SRM Contractors Ltd, incorporated on September 4, 2008, as a private limited company and later converted to a public company in August 2023, is a specialized infrastructure construction company focused on Engineering, Procurement, and Construction (EPC) projects. The company operates primarily in challenging terrains across Jammu & Kashmir, Ladakh, Uttarakhand, Himachal Pradesh, Arunachal Pradesh, Gujarat, and Odisha. Its expertise spans road and bridge construction, tunnel construction, slope stabilization, and various civil projects including government housing, flood control, drainage, and irrigation.
As an Engineering, Construction and Development (ECD) company, SRM Contractors specializes in road construction, including bridges, tunnels, and slope stabilization works, alongside other miscellaneous civil construction activities. The company undertakes both EPC contractor roles for infrastructure projects and sub-contracting assignments. It places a particular focus on EPC and HAM (Hybrid Annuity Model) contracts, positioning itself as a key player in India's infrastructure development sector.
SRM Contractors Ltd has demonstrated remarkable growth. As of July 2025, its market capitalization stood at ₹1,113 crore, representing a significant 167% increase over the past year. The market cap was ₹866.26 crore as of May 26, 2025, reflecting the stock's strong performance trajectory.
The company has delivered exceptional financial results in recent quarters. For Q4 FY2024-25 (quarter ended March 2025), SRM Contractors reported a net profit of ₹24.08 crore, a remarkable 290.28% increase compared to the same quarter in the previous year. Sales for the quarter rose by 110.97% to ₹227.57 crore, up from ₹107.87 crore in the quarter ended March 2024.
For the full financial year 2024-25, the company's performance remained robust across key metrics:
- Revenue: ₹528.13 crore (a 54.23% increase from ₹342.42 crore in FY2023-24)
- Net Profit: ₹55.00 crore (a 103.93% increase from ₹26.97 crore in FY2023-24)
- Quarterly Growth: A 50.5% jump in net profits on a quarterly basis.
The company maintains healthy financial ratios, with a PE ratio of 22.3, ROE of 25.6%, and ROCE of 31.0%. As of May 26, 2025, the P/E ratio was 15.75 and P/B ratio was 6.69, indicating reasonable valuations relative to earnings and book value.
- Q4 FY2024-25 Performance: Net Profit of ₹24.08 crore, Revenue of ₹227.57 crore
- FY2024-25 Performance: Revenue of ₹528.13 crore, Net Profit of ₹55.00 crore
- Market Capitalization: ₹1,113 crore (as of July 2025)
- Promoter Holding: 72.9%
#### Project Portfolio
The company recently secured significant projects, including long-term rectification work on NH 151 (Jetpur-Somnath) in Gujarat. This involves the construction of a vehicle underpass at Sornath Junction, a flyover at Keshod Junction, a flyover and left underpass at Gadu Location, and a service road at Santipara Patiya, all to be executed under the EPC model.
#### Corporate Updates
Recent corporate developments include several key announcements:
- Credit rating upgraded to CARE A- stable for ₹230.4 crore bank facilities as of July 1, 2025, reflecting improved FY2025 performance.
- Statutory auditor M/s Satyendra Mrinal & Associates resigned effective July 1, 2025, citing personal commitments.
- Virtual investor meetings were scheduled for July 11, 2025, with Finterest Capital and Geojit PMS.
#### Share Price Movement
The stock has shown significant volatility, with a 52-week high of ₹443.10 and a 52-week low of ₹142.85, indicating substantial price appreciation potential. Over the last 12 months, the share price moved up by 80.83% on BSE, demonstrating strong investor confidence.
#### Ownership Structure
The company maintains a stable ownership structure with promoter holding at 72.9%, providing management stability and aligned interests with shareholders.
#### Growth Prospects
The infrastructure construction sector in India presents significant opportunities, driven by government spending on roads, bridges, and tunnels. SRM Contractors has demonstrated its ability to capitalize on these opportunities. Recent financial results show significant growth in net sales and operating profit, with profit metrics reaching recent highs and earnings per share peaking at ₹10.50.
#### Market Position
SRM Contractors operates in the Industrials sector within the Construction & Engineering sub-sector, positioning it well to benefit from India's infrastructure development initiatives. The company's specialization in challenging terrains and complex projects provides a competitive advantage in securing high-value contracts.
The company's consistent profitability, strong order book, and expanding geographical presence make it an attractive investment proposition for those seeking exposure to India's infrastructure growth story. However, despite reporting repeated profits, the company is not paying dividends, indicating management's focus on reinvesting profits for growth rather than immediate returns to shareholders.
