April Value Pick Idea : Hidden Engineering Services Champion: Poised for Long-Term Growth

📌 Latest Results Highlights

• Revenue: ₹6,531 cr (↑21% YoY)

• EBITDA: ₹2,783 cr (↑18% YoY)

• Net Profit: ₹1,944 cr (↑30% YoY)

• EPS: ₹22.1 (↑30% YoY)

🔍 Key Metrics:

• Revenue CAGR (5yr): 20.5%

• Net Profit CAGR (5yr): 23.2%

• ROCE: 30.9% vs Industry: 25%

• Debt/EBITDA: 1.5x

📊 Long-Term Projections:

• 5 Years: Base Case 22% CAGR | Bull Case 26% CAGR

• 10 Years: Base Case 20% CAGR | Bull Case 23% CAGR

• 15 Years: Base Case 18% CAGR | Bull Case 20% CAGR

• 20 Years: Base Case 15% CAGR | Bull Case 18% CAGR

Long-Term Growth Projection Chart

Investment Thesis

This engineering services leader demonstrates exceptional growth momentum with a 5-year revenue CAGR of 20.5%, significantly outpacing industry benchmarks. With strategic investments in digital engineering capabilities and targeted acquisitions, the company is establishing itself as a dominant player in high-growth verticals including aerospace, defense, and mobility.

The company's superior capital allocation (30.9% ROCE) combined with accelerating growth trajectories positions it for potential 10x returns over the next decade. Their strong balance sheet supports both continued M&A activity and increased R&D investments, creating multiple growth vectors.

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