OVAL Projects Engineering Limited

OVAL Projects Engineering Limited
Asset-light, PSU-anchored EPC & O&M platform scaling India’s oil & gas, power, energy, and urban infrastructure backbone
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OVAL Confidential
BSE SME Listed
Sept 2025
Who is OVAL Projects Engineering Limited?
₹70.50
Current Market Price
As of 05-01-2026
₹146Cr
Market Capitalization
BSE SME platform
₹102 Cr
FY25 Revenue
Latest fiscal year
₹735 Cr
Total Order Book
Latest figures
₹509 Cr
Unexecuted Orders
Future revenue potential
₹226 Cr
Executed Orders
Recently completed value
12+
Years Operating
Established track record
100+
Projects Delivered
Across energy & infrastructure
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State Presence
North-East India stronghold
90%
PSU & Government
Client concentration
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OVAL Confidential
Structural Competitive Advantages
Cost Leadership
30–40% cost advantage in North-East India through local expertise and established supply chains
~5× Revenue Visibility
Forward revenue visibility based on ₹509 Cr unexecuted orders / ₹102 Cr FY25 revenue, providing multi-year predictability.
Capital Efficiency
0.77× capital intensity versus 1.0–1.2× industry peers enabling superior returns
Client Quality
90% revenue from PSU and government entities ensures payment security and repeatability
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OVAL Confidential
Investment Snapshot
Institutional EPC Platform | ₹100 Cr+ Allocation Opportunity
Market Position
Current Market Price: ₹70.50
Market Capitalization: ₹146.42 Cr
BSE SME listing since September 2025
Post-IPO net worth expansion phase
Execution Pipeline
Total Order Book (WIP): ₹735 Cr
Unexecuted Order Book: ₹509 Cr
Executed/Billed: ₹226 Cr
Revenue Visibility: ~5× (₹509 Cr / FY25 Revenue of ₹102 Cr)
Target IRR: 28–33% for institutional holders
~5x
Revenue Visibility
Unexecuted order book / FY25 Revenue
69.25%
Unexecuted Order Book
₹509 Cr of ₹735 Cr total order book
28-33%
Target IRR
Institutional return profile
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OVAL Confidential
Post-IPO Inflection Point
Why This Company, Why Now
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IPO Completion
By September 2025, net worth expanded from ₹56 Cr (FY25) to ~₹103 Cr, unlocking higher project eligibility thresholds in the ₹50–100 Cr range. This positions the company for significant growth, targeting revenue trajectory of ₹102 Cr (FY25) → ₹150 Cr (FY26) → ₹461 Cr (FY30).
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Order Book Secured
Total Order Book: ₹735 Cr. The ₹509 Cr (69.25%) unexecuted portion ensures a multi-year execution runway (~5× FY25 revenue of ₹102 Cr visibility) with PSU counterparties.
3
Billing Acceleration
₹226 Cr of executed work is now pending billing, creating an immediate cash conversion opportunity.
4
PSU Capex Cycle
Government infrastructure spending accelerating across energy transmission and distribution, aligning with the company's ₹102 Cr (FY25) revenue base and future growth projections.
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Business Expansion
O&M and energy adjacencies commence FY26, driving margin expansion and recurring revenue, contributing to the projected growth from ₹150 Cr (FY26) towards ₹461 Cr (FY30).
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OVAL Confidential
Audited
30 Sept 2025
H1 FY26 Financial Performance
Audited Results Demonstrate Acceleration (All figures in ₹ Cr)
Revenue Growth
₹61.54 Cr in H1 FY26, representing 95.7% YoY growth over H1 FY25 (₹31.45 Cr).
Margin Profile
EBITDA margin of 19.3% sustained despite rapid scaling, with PAT of ₹6.77 Cr (+74.8% YoY).
Per Share Metrics
EPS of ₹4.27 for H1 FY26, supported by an expanded net worth of ~₹103 Cr post-IPO.
