Perfect Infraengineers Limited

Sector n/a · NSE

₹28.90−₹1.10 (−3.67%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:50 pm

Understanding the Business

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

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 0.3% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 2 years revenue moved +53% while net margin moved -128% 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+53%

Margin effect-128%

DalalBaazaar Score

58/ 100

Moderate

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

18/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

46.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -11.0% to 21.4% over 2 years.
Debt is being paid down
Total debt is down 12% over 2 years.
Return on equity is rising
ROE has improved from -9.1% to 2.5%.
Return on capital is rising
ROCE has improved from -6.3% to 0.3%.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 2 high · 4 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴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.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 79.3x to 1.2x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹6 Cr in the latest year.
🟡Receivables growing faster than salesFinancial
Receivables up 83% against revenue up 53% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 51% over 2 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -11.0% to 21.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.4x 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 83% against revenue up 53%. 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
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 18% a year✓ 23.6% CAGR
Latest reported year was -19.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 19%✓ 21.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 6.4x
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✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 5 neutral · 4 weak

Market Cap

₹51 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

2.5%

Weak

Weak capital efficiency

ROCE

0.3%

Weak

Low return on total capital employed

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

-19.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

37.1%

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

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

66.2%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

14.3%

Good

Strong bottom-line conversion

Current Ratio

6.00

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

8.1 / 8.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (3-Year)

Metric	FY22	FY23	FY24	2Y CAGR
Revenue	₹4 Cr	₹7 Cr	₹6 Cr	+23.6%
EBITDA	-₹0 Cr	₹1 Cr	₹1 Cr	—
EBITDA Margin	-11.0%	19.9%	21.4%	—
PAT (Net Profit)	-₹2 Cr	₹1 Cr	₹1 Cr	—
EPS	₹-1.64	₹0.52	—	—
ROE	-9.1%	2.8%	2.5%	—
ROCE	-6.3%	0.5%	0.3%	—
Total Debt	₹9 Cr	₹10 Cr	₹8 Cr	-6.1%
Free Cash Flow	₹1 Cr	-₹2 Cr	-₹6 Cr	—

🟢 Revenue has grown at 23.6% a year over 2 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EBITDA Margin has risen from -11.0% to 21.4% over 2 years (+32.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹1 Cr.

🟢 ROE has risen from -9.1% to 2.5% over 2 years (+11.6 pts).

🟢 ROCE has risen from -6.3% to 0.3% over 2 years (+6.6 pts).

🟢 Total Debt has shrunk at 6.1% a year over 2 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2024

Total Assets

₹43 Cr

Total Liabilities

₹10 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹0 Cr

Recent News

6 general

City Pulse Multiventures and Peer Group Overview

Kalkine India, 15 Sept

Perfect Infraengineers (NSEI:PERFECT) - Stock Analysis

Simply Wall Street, 02 Dec

BIOGEN PHARMACHEM INDUSTRIES LTD Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 19 May

Perfect Infraengineers Ltd Partly Paidup (PERFECTPP) Share Price

Business Today, 07 Nov

Perfect Infraengineers to Offer Right Shares worth Rs 1158 lakh, the issue closes on August 24, 2023

Business Standard, 24 Aug

Perfect Infraengineers IPO scan by VS Fernando

Moneycontrol.com, 30 Oct

Watch Items

Revenue growth is negative (-19.8%) 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.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Growth

MiddlingFinancial Health · Profitability · Valuation

WeakRisk

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. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