
Tradepoint21
February 13, 2025 at 02:42 AM
SRM Contractors seems like an interesting small-cap stock with strong earnings momentum. Here are a few key takeaways:
✅ Explosive Growth: 4x jump in net profit and a 75% surge in revenue indicate strong business expansion.
✅ Improving Margins: A rise from 9.5% to 16.8% suggests better operational efficiency or pricing power.
✅ Reasonable Valuation: With a P/E of 20.3, it's not too expensive compared to high-growth peers.
🔍 What to Check Before Investing:
Sustainability of Growth: Was this just a one-time boost, or can the company maintain this performance?
Order Book & Pipeline: As a contractor, future revenue depends on new project wins.
Debt Levels: High debt can be risky in an interest-rate-sensitive industry.
Promoter Holding & Pledging: Ensuring strong promoter confidence is key.