Risks
Cyclicality & Policy Dependence: The sector is highly sensitive to economic cycles, government policies, and budgetary allocations, leading to revenue volatility.
Raw Material Price Volatility: Fluctuations in prices of key construction materials (steel, cement, polymers) can impact project profitability.
Intense Competition: Fierce competition from numerous domestic and international players can put pressure on margins.
Project Execution Risks: Delays, cost overruns, and regulatory hurdles common in large-scale projects.
Working Capital Management: High working capital requirements and potential for delayed payments from clients.