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OVAL Confidential
Five-Year Scale Blueprint
Predictable Compounding Visibility (FY25–FY30) (All figures in ₹ Cr)
Projections supported by contracted order book of ₹735 Cr, O&M ramp-up contributing 25% of revenue by FY30, and margin expansion from 18% to 23% driven by operating leverage and business mix shift. Conservative assumptions incorporate 85% order book execution rate and selective new order intake.
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OVAL Confidential
Order Book Reality
₹735 Cr Contracted Pipeline | Cash-Visible Execution
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Total Order Book
₹735 Cr of contracted work with 3+ year execution horizon
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Unexecuted Order Book
₹509 Cr in revenue yet to be executed, providing strong visibility
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Revenue Visibility
~5× revenue visibility (₹509 Cr unexecuted ÷ ₹102 Cr FY25 actual revenue)
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Cash Conversion
60–90 day payment cycles from government entities with zero default history
₹735Cr
Total Order Book
Contracted work-in-progress
₹509Cr
Unexecuted
Revenue yet to be executed
₹226Cr
Executed/Billed
Already billed revenue
69.25%
Unexecuted %
Portion remaining to be executed
3+
Years
Execution horizon visibility
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OVAL Confidential
Cash Flow Visibility
Understanding Revenue Recognition and Collection Cycles
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Work Execution Completed & Billed
₹226 Cr of engineering, procurement, and construction work physically completed at project sites, and subsequently billed to clients.
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Quality Certification
All executed work meets Public Sector Undertaking (PSU) specifications and has passed technical inspections, ensuring payment eligibility.
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Billing Submission
Invoices for the ₹226 Cr of completed work are submitted to clients, adhering to standard government procurement procedures.
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Payment Processing
A predictable 60–90 day payment cycle from invoice submission, backed by a history of zero historical defaults from PSU clients.
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Cash Collection
Efficient working capital conversion drives cash generation, supporting growth initiatives and shareholder returns from these collected amounts.
Client Profile Security
The ₹226 Cr of completed work (Revenue Earned, Cash Yet to Be Collected) is with highly secure PSU and government entities including ONGC, GAIL, IOCL, and state urban development bodies.
Payment Track Record
Zero payment defaults in our 12+ year operating history with average realization of 98.5% of billed amounts, ensuring high cash flow reliability.
₹735Cr
Total Order Book
Contracted work-in-progress.
₹509Cr
Unexecuted Order Book
Revenue yet to be executed, representing 69.25% of the total order book.
₹226Cr
Billed & Uncollected
Completed work that has been billed, with cash yet to be received through the collection cycle.
₹102Cr
FY25 Revenue Recognized
This amount represents the revenue recognized in FY25 from executed portions of the order book, distinct from the total billed but uncollected amount.
60–90 Days
Cash Collection Cycle
Typical timeframe for converting billed amounts into cash, based on strong client relationships.
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OVAL Confidential
Defensible Competitive Moat
Structural Advantages That Scale With Growth
Geographic Dominance
12+ years of North-East India operations with unmatched local relationships and execution capabilities
Cost Leadership
30–40% delivered cost advantage through regional supply chains and labor optimization
PSU Revenue Mix
90% of revenue from government and PSU clients ensures payment security and contract stability
Customer Retention
70% repeat customer rate demonstrates service quality and relationship depth
Pre-Qualification Status
Empanelled with EIL, GAIL, IOCL, CPWD providing preferential bidding access
Execution Track Record
100+ projects delivered on-time with zero major disputes or arbitrations
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OVAL Confidential
Superior Capital Efficiency
Growth Without Capital Drag (All figures in ₹ Cr)
Capital Deployment (FY26–30)
Total capital required: ₹275 Cr
Incremental revenue unlocked: ₹359 Cr (FY25-FY30)
Working capital as % of revenue: 20–25%
Fixed asset intensity: Minimal (asset-light model)
Efficiency Drivers
Subcontractor-led execution model
Minimal owned equipment or infrastructure
Fast working capital cycles with PSU clients
Revenue growth from existing relationships
0.76x
Capital Intensity
Capital / Revenue
₹275Cr
5-Year Capital
Total deployment requirement
₹359Cr
Incremental Revenue
Unlocked (FY25-30)
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OVAL Confidential
Embedded Margin Expansion
Path from 17.6% (FY25) to 23.0% (FY30) EBITDA Margin
Base Margin (FY25)
17.6% EBITDA margin on project EPC work with current business mix and scale (FY25: 18 EBITDA / 102 Revenue)
FY26E Target
18.0% EBITDA margin (27 EBITDA / 150 Revenue)
FY27E Target
20.5% EBITDA margin (43 EBITDA / 210 Revenue)
FY28E Target
22.0% EBITDA margin (60 EBITDA / 273 Revenue)
FY29E Target
22.5% EBITDA margin (80 EBITDA / 355 Revenue)
Target Margin (FY30)
23.0% EBITDA margin representing sustainable expansion (FY30: 106 EBITDA / 461 Revenue)
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OVAL Confidential
Business Model Transformation
From Project EPC to Predictable Platform
FY25 Revenue Mix
Based on a total revenue of ₹102 Cr for FY25, this mix is dominated by one-time project execution with limited recurring revenue streams.
