Capacit'e Infraprojects Ltd. (CAPACITE) AI Stock Analysis

• Market Cap: ₹18.92B
• Dividend Yield: N/A
• Average Volume (3M): 24.11K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.59
• Revenue Growth: 15.23%
• EPS Growth: 8.61%
• Country: IN
• Employees: 912
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 6.00
• Shares Outstanding: 84,604,040
• 10 Day Avg. Volume: 16,489
• 30 Day Avg. Volume: 24,114
• PEG Ratio: 0.30
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -23.53
• 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): 26.17
• Revenue Forecast (FY): ₹27.04B

• Rating: 58 Neutral
• Price Target: ₹218.00 ▼(-13.85% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by weak technicals (downtrend across major moving averages and negative MACD) and cash flow concerns (negative operating and free cash flow). These are partially offset by strong revenue growth, improved net profitability, and a relatively low P/E valuation.

Positive Factors

Sustained Revenue Growth

A nearly threefold revenue increase demonstrates durable demand and execution capacity across projects. Higher scale supports better negotiating leverage with suppliers, spreads fixed costs, and creates a stronger base for profitable bid wins and reinvestment over the next 2–6 months.

Improving Net Profitability

A rising net margin signals improved expense control and project profitability, translating into better ROE and retained earnings. Sustained margin expansion increases resilience to cost swings and funds capacity expansion or deleveraging over the medium term.

Strengthened Equity Base

A materially stronger equity position reduces leverage risk, enhances creditworthiness and bonding capacity, and supports larger project participation. This structural balance-sheet improvement underpins long-term bidding capacity and financial flexibility.

Negative Factors

Negative Operating Cash Flow

Persistent negative OCF indicates cash generation lags accounting profits and creates reliance on external financing or working-capital support. Over months, this can constrain project execution, slow receivables cycles, and elevate funding costs for ongoing contracts.

Declining Gross Margin

A sharp gross-margin decline suggests rising input costs or pricing pressure on contracts. Structurally lower gross profitability reduces the buffer for SG&A and execution risks, making earnings more sensitive to cost overruns and cyclical demand shifts.

Rising Total Debt

Growing absolute debt, even with manageable ratios, adds interest and refinancing risk, especially given negative OCF. Higher leverage can limit bidding flexibility, increase covenant and liquidity pressure, and reduce resilience to slower collections or project delays.

Capacit'e Infraprojects Ltd. Business Overview & Revenue Model

Company Description

Capacit'e Infraprojects Limited, together with its subsidiaries, engages in engineering, procurement, and construction business in India. The company offers contracting, general contracting, and design and build services for high-rise buildings, commercial and office complexes, institutional buildings, research and development centers, multi and super specialty hospitals, malls, hotels, data centers, industrial buildings, mass housing, and multilevel car parks, as well as residential construction contracts. It also provides mechanical, electrical, plumping, finishing, and interior works. The company was incorporated in 2012 and is headquartered in Mumbai, India.

How the Company Makes Money

CAPACITE primarily makes money by executing construction contracts for public and private sector clients. Its core revenue model is project-based: it bids for and wins EPC/contracting orders and recognizes revenue as work is performed (typically based on percentage-of-completion/measurement of work completed under the contract terms). Key revenue streams include (1) civil and structural construction services for residential and commercial buildings (e.g., high-rise structures), where revenue is earned through contract billing tied to milestones, running bills, or certified measurements; (2) construction and related works for institutional/industrial/public-sector projects, earned similarly through contracted progress billings; and (3) any variation orders, escalation clauses, and additional scope awarded during project execution, which can add incremental revenue when approved under contract. Earnings are influenced by its order book and execution pace, project mix (private real estate vs. public/institutional works), pricing discipline in bidding, and the company’s ability to manage material, labor, subcontracting, equipment, and overhead costs to protect margins. Specific information on major partnerships, client concentration, or the proportion of revenue by segment is null.

