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SRM CONTRACTORS ORD (BSE) (SRM) Fair Value & Analysis

Industrials · IN · Market cap ₹11.7B

SC SRM CONTRACTORS ORD (BSE) SRM · NSE
Price₹471.50
Fair Value₹974.79
Upside+106.7%
Quality55/100
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Expensive Growth
Solidly profitable · 10.8% net margin
Low debt · negative free cash flow
Ranks above peers (9/12)
Wide moat 69/100
Evidence: Medium Range ₹736.46 – ₹1,213 Share as image

Fair value as of: Aug 13, 2026

From 14 valuation models · updated 4 days ago

Share price −4.4% over the past month.

A solid business, screening 107% undervalued on our models.

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What matters now

  • The price is below even our cautious bear case (₹736.46). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (2 years)

₹634.10 ₹155.35 Fair Value ₹974.79 Apr 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

28‑month range ₹155.35 – ₹634.10 · fair‑value band ₹736.46 – ₹1,213 · the ₹471.50 price screens below the ₹974.79 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

SRM CONTRACTORS ORD (BSE) (SRM) currently trades at ₹471.50, while our model-based Fair Value estimate is ₹974.79, implying the stock looks roughly 106.7% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, SRM CONTRACTORS ORD (BSE) generated revenue of ₹10.3B at a net margin of 10.8%. Revenue grew 95.9% year over year. It earns a return on equity of 32.3%. The balance sheet holds a net cash position of ₹493M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹736.46 (bear case) to ₹1,213 (bull case); at ₹471.50, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 30% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 107%, SRM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
ROIC Compounder ₹641.48 ₹960.61 ₹1,385 72
Growth-Adj P/E ₹1,551 ₹2,215 ₹2,880 68
P/E Multiple ₹762.12 ₹1,016 ₹1,270 63
All 14 models by family
Earnings-Based
Graham-Dodd ₹329.04 ₹2,295 ₹3,220 54
Lynch FV ₹1,186 ₹1,694 ₹2,202 50
PEG = 1.0 ₹1,186 ₹1,694 ₹2,202 46
EPV ₹502.07 ₹579.38 ₹647.02 59
Multiples
P/E Multiple ₹762.12 ₹1,016 ₹1,270 63
P/S Multiple ₹616.96 ₹822.61 ₹1,028 58
P/B Multiple ₹545.87 ₹727.83 ₹909.79 55
EV/EBIT ₹881.29 ₹1,162 ₹1,443 53
EV/EBITDA ₹753.22 ₹991.54 ₹1,230 54
EV/Revenue ₹601.45 ₹842.82 ₹1,084 43
Asset-Based
NCAV (Graham) ₹80.87 ₹108.37 ₹161.74 50
Economic Profit
Residual Income ₹349.28 ₹484.07 ₹3,874 61
ROIC Compounder ₹641.48 ₹960.61 ₹1,385 72
Growth Earnings
Growth-Adj P/E ₹1,551 ₹2,215 ₹2,880 68

Widest divergence: Growth Earnings (₹2,215) versus Asset-Based (₹108.37). Highest evidence: ROIC Compounder (72).

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Key figures & financial health

Revenue (TTM) ₹10.3B
Revenue growth (YoY) +95.9%
Net margin 10.8%
Return on equity 32.3%
Free cash flow −₹246M FY2026
P/E ratio 9.7
More key figures
Operating margin 15.5%
EPS (TTM) ₹48.40
EPS growth (YoY) +127%
Net cash ₹493M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 55 · Market factors (momentum, volatility) 50

Profitability 71
Margins and returns on capital today
Quality Growth 50
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 79
Balance sheet, leverage, solvency risk
Investment 7
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 48
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

SRM Contractors Limited engages in the provision of engineering and construction services in India. The company is involved in the development of roads, bridges, tunnels, slope stabilization, and miscellaneous civil infrastructure projects. It also undertakes subcontracting assignments from third party major infrastructure and construction entities.

Full company description

SRM Contractors Limited engages in the provision of engineering and construction services in India. The company is involved in the development of roads, bridges, tunnels, slope stabilization, and miscellaneous civil infrastructure projects. It also undertakes subcontracting assignments from third party major infrastructure and construction entities. SRM Contractors Limited was incorporated in 2008 and is based in Jammu, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

SRM CONTRACTORS ORD (BSE) reported revenue of ₹10.3B in FY2026 versus ₹2.6B in FY2022, a compound +40.4%/yr. Reported net income was ₹1.1B in FY2026, compounding +58.6%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹10.3B
Latest YoY
+94.2%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+50.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+45.0%
Revenue +40.4%/yr
FY22 ₹2.6B
FY23 ₹3.0B
FY24 ₹3.4B
FY25 ₹5.3B
FY26 ₹10.3B
Net income +58.6%/yr
FY22 ₹176M
FY23 ₹187M
FY24 ₹270M
FY25 ₹550M
FY26 ₹1.1B

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Cite: Fair Value Calculator (2026). "SRM CONTRACTORS ORD (BSE) Fair Value". https://www.fairvalue-calculator.com/stock/SRM

Peer Group

Engineering & Construction · 838 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside +107% · Top 25%
Return on equity (TTM) 32% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 96% · Top 25%
Debt / equity 0.26× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 9.7× · Cheaper than 75% of peers
P/B 3.15× · Pricier than 75% of peers
P/S (TTM) 1.14× · Pricier than median
EV/EBITDA 6.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 15
FUTURE 100 · sector 14
PAST 100 · sector 26
HEALTH 87 · sector 94
DIVIDEND 0 · sector 43

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹228.50 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 46,350 KRW 43,924 KRW -5%

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Frequently asked questions

Is SRM CONTRACTORS ORD (BSE) (SRM) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹974.79 versus a price of ₹471.50, about +107% (undervalued).
What is the fair value of SRM?
Our model-based fair value for SRM CONTRACTORS ORD (BSE) is ₹974.79 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹471.50.
What is the quality score of SRM?
SRM CONTRACTORS ORD (BSE) has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SRM CONTRACTORS ORD (BSE) (SRM)?
SRM CONTRACTORS ORD (BSE) reported trailing-twelve-month revenue of about ₹10.3B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of SRM?
The net profit margin of SRM CONTRACTORS ORD (BSE) is about 10.8%, meaning it keeps roughly 10.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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