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Sri Krishna Const. Overview

1. Business Overview

Sri Krishna Constructions (India) Ltd. (SKC) is involved in the construction and real estate development sector in India. Its core business model likely encompasses undertaking various construction projects, potentially as a contractor for third parties, and/or developing its own real estate projects. This would involve acquiring land, planning and designing properties (residential, commercial, or mixed-use), constructing them, and then selling or leasing these developed properties to generate revenue. The company makes money through project completion payments, sales of residential and commercial units, and potentially rental income from developed assets.

2. Key Segments / Revenue Mix

Without specific financial data, the exact revenue mix is not available. However, given its sector, SKC's operations would typically span:

Residential Development: Constructing and selling apartments, villas, and housing communities.

Commercial Development: Building office spaces, retail complexes, and other commercial properties.

Contracting Services: Undertaking construction projects for government bodies or private clients (e.g., roads, buildings, infrastructure).

The proportion of revenue derived from each segment would depend on its project pipeline and strategic focus.

3. Industry & Positioning

The Indian construction and real estate industry is large, highly fragmented, and cyclical, influenced by economic growth, interest rates, government policies, and urbanization. It comprises numerous local, regional, and national players. SKC likely operates as a regional or mid-sized player within this landscape, competing with both larger established developers and a multitude of smaller, unorganized firms. Its positioning would depend on its geographical presence, project execution capabilities, and target market segment (e.g., affordable housing, luxury, commercial).

4. Competitive Advantage (Moat)

The construction and real estate sector generally offers limited durable competitive advantages due to the commoditized nature of construction and intense competition. SKC's potential advantages, if any, could include:

Local Market Expertise & Reputation: Strong understanding of specific regional land markets, regulatory environments, and customer preferences.

Execution Capabilities: A track record of timely project delivery and quality construction, which can build trust.

Land Bank: Strategic acquisition of prime land parcels at favorable costs, providing a pipeline for future projects.

Relationships: Established relationships with local authorities, contractors, and suppliers.

However, these are often not strong, long-lasting moats against new entrants or larger players.

5. Growth Drivers

Key factors that could drive growth for SKC over the next 3-5 years include:

Urbanization & Population Growth: Increasing demand for housing and commercial spaces in urban centers.

Government Initiatives: Policies like 'Housing for All,' infrastructure spending (roads, smart cities), and ease of doing business can stimulate demand and project opportunities.

Economic Growth: Rising disposable incomes and improved consumer confidence lead to higher demand for real estate.

Favorable Interest Rates: Lower home loan interest rates make property more affordable and boost sales.

Infrastructure Development: Demand for construction services stemming from ongoing national and state infrastructure projects.

6. Risks

Cyclicality of Real Estate: The industry is highly sensitive to economic cycles, leading to fluctuating demand and property prices.

Interest Rate Sensitivity: Higher interest rates can increase borrowing costs for developers and reduce affordability for buyers.

Regulatory & Environmental Clearances: Delays in obtaining approvals can significantly impact project timelines and costs.

Land Acquisition Challenges: Difficulty in acquiring suitable land at viable costs can hinder project pipeline.

Funding & Liquidity Risk: Dependence on debt financing makes the company vulnerable to credit market conditions and liquidity crunches.

Competition: Intense competition from numerous organized and unorganized players can compress margins.

Project Execution Risks: Delays, cost overruns, and quality issues can damage reputation and profitability.

7. Management & Ownership

Typical of many Indian companies, Sri Krishna Constructions (India) Ltd. is likely promoter-driven, meaning a founding family or individual(s) holds a significant ownership stake and plays a key role in management. Specific details regarding the promoters, their track record, the broader management team's experience, and the precise ownership structure are not provided in the input.

8. Outlook

The outlook for Sri Krishna Constructions (India) Ltd. is balanced. The company operates in a sector with significant long-term tailwinds from India's urbanization, population growth, and economic development, which should drive demand for both construction services and real estate properties. Government focus on infrastructure and affordable housing also presents opportunities. However, the business is inherently cyclical and faces substantial risks including regulatory hurdles, intense competition, sensitivity to interest rates, and the challenges of land acquisition and project financing. SKC's ability to navigate these risks, maintain a healthy project pipeline, ensure timely execution, and manage its financial leverage will be crucial for its sustained performance in a competitive and often volatile market.

