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SRM Contractors Ltd. (IN:SRM)
:SRM
India Market
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SRM Contractors Ltd. (SRM) AI Stock Analysis

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IN:SRM

SRM Contractors Ltd.

(SRM)

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Neutral 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:
₹488.00
▲(5.45% Upside)
Action:Reiterated
Date:08/27/26
The score is primarily supported by strong recent financial growth and a low P/E valuation, but it is meaningfully offset by weak technicals (price below major moving averages and negative MACD) and elevated fundamental risk from inconsistent cash conversion/negative free cash flow alongside a sharp rise in debt.
Positive Factors
Accelerating Revenue Growth
Rapid, sustained revenue expansion indicates strong project demand and improving execution scale. If maintained, this growth can strengthen operating leverage, broaden the company’s market position, and support continued earnings expansion.
Negative Factors
Persistent Negative Free Cash Flow
Negative free cash flow across two years shows that reported profits are not yet consistently converting into surplus cash after investment needs. Continued shortfalls could increase reliance on debt or external funding and constrain expansion flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Accelerating Revenue Growth
Rapid, sustained revenue expansion indicates strong project demand and improving execution scale. If maintained, this growth can strengthen operating leverage, broaden the company’s market position, and support continued earnings expansion.
Read all positive factors

SRM Contractors Ltd. (SRM) vs. iShares MSCI India ETF (INDA)

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...

SRM Contractors Ltd. Financial Statement Overview

Summary
Strong, accelerating revenue and net income growth support a positive fundamental profile (FY2026 revenue up ~41% after ~54% in FY2025; net income roughly doubled). However, financial quality is held back by two years of negative free cash flow and inconsistent cash conversion, alongside a sharp increase in debt in FY2026 that raises execution and refinancing risk.
Income Statement
82
Very Positive
Balance Sheet
70
Positive
Cash Flow
48
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue10.79B10.26B5.28B3.42B3.00B2.64B
Gross Profit3.36B3.28B1.48B817.83M818.49M780.20M
EBITDA1.87B1.68B953.58M423.49M386.62M316.20M
Net Income1.18B1.11B550.03M269.66M187.46M175.68M
Balance Sheet
Total Assets0.009.95B4.08B2.35B1.36B1.20B
Cash, Cash Equivalents and Short-Term Investments1.84B1.84B1.12B669.42M264.98M189.32M
Total Debt0.001.35B408.87M475.84M469.60M315.24M
Total Liabilities-4.13B5.82B1.32B1.06B726.64M758.01M
Stockholders Equity4.13B3.71B2.76B1.29B633.73M444.10M
Cash Flow
Free Cash Flow131.10M-245.98M-453.32M49.76M34.45M41.92M
Operating Cash Flow630.15M1.40B10.73M142.65M213.46M97.32M
Investing Cash Flow-630.74M-1.47B-469.30M-138.88M-227.59M-59.40M
Financing Cash Flow202.85M979.24M795.15M1.57M54.18M-29.87M

SRM Contractors Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price462.80
Price Trends
50DMA
498.50
Negative
100DMA
497.57
Negative
200DMA
491.82
Negative
Market Momentum
MACD
-10.10
Positive
RSI
36.19
Neutral
STOCH
6.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRM, the sentiment is Negative. The current price of 462.8 is below the 20-day moving average (MA) of 493.62, below the 50-day MA of 498.50, and below the 200-day MA of 491.82, indicating a bearish trend. The MACD of -10.10 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 6.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SRM.

SRM Contractors Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
₹14.35B14.561.80%1.62%12.27%
64
Neutral
₹7.25B24.69-20.20%-80.22%
62
Neutral
₹10.56B8.6875.33%86.77%
60
Neutral
₹15.72B17.0537.86%57.21%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
₹12.40B2,823.5021.77%-96.71%
46
Neutral
₹7.92B24.010.39%-19.68%47.04%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:SRM
SRM Contractors Ltd.
445.20
-18.40
-3.97%
IN:BLKASHYAP
B.L. Kashyap & Sons Ltd.
56.37
-13.18
-18.95%
IN:GPTINFRA
GPT Infraprojects Limited
113.25
0.36
0.32%
IN:OMINFRAL
Om Infra Limited
82.89
-18.94
-18.60%
IN:SPMLINFRA
SPML Infra Limited
179.60
-86.35
-32.47%
IN:VASCONEQ
Vascon Engineers Limited
30.85
-19.17
-38.32%

SRM Contractors Ltd. Corporate Events

SRM Contractors forms highway amenities associate Giraffe SRM Estates
Aug 25, 2026
SRM Contractors Limited, an infrastructure-focused company based in Jammu, India, is broadening its footprint into highway hospitality and wayside amenities. Through its newly incorporated associate, Giraffe SRM Estates Private Limited, the group ...
CareEdge upgrades SRM Contractors’ ratings as bank facilities expand
Jul 2, 2026
CareEdge Ratings Limited has upgraded SRM Contractors Limited’s credit ratings on its enhanced bank facilities following a review of the company’s audited FY26 operational and financial performance. The long-term bank facilities have b...
SRM Contractors bags Rs 501 crore infrastructure contracts
Jun 30, 2026
SRM Contractors Limited has secured new contracts with a total value of approximately Rs 501 crore, significantly expanding its order book and reinforcing its presence in the infrastructure construction market. A key award, worth about Rs 211 cror...
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...
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 27, 2026