SRM Contractors Ltd. (IN:SRM)
:SRM
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SRM Contractors Ltd.
(SRM)
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Rating:69Neutral
Price Target:
₹510.00
▼(-3.78% Downside)
Action:Downgraded
Date:05/27/26
The score is driven primarily by strong growth and generally solid profitability, offset by weak and inconsistent free-cash-flow generation and higher FY2026 leverage. Technicals add support with a clear uptrend, and valuation is moderately favorable with a ~12.6 P/E.
Positive Factors
Revenue & Net Income Growth
Sustained, high double-digit revenue growth with commensurate net income expansion indicates durable demand for SRM's services and successful project execution. Over the next 2–6 months this supports higher backlog, pricing power on new bids and operating leverage as fixed costs are spread across larger revenue.
Negative Factors
Negative Free Cash Flow
Persistent negative free cash flow limits the company's ability to self-fund investments, repay higher debt, and build liquidity buffers. Over a multi‑month horizon this elevates refinancing and execution risk, forcing dependence on external funding or asset sales during project slowdowns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Net Income Growth
Sustained, high double-digit revenue growth with commensurate net income expansion indicates durable demand for SRM's services and successful project execution. Over the next 2–6 months this supports higher backlog, pricing power on new bids and operating leverage as fixed costs are spread across larger revenue.
Read all positive factors
SRM Contractors Ltd. (SRM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹11.57B
Dividend YieldN/A
Average Volume (3M)41.17K
Price to Earnings (P/E)10.4
Beta (1Y)1.30
Revenue Growth94.19%
EPS Growth101.16%
CountryIN
Employees175
SectorServices
Sector StrengthN/A
IndustryEngineering & Construction
Share Statistics
EPS (TTM)31.69
Shares Outstanding22,944,200
10 Day Avg. Volume16,405
30 Day Avg. Volume41,168
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)2.37
Price to Sales (P/S)0.86
P/FCF Ratio-35.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
SRM Contractors Ltd. Business Overview & Revenue Model
Company Description
SRM Contractors Limited is an Indian enterprise engaged in engineering, construction, and development. The company's operations are divided into three main business areas: constructing roads and highways, trading, and quarry mining. Its activities...
How the Company Makes Money
SRM Contractors Ltd. generates revenue by offering contracting services on a project basis, charging clients fees based on the scope and scale of the work completed. The company may also generate income through service agreements, wherein clients ...
SRM Contractors Ltd. Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.27B | 10.26B | 5.28B | 3.42B | 3.00B | 2.64B |
| Gross Profit | 2.54B | 3.28B | 1.48B | 817.83M | 818.49M | 780.20M |
| EBITDA | 1.17B | 1.68B | 953.58M | 423.49M | 386.62M | 316.20M |
| Net Income | 727.15M | 1.11B | 550.03M | 269.66M | 187.46M | 175.68M |
Balance Sheet | ||||||
| Total Assets | 5.16B | 9.95B | 4.08B | 2.35B | 1.36B | 1.20B |
| Cash, Cash Equivalents and Short-Term Investments | 3.20B | 1.84B | 1.12B | 669.42M | 264.98M | 189.32M |
| Total Debt | 595.76M | 1.35B | 408.87M | 475.84M | 469.60M | 315.24M |
| Total Liabilities | 2.17B | 5.82B | 1.32B | 1.06B | 726.64M | 758.01M |
| Stockholders Equity | 2.99B | 3.71B | 2.76B | 1.29B | 633.73M | 444.10M |
Cash Flow | ||||||
| Free Cash Flow | 131.10M | -245.98M | -453.32M | 49.76M | 34.45M | 41.92M |
| Operating Cash Flow | 630.15M | 1.40B | 10.73M | 142.65M | 213.46M | 97.32M |
| Investing Cash Flow | -630.74M | -1.47B | -469.30M | -138.88M | -227.59M | -59.40M |
| Financing Cash Flow | 202.85M | 979.24M | 795.15M | 1.57M | 54.18M | -29.87M |
SRM Contractors Ltd. Technical Analysis
Positive
530.05
Price Trends
505.41
Negative
460.60
Positive
500.36
Positive
Market Momentum
3.24
Negative
51.80
Neutral
66.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRM, the sentiment is Positive. The current price of 530.05 is above the 20-day moving average (MA) of 497.76, above the 50-day MA of 505.41, and above the 200-day MA of 500.36, indicating a neutral trend. The MACD of 3.24 indicates Negative momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 66.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SRM.
SRM Contractors Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | ₹11.57B | 10.37 | ― | ― | 94.19% | 101.16% | |
65 Neutral | ₹16.59B | 16.90 | ― | 1.80% | 8.57% | 17.97% | |
60 Neutral | ₹16.75B | 20.45 | ― | ― | 12.11% | 24.20% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
54 Neutral | ₹8.09B | 16.16 | ― | ― | -17.96% | -62.53% | |
53 Neutral | ₹12.32B | 910.83 | ― | ― | 19.55% | -94.75% | |
47 Neutral | ₹8.38B | 40.56 | ― | 0.39% | -29.83% | -41.77% |
* Services Sector Average
IN:SRM
SRM Contractors Ltd.
504.20
6.90
1.39%
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SRM Contractors Ltd. Corporate Events
SRM Contractors Plans Virtual Investor Meet at INSIGHTX Forum
Jun 8, 2026
SRM Contractors Limited has announced that its management team will participate in a virtual group meeting with investors and analysts as part of the Choice Equities INSIGHTX Virtual Forum 2026 on June 12, 2026. The company emphasized that discuss...
SRM Contractors Wins Rashtriya Ratna Samman 2026 as EPC Contractor of the Year
Apr 28, 2026
SRM Contractors Limited announced it has been conferred the “Rashtriya Ratna Samman 2026” under the EPC Contractor of the Year category, recognizing its contribution to infrastructure development and excellence in EPC services. The awa...
SRM Contractors Bags Rs 168 Crore Orders, Wins Key NHAI Highway Project
Apr 15, 2026
SRM Contractors Ltd. has announced that it has secured new contracts with an aggregate value of Rs 168 crore, underscoring its growing order book in the infrastructure space. A key award within this total is a Rs 128 crore domestic contract from t...
SRM Contractors Closes Trading Window Ahead of FY26 Results
Mar 28, 2026
SRM Contractors Limited has announced the closure of its trading window for company shares from 1 April 2026 until 48 hours after the declaration of its financial results for the year ending 31 March 2026, in line with SEBI’s Prohibition of ...
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.