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Sri Krishna Const. Key Financials

Market Cap ₹5 Cr.

Stock P/E 7.3

P/B 0.2

Current Price ₹5.2

Book Value ₹ 29

Face Value 10

52W High ₹0

Dividend Yield 0%

52W Low ₹ 0

Sri Krishna Const. Share Price

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Volume
Price

Sri Krishna Const. Quarterly Price

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Sri Krishna Const. Peer Comparison

Sri Krishna Const. Quarterly Results

#(Fig in Cr.) Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Jun 2022
Net Sales 0 1 0 1 0 1 1 4 1 4
Other Income 0 0 0 0 0 0 0 0 0 0
Total Income 0 1 0 1 0 1 1 4 1 4
Total Expenditure 0 1 0 1 0 1 0 4 0 4
Operating Profit 0 -0 0 1 -0 0 0 0 0 0
Interest 0 -0 0 0 0 0 0 0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0
Profit Before Tax -0 0 0 1 -0 0 0 0 0 0
Provision for Tax 0 -0 0 0 0 -0 0 0 0 0
Profit After Tax -0 0 0 1 -0 0 0 0 0 0
Adjustments 0 0 0 0 0 0 -0 -0 0 0
Profit After Adjustments -0 0 0 1 -0 0 0 0 0 0
Adjusted Earnings Per Share -0.1 0.3 0.1 0.5 -0.1 0.4 0.1 0.1 0.5 0.1

Sri Krishna Const. Profit & Loss

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 TTM
Net Sales 2 3 18 15 28 18 13 15 12 5 10
Other Income 0 0 0 0 0 0 0 0 1 1 0
Total Income 2 3 18 15 29 18 14 16 13 6 10
Total Expenditure 2 2 16 13 25 15 9 10 12 5 8
Operating Profit 0 1 2 2 4 3 5 6 1 1 0
Interest 0 0 1 0 0 1 1 1 -0 0 0
Depreciation 0 0 0 0 0 0 0 0 0 0 0
Exceptional Income / Expenses 0 0 0 0 0 0 -0 0 1 0 0
Profit Before Tax 0 0 1 2 3 2 4 5 1 1 0
Provision for Tax 0 0 0 0 1 1 2 1 0 0 0
Profit After Tax 0 0 1 1 2 2 2 4 1 1 0
Adjustments 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 0 0 1 1 2 2 2 4 1 1 0
Adjusted Earnings Per Share 0.1 0.6 2.8 3 5.9 1.6 2.1 3.5 0.8 0.7 0.8

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR -58% -27% -29% 0%
Operating Profit CAGR 0% -42% -24% 0%
PAT CAGR 0% -21% -13% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 0% -6% 3% -16%
ROE Average 3% 7% 8% 15%
ROCE Average 3% 7% 10% 16%

Sri Krishna Const. Balance Sheet

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Shareholder's Funds 8 7 5 6 8 21 24 27 28 29
Minority's Interest 0 0 0 0 0 0 0 0 0 0
Borrowings 0 0 1 1 5 7 7 8 7 7
Other Non-Current Liabilities 1 3 3 2 1 0 -0 -0 0 0
Total Current Liabilities 5 8 19 27 37 42 41 45 50 52
Total Liabilities 15 18 27 36 51 71 71 80 84 88
Fixed Assets 0 0 0 0 2 2 2 2 0 0
Other Non-Current Assets 1 1 0 0 0 0 0 0 0 0
Total Current Assets 13 17 27 36 49 68 69 78 84 88
Total Assets 15 18 27 36 51 71 71 80 84 88

Sri Krishna Const. Cash Flow

#(Fig in Cr.) Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Opening Cash & Cash Equivalents 0 0 0 0 2 2 0 0 0 0
Cash Flow from Operating Activities 0 1 -4 2 -3 -14 -12 3 -1 0
Cash Flow from Investing Activities 0 0 -0 -0 -2 -0 -0 -2 1 0
Cash Flow from Financing Activities -0 -1 4 -0 5 12 12 -1 1 0
Net Cash Inflow / Outflow 0 0 0 1 -0 -1 -0 -0 0 0
Closing Cash & Cash Equivalent 0 0 0 2 2 0 0 0 0 0

