From RHP
-Concentrated business. 68% of revenues come from rajasthan alone, 85% from water supply projects.
-They do a lot of sub-contracting instead of executing themselves. Subcontracting expenses are almost 50% o revenues !!
-99% revenue from govt projects. Could be potential risk i seen politically
-Two group entities. Need to monitor related party transactions here.
- wages &labour expenses are just 0.15% of total expenses (really surprising to read this)
-eps is doubling every year, siginificant capex taken last year, cashflow operations is negative
- ebitda margins at 13-11% for last 2 years. PNC infra and HG infra enjoy margins in 20% range
-working capital is 74 days, up from 54 days, its pretty good i think
-ESOP was granted in dec 2022, and a bonus issue of 2 shares for 1 share each in feb 2023, this aqcuisition cost of shares comes around 72 rs (adjusted for bonus)