Madhucon Projects Limited (MADHUCON) AI Stock Analysis

• Market Cap: ₹313.63M
• Dividend Yield: N/A
• Average Volume (3M): 12.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -52.19%
• EPS Growth: -3109.52%
• Country: IN
• Employees: 738
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): -14.45
• Shares Outstanding: 73,794,945
• 10 Day Avg. Volume: 6,407
• 30 Day Avg. Volume: 12,063
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.03
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.11
• 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: 38 Underperform
• Price Target: ₹4.00 ▼(-34.43% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by very weak financial health (negative equity, poor profitability, and negative free cash flow). Technicals also remain bearish with price below key moving averages and negative MACD, with only mild support from near-oversold momentum readings. Valuation signals are not supportive due to a negative P/E and no dividend yield data.

Positive Factors

Government-backed project revenue

Revenue derived from government and public-sector contracts provides structural payment certainty and milestone-based billing. Over a 2–6 month horizon this supports predictable cash inflows tied to project progress, lowers counterparty credit risk versus private clients, and sustains backlog-driven activity.

EPC specialization in roads/highways

A focused EPC business in roads and highways creates durable operational know-how, repeatable project execution processes, and tender-market positioning. This specialization supports competitive bidding, potential cost efficiencies across projects, and relevance to ongoing public infrastructure spend over months.

Potential annuity/concession income

Participation in concession or development structures can create annuity-like cash flows and diversify revenue away from one-off EPC milestones. If materialized, these recurring receipts improve revenue visibility and reduce cash-flow volatility across the medium term, aiding recovery and planning.

Negative Factors

Negative equity / balance sheet distress

Negative shareholders' equity is a structural solvency concern that undermines financial flexibility. It constrains access to new bank financing, weakens counterparties' confidence, and limits ability to bid for large contracts or absorb cost overruns, posing sustained risks to operations and growth.

Negative free cash flow

Persistently negative free cash flow erodes liquidity needed for working capital on long-cycle projects. Over months this forces reliance on external financing or asset disposals, raises refinancing risk during project execution, and can cause delays or penalties in contract delivery and revenue recognition.

Weak profitability and steep revenue decline

Negative margins and large revenue contraction signal structural issues in pricing, cost control, or project mix. This weakens the company’s ability to generate operating surplus for reinvestment, undermines competitive positioning in tendering, and increases sensitivity to cost overruns over the medium term.

Madhucon Projects Limited Business Overview & Revenue Model

Company Description

Madhucon Projects Limited, together with its subsidiaries, operates as an integrated construction, infrastructure development, and management company in India. It operates in three segments: Construction, Power, and Toll Collection. The company engages in the development and execution of engineering, procurement, and construction, as well as turnkey projects. Its projects include highway and expressway, road, railway, port, irrigation and water resource, building and property development, coal and other mineral mining, bridge and flyover, tunneling, industrial, and other infrastructure, as well as energy generation, transmission, and distribution projects. The company also develops smart cities and properties. Madhucon Projects Limited was founded in 1983 and is based in Hyderabad, India.

How the Company Makes Money

MADHUCON generates revenue through several key streams. Primarily, the company earns money by securing contracts for the construction of roads, highways, and other infrastructure projects, often through competitive bidding processes for government contracts. Additionally, MADHUCON engages in public-private partnerships (PPPs) which allow it to share in the revenue generated from completed projects. The company also provides project management and consultancy services, further diversifying its income sources. Significant partnerships with government bodies and private sector clients, along with a focus on large-scale infrastructure projects, contribute to its overall earnings.

Madhucon Projects Limited Financial Statement Overview

Summary

Financial statements indicate severe distress: negative profit margins and weak EBIT/EBITDA, a highly leveraged balance sheet with negative equity (insolvency risk), and negative free cash flow with inconsistent operating cash flows.

Income Statement

Madhucon Projects Limited has faced significant challenges in its income statement. The net profit margin and gross profit margin are negative, indicating profitability issues. The revenue growth has been inconsistent, with a recent decline in revenue from the previous year. EBIT and EBITDA margins are also weak, highlighting operational inefficiencies.

Balance Sheet

The company has a highly leveraged balance sheet with a negative stockholders' equity, indicating insolvency. The debt-to-equity ratio is unfavorable, and the equity ratio is negative, suggesting financial instability. The return on equity is not meaningful due to negative equity.

Cash Flow

Cash flow metrics reveal some critical issues, with negative free cash flow and inconsistent operating cash flows. Despite a slight improvement in operating cash flow in the most recent period, free cash flow remains negative, reflecting cash management challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Jun 2021
Income Statement
Total Revenue	5.37B	6.77B	11.62B	11.24B	9.48B	8.43B
Gross Profit	1.07B	1.41B	2.13B	933.93M	2.03B	-543.59M
EBITDA	553.75M	523.60M	23.76M	6.49B	638.49M	927.93M
Net Income	-7.00B	-4.75B	-451.17M	-1.44B	-1.06B	-2.33B
Balance Sheet
Total Assets	33.88B	36.12B	42.13B	41.10B	55.03B	53.35B
Cash, Cash Equivalents and Short-Term Investments	11.08B	15.57B	329.11M	823.81M	954.24M	650.04M
Total Debt	33.95B	35.54B	38.13B	32.19B	41.78B	42.41B
Total Liabilities	56.54B	56.17B	62.00B	64.67B	77.14B	73.16B
Stockholders Equity	-17.08B	-14.68B	-15.03B	-19.20B	-20.88B	-18.84B
Cash Flow
Free Cash Flow	731.80M	-4.02B	-2.53B	-2.41B	2.26B	-5.09B
Operating Cash Flow	3.67B	847.45M	-2.50B	-2.41B	2.32B	-4.05B
Investing Cash Flow	-2.92B	451.70M	4.67B	9.49B	-1.58B	8.39B
Financing Cash Flow	-709.32M	-1.09B	-2.61B	-7.20B	-559.49M	-4.51B

Madhucon Projects Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MADHUCON, the sentiment is Negative. The current price of 6.1 is above the 20-day moving average (MA) of 4.66, above the 50-day MA of 5.08, and below the 200-day MA of 6.58, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MADHUCON.

Madhucon Projects Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEARDSELL	65 Neutral	₹1.46B	14.39	―	0.33%	8.25%	13.92%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
MANORG	54 Neutral	₹3.46B	24.26	―	―	22.53%	237.55%
KAKATCEM	53 Neutral	₹795.65M	-5.21	―	2.30%	-32.19%	-1097.08%
AKSHARCHEM	50 Neutral	₹1.39B	-10.48	―	0.30%	14.22%	―
MADHUCON	38 Underperform	₹313.63M	-0.11	―	―	-52.19%	-3109.52%

Madhucon Projects Limited Corporate Events

Madhucon Projects Discloses Rs 31.44 Crore Loan Default for December Quarter

Madhucon Projects Limited has disclosed a default on payment of principal amounting to Rs 31.44 crore on its fund-based loans from banks and financial institutions as of 31 December 2025, with no associated interest or other charges reported as overdue. The company reported that the entire outstanding fund-based loan exposure of Rs 31.44 crore is in default, while its total financial indebtedness, including non-fund-based obligations, stands at Rs 160.56 crore for the period, underscoring ongoing stress in its funding profile and signaling heightened risk for lenders and other stakeholders monitoring its debt-servicing capacity.