The civil construction sector presents significant investment opportunities through notable listings like G R Infraprojects Limited, Sterling and Wilson Solar Ltd and Dilip Buildcon Ltd, offering exposure to India’s infrastructure development story.
Content:
- Overview of the Civil Construction IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Civil Construction Sector IPOs
- Disadvantages of Investing in Civil Construction Sector IPOs
- Role of the Civil Construction Industry in the Economy
- How to invest in Civil Construction IPOs?
- Future Outlook of Civil Construction IPOs in India
- Civil Construction IPOs in India – FAQ
Overview of the Civil Construction IPOs in India
The civil construction sector features prominent listings including G R Infraprojects Limited and Sterling and Wilson Solar Ltd, demonstrating robust potential in infrastructure development and project execution capabilities.
These offerings enable investors to participate in sector growth while benefiting from increasing infrastructure spending, government initiatives and expanding project opportunities across various segments nationwide.
IPO Fundamental Analysis
G R Infraprojects Limited
G R Infraprojects Limited reported stable financial performance in FY24 with a slight dip in revenue to ₹8,980 crores from ₹9,482 crores in FY23. Despite the decline in revenue, the company showed growth in reserves and continued profitability, along with a solid financial position compared to the previous fiscal year.
Revenue Trend: Revenue decreased to ₹8,980 crores in FY24 from ₹9,482 crores in FY23. Operating profit was ₹2,122 crores, down from ₹2,554 crores in FY23. Operating profit margin (OPM) reduced to 23.37% from 26.69%.
Equity and Liabilities: Equity capital remained stable at ₹48.34 crores. Reserves grew to ₹7,543 crores from ₹6,217 crores in FY23. Total liabilities decreased to ₹12,942 crores from ₹13,786 crores in FY23, while non-current liabilities declined to ₹3,410 crores.
Profitability: Operating profit stood at ₹2,122 crores in FY24, a decrease from ₹2,554 crores in FY23. Net profit declined to ₹1,323 crores in FY24 from ₹1,454 crores in FY23, though it still reflects strong profitability.
Earnings per Share (EPS): EPS for FY24 was ₹136.90, slightly down from ₹150.42 in FY23, reflecting lower profitability despite strong revenue and assets.
Return on Net Worth (RoNW): RoNW saw a slight decline due to the decrease in net profit to ₹1,323 crores from ₹1,454 crores in FY23, which may impact investor returns.
Financial Position: Total assets declined to ₹12,942 crores in FY24 from ₹13,786 crores in FY23, driven by a reduction in non-current assets to ₹7,219 crores. Current liabilities decreased to ₹1,929 crores, indicating improved liquidity.
Sterling and Wilson Solar Ltd
Sterling and Wilson Solar Ltd. reported a challenging FY24 with negative operating profits and net losses compared to FY23. Despite lower revenues, the company showed resilience through a slight improvement in equity and non-current assets, though its financial position remains under pressure with high liabilities and contingent liabilities.
Revenue Trend: Revenue decreased to ₹3,035 crores in FY24 from ₹2,015 crores in FY23, reflecting a 50.5% increase. Expenses, however, decreased marginally to ₹3,058 crores from ₹3,145 crores, showing a reduction in operational costs.
Equity and Liabilities: Equity capital rose to ₹23.32 crores in FY24 from ₹18.97 crores in FY23. Reserves improved significantly from -₹251.10 crores to ₹945.85 crores, while total liabilities increased to ₹4,301 crores from ₹3,190 crores.
Profitability: The company faced a negative operating profit of ₹-22.57 crores in FY24 compared to ₹-1,130 crores in FY23. Operating profit margin (OPM) was -0.72%, showing improved performance from -53.15% in FY23.
Earnings per Share (EPS): EPS was negative at ₹-9.09 in FY24, an improvement from ₹-61.65 in FY23, indicating a smaller loss per share.
Return on Net Worth (RoNW): RoNW for FY24 was negative, with a net loss of ₹-210.79 crores compared to ₹-1,175 crores in FY23, indicating an improvement in the loss.
Financial Position: Total assets increased to ₹4,301 crores in FY24 from ₹3,190 crores in FY23. Non-current assets declined to ₹179.61 crores, while current assets grew to ₹4,121 crores, indicating better liquidity.
Dilip Buildcon Ltd
Dilip Buildcon Ltd. posted a positive financial performance for FY24, with improvements in revenue, operating profit and net profit. Despite the rise in expenses, the company achieved a recovery in key profitability metrics, demonstrating operational efficiency and financial resilience compared to FY23.
