A B Infrabuild Ltd (ABINFRA) AI Stock Analysis

• Market Cap: ₹11.10B
• Dividend Yield: 0.03%
• Average Volume (3M): 60.90K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 0.95
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 27
• Sector: Real Estate
• Sector Strength: 53
• Industry: Engineering & Construction
• EPS (TTM): 0.10
• Shares Outstanding: 638,789,370
• 10 Day Avg. Volume: 83,085
• 30 Day Avg. Volume: 60,903
• PEG Ratio: <0.01
• Price to Book (P/B): 0.41
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.60
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹19.00 ▼(-1.04% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by solid profitability and growth on the income statement, but it is meaningfully capped by negative operating/free cash flows and only moderate balance sheet strength. Technical signals are weak with the stock trading below key moving averages, and valuation looks stretched with a high P/E despite a modest dividend yield.

Positive Factors

Strong profitability and margins

Consistent gross and operating margins plus reported strong revenue growth indicate sustainable contract-level profitability and operational efficiency. These margins provide structural cushion against cost volatility and support reinvestment capacity across multi-year infrastructure projects.

Efficient equity returns

A ROE near mid-teens reflects durable ability to convert shareholder capital into earnings across project cycles. This suggests competent capital allocation and potential to compound shareholder value if profitability and project execution remain consistent over coming quarters.

Diversified contract revenue streams

A multi-channel revenue model with government and private sector contracts plus joint ventures reduces single-client concentration risk and smooths project pipelines. This structural diversification supports steadier bookings and visibility into medium-term revenue.

Negative Factors

Negative operating and free cash flows

Persistent negative operating and free cash flows mean reported profits are not converting to cash. Over 2-6 months this undermines the firm's ability to fund working capital and capex from internal sources, increasing reliance on external financing for projects and growth.

Rising reliance on debt financing

A leverage profile with rising total debt reduces financial flexibility, raises interest and refinancing exposure, and constrains capacity to bid on large contracts without added financing. This structural reliance on debt elevates risk if cash flows remain weak.

Weak cash conversion / earnings quality

Negative free cash flow relative to reported net income indicates earnings are not cash-backed, raising questions about earnings quality. This structural gap can pressure liquidity, dividends, and reinvestment, and may force dilutive or costly financing if unresolved.

A B Infrabuild Ltd Business Overview & Revenue Model

Company Description

A B Infrabuild Limited engages in the civil construction business in India. The company is involved in the construction, alter, enhance, maintain, enlarge, pull down, remove, replace and develop, work, and manage of roads, railways, branches and sidings, and bridges; and other civil construction works. It also undertakes repair and petty road works and renovation and reconstruction work of slum areas. The company was founded in 1999 and is based in Mumbai, India.

How the Company Makes Money

ABINFRA generates revenue through multiple channels, primarily by securing contracts for infrastructure projects from both public and private sectors. The company's key revenue streams include construction contracts, consultancy fees for project management and engineering services, and maintenance contracts for completed infrastructure. ABINFRA often partners with government agencies and private developers to undertake large-scale projects, which not only provides a steady flow of income but also enhances its reputation in the industry. Additionally, the company may engage in joint ventures to share resources and risks, further diversifying its revenue sources and contributing to its overall financial stability.

A B Infrabuild Ltd Financial Statement Overview

Summary

Income statement strength (85) shows robust growth and healthy margins, but balance sheet is only moderate (70) with rising debt, and cash flow is weak (50) with negative operating and free cash flows that raise liquidity risk.

Income Statement

A B Infrabuild Ltd has demonstrated strong revenue growth with a significant increase from the previous year. The gross profit margin stands at 18.69%, and the net profit margin is 7.74%, indicating healthy profitability. The EBIT margin is 13.27%, and the EBITDA margin is 15.68%, reflecting efficient operational management. Overall, the income statement shows robust growth and profitability.

Balance Sheet

The company's debt-to-equity ratio is 0.78, which is reasonable but indicates a reliance on debt financing. The return on equity (ROE) is 14.61%, showcasing effective use of equity to generate profits. The equity ratio is 44.31%, suggesting a balanced capital structure. While the balance sheet is stable, the increase in total debt warrants attention.

Cash Flow

A B Infrabuild Ltd faces challenges in cash flow management, with negative operating and free cash flows. The operating cash flow to net income ratio is negative, indicating cash flow issues despite profitability. The free cash flow to net income ratio is also negative, highlighting potential liquidity concerns. Cash flow management needs improvement to support growth.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2022
Income Statement
Total Revenue	2.08B	1.84B	1.23B	643.16M
Gross Profit	389.14M	305.96M	179.09M	95.61M
EBITDA	326.54M	237.51M	150.47M	54.51M
Net Income	161.21M	114.17M	75.38M	8.64M
Balance Sheet
Total Assets	2.49B	1.57B	1.25B	1.03B
Cash, Cash Equivalents and Short-Term Investments	334.66M	100.36M	18.30M	83.86M
Total Debt	858.46M	411.02M	323.10M	301.15M
Total Liabilities	1.39B	750.77M	899.21M	753.12M
Stockholders Equity	1.10B	815.46M	353.21M	277.88M
Cash Flow
Free Cash Flow	-280.20M	-300.79M	115.09M	-4.93M
Operating Cash Flow	-235.92M	54.04M	153.32M	8.10M
Investing Cash Flow	-31.68M	-350.52M	-129.63M	-13.34M
Financing Cash Flow	501.90M	378.75M	-29.03M	7.57M

A B Infrabuild Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 19.20
• 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:ABINFRA, the sentiment is Negative. The current price of 19.2 is below the 20-day moving average (MA) of 19.73, above the 50-day MA of 19.05, and above the 200-day MA of 18.30, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 6.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ABINFRA.

A B Infrabuild Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GEECEE	64 Neutral	₹5.46B	33.62	―	0.60%	―	―
BIGBLOC	60 Neutral	₹6.96B	149.33	―	0.58%	5.33%	-105.13%
ABINFRA	59 Neutral	₹11.10B	46.62	―	0.03%	―	―
OMINFRAL	56 Neutral	₹7.54B	29.07	―	0.39%	-45.35%	-0.88%
PENINLAND	41 Neutral	₹5.32B	-17.64	―	―	-29.04%	-194.71%
PARSVNATH	40 Underperform	₹2.99B	-0.76	―	―	-37.98%	40.32%