Madhucon Projects Limited

Industrials — Engineering & Construction · NSE

₹4.20+₹0.06 (+1.45%)

DalalBaazaar Score

19 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, but sales are shrinking. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Madhucon Projects Limited, together with its subsidiaries, operates as an integrated construction, infrastructure development, and management company in India.

IndustryEngineering & Construction

SectorIndustrials

Annual revenue₹548 Cr

How does it make money?

Turns over ₹548 Cr a year. Of every ₹100 of sales, about ₹-81 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation.

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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -51% while net margin moved +534% 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-51%

Margin effect+534%

DalalBaazaar Score

19/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

18/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

69.4x

PEG

—

Red Flags

6 items require attention · 5 high · 1 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹445 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 77.1 points, from 86.6% to 9.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 16% against revenue up -51% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.39 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 86.6% to 9.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 70.3x 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 16% against revenue up -51%. 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.

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

1EBITDA margin holds above 7%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 70.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹277 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

3 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ 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

0 good · 5 neutral · 6 weak

Market Cap

₹31 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-42.05

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

-68.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

6.5%

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

-₹277 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

20.1%

Good

Healthy core-business profitability

Net Margin

-69.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.39

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

4.1 / 4.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,124 Cr	₹1,157 Cr	₹662 Cr	₹548 Cr	-21.3%
EBITDA	₹973 Cr	₹403 Cr	₹383 Cr	₹52 Cr	-62.3%
EBITDA Margin	86.6%	34.8%	58.0%	9.5%	—
PAT (Net Profit)	-₹144 Cr	-₹45 Cr	-₹475 Cr	-₹445 Cr	—
EPS	₹-19.47	₹-6.11	₹-64.4	₹-60.24	—
Total Debt	₹3,219 Cr	₹3,913 Cr	₹3,554 Cr	₹3,657 Cr	+4.3%
Free Cash Flow	-₹241 Cr	-₹259 Cr	-₹402 Cr	-₹277 Cr	—

🔴 Revenue has shrunk at 21.3% a year over 3 years.

🔴 EBITDA has shrunk at 62.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 86.6% to 9.5% over 3 years (-77.1 pts).

🔴 Total Debt has grown at 4.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,135 Cr

Total Liabilities

₹5,576 Cr

Cash & Equivalents

₹78 Cr

Operating Cash Flow

₹204 Cr

Capex

-₹482 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.4%

Corporate Actions

Ex-Dividend Date

14 Sept 2017

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 mixed5 general

Madhucon Projects (MADHUCON) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Madhucon Projects vs Nifty 50: Share Price Performance Compared

Univest, 05 Oct

Madhucon Projects Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 29 Aug

Madhucon Projects closes trading window from Oct 1 for Q2FY27 results

scanx.trade, 26 SeptResults

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

Madhucon Projects (MADHUCON.NS) Slips Marginally to ₹4.06 as Stock Hovers Above Key Support - Zigzag Correction

https://www.siam.in/, 20 Sept

Madhucon Projects Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

Watch Items

Revenue growth is negative (-68.2%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Madhucon Projects Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 3 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