Revenue Trend: Revenue rose to ₹12,012 crores in FY24 from ₹10,644 crores in FY23, reflecting a 12.8% growth. Expenses also increased to ₹10,591 crores from ₹9,687 crores, contributing to a slight rise in operating costs.
Equity and Liabilities: Equity capital remained steady at ₹146.22 crores. Reserves grew to ₹4,090 crores from ₹3,855 crores in FY23. Total liabilities increased to ₹16,647 crores from ₹15,439 crores, largely due to a rise in non-current liabilities.
Profitability: Operating profit surged to ₹1,421 crores in FY24, up from ₹956.59 crores in FY23. OPM improved to 11.69% from 8.93%, indicating stronger profitability despite increased expenses.
Earnings per Share (EPS): EPS increased significantly to ₹13.27 in FY24 from ₹0.06 in FY23, driven by the positive turnaround in net profit, showcasing strong shareholder value.
Return on Net Worth (RoNW): RoNW for FY24 was supported by a net profit of ₹201.04 crores compared to a loss of ₹1.39 crores in FY23, improving shareholder returns despite higher tax rates.
Financial Position: Total assets grew to ₹16,647 crores in FY24 from ₹15,439 crores in FY23, driven by an increase in non-current assets (₹7,658 crores) and current assets (₹8,989 crores). Contingent liabilities rose to ₹4,148 crores.
IPO Financial Analysis
G R Infraprojects Limited
| FY 24 | FY 23 | FY 22 | |
| Sales | 8,980 | 9,482 | 8,458 |
| Expenses | 6,858 | 6,928 | 6,723 |
| Operating Profit | 2,122 | 2,554 | 1,735 |
| OPM % | 23.37 | 26.69 | 20.36 |
| Other Income | 409.04 | 87.3 | 65.29 |
| EBITDA | 2,225 | 2,641 | 1,802 |
| Interest | 564.61 | 443.01 | 420 |
| Depreciation | ₹ 244 | ₹ 246 | ₹ 282 |
| Profit Before Tax | 1,723 | 1,952 | 1,099 |
| Tax % | 23.57 | 25.5 | 24.29 |
| Net Profit | 1,323 | 1,454 | 832 |
| EPS | 136.9 | 150.42 | 86.04 |
* Consolidated Figures in Rs. Crores
Sterling and Wilson Solar Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 3,035 | 2,015 | 5,199 |
| Expenses | 3,058 | 3,145 | 6,112 |
| Operating Profit | -23 | -1,130 | -913 |
| OPM % | -0.72 | -53.15 | -17.26 |
| Other Income | 85.42 | 110.86 | 94.7 |
| EBITDA | 63 | -1,019 | -819 |
| Interest | 218.52 | 144.91 | 77 |
| Depreciation | ₹ 17 | ₹ 15 | ₹ 15 |
| Profit Before Tax | -172 | -1,179 | -910 |
| Tax % | -22.32 | 0.32 | -0.62 |
| Net Profit | -211 | -1,175 | -916 |
| EPS | -9.09 | -61.65 | -47.94 |
* Consolidated Figures in Rs. Crores
Dilip Buildcon Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 12,012 | 10,644 | 9,566 |
| Expenses | 10,591 | 9,687 | 8,794 |
| Operating Profit | 1,421 | 957 | 773 |
| OPM % | 11.69 | 8.93 | 8.04 |
| Other Income | 461.91 | 446.7 | -19.41 |
| EBITDA | 1,565 | 1,025 | 811 |
| Interest | 1,012.00 | 901.36 | 1,057 |
| Depreciation | ₹ 379 | ₹ 399 | ₹ 400 |
| Profit Before Tax | 492 | 103 | -704 |
| Tax % | 59.12 | 101.35 | 21.87 |
| Net Profit | 201 | -1 | -550 |
| EPS | 13.27 | 0.06 | -37.54 |
| Dividend Payout % | 7.54 | 167 | 0 |
* Consolidated Figures in Rs. Crores
About the Company
G R Infraprojects Limited
G R Infraprojects Limited has consistently showcased robust financial growth in recent years, driven by its strong presence in infrastructure development. The company’s strategic projects in road construction, along with efficient execution, have helped it achieve significant revenue and profit improvements.
With a diverse portfolio and continued expansion into new geographies, G R Infraprojects has become a key player in India’s infrastructure sector. It remains well-positioned for future growth, backed by its extensive track record and strong financial position.
