Simplex Infrastructures Limited (SIMPLEXINF) AI Stock Analysis

• Market Cap: ₹16.82B
• Dividend Yield: N/A
• Average Volume (3M): 6.58K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 1.35
• Revenue Growth: -19.24%
• EPS Growth: -35.09%
• Country: IN
• Employees: 846
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.99
• Shares Outstanding: 79,095,345
• 10 Day Avg. Volume: 4,012
• 30 Day Avg. Volume: 6,584
• PEG Ratio: -1.36
• Price to Book (P/B): 3.49
• Price to Sales (P/S): 1.70
• P/FCF Ratio: 10.12
• 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: 44 Neutral
• Price Target: ₹220.00 ▼(-12.87% Downside)
• Action: Reiterated Date: 01/24/26
• Date: Action: Reiterated 01/24/26

Overall score is held down primarily by weak financial performance (losses, negative operating margins, and high leverage) and a clearly bearish technical setup (below major moving averages with negative MACD). Valuation is only moderately supportive given the P/E and lack of dividend data.

Positive Factors

Diversified EPC business model

Simplex operates a diversified EPC model across transportation, buildings and industrial facilities, generating contract-based milestone revenues. This project-driven approach spreads client and sector exposure, supports repeat contract flows, and provides durable revenue mechanisms tied to multi‑year projects.

Recent positive free cash flow shift

A shift to positive free cash flow indicates improving cash generation from operations or working capital management. If sustained, this enhances liquidity, enables debt reduction or reinvestment into projects, and materially improves the firm's ability to finance operations without relying solely on external funding.

Modest increase in shareholders' equity

A recent rise in equity provides a thicker solvency buffer and marginally reduces leverage metrics. Over the medium term this can strengthen creditor confidence, improve capacity to absorb project overruns, and support bidding capacity for new contracts when combined with continued equity retention or profit recovery.

Negative Factors

High leverage and thin equity buffer

The company’s substantial debt-to-equity ratio constrains financial flexibility, raises refinancing and covenant risk, and increases interest burden. For an EPC firm, heavy leverage can limit ability to fund mobilization, bid competitively, or absorb project delays without distress, impairing medium-term resilience.

Declining revenue and persistent losses

Sustained revenue declines and ongoing net losses signal structural profitability issues and competitive or execution challenges. Negative EBIT/EBITDA margins reduce internal capital generation, weaken credit profiles, and make it harder to rebuild margins, hampering long‑term viability unless operational fixes occur.

Historically negative operating cash flow

Despite a recent FCF improvement, a history of negative operating cash flow implies persistent working capital strain and reliance on external financing or advances. This elevates liquidity and counterparty risk for project execution and requires sustained cash flow recovery to meaningfully reduce leverage and stabilize operations.

Simplex Infrastructures Limited Business Overview & Revenue Model

Company Description

Simplex Infrastructures Limited provides construction and engineering services for the piling, energy and power, building and housing, marine, roads and highways, railways, urban infrastructure, real estate, and other sectors in India and internationally. The company builds rail infrastructure, including rail tracks, station buildings, bridges, and culverts; and designs and constructs high-rise infrastructure, such as multi-storeyed residential towers, institutional/IT buildings, hotels, hospitals, and mass housing projects. It also builds industrial structures comprising steel and power plants; and undertakes projects for cement, aluminum, copper, engineering, automobiles, petrochemicals, fertilizers, paper textiles, pharmaceuticals, chemicals, and other industrial plants. In addition, the company engages in erecting various types of power infrastructures that include thermal, hydel, and nuclear, as well as ultra-mega power projects; underwater piling, which comprise steel piling; and building bridges across rivers. Further, it undertakes ground engineering projects, including pre-cast piling and jointed piling, cast-in-situ, driven, and bored piling, as well as soil investigation, soil compaction, diaphragm walls, grouting, stone columns, etc. Additionally, the company offers airport renovation and modernization; and oil drilling services, as well as engages in the equipment hire business activities. Simplex Infrastructures Limited was incorporated in 1924 and is based in Kolkata, India.

