DRA Consultants Limited

Industrials — Engineering & Construction · BSE

₹20.50₹0.00 (0.00%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Reasonable but unspectacular business quality, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

DRA Consultants Limited provides engineering consultancy services for urban and rural development, and industrial utility sectors in India.

IndustryEngineering & Construction

SectorIndustrials

Employees145

Annual revenue₹26 Cr

How does it make money?

Turns over ₹26 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 145 employees supports ₹17.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹17.7 lakh

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 10.9% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +70% while net margin moved -2% 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+70%

Margin effect-2%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.82 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 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

7.8x

3Y Median

11.5x

40 monthly readings · mean 14.1x · range 5.3x–38.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 32% below its 3y median of 11.5x. 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

11.5x median over 40 months · -32%

vs. sector peers

Cheap

30.1x median of 3 peers · -74%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.9x

PEG

0.42

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 8.8% to 10.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 20.1% to 18.3% over 3 years.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 32% 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.
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 20.1% to 18.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.

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

1Revenue growth stays above 15% a year✓ 19.4% CAGR
Latest reported year was 30.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.9%
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

5 good · 5 neutral · 1 weak

Market Cap

₹22 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.8x

Cheap

Cheap against the generic band

P/B Ratio

0.63x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.64

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.04x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

13.1%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.2%

Average

Average asset productivity

Operating Margin

11.9%

Average

Average margins

Net Margin

11.3%

Good

Strong bottom-line conversion

Current Ratio

4.01

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.82

Market-like

Moves roughly in line with the market

52W Range Position

92%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

18.4 / 18.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

93.3

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹15 Cr	₹20 Cr	₹21 Cr	₹26 Cr	+19.4%
EBITDA	₹3 Cr	₹5 Cr	₹5 Cr	₹5 Cr	+15.5%
EBITDA Margin	20.1%	24.0%	21.7%	18.3%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+18.6%
EPS	₹1.58	₹2.17	₹2.45	—	—
ROE	6.3%	7.9%	8.2%	8.1%	—
ROCE	8.8%	10.4%	11.1%	10.9%	—
Free Cash Flow	₹2 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-88.9%

🟢 Revenue has grown at 19.4% a year over 3 years.

🟢 EBITDA has grown at 15.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 20.1% to 18.3% over 3 years (-1.9 pts).

🟢 PAT (Net Profit) has grown at 18.6% a year over 3 years.

🟢 ROE has risen from 6.3% to 8.1% over 3 years (+1.8 pts).

🟢 ROCE has risen from 8.8% to 10.9% over 3 years (+2.1 pts).

🔴 Free Cash Flow has shrunk at 88.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹6 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.4%

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 positive1 mixed1 negative3 general

DRA Consultants AGM voting results: All resolutions pass unanimously

scanx.trade, 04 OctResults

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

SJP ULTRASONICS LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 08 Oct

Eagle Fibres buys 10 lakh Sumeet Industries shares for ₹1.46 crore

scanx.trade, 17 Aug

Ampvolts promoter pledges 37 lakh shares to Cholamandalam Securities

scanx.trade, 01 SeptOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

BTIG maintains Buy on Enova International, raises target to $270

scanx.trade, 26 JunAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Satia Industries revises Q1FY27 XBRL filing for EPS correction

scanx.trade, 09 Jul

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · 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. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