ANNU PROJECTS LIMITED

Industrials — Infrastructure Operations · NSE

₹44.59−₹0.64 (−1.41%)

DalalBaazaar Score

77 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

The 60-second version of ANNU PROJECTS LIMITED — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Annu Projects Limited engages in the design, development, implementation, operations and maintenance of essential overhead and underground utilities infrastructure across telecom infrastructure, sewerage infrastructure vertical, gas pipeline vertical and railway signalling vertical in India.

IndustryInfrastructure Operations

SectorIndustrials

Annual revenue₹241 Cr

How does it make money?

Turns over ₹241 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 28.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.8% against a peer median of 15.2% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +86% while net margin moved +147% 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+86%

Margin effect+147%

DalalBaazaar Score

77/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

88/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

8.8x

Sector Median

30.0x

median of 2 sector peers

🟢Against its sector it trades 70% below the peer median of 30.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.0x median of 2 peers · -70%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.4x

PEG

0.13

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 11.8% to 22.3% over 3 years.
Return on equity is rising
ROE has improved from 14.0% to 21.3%.
Return on capital is rising
ROCE has improved from 24.5% to 28.8%.
High return on capital employed
ROCE of 28.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 160% over 3 years, from ₹20 Cr to ₹53 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 223% against revenue up 86% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 28.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 11.8% to 22.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 70% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 223% against revenue up 86%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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
2 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 17% a year✓ 22.9% CAGR
Latest reported year was 34.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 26%✓ 28.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

8 good · 2 neutral · 1 weak

Market Cap

₹292 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.8x

Cheap

Cheap against the generic band

P/B Ratio

1.37x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.04

Profitable

Profitable on a per-share basis

ROE

23.8%

Strong

Strong capital efficiency

ROCE

28.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

34.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹38 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

10.7%

Good

Assets are working hard

Operating Margin

15.4%

Good

Healthy core-business profitability

Net Margin

13.7%

Good

Strong bottom-line conversion

Current Ratio

1.71

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

27.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹154 Cr	₹180 Cr	₹241 Cr	+22.9%
EBITDA	₹15 Cr	₹30 Cr	₹33 Cr	₹54 Cr	+51.8%
EBITDA Margin	11.8%	19.4%	18.4%	22.3%	—
PAT (Net Profit)	₹7 Cr	₹18 Cr	₹21 Cr	₹33 Cr	+66.3%
EPS	₹1.1	₹2.68	₹3.22	—	—
ROE	14.0%	25.4%	17.3%	21.3%	—
ROCE	24.5%	38.1%	24.4%	28.8%	—
Total Debt	₹20 Cr	₹20 Cr	₹24 Cr	₹53 Cr	+37.6%
Free Cash Flow	-₹1 Cr	₹1 Cr	-₹36 Cr	-₹23 Cr	—

🟢 Revenue has grown at 22.9% a year over 3 years.

🟢 EBITDA has grown at 51.8% a year over 3 years.

🟢 EBITDA Margin has risen from 11.8% to 22.3% over 3 years (+10.4 pts).

🟢 PAT (Net Profit) has grown at 66.3% a year over 3 years.

🟢 ROE has risen from 14.0% to 21.3% over 3 years (+7.3 pts).

🟢 ROCE has risen from 24.5% to 28.8% over 3 years (+4.3 pts).

🔴 Total Debt has grown at 37.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹342 Cr

Total Liabilities

₹187 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹0 Cr

Capex

-₹23 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.4%

Peer Comparison

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

Recent News

1 mixed5 general

ANNU PROJECTS LIMITED Share Price

Upstox, 16 Oct

Annu Projects Ltd. IPO Review - Annu Projects Ltd. IPO Dates, Issue Price, Subscription and Allotment Status

The Economic Times, 13 Oct

Weak market debut: Annu Projects shares list at over 27% discount to its IPO price

Moneycontrol.com, 02 Sept

Weak Start! Annu Projects shares list at 27% discount to IPO price

The Economic Times, 02 Sept

Compare with SHREE PRECOATED

Equitymaster, 16 Oct

Annu Projects Q1FY27 Results: Net profit at ₹127 lakh, revenue ₹1,991 lakh

scanx.trade, 23 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