Garuda Construction & Engineering Ltd is a growing civil construction and engineering company based in Mumbai, specializing in civil construction services. These services encompass project planning, resource mobilization, detailed engineering, and the complete execution of construction projects. The company's diverse offerings include operations and maintenance (O&M), Mechanical, Electrical, and Plumbing (MEP) services, and finishing works.
The company is presently involved in a variety of projects, including residential, commercial, residential cum commercial, hospitality, infrastructure, and industrial developments. Its capabilities extend to constructing both concrete building structures and composite steel structures, providing additional services for infrastructure and hospitality projects.
Garuda Construction has established a strong presence in the Mumbai Metropolitan Region and beyond. Notable projects include the civil construction work of Golden Chariot Vasai Hotel and Spa (2014) and its refurbishment (2015), residential buildings in the Mumbai Metropolitan Region (MMR) near Riwali Park, Kandivali (commenced June 2017), civil construction of Delhi Police Headquarters (2021), and a residential project at Borivali, Mumbai (2022).
Garuda Construction has demonstrated strong financial performance and growth trajectory. The company reported audited FY25 results with revenue of ₹22,567 lakhs and profit of ₹4,980 lakhs, with IPO proceeds utilized as planned. For Q3 FY25 ended December 2024, the company reported revenue of ₹62.22 crores and net profit of ₹12.87 crores.
Over the last three fiscals, the company posted significant growth:
- FY22: Total income ₹77.03 crores / Net profit ₹18.78 crores
- FY23: Total income ₹161.02 crores / Net profit ₹40.80 crores
- FY24: Total income ₹154.47 crores / Net profit ₹36.44 crores
The company's PAT margins have been robust, reaching 24.39% (FY22), 25.39% (FY23), and 23.63% (FY24), with a reported 29.49% for 1M-FY25. Return on Capital Employed (RoCE) margins also show healthy performance at 40.46% (FY22), 70.85% (FY23), 46.69% (FY24), and 3.87% for the referred periods. The company has delivered good profit growth of 102% CAGR over the last 5 years.
- Market Capitalization: ₹1,249 crores
- P/E Ratio: 25.1
- ROE: 22.1%
- ROCE: 30.1%
- Book Value: ₹35.7
- 52-week High/Low: ₹154/₹76.0
- Operating Revenue (TTM): ₹225.67 crores
- Annual Revenue Growth (TTM): 47%
- Pre-tax Margin (TTM): 30%
A significant financial strength of Garuda Construction is its nearly debt-free status. This, coupled with a strong balance sheet, enables the company to report stable earnings growth across various business cycles. Being debt-free strengthens its financial position and reduces interest burdens.
However, the company faces certain operational challenges related to working capital management. It has high debtors of 293 days, and working capital days have increased from 248 days to 405 days. These factors indicate potential liquidity management areas that require attention.
Garuda Construction has undertaken strategic initiatives for growth and expansion:
- June 2024: Invested SAR 1 million to establish a wholly-owned subsidiary in Saudi Arabia, aimed at expanding its construction services internationally.
- Recently: Invested ₹40 crores in secured Non-Convertible Debentures (NCDs) of Options Infra to facilitate the completion of a commercial project.
The company boasts a substantial order book, with orders worth over ₹1400 crores in hand as of the date of filing its offer document. This robust order book provides excellent visibility for future revenue generation and strongly supports the company's growth trajectory, indicating sustained business activity for the foreseeable future.
Garuda Construction & Engineering Ltd was listed on October 15, 2024. The company executed a Public Offer aggregating 2,78,00,000 Equity Shares, comprising 1,83,00,000 Equity Shares through a Fresh Issue and 95,00,000 Equity Shares through an Offer for Sale.
The promoters of Garuda Construction And Engineering Ltd are PKH VENTURES LIMITED and MAKINDIAN TOWNSHIP PRIVATE LIMITED (formerly known as MAKINDIAN FOODS PRIVATE LIMITED), who collectively hold 67.56% of the total equity. The chairman of the company is Pravin Kumar Agarwal. Importantly, there is no promoter pledging reported in the company, which is a positive indicator of promoter confidence and financial health.
As per Value Research classification, Garuda Construction & Engineering Ltd is considered a Small Cap company. The stock's valuation metrics show it to be potentially attractive relative to peers:
- P/B Ratio: 3.59 times as on July 8, 2025, which is a 1% discount to its peers' median range of 3.63 times.
- P/E Ratio: 23.93 times, representing a 28% discount to its peers' median range of 33.32 times.
The company operates in a competitive construction and engineering sector, characterized by established players and project-based revenue streams. Investors should consider the cyclical nature of the construction industry, the company's working capital requirements (especially high debtor days), and its ability to efficiently execute its substantial order book while maintaining healthy profit margins. Despite these factors, its strong order book and attractive valuations present a compelling investment case.
