Twamev Construction and Infrastructure Limited

Industrials — Engineering & Construction · NSE

₹8.24+₹0.08 (+0.98%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, short-term liabilities exceed short-term assets, negative free cash flow.

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, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Twamev Construction and Infrastructure Limited provides infrastructure and construction solutions in India.

IndustryEngineering & Construction

SectorIndustrials

Employees47

Annual revenue₹67 Cr

How does it make money?

Turns over ₹67 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹14 left at the operating level before interest, tax and depreciation. Each of its 47 employees supports ₹1.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.44 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.

Compared side by side in Peers ↓

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.

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 -28% while net margin moved -541% 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-28%

Margin effect-541%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 10.4% a year
✗ Profit fell 57.1% in the latest year

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

52/ 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

17.9x

1.3Y Median

7.0x

16 monthly readings · mean 8.8x · range 2.6x–17.3x

Sector Median

30.1x

median of 3 sector peers

⚠️Current valuation is approximately 157% above its 1.3y median of 7.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 40% below the peer median of 30.1x.

vs. its own history

Expensive

7.0x median over 16 months · +157%

vs. sector peers

Cheap

30.1x median of 3 peers · -40%

vs. generic bands

Fair

15x–35x

EV/EBITDA

52.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 3.4% to 13.6% over 3 years.
Return on equity is rising
ROE has improved from -0.9% to 2.5%.
Return on capital is rising
ROCE has improved from -0.8% to 2.2%.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 3 high · 2 watch

🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 148% against revenue up -28% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 74% against revenue up -28% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 439% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.55 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 3.4% to 13.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 38.6x 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 148% against revenue up -28%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 157% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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.

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

1EBITDA margin holds above 12%✓ 13.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 38.6x
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✗ -₹18 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 7.0x✗ 17.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 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

2 good · 4 neutral · 5 weak

Market Cap

₹128 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.39x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.46

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

2.2%

Weak

Low return on total capital employed

Debt/Equity

1.14x

Moderate

Moderate leverage

Revenue Growth (YoY)

-6.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-57.1%

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

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

4.6%

Weak

Thin margins leave little room for error

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

0.55

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

10%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.4 / 8.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

70.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹94 Cr	₹53 Cr	₹85 Cr	₹67 Cr	-10.4%
EBITDA	₹3 Cr	₹4 Cr	₹107 Cr	₹9 Cr	+42.4%
EBITDA Margin	3.4%	7.6%	125.6%	13.6%	—
PAT (Net Profit)	-₹2 Cr	-₹22 Cr	₹56 Cr	₹8 Cr	—
EPS	₹-0.84	₹-2.66	₹3.62	₹0.5	—
ROE	-0.9%	-9.0%	18.4%	2.5%	—
ROCE	-0.8%	-6.1%	17.4%	2.2%	—
Total Debt	₹338 Cr	₹334 Cr	₹339 Cr	₹354 Cr	+1.6%
Free Cash Flow	-₹1 Cr	-₹36 Cr	-₹4 Cr	-₹18 Cr	—

🔴 Revenue has shrunk at 10.4% a year over 3 years.

🟢 EBITDA has grown at 42.4% a year over 3 years.

🟢 EBITDA Margin has risen from 3.4% to 13.6% over 3 years (+10.2 pts).

🟢 PAT (Net Profit) has turned positive, from -₹2 Cr to ₹8 Cr.

🟢 EPS has turned positive, from ₹-0.84 to ₹0.5.

🟢 ROE has risen from -0.9% to 2.5% over 3 years (+3.4 pts).

🟢 ROCE has risen from -0.8% to 2.2% over 3 years (+3.0 pts).

🟡 Total Debt has been broadly flat over 3 years (1.6% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹767 Cr

Total Liabilities

₹456 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹18 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.4%

Corporate Actions

Ex-Dividend Date

27 Sept 2012

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

Twamev Construction promoters sell shares to meet MPS norms

scanx.trade, 15 Oct

Twamev Construction and Infrastructure Shares Gain 4.90% to ₹8.57, Nearing ₹9 Resistance - Parabolic SAR

https://www.siam.in/, 06 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.

Why Is Twamev Construction and Infrastructure Share Price Falling Key Reasons 2026

Univest, 30 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mace Venture acquires 7.10% stake in Twamev Construction

scanx.trade, 23 Sept

Twamev Construction & Infrastructure Ltd

Equitypandit, 06 Nov

Twamev Construction OFS November 2025 Date, Floor Price, Size Details

IPO Watch, 18 Nov

Watch Items

Revenue growth is negative (-6.0%) 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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingBusiness Quality · Profitability · Valuation

WeakFinancial Health · Growth · Risk

Points for each in the Score ↑

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

4 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8%; Valuation vs its own median of 7.0x · see Key things to watch ↑