Simplex Infrastructures Limited

Industrials — Engineering & Construction · NSE

₹272.25+₹9.75 (+3.71%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

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

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Simplex Infrastructures Limited, together with its subsidiaries, operates as a diversified infrastructure company in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees561

Annual revenue₹1,016 Cr

How does it make money?

Turns over ₹1,016 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 561 employees supports ₹1.81 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.3%

Net margin3.9%

Revenue / employee₹1.81 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 2.2% 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.

ROCE2.2%

ROE4.1%

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 -45% while net margin moved -116% 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-45%

Margin effect-116%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 18.3% a year

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

45/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

46.5x

1.3Y Median

121.3x

16 monthly readings · mean 103.4x · range 47.2x–143.7x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 62% below its 1.3y median of 121.3x. 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 54% above the peer median of 30.1x.

vs. its own history

Cheap

121.3x median over 16 months · -62%

vs. sector peers

Expensive

30.1x median of 3 peers · +54%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

46.5x

P/B

2.17x

EV/EBITDA

39.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 0.9% to 9.3% over 3 years.
Debt is being paid down
Total debt is down 73% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -156.6% to 4.1%.
Return on capital is rising
ROCE has improved from -3.4% to 2.2%.
Valuation below its historical average
At 46.5x the stock trades 62% below its own median of 121.3x.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 2 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 1.68x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 38% over 3 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 0.9% to 9.3%. 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 73% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 62% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 17.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 54% above the peer median. That premium needs a reason that persists, or it closes.
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

1EBITDA margin holds above 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 17.4x
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✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 2.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 121.3x✓ 46.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹2,153 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.86

Profitable

Profitable on a per-share basis

ROE

4.1%

Weak

Weak capital efficiency

ROCE

2.2%

Weak

Low return on total capital employed

Debt/Equity

1.68x

High

High leverage

Revenue Growth (YoY)

19.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

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

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹272.25

Operating Margin

4.6%

Weak

Thin margins leave little room for error

Net Margin

4.3%

Average

Average bottom-line conversion

Current Ratio

2.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.73

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

252.3 / 254.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,862 Cr	₹1,377 Cr	₹1,071 Cr	₹1,016 Cr	-18.3%
EBITDA	₹18 Cr	₹36 Cr	₹44 Cr	₹94 Cr	+75.1%
EBITDA Margin	0.9%	2.6%	4.1%	9.3%	—
PAT (Net Profit)	-₹471 Cr	-₹72 Cr	₹12 Cr	₹40 Cr	—
EPS	₹-82.41	₹-12.65	₹2.02	₹5.2	—
ROE	-156.6%	-31.2%	2.2%	4.1%	—
ROCE	-3.4%	-10.4%	1.3%	2.2%	—
Total Debt	₹5,984 Cr	₹7,180 Cr	₹2,175 Cr	₹1,642 Cr	-35.0%
Free Cash Flow	-₹436 Cr	-₹93 Cr	₹177 Cr	₹17 Cr	—

🔴 Revenue has shrunk at 18.3% a year over 3 years.

🟢 EBITDA has grown at 75.1% a year over 3 years.

🟢 EBITDA Margin has risen from 0.9% to 9.3% over 3 years (+8.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹471 Cr to ₹40 Cr.

🟢 EPS has turned positive, from ₹-82.41 to ₹5.2.

🟢 ROE has risen from -156.6% to 4.1% over 3 years (+160.7 pts).

🟢 ROCE has risen from -3.4% to 2.2% over 3 years (+5.6 pts).

🟢 Total Debt has shrunk at 35.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹436 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,881 Cr

Total Liabilities

₹2,903 Cr

Total Debt

₹1,642 Cr

Cash & Equivalents

₹53 Cr

Operating Cash Flow

₹74 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

5.9%

Insider Holding

63.6%

Corporate Actions

Ex-Dividend Date

19 Sept 2019

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

2 mixed4 general

Simplex Infrastructures (NSEI:SIMPLEXINF) - Stock Analysis

Simply Wall Street, 10 Oct

Simplex Infrastructures Gets ₹255.52 Crore Oil India Contract; Shares Rise 2.85%

HDFC Sky, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Compare Simplex Infra with

Equitymaster, 16 Oct

Simplex Infrastructures closes trading window ahead of Q2FY27 results

scanx.trade, 25 SeptResults

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

Simplex Infrastructures Share Price Forecast to 2030

Univest, 29 Jul

Simplex Infra Bags Rs 255.52 Cr Oil India Drilling Order

Equitypandit, 05 Oct

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong14.5/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair8.3/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 7%9.3%
✗Debt / EBITDA falls below 3x17.4x
✓Free cash flow remains positive₹17 Cr
✗ROCE stays above 8%2.2%
✓Valuation vs its own median of 121.3x46.5x today