Likhitha Infrastructure Ltd (LIKHITHA) AI Stock Analysis

• Market Cap: ₹5.73B
• Dividend Yield: 0.79%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 1.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 613
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.35
• Shares Outstanding: 39,450,000
• 10 Day Avg. Volume: 5,300
• 30 Day Avg. Volume: 3,934
• PEG Ratio: 2.58
• Price to Book (P/B): 2.87
• Price to Sales (P/S): 2.06
• P/FCF Ratio: -334.89
• 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: 68 Neutral
• Price Target: ₹163.00 ▼(-14.93% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is driven primarily by solid fundamentals—rapid revenue growth, strong balance-sheet strength, and healthy profitability—tempered by a notable cash-flow deterioration in FY2025 (negative operating and free cash flow). Technical indicators are mixed with a weaker longer-term trend, while valuation appears reasonable on P/E but offers limited dividend support.

Positive Factors

Conservative Balance Sheet

Near-zero debt materially lowers financial risk and preserves flexibility to bid on large EPC projects or withstand project delays. This conservative leverage profile supports long-term resilience across cycles and reduces refinancing pressure, benefitting sustained operations and strategic optionality.

Scale of Revenues

A multi-year revenue expansion threefold indicates successful order-book development and market penetration in pipeline EPC. This scale improves bargaining power with suppliers, enables fixed-cost absorption, and supports a more predictable project pipeline over the medium term if contract wins continue.

Healthy Profitability

Sustained double-digit operating and net margins show the firm can earn attractive returns on projects, supporting strong ROE. Consistent profitability provides internal capital for reinvestment and signals effective pricing and cost control capabilities in a competitive EPC market.

Negative Factors

Weak Cash Generation

Negative operating and free cash flow despite reported profits signals weaker cash conversion driven by working-capital swings. This raises quality-of-earnings concerns and limits internal funding for growth, increasing reliance on timely contract collections and disciplined billing practices.

Margin Compression

A clear deterioration in margins suggests rising input costs or less favorable project mix. If persistent, margin compression will erode ROE and cash generation, making the business more sensitive to pricing pressure and reducing buffer against execution overruns on long-duration contracts.

Execution & Working-Capital Risk

The project-based EPC model concentrates risk in execution and receivables management. Delays, cost overruns, or slow client payments can quickly strain liquidity given cash-flow volatility, threatening project margins and increasing the need for external financing despite a low-debt balance sheet.

Likhitha Infrastructure Ltd Business Overview & Revenue Model

Company Description

Likhitha Infrastructure Limited engages in laying, erection, testing, and commissioning of oil and gas pipe lines in India. The company is also involved in laying of oil and gas supply pipe lines and irrigation canals, building bridges over the canals, and related maintenance works; and the provision of operations and maintenance services for city gas distribution companies. Likhitha Infrastructure Limited was incorporated in 1998 and is based in Hyderabad, India.

How the Company Makes Money

Likhitha Infrastructure Ltd Financial Statement Overview

Summary

Strong revenue scale-up and healthy profitability with a very conservatively levered balance sheet (near-zero debt and solid ROE). The main drag is cash-flow quality: FY2025 operating cash flow and free cash flow turned negative and cash conversion has been inconsistent, alongside some margin compression.

Income Statement

Revenue has scaled strongly over the period (from ~1.6B in FY2020 to ~5.2B in FY2025), showing solid top-line momentum. Profitability remains healthy with FY2025 gross margin ~26% and net margin ~13%, and operating profit still strong (~17% operating margin). The key watch-out is margin compression versus earlier years (gross and net margins were higher in FY2020–FY2022, and net margin stepped down from ~16% in FY2024 to ~13% in FY2025), suggesting rising costs or project mix pressure even as revenue grows.

Balance Sheet

The balance sheet is very conservatively levered, with negligible debt relative to equity (debt-to-equity near zero across years), which lowers financial risk and supports resilience through cycles. Equity and assets have expanded materially alongside growth, and returns on equity remain strong (~19% in FY2025, over ~21% in FY2023–FY2024). The main limitation is not leverage-related but execution-related: with such low debt, sustained returns depend heavily on maintaining project profitability and working-capital discipline.

Cash Flow

Cash generation is the weak spot due to volatility and a sharp deterioration in FY2025: operating cash flow turned slightly negative and free cash flow was negative, despite solid reported earnings. Prior years were mixed—FY2024 showed positive operating and free cash flow, while FY2021–FY2022 included negative free cash flow—pointing to inconsistent cash conversion likely driven by working-capital swings. This raises near-term quality-of-earnings risk until operating cash flow normalizes.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.17B	5.20B	4.22B	3.65B	2.57B	1.91B
Gross Profit	1.25B	1.34B	960.71M	1.22B	994.92M	732.51M
EBITDA	903.54M	955.28M	937.43M	872.73M	623.53M	392.32M
Net Income	660.95M	693.27M	654.12M	595.23M	459.90M	289.90M
Balance Sheet
Total Assets	0.00	4.26B	3.50B	2.96B	2.16B	1.69B
Cash, Cash Equivalents and Short-Term Investments	863.21M	863.21M	906.04M	719.82M	468.28M	579.50M
Total Debt	0.00	6.94M	0.00	0.00	0.00	1.65M
Total Liabilities	-3.74B	515.79M	396.27M	451.07M	236.22M	153.66M
Stockholders Equity	3.74B	3.73B	3.10B	2.50B	1.93B	1.53B
Cash Flow
Free Cash Flow	0.00	-31.93M	66.06M	222.14M	-71.18M	-16.65M
Operating Cash Flow	0.00	-2.33M	205.69M	313.95M	31.12M	8.10M
Investing Cash Flow	0.00	372.11M	132.53M	-129.97M	95.68M	-503.92M
Financing Cash Flow	0.00	-62.37M	-69.31M	-27.49M	-73.18M	532.30M

Likhitha Infrastructure Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JINDRILL	74 Outperform	₹15.12B	5.45	―	0.18%	34.80%	252.88%
LIKHITHA	68 Neutral	₹5.73B	11.31	―	0.79%	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
DOLPHIN	64 Neutral	₹15.76B	31.11	―	―	212.48%	135.64%
ASIANENE	55 Neutral	₹13.09B	31.34	―	0.34%	41.19%	-26.66%
BGRENERGY	51 Neutral	₹22.45B	-2.64	―	―	-58.59%	-14.79%