Generic Engineering Construction & Projects Ltd. (GENCON) AI Stock Analysis

• Market Cap: ₹2.43B
• Dividend Yield: 0.17%
• Average Volume (3M): 19.01K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 1.26
• Revenue Growth: 5.68%
• EPS Growth: -3.27%
• Country: IN
• Employees: 22
• Sector: Industrials
• Sector Strength: 73
• Industry: Engineering & Construction
• EPS (TTM): 0.35
• Shares Outstanding: 56,986,217
• 10 Day Avg. Volume: 48,344
• 30 Day Avg. Volume: 19,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹49.00
• Price Target Upside: 15.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ₹49.00 ▲(15.13% Upside)

The overall stock score reflects a strong technical position with bullish momentum, despite potential overbought conditions. Financial performance shows a robust balance sheet but highlights the need for better cash flow management and profitability. The valuation is fair, but without a dividend yield, it may not appeal to income investors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage (debt-to-equity ratio of 0.24) provides financial stability and reduces risk, supporting long-term growth.

Revenue Growth

Consistent revenue growth indicates expanding market reach and demand for services, which is crucial for sustaining long-term business success.

Operational Efficiency

Reasonable EBIT and EBITDA margins reflect efficient operations, enabling the company to manage costs effectively and enhance profitability over time.

Negative Factors

Weak Cash Flow

Weak cash flow can hinder the company's ability to invest in growth opportunities and meet financial obligations, posing a risk to long-term stability.

Low Net Profit Margin

A low net profit margin may indicate cost inefficiencies, which can affect overall profitability and competitiveness in the long run.

Cash Flow Management

Negative operating cash flow to net income ratio suggests inadequate cash generation from operations, necessitating improved cash management strategies.

Generic Engineering Construction & Projects Ltd. Business Overview & Revenue Model

Company Description

Generic Engineering Construction & Projects Ltd. (GENCON) is a diversified engineering and construction company engaged in delivering innovative infrastructure and development solutions. The company operates across multiple sectors including residential, commercial, industrial, and infrastructure projects. GENCON specializes in providing end-to-end engineering, procurement, and construction (EPC) services, ensuring high-quality standards and timely project delivery.

How the Company Makes Money

GENCON generates revenue primarily through its engineering, procurement, and construction (EPC) services. The company secures contracts from clients in various sectors such as residential, commercial, and infrastructure development. Revenue is earned by completing projects on a contractual basis, where payments are typically structured around project milestones or completion. The company may also engage in long-term maintenance contracts, providing ongoing services for completed projects. Significant partnerships with industry stakeholders, government entities, and private developers contribute to its revenue streams by facilitating access to large-scale projects and client networks.

Generic Engineering Construction & Projects Ltd. Financial Statement Overview

Summary

The financial performance is mixed with a strong balance sheet (score: 75) and decent income statement (score: 68), but significantly weak cash flow (score: 45). The company demonstrates revenue growth and operational efficiency, but needs to improve cash flow management and net profitability.

Income Statement

The company shows consistent revenue growth with a revenue increase of 4.39% in the latest year. Gross profit margin is 14.44%, indicating decent profitability. However, the net profit margin is relatively low at 4.02%, suggesting some inefficiencies or higher costs. The EBIT margin of 7.81% and EBITDA margin of 14.76% are reasonable, highlighting operational efficiency. Overall, the income statement reflects steady growth but with room for improvement in profitability.

Balance Sheet

The balance sheet is strong with an equity ratio of 62.31%, indicating a solid equity base. The debt-to-equity ratio stands at 0.24, reflecting low leverage and financial stability. Return on equity is 4.27%, which is moderate but shows potential for improvement. Overall, the balance sheet is robust with low financial risk, but profitability can be enhanced.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow of -187.28 million. The operating cash flow to net income ratio is negative, indicating cash flow from operations is not supporting net income adequately. The free cash flow to net income ratio is also negative, highlighting a need for better cash management. Overall, the cash flow position is weak and requires significant improvements.

Breakdown	TTM	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	3.02B	2.73B	2.60B	1.31B	2.00B
Gross Profit	461.01M	436.20M	627.17M	472.13M	302.21M	400.93M
EBITDA	251.96M	445.92M	428.23M	342.77M	197.41M	275.88M
Net Income	73.35M	121.34M	153.11M	139.22M	27.82M	145.36M
Balance Sheet
Total Assets	0.00	4.57B	3.86B	3.18B	2.70B	2.58B
Cash, Cash Equivalents and Short-Term Investments	110.70M	450.02M	582.35M	48.24M	82.37M	94.73M
Total Debt	0.00	677.91M	592.34M	521.68M	470.89M	405.76M
Total Liabilities	-2.77B	1.72B	1.34B	1.20B	904.65M	806.76M
Stockholders Equity	2.77B	2.84B	2.52B	1.98B	1.80B	1.77B
Cash Flow
Free Cash Flow	0.00	-187.28M	-102.44M	-66.68M	-27.13M	-593.05M
Operating Cash Flow	0.00	-34.66M	110.47M	132.97M	149.01M	-237.36M
Investing Cash Flow	0.00	106.97M	-375.04M	-188.84M	-167.19M	-351.20M
Financing Cash Flow	0.00	-25.42M	357.69M	21.74M	5.82M	341.60M

Generic Engineering Construction & Projects Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.56
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GENCON, the sentiment is Positive. The current price of 42.56 is above the 20-day moving average (MA) of 41.29, above the 50-day MA of 41.44, and above the 200-day MA of 37.96, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GENCON.

Generic Engineering Construction & Projects Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GENCON	68 Neutral	₹2.43B	19.51		0.17%	5.68%	-3.27%
Sector *	64 Neutral	$10.84B	15.28	7.40%	1.99%	2.87%	-14.59%
COROENGG	―	₹2.38B	79.40		―	―	―
INDOTECH	69 Neutral	₹18.83B	24.41		―	40.81%	56.69%
PIGL	65 Neutral	₹2.67B	19.53		0.13%	77.33%	45.34%
SPECTRUM	―	₹21.70B	84.17		―	―	―
TARAPUR	―	₹462.15M	27.29		―	―	―