Likhitha Infrastructure Ltd (LIKHITHA) AI Stock Analysis

• Market Cap: ₹6.38B
• Dividend Yield: 0.79%
• Average Volume (3M): 3.93K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 1.20
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 613
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Equipment & Services
• EPS (TTM): 2.92
• 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: ₹176.00 ▼(-8.14% Downside)

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

Revenue Growth Momentum

Sustained top-line expansion over several years indicates the company is winning larger or more numerous EPC contracts, improving scale economics. Over 2–6 months this provides better revenue visibility, bargaining power with suppliers, and potential to spread fixed costs across greater volume.

Conservative Balance Sheet

Near-zero leverage materially lowers financial risk and enhances resilience through project cycles. This structural strength supports bidding for large contracts that require financial surety and reduces default risk, giving the firm strategic flexibility over the medium term.

Healthy Profitability and Returns

Robust operating and net margins together with mid-teens ROE demonstrate durable project-level profitability and effective capital use. If the company maintains project execution and cost discipline, these margins support reinvestment and sustainable shareholder returns over several quarters.

Negative Factors

Deteriorating Cash Generation

Negative operating and free cash flow undermines earnings quality and forces reliance on working-capital financing or equity to fund growth. Over the coming months this can constrain capacity to fund new project mobilization and increase funding costs if not reversed.

Inconsistent Cash Conversion / Working‑Capital Swings

Volatile working-capital implies feast-or-famine cash cycles tied to milestone billing and receivables timing. Structurally, this raises execution risk on multi-stage EPC contracts, can inflate short-term financing needs, and may weaken bid competitiveness if liquidity tightens.

Margin Compression Trend

A visible decline in net margin indicates rising input costs or adverse project mix. If margin pressure persists over the next several quarters, it will erode returns and limit the company’s ability to invest in efficiency, bid aggressively, or sustain ROE without structural cost remediation.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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
SELAN	72 Outperform	₹19.38B	18.80	―	―	0.34%	-12.23%
DOLPHIN	69 Neutral	₹18.15B	35.82	―	―	212.48%	135.64%
JINDRILL	69 Neutral	₹13.93B	5.88	―	0.18%	34.80%	252.88%
LIKHITHA	68 Neutral	₹6.38B	10.60	―	0.79%	―	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
ASIANENE	55 Neutral	₹11.50B	35.27	―	0.34%	41.19%	-26.66%
BGRENERGY	51 Neutral	₹25.21B	-2.54	―	―	-58.59%	-14.79%