SRM Contractors Ltd. (SRM) AI Stock Analysis

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SRM Contractors Ltd.

(NSE:SRM)

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Rating:68Neutral

Price Target:INR 433.00▲(9.11% Upside)

Action:downgraded

Date:08/27/26

The company's excellent financial health and attractive valuation are significantly offset by weak technical momentum, with the stock showing bearish signals across multiple indicators.

Positive Factors

Accelerating Revenue GrowthTwo consecutive years of strong revenue expansion indicate meaningful business growth and improving scale. If sustained, this momentum can broaden the company’s project base, support operating leverage, and provide a stronger platform for reinvestment over the next several quarters.

Negative Factors

Negative Free Cash FlowNegative free cash flow in two consecutive fiscal years shows that accounting profitability has not yet translated into surplus cash after investment needs. Persistent cash deficits can constrain self-funded growth, increase financing reliance, and reduce resilience if project spending remains elevated.

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

Market Cap: INR 9.31B
Dividend Yield: ―
Average Volume (3M): 5,808
Price to Earnings (P/E): 7.8
Beta (1Y): 0.94
Revenue Growth: 75.33%
EPS Growth: 86.76%
Country: India
Employees: 230
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

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 in...

SRM Contractors Ltd. Financial Statement Overview

Summary

Strong revenue growth and expanding margins drive a high score, though negative free cash flow from heavy capex tempers the overall financial picture.

Income Statement

88Very Positive

Balance Sheet

85Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.79B	10.26B	5.28B	3.42B	3.00B	2.64B
Gross Profit	3.36B	3.28B	1.48B	817.83M	818.49M	780.20M
EBITDA	1.87B	1.68B	953.58M	423.49M	386.62M	316.20M
Net Income	1.18B	1.11B	550.03M	269.66M	187.46M	175.68M
Balance Sheet
Total Assets	0	9.95B	4.08B	2.35B	1.36B	1.20B
Cash, Cash Equivalents and Short-Term Investments	1.84B	1.84B	1.12B	669.42M	264.98M	189.32M
Total Debt	0	1.35B	408.87M	475.84M	469.60M	315.24M
Total Liabilities	-4.13B	5.82B	1.32B	1.06B	726.64M	758.01M
Stockholders Equity	4.13B	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

Technical Analysis SentimentNeutral

Last Price396.85

Price Trends

50DMA412.46Negative

100DMA455.00Negative

200DMA456.11Negative

Market Momentum

MACD-5.93Negative

RSI52.61Neutral

STOCH32.69Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SRM, the sentiment is Neutral. The current price of 396.85 is above the 20-day moving average (MA) of 387.90, below the 50-day MA of 412.46, and below the 200-day MA of 456.11, indicating a neutral trend. The MACD of -5.93 indicates Negative momentum. The RSI at 52.61 is Neutral, neither overbought nor oversold. The STOCH value of 32.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:SRM.

SRM Contractors Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SRM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SRM	68Neutral	INR 9.07B	7.83	―	―	75.33%	86.76%
IN:GPTINFRA	67Neutral	INR 14.17B	15.26	―	2.40%	3.36%	4.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:BLKASHYAP	54Neutral	INR 12.56B	2819.00	―	―	21.77%	-96.12%
IN:VASCONEQ	50Neutral	INR 7.20B	25.14	―	―	-20.20%	-80.22%
IN:SPMLINFRA	41Neutral	INR 13.36B	14.75	―	―	37.86%	57.21%
IN:OMINFRAL	38Underperform	INR 6.68B	20.18	―	0.71%	-19.68%	47.04%

* General Sector Average

Performance Comparison

IN:SRM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SRM	SRM Contractors Ltd.	396.85	-237.05	-37.40%
IN:BLKASHYAP	B.L. Kashyap & Sons Ltd.	54.19	2.23	4.29%
IN:GPTINFRA	GPT Infraprojects Limited	114.20	9.83	9.41%
IN:OMINFRAL	Om Infra Limited	73.09	-38.13	-34.29%
IN:SPMLINFRA	SPML Infra Limited	158.85	-56.40	-26.20%
IN:VASCONEQ	Vascon Engineers Limited	31.56	-25.76	-44.94%

SRM Contractors Ltd. Corporate Events

SRM Contractors Publishes Notice for 18th AGM and E-Voting Details

Sep 16, 2026

SRM Contractors Limited has notified the stock exchanges that it has published a public notice regarding its 18th Annual General Meeting in leading English and Urdu newspapers. The company continues to follow regulatory requirements for listed entiti...

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 aim...

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

SRM Contractors Ltd. AI Stock Analysis