Goel Construction Company Limited

Industrials — Engineering & Construction · BSE

₹397.00−₹3.05 (−0.76%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Goel Construction Company Limited engages in the business of civil construction in India. The company offers cement plants, power plants, dairy plants, steel plants, residential, and institutional work.

IndustryEngineering & Construction

SectorIndustrials

Employees1,436

Annual revenue₹656 Cr

How does it make money?

Turns over ₹656 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 1,436 employees supports ₹45.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹45.7 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 24.0% against a peer median of 14.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +143% while net margin moved +33% 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+143%

Margin effect+33%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

79/ 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

11.3x

1.3Y Median

13.2x

15 monthly readings · mean 13.5x · range 10.3x–17.9x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 14% below its 1.3y median of 13.2x. 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 63% below the peer median of 30.1x.

vs. its own history

Fair

13.2x median over 15 months · -14%

vs. sector peers

Cheap

30.1x median of 3 peers · -63%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.8x

PEG

0.24

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 9.3% to 11.0% over 3 years.
Debt is being paid down
Total debt is down 72% over 3 years.
Cash generation is improving
Free cash flow is up 1386% over 3 years.
High return on capital employed
ROCE of 24.5% 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

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.14x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 290% against revenue up 143% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.5% 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 9.3% to 11.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 72% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 63% 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?

Leverage amplifies any setback
Debt/Equity of 3.14x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 290% against revenue up 143%. 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 26% a year✓ 34.4% CAGR
Latest reported year was 29.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹28 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 21%✓ 24.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹574 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.3x

Cheap

Cheap against the generic band

P/B Ratio

2.26x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹35.25

Profitable

Profitable on a per-share basis

ROE

24.0%

Strong

Strong capital efficiency

ROCE

24.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.14x

High

High leverage

Revenue Growth (YoY)

29.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

7.7%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

11.2%

Good

Assets are working hard

Operating Margin

9.2%

Average

Average margins

Net Margin

7.0%

Average

Average bottom-line conversion

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

52W Range Position

58%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

409.2 / 418.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹270 Cr	₹386 Cr	₹589 Cr	₹656 Cr	+34.4%
EBITDA	₹25 Cr	₹38 Cr	₹62 Cr	₹72 Cr	+42.2%
EBITDA Margin	9.3%	9.9%	10.5%	11.0%	—
PAT (Net Profit)	₹14 Cr	₹23 Cr	₹38 Cr	₹46 Cr	+47.9%
EPS	₹9.9	₹15.67	₹26.52	—	—
ROE	20.2%	24.3%	29.1%	18.2%	—
ROCE	22.8%	28.5%	36.2%	24.5%	—
Total Debt	₹29 Cr	₹31 Cr	₹29 Cr	₹8 Cr	-34.6%
Free Cash Flow	₹2 Cr	₹32 Cr	₹15 Cr	₹28 Cr	+145.8%

🟢 Revenue has grown at 34.4% a year over 3 years.

🟢 EBITDA has grown at 42.2% a year over 3 years.

🟢 EBITDA Margin has risen from 9.3% to 11.0% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 47.9% a year over 3 years.

🔴 ROE has fallen from 20.2% to 18.2% over 3 years (-2.0 pts).

🟢 ROCE has risen from 22.8% to 24.5% over 3 years (+1.7 pts).

🟢 Total Debt has shrunk at 34.6% a year over 3 years.

🟢 Free Cash Flow has grown at 145.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹455 Cr

Total Liabilities

₹201 Cr

Cash & Equivalents

₹19 Cr

Operating Cash Flow

₹63 Cr

Capex

-₹35 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.8%

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 positive5 general

Compare with

Equitymaster, 15 Oct

GOEL CONSTRUCTION COMPANY LIMI Share Price

Upstox, 05 May

Goel Construction holds ₹1,300 crore order book in H1FY27

scanx.trade, 02 OctOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

GOEL CONSTRUCTION COMPANY LIMI Lower Circuit: Price and Key Data

Univest, 09 Sept

Goel Construction Company Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 02 Sept

Goel Construction Company Ltd IPO Status, GMP, Price & Dates Today

Alice Blue, 26 Jun

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability · Valuation

MiddlingBusiness Quality

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.

All 5 tripwires holding · see Key things to watch ↑