 0.56 | 0.56 | 0.62 |
| FII | 0 | 0.02 | 0.02 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0.01 | 0.01 | 0.01 |
| Public | 0.27 | 0.25 | 0.25 | 0.27 | 0.27 | 0.46 | 0.46 | 0.55 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 0.79 | 0.79 | 0.79 | 0.79 | 0.79 | 1.03 | 1.03 | 1.18 |
* The pros and cons are machine generated.
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