Gayatri Highways Ltd. (GAYAHWS) AI Stock Analysis

• Market Cap: ₹493.68M
• Dividend Yield: N/A
• Average Volume (3M): 209.79K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.20
• Revenue Growth: -8.95%
• EPS Growth: N/A
• Country: IN
• Employees: N/A
• Sector: Services
• Sector Strength: N/A
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): -0.14
• Shares Outstanding: 239,651,900
• 10 Day Avg. Volume: 132,203
• 30 Day Avg. Volume: 209,791
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.05
• Price to Sales (P/S): 5.55
• P/FCF Ratio: 0.18
• 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: 45 Neutral
• Price Target: ₹2.00 ▼(-27.80% Downside)

The score is primarily held down by weak financial health (negative equity, high leverage, and inconsistent profitability) and bearish technicals (below key moving averages with negative MACD). Valuation appears optically cheap due to an extremely low P/E, but without supporting dividend data and given the fundamental risks, it provides only partial offset.

Positive Factors

Stable government/PPP revenue model

A business model centered on government contracts and PPPs provides durable, multi-year project pipelines and payment structures. This underpins predictable contract inflows, supports long-term bidding capability, and cushions revenue cyclicality tied to private demand shifts.

Established infrastructure execution capability

Deep domain experience in highway construction and a reputation for timely execution create a competitive advantage in winning bids and consortiums. Execution credibility increases repeat awards and JV opportunities, supporting durable market position and project backlog visibility.

Positive operating cash flow generation

Consistent ability to produce operating cash flow from projects supports working capital needs and debt servicing. Even if free cash flow is uneven, positive operating cash provides a structural buffer for ongoing operations and project execution funding without immediate recourse to equity.

Negative Factors

Highly leveraged balance sheet

Negative equity and high leverage meaningfully raise solvency and refinancing risk. This constrains the company's financial flexibility to bid on large projects, increases cost of capital, and elevates vulnerability to interest rate or cash-flow shocks over the medium term.

Volatile, loss-making operating performance

Sustained negative EBIT margins and earnings volatility indicate underlying operational inefficiencies or pricing pressure on contracts. Without margin recovery, profitability is unlikely to support reinvestment or buffer against project overruns, reducing long-term earnings resilience.

Inconsistent free cash flow conversion

Weak conversion of income into free cash flow erodes the firm's ability to self-fund capex and reduce leverage. Inconsistent FCF increases reliance on external financing for project execution and makes the company more sensitive to funding markets and covenant pressures over a multi-month horizon.

Gayatri Highways Ltd. Business Overview & Revenue Model

Company Description

Gayatri Highways Limited, together with its subsidiaries, engages in the construction, operation, and maintenance of roads, highways, vehicle bridges and tunnels, and toll roads in India. The company was incorporated in 2006 and is based in Hyderabad, India.

How the Company Makes Money

Gayatri Highways Ltd. generates revenue through a combination of government contracts, public-private partnerships, and private sector projects focused on road construction and maintenance. The company typically earns money by winning bids for infrastructure projects, which are funded by both state and central government budgets. Key revenue streams include fixed-price contracts for construction, toll revenue from highways and expressways, as well as project management and consultancy fees. Additionally, strategic partnerships with government agencies and other private entities in joint ventures enhance GAYAHWS's project portfolio and revenue potential, allowing the company to capitalize on large-scale infrastructure investments.

Gayatri Highways Ltd. Financial Statement Overview

Summary

Weak fundamentals overall: volatile and largely loss-making operating performance (negative EBIT margins), a highly risky balance sheet with negative equity and high leverage, and only partial support from positive operating cash flow that has not consistently translated into strong free cash flow.

Income Statement

The income statement shows a volatile performance with significant fluctuations in revenue and profitability. Despite a positive net profit margin in the latest year due to a one-time gain, the company has faced consistent losses in previous years. Revenue growth is stagnant, and EBIT margins are negative, indicating operational inefficiencies.

Balance Sheet

The balance sheet reflects a highly leveraged position with negative equity, which poses a significant risk. The debt-to-equity ratio is negative, and the return on equity is also negative, indicating poor financial health. The equity ratio is concerning, highlighting potential solvency issues.

Cash Flow

Cash flow analysis reveals some strengths, such as positive operating cash flow. However, free cash flow growth is inconsistent, and the free cash flow to net income ratio is low, suggesting challenges in converting income into cash. Despite these issues, the company maintains some ability to generate cash from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.10M	56.90M	17.20M	76.26M	62.99M	813.96M
Gross Profit	-10.79M	1.50M	1.26M	7.89M	33.95M	698.43M
EBITDA	491.35M	154.55M	-1.02B	1.92B	53.26M	741.86M
Net Income	12.02B	11.29B	-4.41B	-1.40B	-2.97B	-3.29B
Balance Sheet
Total Assets	0.00	10.00B	19.74B	24.37B	24.85B	24.68B
Cash, Cash Equivalents and Short-Term Investments	203.73M	203.73M	100.67M	66.43M	50.39M	33.73M
Total Debt	0.00	4.21B	24.12B	24.11B	24.18B	25.17B
Total Liabilities	6.26B	16.26B	37.29B	37.51B	34.81B	33.22B
Stockholders Equity	-6.26B	-6.26B	-17.55B	-13.14B	-9.95B	-8.54B
Cash Flow
Free Cash Flow	0.00	1.75B	3.12B	932.95M	7.98B	4.67B
Operating Cash Flow	0.00	1.75B	3.12B	934.58M	7.98B	4.67B
Investing Cash Flow	0.00	-32.40M	196.59M	220.73M	-1.65B	154.82M
Financing Cash Flow	0.00	-1.61B	-3.28B	-1.14B	-6.32B	-4.81B

Gayatri Highways Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.77
• 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:GAYAHWS, the sentiment is Negative. The current price of 2.77 is above the 20-day moving average (MA) of 2.35, below the 50-day MA of 2.78, and above the 200-day MA of 2.36, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 32.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GAYAHWS.

Gayatri Highways Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AKASH	57 Neutral	₹414.31M	27.03	―	―	51.76%	―
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PBAINFRA	47 Neutral	₹149.05M	9.16	―	―	―	―
GAYAHWS	45 Neutral	₹493.68M	0.04	―	―	-8.95%	―
CYBERMEDIA	41 Neutral	₹326.61M	28.49	―	―	3.93%	-6902.88%