Ducon Infratechnologies Ltd. (DUCON) AI Stock Analysis

• Market Cap: ₹955.28M
• Dividend Yield: N/A
• Average Volume (3M): 129.35K
• Price to Earnings (P/E): 12.4
• Beta (1Y): 1.22
• Revenue Growth: 4.34%
• EPS Growth: -3.29%
• Country: IN
• Employees: 60
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 324,925,600
• 10 Day Avg. Volume: 193,412
• 30 Day Avg. Volume: 129,354
• PEG Ratio: 0.27
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.39
• P/FCF Ratio: -13.12
• 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: 63 Neutral
• Price Target: ₹3.00 ▼(-16.67% Downside)
• Action: Reiterated Date: 01/15/26
• Date: Action: Reiterated 01/15/26

The score is primarily driven by improving profitability and better leverage management, partly offset by cash flow weakness (negative operating cash flow in 2025). Technical indicators remain a notable drag due to a broader downtrend and negative MACD, while valuation is supportive given the low P/E.

Positive Factors

Improving Profitability

Sustained expansion in gross and net margins signals structural improvements in pricing, product mix or cost control. Over 2–6 months this enhances resilience to input cost swings, increases retained earnings for reinvestment, and supports stronger long‑term cash generation if trends persist.

Improved Leverage Profile

A materially lower debt-to-equity ratio reduces financial strain and default risk, expanding capacity to bid large EPC projects and absorb working capital cycles. This healthier capital structure supports strategic flexibility and lowers interest burden over the medium term.

Integrated EPC + Aftermarket Model

Combining design/manufacture, turnkey execution and aftermarket services creates recurring revenue, deeper client relationships and cross‑sell opportunities. This business mix stabilizes revenue across cycles and supports margin retention from higher‑margin services over time.

Negative Factors

Weak Operating Cash Flow

Negative operating cash flow despite reported profits indicates working capital stress or timing on project receipts. This can constrain capacity to fund new contracts, increase reliance on external financing, and raise execution risk on multi‑quarter EPC projects if not resolved.

Moderate EBIT/EBITDA Margins

Persistently moderate operating margins limit free cash conversion and make the business more vulnerable to raw material or labor cost inflation. Over months, margin compression could erode returns on new contracts and necessitate efficiency programs to sustain profitability.

Earnings Per Share Volatility

Negative EPS growth signals uneven profitability per share, possibly driven by volatile project outcomes or one‑off factors. Continued EPS weakness can impair retained earnings growth, investor confidence and increase cost of capital, complicating funding for expansion.

Ducon Infratechnologies Ltd. Business Overview & Revenue Model

Company Description

Ducon Infratechnologies Limited, a diversified technology company, operates in the digital and infrastructure business sectors in India. The company provides limestone, seawater, and dry sorbet injection type flue gas desulphurization (FGD) systems for coal, HFO, and pet coke fired power boilers; and executes projects in rural electrification, industrial environmental control, and bulk material handling areas. It also offers IT consulting services, IT distribution, procurement outsourcing solutions, security surveillance system, servers, storages, and energy management systems, as well as marketing services. The company was formerly known as Dynacons Technologies Limited and changed its name to Ducon Infratechnolgies Limited May 2016. Ducon Infratechnolgies Limited was incorporated in 2009 and is based in Thane, India.

How the Company Makes Money

DUCON primarily makes money by executing industrial engineering projects and supplying pollution-control equipment and systems to businesses. Its revenue is typically generated from (a) sale of engineered equipment and packaged systems (e.g., air-pollution control and flue-gas cleaning systems), (b) EPC/turnkey project execution income covering design/engineering, fabrication/manufacturing, erection/installation, testing, and commissioning, and (c) aftermarket revenues such as spares, repairs, retrofits/upgrade jobs, and maintenance/service support where contracted. Any specific breakdown of revenue by segment, customer, geography, or named partnerships is null.

Ducon Infratechnologies Ltd. Financial Statement Overview

Summary

Strong revenue growth and improving profitability (higher gross and net margins) support the score, and leverage has improved with a lower debt-to-equity ratio. The key offset is weaker cash quality, highlighted by negative operating cash flow in 2025 and inconsistency between cash generation and earnings.

