A2Z Infra Engineering Limited (A2ZINFRA) AI Stock Analysis

• Market Cap: ₹2.48B
• Dividend Yield: N/A
• Average Volume (3M): 39.45K
• Price to Earnings (P/E): 96.6
• Beta (1Y): 1.33
• Revenue Growth: 1.97%
• EPS Growth: -6.97%
• Country: IN
• Employees: 5,723
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): -0.10
• Shares Outstanding: 176,119,860
• 10 Day Avg. Volume: 72,925
• 30 Day Avg. Volume: 39,448
• PEG Ratio: -0.11
• Price to Book (P/B): 5.54
• Price to Sales (P/S): 0.74
• P/FCF Ratio: 4.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: ₹15.00 ▲(6.69% Upside)

The overall stock score of 40 reflects significant challenges faced by A2Z Infra Engineering Limited. The most impactful factors are the weak financial performance, characterized by declining revenue growth and high leverage, and the technical analysis indicating bearish momentum. Additionally, the high P/E ratio suggests overvaluation, further impacting the stock's attractiveness.

Positive Factors

Positive Free Cash Flow

The generation of positive free cash flow indicates improved cash management and operational efficiency, which can support future investments and debt reduction.

Improved Net Profit Margin

An improved net profit margin suggests better cost management and operational efficiency, enhancing the company's ability to generate profit from its revenues.

Return on Equity Improvement

Improved return on equity indicates effective use of shareholders' funds to generate earnings, potentially leading to increased investor confidence and future growth.

Negative Factors

High Leverage

High leverage can lead to financial strain, especially in downturns, limiting the company's ability to invest in growth and increasing vulnerability to interest rate changes.

Decline in Revenue Growth

A decline in revenue growth reflects challenges in market expansion and competitiveness, potentially impacting long-term profitability and market position.

Decreased Gross Profit Margins

Falling gross profit margins suggest increased cost pressures or pricing challenges, which could undermine profitability and strategic flexibility in the long term.

A2Z Infra Engineering Limited Business Overview & Revenue Model

Company Description

A2Z Infra Engineering Limited (A2ZINFRA) is a leading infrastructure engineering company based in India, specializing in providing comprehensive solutions across various sectors, including power, telecommunications, and urban infrastructure development. The company primarily focuses on designing, constructing, and maintaining vital infrastructure projects that support national growth and development. A2ZINFRA's core products and services encompass engineering design, project management, and construction services, along with maintenance and operation of infrastructure assets.

How the Company Makes Money

A2ZINFRA generates revenue through multiple streams, primarily from government contracts and public-private partnership projects in the infrastructure sector. The company's revenue model is built on securing contracts for large-scale infrastructure projects, including power distribution, telecommunications networks, and urban development initiatives. Key revenue streams include engineering and construction services, equipment leasing, and maintenance contracts. A2ZINFRA also benefits from partnerships with governmental bodies and private enterprises, which provide a steady influx of projects and financial backing. Additionally, the company may engage in joint ventures or collaborations, further diversifying its revenue sources and enhancing its market presence.

A2Z Infra Engineering Limited Financial Statement Overview

Summary

A2Z Infra Engineering Limited is facing challenges in revenue growth and profitability, with high leverage posing financial risks. While there are signs of improvement in net profit margins and return on equity, the company needs to address its operational inefficiencies and manage its debt levels to ensure long-term financial stability. Positive free cash flow is a positive indicator, but the company must focus on sustainable cash generation and profitability.

Income Statement

A2Z Infra Engineering Limited has shown a mixed performance in its income statement. The company has experienced a decline in revenue growth, with a negative growth rate of -2.13% in the latest year. Gross profit margins have decreased significantly from 55.20% to 17.06%, indicating pressure on profitability. However, the net profit margin has improved to 2.67% from a negative margin in the previous year, suggesting some recovery in net income. The EBIT margin remains negative, reflecting ongoing operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.03, indicating significant leverage and potential financial risk. Return on equity has improved to 19.87%, showing better utilization of equity to generate profits. However, the equity ratio stands at 9.06%, highlighting a low proportion of equity financing relative to total assets, which could pose risks in times of financial stress.

Cash Flow

Cash flow analysis shows a strong free cash flow growth, although the previous year's free cash flow was negative, making the growth rate calculation less meaningful. The operating cash flow to net income ratio is not available, but the company has managed to generate positive free cash flow, indicating improved cash generation capabilities. However, the free cash flow to net income ratio is zero, suggesting that free cash flow is not contributing to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.44B	3.36B	3.88B	3.49B	3.53B	4.14B
Gross Profit	1.57B	308.31M	2.14B	2.16B	1.62B	1.79B
EBITDA	226.96M	249.15M	410.34M	-880.13M	-1.26B	-110.68M
Net Income	97.05M	89.73M	-56.92M	-1.23B	-1.80B	-812.07M
Balance Sheet
Total Assets	0.00	4.98B	6.83B	9.91B	14.27B	18.72B
Cash, Cash Equivalents and Short-Term Investments	51.50M	1.37B	28.60M	106.41M	1.08B	562.86M
Total Debt	0.00	916.23M	1.98B	3.13B	3.94B	5.27B
Total Liabilities	-265.76M	4.72B	6.62B	9.62B	12.74B	15.41B
Stockholders Equity	265.76M	451.66M	321.80M	380.50M	1.59B	3.38B
Cash Flow
Free Cash Flow	0.00	508.80M	846.64M	485.39M	364.63M	-105.88M
Operating Cash Flow	0.00	542.14M	953.28M	550.92M	381.36M	-69.68M
Investing Cash Flow	0.00	-124.26M	-105.29M	-70.06M	249.13M	110.76M
Financing Cash Flow	0.00	-392.39M	-939.99M	-465.63M	-678.48M	-5.77M

A2Z Infra Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.06
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:A2ZINFRA, the sentiment is Negative. The current price of 14.06 is below the 20-day moving average (MA) of 15.08, below the 50-day MA of 16.31, and below the 200-day MA of 17.39, indicating a bearish trend. The MACD of -0.64 indicates Positive momentum. The RSI at 31.57 is Neutral, neither overbought nor oversold. The STOCH value of 15.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:A2ZINFRA.

A2Z Infra Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATELENG	65 Neutral	₹29.57B	10.30	―	―	12.37%	-22.25%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KNRCON	63 Neutral	₹41.14B	6.68	―	0.17%	-42.73%	-44.36%
HGINFRA	57 Neutral	₹48.71B	11.79	―	0.27%	-8.92%	-22.83%
SIMPLEXINF	56 Neutral	₹20.57B	35.42	―	―	-19.24%	-35.09%
HCC	45 Neutral	₹48.54B	27.30	―	―	-31.50%	-74.38%
A2ZINFRA	40 Underperform	₹2.48B	96.63	―	―	1.97%	-6.97%

A2Z Infra Engineering Limited Corporate Events

A2Z Infra Engineering Confirms SEBI Compliance for Q2 2025

A2Z Infra Engineering Limited has announced compliance with the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. The company confirmed that no physical share certificates were received for dematerialization during this period, as certified by their Registrar and Share Transfer Agents, Alankit Assignments Ltd.