Published: 08th Oct 2024
By: Value Research
The company provides construction services for residential, commercial, infrastructure, and industrial projects. As of FY24, it derived 90% of its revenue from engineering, procurement, and construction (EPC) contracts.
Total IPO size (Rs cr) 264 Offer for sale (Rs cr) 90 Fresh issue (Rs cr) 174 Price band (Rs) 92-95 Subscription dates October 8-10, 2024 Purpose of issue To fund working capital requirements and inorganic expansion
884 Net worth (Rs cr) 296 Promoter holding (%) 67.6 Price/earnings ratio (P/E) 24.3 Price/book ratio (P/B) 3M-cap (Rs cr)
Key financials (Rs cr) 2Y growth pa (%) FY24 FY23 FY22 Revenue 41.5 154 161 77 EBIT 35.6 49 55 27 PAT 39.3 36 41 19 Net worth 68.7 119 83 42 Total debt -88.8 0.15 0.19 12
EBIT is earnings before interest and taxes PAT is profit after tax
3Y average FY24 FY23 FY22 ROE (%) 53.2 36.1 65.6 58 ROCE (%) 52.7 46.7 70.9 40.5 EBIT margin (%) 33.7 32 34.3 34.9 Debt-to-equity 0.1 0 0 0.3Ratios
ROE is return on equity ROCE is return on capital employed
Garuda Construction boasts a strong order book. The company’s order book with contracts worth Rs 1,400 crore is 9 times its FY24 revenue, providing solid topline visibility.
The company’s high client concentration is worrying. And its books have glaring issues with high receivables and debtor days and poor operating cash flow. To read about these risks in detail, head to our story from the link below.