Income Statement

Ducon Infratechnologies has shown consistent revenue growth over the years, with a notable increase in gross profit margin from 5.87% in 2022 to 9.69% in 2025. Net profit margin improved significantly from 1.15% in 2022 to 2.99% in 2025, indicating enhanced profitability. However, the EBIT and EBITDA margins, though improving, remain moderate, suggesting room for operational efficiency enhancements.

Balance Sheet

The company's debt-to-equity ratio has decreased over time, from 1.54 in 2020 to 0.61 in 2025, reflecting improved leverage management. Return on equity has increased from 0.52% in 2021 to 8.09% in 2025, indicating better utilization of shareholder funds. However, the equity ratio slightly fluctuated but remained strong, suggesting a stable financial position.

Cash Flow

Despite recent challenges with negative operating cash flow in 2025, Ducon has managed significant free cash flow growth compared to previous years. However, the operating cash flow to net income and free cash flow to net income ratios highlight some inconsistency in cash generation relative to earnings, indicating potential cash management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.57B	4.52B	4.19B	3.96B	3.84B	3.42B
Gross Profit	467.99M	438.27M	246.04M	285.13M	255.38M	185.04M
EBITDA	314.18M	314.68M	215.86M	161.22M	164.29M	125.36M
Net Income	138.40M	135.49M	76.26M	40.98M	44.33M	4.15M
Balance Sheet
Total Assets	3.05B	3.02B	2.92B	2.76B	3.00B	2.78B
Cash, Cash Equivalents and Short-Term Investments	376.66M	374.40M	109.17M	103.42M	491.00K	651.00K
Total Debt	1.01B	1.02B	1.03B	949.07M	824.50M	653.19M
Total Liabilities	1.31B	1.34B	1.72B	1.53B	1.50B	1.33B
Stockholders Equity	1.74B	1.68B	1.20B	1.22B	1.50B	1.46B
Cash Flow
Free Cash Flow	56.31M	-134.27M	120.59M	4.86M	90.02M	-541.37M
Operating Cash Flow	56.44M	-130.78M	121.71M	6.21M	161.97M	-541.22M
Investing Cash Flow	-136.00K	-3.49M	-1.12M	-1.35M	-71.96M	-153.00K
Financing Cash Flow	-56.34M	399.50M	-120.63M	-4.82M	-90.17M	541.02M

Ducon Infratechnologies Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.60
• 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:DUCON, the sentiment is Negative. The current price of 3.6 is above the 20-day moving average (MA) of 3.16, above the 50-day MA of 3.38, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.16 indicates Positive momentum. The RSI at 37.34 is Neutral, neither overbought nor oversold. The STOCH value of 24.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DUCON.

Ducon Infratechnologies Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DUCON	63 Neutral	₹955.28M	12.44	―	―	4.34%	-3.29%
DHRUV	56 Neutral	₹579.05M	-0.73	―	0.42%	-9.83%	-5.90%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
RKEC	49 Neutral	₹821.44M	20.28	―	―	-12.26%	-36.87%
BRNL	47 Neutral	₹1.58B	2.58	―	―	-57.13%	―
SADBHAV	46 Neutral	₹1.27B	-0.64	―	―	―	―
SADBHIN	43 Neutral	₹912.26M	-0.31	―	―	4.63%	67.17%

Ducon Infratechnologies Ltd. Corporate Events

Ducon’s Early Carbon Capture Bet Gains Traction as India Backs CCUS With ₹20,000 Crore Plan

Ducon Infratechnologies announced that its early bet on solvent-based carbon capture research and development, launched in September 2025, has been strategically validated by the Indian government’s Union Budget 2026–27, which proposes a ₹20,000 crore outlay over five years to accelerate Carbon Capture, Utilisation and Storage (CCUS) deployment. The policy push, positioning CCUS as a core pillar of India’s decarbonisation strategy for hard-to-abate sectors such as cement, steel, refining, chemicals and power generation, strengthens Ducon’s prospects to emerge as a leading provider of carbon capture systems, integration services and long-term operations as reliance on coal- and gas-based power continues, creating a structural multi-year industrial opportunity for the company.