Capacit'e Infraprojects Ltd. Financial Statement Overview

Summary

Strong revenue growth and improved net profitability (net margin up to 8.7% in 2025) support the score, along with a strengthening equity base. However, weakening gross margin (31.1% to 20.6%) and negative operating/free cash flow (OCF -223m in 2025) materially reduce financial quality and liquidity comfort.

Income Statement

Capacit'e Infraprojects Ltd. has demonstrated strong revenue growth from 2021 to 2025, with consistent improvements in gross profit margin and net profit margin. The company achieved a significant increase in total revenue from INR 8,742 million in 2021 to INR 23,495 million in 2025. However, the gross profit margin showed a decreasing trend, from 31.1% in 2021 to 20.6% in 2025, indicating rising costs or pricing pressures. The net profit margin has improved significantly, reaching 8.7% in 2025, reflecting better control over expenses and increased profitability. EBIT and EBITDA margins have been relatively stable, suggesting efficient operational performance.

Balance Sheet

The balance sheet reflects a healthy equity position with stockholders' equity increasing steadily from INR 9,288 million in 2021 to INR 17,187 million in 2025. The debt-to-equity ratio remains manageable, although there has been an increase in total debt over the years. The equity ratio has improved, indicating better asset financing through equity rather than debt. Return on equity has shown significant improvement, driven by increased net income, signaling enhanced shareholder returns.

Cash Flow

Cash flow analysis reveals challenges in cash generation, with negative operating and free cash flows in recent years. Operating cash flow was negative at INR -223 million in 2025, indicating potential liquidity issues or cash management inefficiencies. The free cash flow remained negative, highlighting ongoing capital expenditure that may be impacting cash reserves. However, the company has been able to manage financing activities to support its cash needs.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	23.69B	23.50B	19.19B	17.99B	13.40B	8.80B
Gross Profit	6.64B	4.84B	6.25B	3.19B	3.96B	2.72B
EBITDA	4.48B	4.37B	3.37B	3.41B	2.07B	1.48B
Net Income	1.95B	2.04B	1.20B	952.91M	477.57M	15.32M
Balance Sheet
Total Assets	0.00	35.00B	31.49B	26.12B	23.81B	22.45B
Cash, Cash Equivalents and Short-Term Investments	673.44M	673.44M	1.09B	1.38B	1.14B	1.17B
Total Debt	0.00	4.26B	3.29B	3.74B	3.35B	2.91B
Total Liabilities	-17.20B	17.80B	16.32B	15.39B	14.16B	13.16B
Stockholders Equity	17.20B	17.19B	15.17B	10.73B	9.65B	9.29B
Cash Flow
Free Cash Flow	0.00	-1.25B	-1.24B	85.55M	-676.42M	-355.35M
Operating Cash Flow	0.00	-223.53M	-388.16M	1.01B	344.95M	770.33M
Investing Cash Flow	0.00	-191.67M	-1.52B	-605.50M	-229.31M	-1.22B
Financing Cash Flow	0.00	863.46M	1.82B	-336.04M	7.13M	-526.52M

Capacit'e Infraprojects Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 253.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CAPACITE, the sentiment is Positive. The current price of 253.05 is above the 20-day moving average (MA) of 225.65, above the 50-day MA of 233.28, and below the 200-day MA of 279.91, indicating a neutral trend. The MACD of -8.80 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 76.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CAPACITE.

Capacit'e Infraprojects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PATELENG	66 Neutral	₹23.63B	8.76	―	―	12.37%	-22.25%
INDIANHUME	64 Neutral	₹17.02B	8.72	―	1.00%	0.25%	452.41%
PSPPROJECT	62 Neutral	₹25.88B	48.21	―	―	-2.24%	-70.79%
GPTINFRA	61 Neutral	₹13.12B	17.45	―	1.80%	15.97%	28.83%
CAPACITE	58 Neutral	₹18.92B	10.65	―	―	15.23%	8.61%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SIMPLEXINF	43 Neutral	₹13.09B	62.16	―	―	-19.24%	-35.09%