Globe Civil Projects Limited

Industrials — Engineering & Construction · NSE

₹40.50−₹0.16 (−0.39%)

DalalBaazaar Score

62 / 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Globe Civil Projects Limited primarily engages in the civil construction business in India. The company operates in Engineering, Procurement, and Construction (EPC); and Trading segments.

IndustryEngineering & Construction

SectorIndustrials

Employees168

Annual revenue₹406 Cr

How does it make money?

Turns over ₹406 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 168 employees supports ₹2.41 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.41 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 17.2% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +74% while net margin moved +176% 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+74%

Margin effect+176%

DalalBaazaar Score

62/ 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

63/ 100

Average

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

Valuation

81/ 100

Cheap

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

9.6x

1.4Y Median

12.0x

17 monthly readings · mean 13.9x · range 8.4x–31.9x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 20% below its 1.4y median of 12.0x. 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 68% below the peer median of 30.1x.

vs. its own history

Fair

12.0x median over 17 months · -20%

vs. sector peers

Cheap

30.1x median of 3 peers · -68%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.9x

PEG

0.14

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 8.4% to 12.2% over 3 years.
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 · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 54% over 3 years, from ₹97 Cr to ₹150 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 207% against revenue up 74% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 102% against revenue up 74% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 8.4% to 12.2%. 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 68% 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?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 207% against revenue up 74%. 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
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 15% a year✓ 20.2% CAGR
Latest reported year was 37.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹75 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.5x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

₹242 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.6x

Cheap

Cheap against the generic band

P/B Ratio

1.03x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.21

Profitable

Profitable on a per-share basis

ROE

9.8%

Moderate

Moderate capital efficiency

ROCE

17.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

37.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

2.6%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹75 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

14.5%

Average

Average margins

Net Margin

5.9%

Average

Average bottom-line conversion

Current Ratio

1.67

Comfortable

Healthy short-term liquidity

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

41.9 / 43.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹233 Cr	₹332 Cr	₹379 Cr	₹406 Cr	+20.2%
EBITDA	₹20 Cr	₹45 Cr	₹52 Cr	₹50 Cr	+36.2%
EBITDA Margin	8.4%	13.4%	13.7%	12.2%	—
PAT (Net Profit)	₹5 Cr	₹15 Cr	₹24 Cr	₹23 Cr	+68.7%
EPS	₹0.81	₹2.58	₹4.03	₹4.18	+72.6%
ROE	7.8%	19.8%	22.6%	9.8%	—
ROCE	15.8%	32.4%	37.9%	17.2%	—
Total Debt	₹97 Cr	₹125 Cr	₹148 Cr	₹150 Cr	+15.5%
Free Cash Flow	-₹15 Cr	-₹7 Cr	-₹13 Cr	-₹75 Cr	—

🟢 Revenue has grown at 20.2% a year over 3 years.

🟢 EBITDA has grown at 36.2% a year over 3 years.

🟢 EBITDA Margin has risen from 8.4% to 12.2% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 68.7% a year over 3 years.

🟢 EPS has grown at 72.6% a year over 3 years.

🟢 ROE has risen from 7.8% to 9.8% over 3 years (+2.0 pts).

🟢 ROCE has risen from 15.8% to 17.2% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 15.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹541 Cr

Total Liabilities

₹303 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹54 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.5%

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

6 general

Globe Civil Projects vs Nifty 50: Returns Compared

Univest, 25 Sept

Globe Civil Projects Limited (NSE:GLOBECIVIL) Could Be Riskier Than It Looks

Simply Wall Street, 23 Jan

Globe Civil Projects schedules 24th AGM for September 25, 2026

scanx.trade, 25 Sept

GLOBE CIVIL PROJECTS LTD Share Price

Upstox, 05 May

Globe Civil Projects (GLOBECIVIL.NS) Rises 1.36% to ₹46.84; Infrastructure Stock Holds Its Ground - Call Dominated

siam.in, 02 Sept

Small-cap infra stock under ₹100 falls over 3% despite relief rally in Indian stock market

Livemint, 20 Feb

Watch Items

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

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health

WeakProfitability · 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 falls below 3x; Free cash flow remains positive · see Key things to watch ↑