SRM Contractors Ltd. (SRM) AI Stock Analysis

• Market Cap: ₹12.94B
• Dividend Yield: N/A
• Average Volume (3M): 36.61K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.09
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 175
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): N/A
• Shares Outstanding: 22,944,200
• 10 Day Avg. Volume: 92,417
• 30 Day Avg. Volume: 36,613
• PEG Ratio: 0.13
• Price to Book (P/B): 2.75
• Price to Sales (P/S): 1.44
• P/FCF Ratio: -16.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹611.00
• Price Target Upside: 9.30% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹611.00 ▲(9.30% Upside)

SRM Contractors Ltd. shows strong financial performance with significant revenue and profit growth, supported by a robust balance sheet. However, cash flow management is a concern due to high capital expenditures. The technical analysis indicates a strong upward trend, though the stock may be overbought. Valuation is moderate, with no dividend yield to attract income investors.

SRM Contractors Ltd. Business Overview & Revenue Model

Company Description

SRM Contractors Ltd. (SRM) is a construction and infrastructure development company specializing in providing comprehensive contracting services across various sectors, including residential, commercial, and industrial projects. The company is known for its expertise in project management, design, and execution, delivering high-quality and sustainable solutions to meet the needs of its diverse clientele.

How the Company Makes Money

SRM Contractors Ltd. generates revenue through its contracting services, which include project management, construction, and design services. The company earns money by bidding on and securing contracts for various construction projects, where it charges fees for its services. These fees are typically based on the scale and complexity of the projects. Key revenue streams include fixed-price contracts, cost-plus contracts, and time-and-materials contracts. Additionally, SRM may engage in strategic partnerships with suppliers and subcontractors to optimize costs and enhance project efficiency, thereby contributing to its profitability.

SRM Contractors Ltd. Financial Statement Overview

Summary

SRM Contractors Ltd. demonstrates strong revenue and profit growth, supported by a robust balance sheet with low leverage and high equity. However, cash flow management poses a risk, with high capital expenditures impacting free cash flow. Overall, the company is in a solid financial position but needs to focus on improving cash flow efficiency.

Income Statement

SRM Contractors Ltd. has shown strong revenue growth with a 54% increase in total revenue in 2025 compared to 2024. The gross profit margin is robust at 28% for the latest year, with a net profit margin also showing strength at 10.4%. EBIT and EBITDA margins have improved, indicating operational efficiency. The company is on a solid growth trajectory, although maintaining margins as revenue scales will be crucial.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.15, reflecting a low reliance on debt. The equity ratio is strong at 67.6%, indicating a stable financial structure. Return on equity has improved significantly to 19.9%, suggesting effective use of equity capital. While the balance sheet is strong, the company should monitor any potential debt increases.

Cash Flow

There is a significant decline in free cash flow in 2025, mainly due to high capital expenditures. The operating cash flow to net income ratio is low, suggesting cash generation issues relative to reported profits. Improvement in cash flow management is needed to sustain long-term growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.28B	5.28B	3.42B	3.00B	2.64B	1.60B
Gross Profit	1.48B	1.48B	817.83M	818.49M	780.20M	490.78M
EBITDA	932.48M	953.58M	423.49M	386.62M	316.20M	177.98M
Net Income	550.03M	550.03M	269.66M	187.46M	175.68M	82.73M
Balance Sheet
Total Assets	4.08B	4.08B	2.35B	1.36B	1.20B	1.12B
Cash, Cash Equivalents and Short-Term Investments	1.12B	1.12B	669.42M	264.98M	189.32M	113.95M
Total Debt	408.87M	408.87M	475.84M	469.60M	315.24M	319.57M
Total Liabilities	1.32B	1.32B	1.06B	726.64M	758.01M	856.23M
Stockholders Equity	2.76B	2.76B	1.29B	633.73M	444.10M	268.42M
Cash Flow
Free Cash Flow	0.00	-453.32M	49.76M	34.45M	41.92M	31.94M
Operating Cash Flow	0.00	10.73M	142.65M	213.46M	97.32M	141.86M
Investing Cash Flow	0.00	-469.30M	-138.88M	-188.67M	-59.40M	-132.50M
Financing Cash Flow	0.00	795.15M	1.57M	54.18M	-29.87M	45.26M

SRM Contractors Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 559.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 559 is above the 20-day moving average (MA) of 504.97, above the 50-day MA of 488.60, and above the 200-day MA of 402.93, indicating a bullish trend. The MACD of 20.83 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 80.77 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RKEC	72 Outperform	1.91B	10.58	10.62%	―	3.61%	-19.51%
SRM	71 Outperform	₹12.94B	19.81	―	―	―	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%