Capacit'e Infraprojects Limited

Industrials — Engineering & Construction · NSE

₹173.20+₹2.00 (+1.17%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. The direction of profits is 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 Capacit'e Infraprojects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Capacit'e Infraprojects Limited, together with its subsidiaries, engages in the engineering, procurement, and construction business in India.

IndustryEngineering & Construction

SectorIndustrials

Employees1,216

Annual revenue₹2,602 Cr

How does it make money?

Turns over ₹2,602 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 1,216 employees supports ₹2.14 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.14 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?Little sign of one

Returns on capital of 14.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 12.5% and earnings to grow about 17.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.5%

Est. earnings growth+17.5%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +46% while net margin moved +38% 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+46%

Margin effect+38%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.29 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

66/ 100

Good

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

8.0x

3Y Median

18.1x

40 monthly readings · mean 16.4x · range 7.6x–27.0x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 56% below its 3y median of 18.1x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 74% below the peer median of 30.1x.

vs. its own history

Cheap

18.1x median over 40 months · -56%

vs. sector peers

Cheap

30.1x median of 3 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.5x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 466% over 3 years.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
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

4 items require attention · 2 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.2 points, from 22.2% to 16.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 212% against revenue up 46% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 74% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹48 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 22.2% to 16.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 212% against revenue up 46%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 10% a year✓ 13.4% CAGR
Latest reported year was 6.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹48 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 11%✓ 14.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹1,465 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.0x

Cheap

Cheap against the generic band

P/B Ratio

0.77x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹21.78

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

14.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

6.7%

Modest

Modest growth

Profit Growth (YoY)

-15.1%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹48 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

5.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.0%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

1.68

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.29

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

182.8 / 198.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,784 Cr	₹1,919 Cr	₹2,332 Cr	₹2,602 Cr	+13.4%
EBITDA	₹396 Cr	₹336 Cr	₹434 Cr	₹417 Cr	+1.7%
EBITDA Margin	22.2%	17.5%	18.6%	16.0%	—
PAT (Net Profit)	₹95 Cr	₹120 Cr	₹203 Cr	₹192 Cr	+26.2%
EPS	₹13.97	₹16.09	₹23.94	₹22.64	+17.5%
ROE	8.9%	7.9%	11.8%	10.0%	—
ROCE	14.5%	13.0%	16.1%	14.2%	—
Total Debt	₹374 Cr	₹329 Cr	₹426 Cr	₹483 Cr	+9.0%
Free Cash Flow	₹9 Cr	-₹124 Cr	-₹51 Cr	₹48 Cr	+78.3%

🟢 Revenue has grown at 13.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.7% a year).

🔴 EBITDA Margin has fallen from 22.2% to 16.0% over 3 years (-6.2 pts).

🟢 PAT (Net Profit) has grown at 26.2% a year over 3 years.

🟢 EPS has grown at 17.5% a year over 3 years.

🟢 ROE has risen from 8.9% to 10.0% over 3 years (+1.2 pts).

🟡 ROCE has held roughly flat at 14.2% over 3 years.

🔴 Total Debt has grown at 9.0% a year over 3 years.

🟢 Free Cash Flow has grown at 78.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,922 Cr

Total Liabilities

₹2,010 Cr

Cash & Equivalents

₹91 Cr

Operating Cash Flow

₹223 Cr

Capex

-₹175 Cr

Shareholding (proxy)

Institutional Holding

9.0%

Insider Holding

52.1%

Corporate Actions

Ex-Dividend Date

20 Aug 2019

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹272

+57.0% vs CMP

Target Range

₹271 – ₹273

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 positive3 mixed2 general

Capacit'e Infraprojects 52 Week Low Streak: Sixth Session

Univest, 16 Oct

CAPACITE: Lower Margin Assumptions Temper The Case For Upside

Simply Wall Street, 15 Oct

Capacit’e Infraprojects Gets ₹368.98 Crore Metro Order; Shares Rise 3.53%

HDFC Sky, 06 OctPrice 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.

Capacit'e Infraprojects shares turn positive after company secures ₹589 crore order

Upstox, 03 JunOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

CAPACITE Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Capacit'e Infraprojects shares gain 5% on ₹369 crore Chennai Metro order

CNBC TV18, 06 OctPrice 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.

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

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality · Profitability · Risk

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.

All 5 tripwires holding · see Key things to watch ↑