Globe Civil Projects, promoted by Ved Prakash Khurana, Nipun Khurana and Vipul Khurana, is an integrated engineering, procurement and construction (EPC) company headquartered in New Delhi. It is into execution and construction of infrastructure projects comprising of transport and logistics projects (i.e. roads, bridges, airport terminals, railway terminals), social and commercial projects (hospitals, educational institutions, sport infrastructure) and non-infrastructure projects comprising of commercial offices and housing.

It also provides mechanical, electrical and plumbing ('MEP'), architectural and structural work, HVAC, firefighting and fire alarm systems (forming part of the construction project receipts segment). Additionally, the company also undertakes trading of residue construction materials after captive consumption (particularly TMT steel) on commercially viable terms in the open market to 3^rd party contractors, traders, etc. Of the 9mFY25 revenue from operations about 96.86% is accounted by construction projects and 3.14% from trading of goods.

In the last two decades, it has successfully completed thirty-seven (37) projects across eleven states namely Uttar Pradesh, Haryana, Delhi, Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh.

The company, whose strengths and focus deeply rooted in construction of education institution buildings and railway infrastructure, has diversified in undertaking specialized infrastructure and non-infrastructure projects, such as railway bridges, airport terminal, elevated railway terminal and railway bridges and hospitals.

Currently, it has thirteen on-going projects, including five Social and Commercial Infrastructure projects, three Transport & Logistics projects, four Residential Building projects and one Office Building project. It works with many reputed clients and is associated with some of the marquee construction projects in India.

Order book of the company as end of March 31, 2025, stood at Rs 669.102 crore (down from Rs 778.527 crore and Rs 980.86 crore as end of Mar 2024). The order book is spread across 13 ongoing projects [five social & commercial projects, three transport & logistics projects; four housing projects and 1 commercial office project]. The order book comprises an aggregate order book of Rs 193.49 crore from educational institutions (part of S&C infrastructure projects) and Rs 71.342 crore of Railway projects (Transports & logistics). Order book as end of Dec 2025 crore translates into 2.34 times of its FY24 revenue.

As of March 31, 2025, it has formed six joint ventures with clients and strategic partners to pursue various opportunities. Out of the 13 projects as of March 31, 2025, four are being undertaken with Joint Ventures. For the nine months period ended December 31, 2024, and for the Fiscal 2024, Fiscal 2023 and Fiscal 2022, its revenue from operations from projects undertaken under JVs contributed 36.40%, 33.36%, 28.98%, and 35.15%, respectively.

Central Public Works Department (CPWD), accounted for 10.10%/29.77%/57.48% of revenue from operations from construction project receipts business segment for 9mFY25, FY24 and FY23 respectively.

The Issue and Object of the Issue

The public issue comprises entirely of fresh issue of up to 1,67,60,560 equity shares of face value of ?10 per equity share.

Of the net proceeds from fresh issue, Rs 75 crore will be used to fund working capital requirement, Rs 14.255 crore towards capital expenditure on purchase of construction equipments/machineries. The balance is for general corporate expenses.

Strength

Strong project management and execution capabilities

Executing projects for a diverse set of government, corporate and other customers across various segments

Registered Class-1 Super contractor (license valid for 5 yrs from Nov 24, 2022) with the Central Public Work Department (CPWD), Government of India to tender for any work up to Rs 650 crore.

Weaknesses

Business depends on projects awarded by government or government-owned customers such as CPWD & PSU, which subjects to a variety of risks.

Dependent on the demand for construction services, change in budgetary allocation and the requirements for construction projects in the infrastructure and non-infrastructure sectors across India.

Business depends on tenders through competitive bidding process thus any intense competition likely to impact the profitability and bid win ratio. For the nine months ending December 31, 2024, the company submitted bids for 11 projects but secured only one, reflecting a success rate of 9.09%, compared to 54.55% in FY24.

Projects included in the Order Book may be delayed, modified or cancelled for reasons beyond its control.

The failure of a JV counterparty or consortium member to perform its obligations could impose additional financial and performance obligations resulting in reduced profits or, in some cases, significant losses.

Top 1/5/10 projects accounted for 26.65%/74.01%/98.33%, 20.45%/63.36%/89.54%, 24.76%/76.42%/92.82% of revenue from operations (construction project receipts) in 9mFY25, FY24, and FY23, respectively. Thus, any delay or slowdown in execution of top 1/5/10 projects will impact the financials of the company.

Significantly large portion of its revenue from operations (construction project receipts) comes from northern India with Delhi/UP account for 66.07%/11.85%, 47.19%/14.86% in 9mFY25 and FY24, respectively.

A significant portion of the projects executed by it are in the social & commercial infrastructure segment, particularly construction of educational institutions. Focus on the social & commercial infrastructure segment may expose it to risks associated with business concentration.

Reported negative cash flows from its operating activity in 9mFY25 and FY23.

Globe Civil Project Ltd, the trademark currently used by the company, is not yet registered in its name.

There are certain outstanding material litigations filed by the Company, wherein the aggregate amount involved is Rs 133.78 crore.

Contingent Liability to net worth (on expanded equity) is 10.53%.

Valuation

Consolidated re-stated revenue stood higher by 42% to Rs 332.16 crore in FY 2024. Further, with OPM expanding by 440 bps to 13.4%, operating profit jumped by 115% to Rs 44.65 crore. Eventually, Pat after MI stood higher by 217% to Rs 15.38 crore.

For the nine months ending December 31, 2024, the net profit after MI was Rs 17.79 crore on sales of Rs 254.66 crore. The debt-equity ratio was 0.63.

At the upper price band, the PE works out to 24.4 times of its FY24 EPS, the P/BV works out to 3.0 times and EV/Sales works out to 5.7 times.

In comparison the construction players focused largely on Buildings such as BL Kashyap, PSP Projects, Capacite Infra, Vascon Engineering, Ahluwalia Contractors, Ceigall India and Garuda Construction & Engineering quotes at a PE of 87 times, 53.9 times, 13.7 times, 17.2 times, 30.4 time, 14.4 times and 23.3 times, respectively, of their FY25 EPS. Similarly, BL Kashyap, PSP Projects, Capacite Infra, Vascon Engineering, Ahluwalia Contractors, Ceigall India and Garuda Construction & Engineering, quotes at a P/BV of 2.9 times, 2.5 times, 1.6 times, 1.0 times, 3.4 times, 2.3 times and 3.5 times.

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