FY30 Revenue Mix (Target)
Balanced portfolio with 30% predictable recurring revenue and premium margins
(All figures in ₹ Cr unless otherwise specified)
Strategic Rationale
Shift reduces revenue volatility, improves cash flow predictability, expands margins, and commands higher valuation multiples from institutional investors
Execution Path
Leverage existing project delivery relationships to secure 5–10 year O&M contracts with same PSU clients, requiring minimal incremental capital
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OVAL Confidential
O&M: The Re-Rating Engine
Recurring Revenue With Premium Margins (All figures in ₹ Cr)
Revenue Growth
O&M scaling from ₹11.3 Cr to ₹259.88 Cr representing 82% CAGR over five years
Margin Profile
28–30% EBITDA margins versus 18–20% on project EPC work
Contract Duration
5–10 year agreements with monthly billing providing revenue visibility
Capital Requirement
Minimal incremental capex leveraging existing infrastructure and relationships
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OVAL Confidential
Adjacent Growth Vectors
Energy | Power | Fly Ash Processing
Power EPC & O&M
Renewable energy projects and conventional power plant operations leveraging existing PSU relationships with NTPC, state utilities
Fly Ash Handling
Ash handling systems and processing for thermal power plants with 25–30% margins and long-term contracts
Energy Infrastructure
Transmission and distribution projects with same client base, similar margin profile of 20–25%
All adjacencies leverage existing PSU empanelment, technical capabilities, and regional presence. Combined opportunity represents ₹50+ Cr additional revenue by FY30 with 20–40% margin range. No new client acquisition required, utilizing proven execution model in adjacent segments with natural cross-sell potential.
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OVAL Confidential
Valuation Disconnect
What the Market Is Missing (All figures in ₹ Cr, unless otherwise specified)
Current Trading Metrics
Current Market Price: ₹70.50 
(per share)
Market Capitalization: ₹146.42
FY25 Revenue: ₹102
FY26E PAT: ₹14 (projected)
Implied P/E Multiple: ~10.5×
Implied P/S Multiple: ~1.43×
Fair Value Range
Fair Value @ 20× P/E: ₹252 Cr
Fair Value @ 20× P/E: ₹280 Cr
Mid-Point Fair Value: ₹265 Cr
Implied Valuation Discount: 42–48%
10.5x
Current P/E
Market valuation
18-20x
Fair Value P/E
Peer comparison
42-48%
Discount
To fair value
Investor Insight
The market is discounting OVAL’s contracted order visibility, margin expansion trajectory, and business-model shift. EPC platforms with recurring revenue exposure typically trade at premium multiples versus pure-play EPC peers.
