Madhav Infra Projects Limited

Industrials — Engineering & Construction · NSE

₹7.11−₹0.08 (−1.11%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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, 6:04 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Madhav Infra Projects Limited engages in the development, construction, operation, and maintenance of infrastructure projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees175

Annual revenue₹502 Cr

How does it make money?

Turns over ₹502 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 175 employees supports ₹2.87 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.1%

Net margin5.5%

Revenue / employee₹2.87 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.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 13.9% 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.

ROCE13.9%

ROE11.4%

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 -2% while net margin moved -17% 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-2%

Margin effect-17%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.7% a year
✗ Profit has declined at 6.9% a year
✗ Profit fell 17.9% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

87/ 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

7.4x

Sector Median

30.1x

median of 3 sector peers

🟢Against its sector it trades 75% below the peer median of 30.1x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.1x median of 3 peers · -75%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.4x

P/B

0.80x

EV/EBITDA

5.7x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 10.3% to 12.1% over 3 years.
Debt is being paid down
Total debt is down 20% over 3 years.
Cash generation is improving
Free cash flow is up 315% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 20.4% to 11.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.9% to 13.9% — often a sign of competition or overexpansion.

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?

Margin expansion has further to run
EBITDA margin has risen from 10.3% to 12.1%. 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 20% 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 75% 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?

Returns on shareholder capital are falling
ROE has dropped from 20.4% to 11.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 10%✓ 12.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹26 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 11%✓ 13.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹192 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.4x

Cheap

Cheap against the generic band

P/B Ratio

0.80x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.96

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.69x

Moderate

Moderate leverage

Revenue Growth (YoY)

0.9%

Modest

Modest growth

Profit Growth (YoY)

-17.9%

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

₹26 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹7.11

Operating Margin

14.0%

Average

Average margins

Net Margin

5.2%

Average

Average bottom-line conversion

Current Ratio

1.61

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

27.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹513 Cr	₹460 Cr	₹610 Cr	₹502 Cr	-0.7%
EBITDA	₹53 Cr	₹56 Cr	₹59 Cr	₹61 Cr	+4.6%
EBITDA Margin	10.3%	12.3%	9.7%	12.1%	—
PAT (Net Profit)	₹34 Cr	₹22 Cr	₹26 Cr	₹27 Cr	-6.9%
EPS	₹1.27	₹0.81	₹0.96	₹1.01	-7.3%
ROE	20.4%	11.5%	12.2%	11.4%	—
ROCE	19.9%	12.7%	13.6%	13.9%	—
Total Debt	₹207 Cr	₹159 Cr	₹160 Cr	₹165 Cr	-7.3%
Free Cash Flow	₹6 Cr	₹57 Cr	₹65 Cr	₹26 Cr	+60.7%

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🟢 EBITDA has grown at 4.6% a year over 3 years.

🟢 EBITDA Margin has risen from 10.3% to 12.1% over 3 years (+1.7 pts).

🔴 PAT (Net Profit) has shrunk at 6.9% a year over 3 years.

🔴 EPS has shrunk at 7.3% a year over 3 years.

🔴 ROE has fallen from 20.4% to 11.4% over 3 years (-8.9 pts).

🔴 ROCE has fallen from 19.9% to 13.9% over 3 years (-6.0 pts).

🟢 Total Debt has shrunk at 7.3% a year over 3 years.

🟢 Free Cash Flow has grown at 60.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹606 Cr

Total Liabilities

₹365 Cr

Total Debt

₹165 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹32 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

68.9%

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 mixed1 negative4 general

Madhav Infra Signs 73 MW PPAs; Shares Largely Steady

HDFC Sky, 23 Apr

Madhav Infra Projects Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Madhav Infra Projects promoters execute inter-se share gift

scanx.trade, 05 Aug

Madhav Infra Projects consolidated net profit declines 16.31% in the June 2026 quarter

Business Standard, 31 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Madhav Infra starts e-voting for ₹34 crore preferential allotment

scanx.trade, 08 Oct

Madhav Infra Projects slips after Q1 PAT falls 16% YoY to Rs 6 cr

Business Standard, 31 JulResults

🟡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

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

🟡Business QualityAdequate9/20

🟢Financial HealthStrong15.4/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟢ValuationAttractive13/15

🟡RiskModerate6.2/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 10%12.1%
✗Debt / EBITDA stays below 2x2.7x
✓Interest cover stays above 3x3.6x
✓Free cash flow remains positive₹26 Cr
✓ROCE stays above 11%13.9%