Sri Krishna Const. Ratios

# Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020
Earnings Per Share (Rs) 0.11 0.63 2.82 3.01 5.92 1.65 2.08 3.53 0.79 0.71
CEPS(Rs) 0.23 0.72 2.9 3.21 6.38 1.9 2.23 3.63 0.85 0.73
DPS(Rs) 0 0 0 0 0 0 0 0.15 0 0
Book NAV/Share(Rs) 5.91 6.53 9.35 12.36 19.05 20.44 22.52 25.87 26.84 27.55
Core EBITDA Margin(%) 5.92 26.51 10.2 12.01 13.09 17.74 35.5 35.61 0.5 3.31
EBIT Margin(%) 4.34 26.33 11.19 11.8 12.7 16.47 34.83 36.07 9.53 19.2
Pre Tax Margin(%) 3.84 11.3 8 10.11 12 12.66 29.42 30.25 9.75 16.85
PAT Margin (%) 1.84 7.94 6.11 7.81 8.01 9.49 16.16 24.07 6.85 15.6
Cash Profit Margin (%) 3.91 9.16 6.3 8.33 8.64 10.92 17.3 24.75 7.33 15.99
ROA(%) 0.28 1.47 4.81 3.68 5.23 2.83 3.07 4.88 1.01 0.86
ROE(%) 1.85 10.07 35.45 27.72 37.68 12.01 9.7 14.59 3 2.6
ROCE(%) 1.23 10.31 29.41 26.96 35 14.14 15.7 16.58 3.27 2.57
Receivable days 45.67 135.36 38.78 47.79 29.37 55.86 98.98 231.59 536.01 1589.93
Inventory Days 248.61 170.04 87.23 247.14 195.73 416.25 563.88 397.08 314.18 392.74
Payable days 91.74 68.77 69.98 303.83 161.45 443.08 750.29 565.63 401.01 1344.9
PER(x) 0 0 0 0 0 18.37 21.6 35.39 23.8 13.34
Price/Book(x) 0 0 0 0 0 1.48 2 4.83 0.7 0.34
Dividend Yield(%) 0 0 0 0 0 0 0 0.12 0 0
EV/Net Sales(x) 0.74 0.55 0.14 0.05 0.2 2.13 4.05 9.07 2.17 3.62
EV/Core EBITDA(x) 11.54 1.99 1.26 0.4 1.53 11.92 10.99 24.7 44.92 18.47
Net Sales Growth(%) 0 33.27 483.73 -16.34 91.63 -36.06 -25.77 13.74 -21.33 -60.67
EBIT Growth(%) 0 709 148.06 -11.8 106.34 -17.09 57 17.8 -79.22 -20.72
PAT Growth(%) 0 474.52 349.27 6.84 96.67 -24.27 26.44 69.41 -77.61 -10.4
EPS Growth(%) 0 474.52 349.27 6.84 96.67 -72.16 26.44 69.42 -77.62 -10.4
Debt/Equity(x) 0.01 0.01 0.2 0.1 0.64 0.34 0.32 0.32 0.24 0.26
Current Ratio(x) 2.43 2.17 1.43 1.32 1.32 1.62 1.7 1.73 1.7 1.7
Quick Ratio(x) 2.14 2.01 1.04 0.84 0.84 1.05 1.27 1.38 1.59 1.6
Interest Cover(x) 8.68 1.75 3.51 6.99 17.97 4.32 6.43 6.19 -42.78 8.17
Total Debt/Mcap(x) 0 0 0 0 0 0.23 0.16 0.07 0.34 0.74

Sri Krishna Const. Shareholding Pattern

# Mar 2019 Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Mar 2022
Promoter 32.49 31.38 28.7 28.66 28.66 28.66 27.26 28.66 28.66 28.66
FII 0 0 0 0 0 0 0 0 0 0
DII 0 0 0 0 0 0 0 0 0 0
Public 67.51 68.62 71.3 71.34 71.34 71.34 72.74 71.34 71.34 71.34
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Sri Krishna Const. News

Sri Krishna Const. Pros & Cons

Pros

  • Stock is trading at 0.2 times its book value
  • Company is almost debt free.

Cons

  • Promoter holding is low: 28.66%.
  • Company has a low return on equity of 7% over the last 3 years.
  • Debtor days have increased from 401.01 to 1344.9days.
  • The company has delivered a poor profit growth of -12% over past five years.
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