Garuda Construction and Engineering Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Garuda Construction and Engineering Ltd trades at ₹173, losing momentum at the top and 3 weeks into that stage. That is −0.5% against its own 200-day average. It sits at 30% of a 52-week range of ₹144 to ₹242. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (2 weeks and counting).

Today the stock is losing momentum at the top — week 3 of stage 3, confirmed. At ₹173 it trades −0.5% versus its 200-day average and sits at 30% of its 52-week range (₹144–₹242).

Against the market, two honest reads. Cumulative: over the last 1.8 years the stock moved +65% while the NIFTY 500 moved +3% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (2 weeks and counting; last ahead the week of 2026-07-17) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Garuda Construction and Engineering Ltd trades at 13.1× P/E, near the bottom of its own range — cheaper only 13% of the time. Its long-run median P/E is 19.0×, measured across 1.2 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 13.1× is near the bottom of its own range — cheaper only 13% of the time, against a long-run median of 19.0× measured over 1.2 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +146.2% against a −3.6% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Garuda Construction and Engineering Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 4 quarters across 0 curves, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

75.5/100 — rank 1 of 12 in Construction & Contracting · 76% evidence confidence

Garuda Construction and Engineering Ltd scores 75.5 out of 100 against the 12 companies it is compared with in Construction & Contracting, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 29.7 + 22.6 + 10.6 + 12.6 = 75.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Garuda Construction and Engineering Ltd reported ₹149 Cr of revenue in the Mar 26 quarter, +81.7% year on year. That is the 4th straight quarter of year-on-year growth. Over 1 years it has compounded at 135.0% a year. The last full year, FY26, came in at ₹531 Cr. The last four reported quarters add to ₹530 Cr.

FY26 revenue came in at ₹531 Cr (+135.0% on the year), capping 1 years at 135.0% compound. The latest quarter (Mar 26) printed ₹149 Cr, +81.7% year on year — the 4th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +152.9% growth against the decade's 135.0% — the current year is running faster than its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Garuda Construction and Engineering Ltd's operating margin is 32.0% in the Mar 26 quarter, +2.0 percentage points against the same quarter a year ago.

The latest quarter's operating margin is 32.0%, +2.0 pp against the same quarter a year ago. Across 2 fiscal years the operating margin has ranged 29.0%–31.0%.

Why the margin moved: operating margin went +2.5 pp year on year while gross margin went −7.4 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Garuda Construction and Engineering Ltd earned ₹34.0 Cr of net profit in the Mar 26 quarter, +88.9% year on year. It is the 4th consecutive quarter of growth. Full-year FY26 profit was ₹122 Cr. The 1-year compound rate is 144.0%. That is 22.8% of the quarter's revenue. The same quarter a year earlier earned ₹18.0 Cr.

Mar 26 profit was ₹34.0 Cr, +88.9% year on year — the 4th consecutive quarter of growth. On the full year, FY26 printed ₹122 Cr (+144.0%), and the 1-year compound rate is 144.0%.

Why profit moved: revenue contributed +81.7% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +156.0% vs revenue +152.9%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years −19% of Garuda Construction and Engineering Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹78.0 Cr of operating cash against ₹122 Cr of profit. After ₹114 Cr of capital spending, ₹−36.0 Cr was left as free cash.

FY26: operating cash of ₹78.0 Cr against reported profit of ₹122 Cr, leaving free cash of ₹−36.0 Cr after ₹114 Cr of capital spending. Across the last 2 fiscal years the conversion rate is −19% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at −19%: the cash cycle tightened 283 days between FY25 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Garuda Construction and Engineering Ltd's cash conversion cycle runs −8 days in FY26, down from 275 days in FY25. Capital spending ran ₹114 Cr over the last 1 years. At FY26 sales of ₹531 Cr each day of that cycle holds about ₹1.5 Cr, so roughly ₹−12.0 Cr sits inside the business at any moment.

FY26: debtors at 102 days, inventory at 13 days — roughly 0.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −8 days, tighter than FY25's 275.

The full loop: cash goes out to suppliers and production on day 0; stock waits 13 days to sell; customers pay about 102 days after that; and suppliers themselves are paid at 123 days — netting out to the −8-day cycle.

In money terms: at FY26 sales of ₹531 Cr, each day of the cycle holds about ₹1.5 Cr — so the −8-day loop keeps roughly ₹−12.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹114 Cr over the last 1 fiscal years. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Garuda Construction and Engineering Ltd earns a ROCE of 42% in FY26. Return on invested capital clears the cost of that capital by +17.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 23.0% net margin on 0.82× asset turns.

FY26 ROCE is 42%.

Why the return is what it is — the wiring (FY26): 23.0% net margin × 0.82× asset turns × 1.42× balance-sheet leverage ≈ 26.8% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 29.9% − 12.0% = a +17.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.⚠ unverified

Garuda Construction and Engineering Ltd carries total debt of ₹12.0 Cr against shareholder equity of ₹454 Cr as of Mar 26, a debt-to-equity of 0.03 — effectively unlevered. On the annual view that ratio went from 0.00 in FY25 to 0.03 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹12.0 Cr against shareholder equity of ₹454 Cr — a debt-to-equity of 0.03. On the annual view, debt-to-equity went from 0.00 (FY25) to 0.03 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 4.0 points of Garuda Construction and Engineering Ltd over 6 quarters, the biggest move on the register. That takes foreign institutions to 2.6% of the company. Domestic institutions moved −1.2 points over the same window, to 0.2%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −4.0 points over 6 quarters to 2.6%; Domestic institutions: −1.2 points over 6 quarters to 0.2%; Promoters: +0.0 points over 6 quarters to 67.6%.

🚨 Why the register moved: foreign institutions drove it (−4.0 points), alongside domestic institutions (−1.2 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Garuda Construction and Engineering Ltd: the Z-score reads 8.05. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 8.05 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 8.05.

Frequently asked questions