How the Company Makes Money

Simplex Infrastructures generates revenue primarily through the execution of construction contracts, which include building roads, bridges, and other civil engineering projects. The company's revenue model is largely project-based, with earnings coming from fixed-price contracts, cost-plus contracts, and time and material contracts. Key revenue streams include the completion of government contracts, private sector projects, and joint ventures. Significant partnerships with public sector entities and large corporations contribute to a steady flow of contracts, while the company's reputation for quality and reliability helps secure repeat business and new project opportunities.

Simplex Infrastructures Limited Financial Statement Overview

Summary

Weak fundamentals: declining revenues, negative EBITDA/EBIT margins and persistent net losses (Income Statement score 45). High leverage and a thin equity buffer raise financial risk (Balance Sheet score 40). Cash flow shows a recent improvement to positive free cash flow, but the history of negative operating cash flow keeps liquidity risk elevated (Cash Flow score 50).

Income Statement

Simplex Infrastructures Limited exhibits a challenging income statement with declining revenues and profitability issues. The gross profit margin has dropped significantly over the years, and the company has faced persistent net losses, indicating financial distress. Despite a slight recovery in gross profit margin in recent periods, EBIT and EBITDA margins remain negative, reflecting operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage with a substantial debt-to-equity ratio, indicating a risky financial structure. Despite a modest increase in stockholders' equity recently, the equity ratio is still low, suggesting a limited buffer against financial volatility. The company's heavy reliance on debt could pose significant risks if revenue generation remains weak.

Cash Flow

Cash flow analysis shows some improvement, with a positive shift in free cash flow in the most recent year. However, historical operating cash flows have been consistently negative, posing liquidity concerns. The positive operating cash flow to net income ratio in recent times is a positive sign but needs to be sustained for long-term stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.22B	10.76B	13.88B	18.74B	20.30B	22.00B
Gross Profit	2.52B	1.36B	3.46B	4.63B	5.26B	1.36B
EBITDA	972.20M	900.60M	336.60M	1.08B	209.60M	749.50M
Net Income	260.90M	115.80M	-722.70M	-4.71B	-5.28B	-4.69B
Balance Sheet
Total Assets	0.00	43.39B	104.14B	103.73B	98.68B	93.16B
Cash, Cash Equivalents and Short-Term Investments	1.13B	1.19B	571.40M	558.60M	242.40M	379.00M
Total Debt	0.00	21.74B	71.80B	59.84B	53.54B	46.08B
Total Liabilities	-5.26B	38.13B	101.80B	100.71B	91.17B	80.49B
Stockholders Equity	5.26B	5.24B	2.32B	3.01B	7.49B	12.67B
Cash Flow
Free Cash Flow	0.00	1.81B	-929.60M	-4.36B	-4.50B	-4.83B
Operating Cash Flow	0.00	2.11B	-826.90M	-4.32B	-4.47B	-4.83B
Investing Cash Flow	0.00	-302.10M	19.40M	2.05B	224.90M	787.20M
Financing Cash Flow	0.00	-1.24B	833.80M	2.59B	4.04B	3.85B

Simplex Infrastructures Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 252.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SIMPLEXINF, the sentiment is Negative. The current price of 252.5 is above the 20-day moving average (MA) of 221.24, above the 50-day MA of 237.26, and below the 200-day MA of 274.06, indicating a bearish trend. The MACD of -6.20 indicates Positive momentum. The RSI at 35.73 is Neutral, neither overbought nor oversold. The STOCH value of 2.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SIMPLEXINF.

Simplex Infrastructures Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KNRCON	74 Outperform	₹40.46B	8.61	―	0.16%	-42.73%	-44.36%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DBL	60 Neutral	₹73.54B	5.14	―	0.21%	-13.57%	40.24%
HGINFRA	60 Neutral	₹40.60B	10.35	―	0.25%	-8.92%	-22.83%
HCC	45 Neutral	₹50.11B	20.66	―	―	-31.50%	-74.38%
SIMPLEXINF	44 Neutral	₹16.82B	20.01	―	―	-19.24%	-35.09%