Sterling and Wilson Solar Ltd
Sterling and Wilson Solar Ltd is a leading player in the global solar energy sector, with a strong focus on solar power EPC (engineering, procurement and construction) services. The company has seen growth due to increased demand for renewable energy solutions.
Despite challenges in the renewable energy market, Sterling and Wilson continue to innovate and expand its presence. With a diversified client base across different geographies, the company is well-equipped to capitalize on the growing trend towards sustainable energy solutions in the future.
Dilip Buildcon Ltd
Dilip Buildcon Ltd has made significant strides in the Indian construction sector, specializing in road, bridge and infrastructure projects. The company has delivered robust financial results, driven by a large project pipeline and strong operational execution across its construction segments.
In FY24, Dilip Buildcon posted impressive growth in revenue and operating profit. With a solid balance sheet and an increasing order book, the company is well-positioned to expand its market share, capitalizing on India’s infrastructure development boom in the coming years.
Advantages of Investing in Civil Construction Sector IPOs
The main advantages include exposure to India’s infrastructure growth, stable order books, government spending benefits and strategic market positioning through established companies like G R Infraprojects Limited.
1. Infrastructure Growth: The sector benefits from massive government infrastructure spending, urban development projects, transportation networks and continuous expansion of civil infrastructure creating sustained business opportunities.
2. Order Book Stability: Long-term project contracts, government backing, systematic execution plans and diverse project portfolio ensure steady revenue streams and business visibility.
3. Asset Creation: Companies develop valuable infrastructure assets, maintain strong equipment bases, build execution capabilities and create sustainable competitive advantages.
Disadvantages of Investing in Civil Construction Sector IPOs
The main challenges include working capital intensity, project execution risks, regulatory complexities and competitive pressures, as demonstrated in the performance metrics of companies like Sterling and Wilson Solar Ltd.
1. Capital Requirements: Companies face significant funding needs for equipment, project execution, bank guarantees, performance bonds and working capital management affecting operational flexibility.
2. Project Risks: Execution delays, cost overruns, regulatory clearances, land acquisition issues and weather-related challenges impact project timelines and profitability margins.
3. Competition Intensity: Market rivalry from established players, new entrants and international contractors requires competitive bidding, affecting margins and project selection.
Role of the Civil Construction Industry in the Economy
The civil construction sector drives economic growth through extensive employment generation, infrastructure development, capital formation and support to multiple allied industries nationwide.
The industry creates skilled employment opportunities, enhances national infrastructure, promotes technological advancement and strengthens India’s development capabilities through systematic project execution.
How to invest in Civil Construction IPOs?
Start by opening a demat account with Alice Blue, complete comprehensive KYC requirements and thoroughly research upcoming construction sector IPOs through detailed fundamental analysis.
Monitor SEBI announcements, company prospectuses, market conditions and sector trends and maintain required funds for a timely subscription while following systematic investment approaches.
Future Outlook of Civil Construction IPOs in India
The construction sector demonstrates promising growth potential with increasing infrastructure investments, government initiatives, urbanization projects and expanding project opportunities nationwide.
Industry modernization, technological advancement and project management capabilities indicate positive prospects for future IPOs, supported by growing infrastructure development requirements.
Civil Construction IPOs in India – FAQ
Civil construction sector IPOs represent public offerings from infrastructure development companies like G R Infraprojects Limited and Sterling and Wilson Solar Ltd, enabling participation in India’s construction growth.
Major listings include G R Infraprojects Limited, Sterling and Wilson Solar Ltd and Dilip Buildcon Ltd, offering investors exposure to infrastructure development capabilities.
Construction sector IPOs provide strategic investment opportunities in India’s infrastructure growth, with companies like G R Infraprojects Limited demonstrating the potential for sustainable expansion.
G R Infraprojects Limited IPO marks a significant milestone as a prominent construction sector public offering, showcasing strong market acceptance and setting industry benchmarks.
Begin by opening a trading account through Alice Blue, completing comprehensive KYC requirements, analysing sector fundamentals, studying company capabilities and maintaining adequate subscription funds.
Construction sector IPOs offer substantial growth potential through infrastructure development, government initiatives, urbanization projects and increasing project execution opportunities nationwide.
Historical performance indicates strong profitability potential, though returns depend on project execution, working capital management, order book quality and company-specific operational efficiencies.
Market observers anticipate new construction sector IPOs, following successful listings like Sterling and Wilson Solar Ltd, driven by infrastructure development opportunities.
Access comprehensive research through Alice Blue’s dedicated research portal, covering project analysis, execution capabilities, order book evaluation and growth opportunities.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
