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SRM Contractors Limited (SRM) Fair Value & Analysis

Industrials · IN · Market cap ₹10.7B

SC SRM Contractors Limited SRM · BSE
Price₹467.75
Fair Value₹925.01
Upside+97.8%
Quality52/100
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Strengths

Trades 49% below our fair value of ₹925.01
Solidly profitable · 10.9% net margin
Wide moat 68/100

Risks

!Expensive Growth (revenue 3y +50.6 %/yr)
!Low debt · negative free cash flow
!Evidence only medium, so the estimate is less certain
Expensive Growth (revenue 3y +50.6 %/yr)
Solidly profitable · 10.9% net margin
Low debt · negative free cash flow
Wide moat 68/100
Evidence: Medium Range ₹686.69 – ₹1,163 Share as image

Fair value as of: Aug 24, 2026

From 14 valuation models · updated today

Share price −8.4% over the past month.

A solid business, screening 98% undervalued on our models.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price is below even our cautious bear case (₹686.69). The market is more pessimistic than our downside scenario.
  • Solid quality (52/100) 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)

₹633.90 ₹155.50 Fair Value ₹925.01 Apr 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 24, 2026.

How to read this chart

29‑month range ₹155.50 – ₹633.90 · fair‑value band ₹686.69 – ₹1,163 · the ₹467.75 price screens below the ₹925.01 fair value. Dashed = 300-day average. As of Aug 24, 2026.

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Analysis

SRM Contractors Limited (SRM) currently trades at ₹467.75, while our model-based Fair Value estimate is ₹925.01, implying the stock looks roughly 97.8% undervalued today. The Quality Score stands at 52/100 (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 Limited generated revenue of ₹10.8B at a net margin of 10.9%. Revenue grew 37.8% year over year. It earns a return on equity of 32.3%. Net debt stands at ₹649M. Fundamentals as of Aug 24, 2026

Our scenario range runs from ₹686.69 (bear case) to ₹1,163 (bull case); at ₹467.75, 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 28% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -30% fair-value upside, at 98%, 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 ₹659.38 ₹1,055 ₹1,503 72
Growth-Adj P/E ₹1,551 ₹2,215 ₹2,880 68
P/E Multiple ₹762.08 ₹1,016 ₹1,270 63
All 14 models by family
Earnings-Based
Graham-Dodd ₹329.03 ₹2,295 ₹3,220 54
Lynch FV ₹1,185 ₹1,694 ₹2,202 50
PEG = 1.0 ₹1,185 ₹1,694 ₹2,202 46
EPV ₹485.40 ₹568.31 ₹640.86 59
Multiples
P/E Multiple ₹762.08 ₹1,016 ₹1,270 63
P/S Multiple ₹616.92 ₹822.56 ₹1,028 58
P/B Multiple ₹545.87 ₹727.83 ₹909.79 55
EV/EBIT ₹830.96 ₹1,112 ₹1,393 53
EV/EBITDA ₹702.89 ₹941.21 ₹1,180 54
EV/Revenue ₹551.12 ₹792.49 ₹1,034 43
Asset-Based
NCAV (Graham) ₹80.87 ₹108.37 ₹161.74 50
Economic Profit
Residual Income ₹349.26 ₹484.03 ₹3,874 61
ROIC Compounder ₹659.38 ₹1,055 ₹1,503 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

P/E ratio 9.1
P/S ratio 0.99 TTM
Net margin 10.9% TTM
Return on equity 32.3% TTM
Return on assets 13.5% TTM
Operating margin 14.2% TTM
More key figures
Profitability
EPS (TTM) ₹51.41
Growth
Revenue (TTM) ₹10.8B TTM
Revenue growth (YoY) +37.8% 3y avg +50.6%
EPS growth (YoY) +54.5%
Balance sheet & cash flow
Free cash flow −₹952M FY2026
Net debt ₹649M FY2026

Figures from reported company fundamentals · as of Aug 24, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 52 · Market factors (momentum, volatility) 46

Profitability 73
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 16
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 3
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 82
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

SRM Contractors Limited operates as an engineering construction and development company in India. It operates through three segments: Road and Highway Construction Projects; Trading; and Quarry Mining. The company undertakes construction of roads, bridges, and tunnels, as well as slope stabilization works and other civil construction activities.

Full company description

SRM Contractors Limited operates as an engineering construction and development company in India. It operates through three segments: Road and Highway Construction Projects; Trading; and Quarry Mining. The company undertakes construction of roads, bridges, and tunnels, as well as slope stabilization works and other civil construction activities. It is involved in sub-contracting assignments of infrastructure construction projects. 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 Limited 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%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+44.6% (44.6 + 0.0)
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 Limited Fair Value". https://www.fairvalue-calculator.com/stock/SRM.BSE

Peer Group

Engineering & Construction · 836 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 53 · Above median
Fair Value upside +108% · Top 25%
Return on equity (TTM) 32% · Top 25%
Return on assets 14% · Top 25%
Net margin (TTM) 11% · Top 25%
Operating margin (TTM) 14% · Top 25%
Revenue growth 38% · Top 25%
Debt / equity 0.26× · Higher than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 9.1× · Cheaper than 75% of peers
P/B 2.89× · Pricier than 75% of peers
P/S (TTM) 0.99× · Pricier than median
EV/EBITDA 6.2× · Cheaper than median

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 24, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,072 ₹2,196 -46%
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 33,250 KRW 23,135 KRW -30%
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 Limited (SRM) overvalued or undervalued?
As of Aug 24, 2026, our model estimates a fair value of ₹925.01 versus a price of ₹467.75, about +98% (undervalued).
What is the fair value of SRM?
Our model-based fair value for SRM Contractors Limited is ₹925.01 (as of Aug 24, 2026), built from audited fundamentals. The current price: ₹467.75.
What is the quality score of SRM?
SRM Contractors Limited has a Quality Score of 52/100. 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 Limited (SRM)?
SRM Contractors Limited reported trailing-twelve-month revenue of about ₹10.8B (latest available figure, as of Aug 24, 2026).
What is the net profit margin of SRM?
The net profit margin of SRM Contractors Limited is about 10.9%, meaning it keeps roughly 10.9% 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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