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OVAL Confidential
Downside Protection Framework
Capital Preservation Built Into Base Case
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Stress Case Assumptions
FY25 revenue base: ₹102 Cr. Unexecuted order book: ₹509 Cr (~5× visibility). Revenue growth moderated. EBITDA margin compressed ~150 bps. Exit multiple: 16× P/E
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Stress Case Financials
FY30 revenue of ~₹390 Cr, EBITDA of ~₹90 Cr, PAT of ~₹50 Cr
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Stress Case Exit Value
16× P/E × ₹50 Cr PAT = ~₹800 Cr market cap. ~5.5× current market cap (₹146.42 Cr)
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Downside IRR Floor
~20–22% IRR under conservative execution
Base Case IRR
28–33% with normalized execution and 20× exit multiple
Upside Case IRR
40–45% with accelerated O&M adoption and 24× exit multiple
Risk-Reward Profile
Asymmetric returns. Strong downside protection from contracted order book. Upside driven by margin expansion and O&M scaling
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OVAL Confidential
Key Investment Risks
Execution Risk
Delays in project completion or cost overruns could impact profitability. Mitigated by 12+ year track record, fixed-price contracts with escalation clauses, and conservative project selection with known clients.
Working Capital Risk
Extended payment cycles from government clients could strain cash flow. Mitigated by 60–90 day historical payment cycles, zero default history, and banking relationships supporting working capital facilities.
Concentration Risk
Geographic and client concentration in North-East PSUs creates dependency. Mitigated by expanding to new states, diversifying into O&M and adjacencies, and deepening relationships with existing clients.
Competition Risk
Larger national players entering regional markets could pressure margins. Mitigated by 30–40% cost advantage, established relationships, and focus on smaller projects where national players lack focus.
Liquidity Risk
BSE SME listing limits institutional participation and trading volumes. Mitigated by potential mainboard migration post-sustained profitability, increasing institutional awareness, and demonstrated financial performance.
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OVAL Confidential
Multiple Exit Pathways
Institutional Liquidity Options
Mainboard Migration
Graduation to BSE/NSE main board after meeting profitability and public float requirements, unlocking broader institutional participation and higher valuation multiples
Follow-On Public Offering
FPO to increase public float, improve liquidity, and enable partial exits for early investors at premium valuations after demonstrating consistent execution
Strategic Acquisition
Acquisition by larger national EPC players seeking regional presence, O&M capabilities, or PSU relationships, with historical precedent of 2.5–3.5× revenue multiples
Dividend Distribution
Regular dividend policy targeting 20–25% payout ratio as free cash flow generation scales, providing yield while retaining capital for growth
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OVAL Confidential
Institutional Opportunity
Investment Decision Framework
ACCUMULATE
₹100 Cr+ Institutional Allocation Recommended
Visibility
₹735 Cr order book with ₹509 Cr unexecuted, providing ~5× revenue visibility at FY25 revenue run-rate (₹102 Cr).
Capital Efficiency
0.77× capital intensity versus 1.0–1.2× peers unlocks superior ROIC and cash generation
Margin Expansion
EBITDA margin expansion from ~18% to ~23% driven by O&M mix shift and operating leverage.
Valuation Asymmetry
40–45% valuation discount to fair value with 30–33% base-case IRR and ~20–22% IRR downside floor supported by contracted order book.
Key Re-Rating Catalysts
Consistent quarterly execution against ₹735 Cr order book
Cash collection from ₹509 Cr unexecuted order book into billing and cash
O&M contract wins demonstrating recurring revenue model
Margin expansion above 20% EBITDA
Mainboard migration announcement
Institutional Allocation Rationale: OVAL Projects offers a rare combination of contracted revenue visibility, capital efficiency, and valuation discount within the infrastructure EPC space. The ₹509 Cr unexecuted order book (from a total ₹735 Cr) against FY25 revenue of ₹102 Cr provides ~5× revenue visibility, underpinning multi-year execution certainty. Growth is supported by FY26E revenue of ₹150 Cr (PAT: ₹14 Cr) and FY30E revenue of ₹461 Cr (PAT: ₹59 Cr). The transition toward O&M enhances long-term multiple expansion. Suitable for growth-oriented institutional portfolios with 3–5 year horizons, targeting ~30–33% base-case IRR with a ~20–22% downside IRR floor, supported by contracted work and PSU client quality.
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OVAL Confidential