A B Infrabuild Limited

Industrials — Engineering & Construction · NSE

₹13.65−₹0.09 (−0.66%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of A B Infrabuild Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

A B Infrabuild Limited engages in the civil construction business in India. The company is involved in the construction, alter, enhance, maintain, enlarge, pull down, remove, replace and develop, work, and manage of roads, railways, branches and sidings, and bridges.

IndustryEngineering & Construction

SectorIndustrials

Employees34

Annual revenue₹256 Cr

How does it make money?

Turns over ₹256 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹7.54 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹7.54 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +108% while net margin moved +23% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+108%

Margin effect+23%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 45.5x is demanding — it needs sustained high growth to justify
✗ P/E is 51% above its own historical median of 30.1x — expensive by its own standards
✗ P/B of 5.35x is a steep premium to book

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

33/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

45.5x

3Y Median

30.1x

40 monthly readings · mean 29.4x · range 0.5x–62.7x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 51% above its 3y median of 30.1x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 51% above the peer median of 30.1x.

vs. its own history

Expensive

30.1x median over 40 months · +51%

vs. sector peers

Expensive

30.1x median of 3 peers · +51%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.8x

PEG

1.23

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.3% to 15.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.3% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.8% to 17.1% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 255% over 3 years, from ₹32 Cr to ₹115 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Receivables growing faster than salesFinancial
Receivables up 155% against revenue up 108% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 4089% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.3% to 15.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 155% against revenue up 108%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 51% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 21.3% to 11.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 21% a year✓ 27.7% CAGR
Latest reported year was 25.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹63 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 14%✓ 17.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹872 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.35x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.3

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

25.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

0.0%

Modest

Slow profit growth

Dividend Yield

0.07%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹63 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

12.0%

Average

Average margins

Net Margin

7.2%

Average

Average bottom-line conversion

Current Ratio

1.76

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

12.6 / 11.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

67.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹123 Cr	₹184 Cr	₹208 Cr	₹256 Cr	+27.7%
EBITDA	₹15 Cr	₹24 Cr	₹33 Cr	₹40 Cr	+38.0%
EBITDA Margin	12.3%	13.2%	16.0%	15.5%	—
PAT (Net Profit)	₹8 Cr	₹11 Cr	₹16 Cr	₹19 Cr	+36.9%
EPS	₹4.94	₹0.3	₹0.34	₹0.3	-60.7%
ROE	21.3%	14.0%	14.6%	11.4%	—
ROCE	32.8%	19.0%	19.6%	17.1%	—
Total Debt	₹32 Cr	₹41 Cr	₹86 Cr	₹115 Cr	+52.6%
Free Cash Flow	₹12 Cr	-₹30 Cr	-₹30 Cr	-₹63 Cr	—

🟢 Revenue has grown at 27.7% a year over 3 years.

🟢 EBITDA has grown at 38.0% a year over 3 years.

🟢 EBITDA Margin has risen from 12.3% to 15.5% over 3 years (+3.2 pts).

🟢 PAT (Net Profit) has grown at 36.9% a year over 3 years.

🔴 EPS has shrunk at 60.7% a year over 3 years.

🔴 ROE has fallen from 21.3% to 11.4% over 3 years (-9.9 pts).

🔴 ROCE has fallen from 32.8% to 17.1% over 3 years (-15.7 pts).

🔴 Total Debt has grown at 52.6% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹63 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹362 Cr

Total Liabilities

₹192 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹51 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.2%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

1 positive2 mixed3 general

A B Infrabuild (ABINFRA.NS) Steadies Near ₹12.54 as Stock Consolidates Below ₹13.17 Resistance - Cash Flow Strong Stocks

https://www.siam.in/, 12 Oct

AB Infrabuild Ltd. Share Price News: Price Rise Analysis

Univest, 19 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

A B Infrabuild schedules 16th AGM for September 28, 2026

scanx.trade, 28 Sept

A B Infrabuild Limited's (NSE:ABINFRA) Shareholders Might Be Looking For Exit

Simply Wall Street, 06 Feb

AB Infrabuild Share Price Rises On Multiple Orders | Stock Market Today

Samco, 07 JanPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

A B Infrabuild standalone net profit rises 4.30% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability

WeakValuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