Garuda Construction and Engineering Limited (GARUDA) AI Stock Analysis

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Garuda Construction and Engineering Limited

(NSE:GARUDA)

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Rating:73Outperform

Price Target:INR 152.00▲(11.31% Upside)

Action:reiterated

Date:08/11/26

The score is driven primarily by solid fundamentals—strong growth/profitability and a low-leverage balance sheet—partly offset by historically inconsistent cash conversion. Technically, the uptrend is supported by price above major moving averages and positive MACD, though near-overbought readings reduce upside confidence. Valuation is reasonable on P/E but lacks dividend-yield support.

Positive Factors

Strong Revenue and Profit GrowthThe sharp expansion in revenue alongside substantial net income and EBIT indicates stronger operating scale and commercial execution. If maintained, this growth can broaden the company’s project base, support reinvestment, and improve its ability to compound earnings over the next several quarters.

Negative Factors

Inconsistent Cash ConversionRepeated periods of negative cash generation despite accounting profits raise quality-of-earnings risk and may reflect uneven working-capital or collection outcomes. Although the latest rebound is encouraging, inconsistent conversion can constrain internally funded growth and create liquidity pressure during weaker project cycles.

Garuda Construction and Engineering Limited (GARUDA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 12.64B
Dividend Yield: 0.02%
Average Volume (3M): 60.84K
Price to Earnings (P/E): 9.3
Beta (1Y): 1.02
Revenue Growth: 84.01%
EPS Growth: 96.74%
Country: India
Employees: 97
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

Garuda Construction and Engineering Limited Business Overview & Revenue Model

Company Description

Operating within India, Garuda Construction and Engineering Limited specializes in providing a comprehensive range of civil construction and engineering solutions. Its extensive portfolio encompasses the development of residential, commercial, mixed-...

Garuda Construction and Engineering Limited Financial Statement Overview

Summary

Income statement strength (revenue scaled sharply and profitability is strong) and a conservatively financed balance sheet (very low debt-to-equity and solid ROE history) are partially offset by cash-flow volatility. Recent operating and free cash flow turned positive, but the prior two years of negative cash flow despite positive net income keep quality-of-earnings risk elevated.

Income Statement

78Positive

Balance Sheet

88Very Positive

Cash Flow

54Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	5.81B	5.31B	2.26B	1.54B	1.61B	770.21M
Gross Profit	1.97B	1.77B	817.12M	598.13M	588.23M	347.83M
EBITDA	1.86B	1.64B	682.67M	500.74M	559.59M	270.41M
Net Income	1.36B	1.22B	497.95M	364.35M	407.95M	187.82M
Balance Sheet
Total Assets	0	6.44B	4.07B	2.28B	1.76B	1.11B
Cash, Cash Equivalents and Short-Term Investments	228.74M	228.74M	444.99M	5.07M	48.46M	68.84M
Total Debt	0	120.37M	1.07M	1.52M	1.93M	119.90M
Total Liabilities	-4.54B	1.90B	749.89M	1.09B	937.38M	692.44M
Stockholders Equity	4.54B	4.54B	3.32B	1.19B	826.12M	417.90M
Cash Flow
Free Cash Flow	49.01M	782.78M	-1.11B	-69.35M	119.52M	117.58M
Operating Cash Flow	49.01M	789.70M	-1.10B	-68.12M	122.56M	129.17M
Investing Cash Flow	-62.33M	-848.61M	-515.56M	25.39M	-21.13M	-11.56M
Financing Cash Flow	-4.83M	119.30M	1.63B	-658.00K	-121.81M	-50.82M

Garuda Construction and Engineering Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price136.55

Price Trends

50DMA170.34Negative

100DMA173.40Negative

200DMA173.00Negative

Market Momentum

MACD-9.76Positive

RSI23.09Positive

STOCH9.91Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GARUDA, the sentiment is Negative. The current price of 136.55 is below the 20-day moving average (MA) of 157.53, below the 50-day MA of 170.34, and below the 200-day MA of 173.00, indicating a bearish trend. The MACD of -9.76 indicates Positive momentum. The RSI at 23.09 is Positive, neither overbought nor oversold. The STOCH value of 9.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GARUDA.

Garuda Construction and Engineering Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:GARUDA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GARUDA	73Outperform	INR 12.70B	9.29	―	0.02%	84.01%	96.74%
IN:GPTINFRA	68Neutral	INR 14.19B	14.38	―	2.45%	1.62%	12.27%
IN:CAPACITE	64Neutral	INR 12.33B	6.71	―	―	12.37%	-5.17%
IN:SPMLINFRA	60Neutral	INR 10.86B	12.10	―	―	37.86%	57.21%
IN:BLKASHYAP	57Neutral	INR 11.77B	2607.00	―	―	21.77%	-96.12%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SIMPLEXINF	47Neutral	INR 20.03B	43.29	―	―	4.58%	33.42%

* General Sector Average

Performance Comparison

IN:GARUDA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:GARUDA	Garuda Construction and Engineering Limited	136.55	-77.11	-36.09%
IN:BLKASHYAP	B.L. Kashyap & Sons Ltd.	52.20	-7.11	-11.99%
IN:CAPACITE	Capacit'e Infraprojects Ltd.	145.70	-142.00	-49.36%
IN:GPTINFRA	GPT Infraprojects Limited	112.30	7.82	7.49%
IN:SIMPLEXINF	Simplex Infrastructures Limited	253.30	-34.45	-11.97%
IN:SPMLINFRA	SPML Infra Limited	128.00	-105.20	-45.11%

Garuda Construction and Engineering Limited Corporate Events

Garuda Construction and Engineering Declares Interim Dividend for FY 2025-26

Oct 15, 2026

Garuda Construction and Engineering Limited has announced that its board has approved an interim dividend of Rs 0.03 per equity share, with a par value of Rs 5, for the financial year ending March 31, 2026.Shareholders on record as of October 23, 202...

Garuda Construction Corrects Date Error in Quarterly Review Report

Sep 9, 2026

Garuda Construction and Engineering Limited clarified that a discrepancy identified by the National Stock Exchange related to its Consolidated Limited Review Report for the quarter ended June 30, 2026 has been rectified. The correction concerns only...

Garuda Construction Schedules Virtual 16th AGM, Publishes Regulatory Notices

Sep 7, 2026

Garuda Construction and Engineering Limited has notified the stock exchanges that its 16th Annual General Meeting will be held on September 30, 2026, at 11:00 A.M via video conferencing and other audio-visual means. The company has published the AGM...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 11, 2026

Garuda Construction and Engineering Limited AI Stock Analysis

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