Waya initiates coverage on SRM Contractors Ltd. with a BUY recommendation. Waya expects an upside of 97% over the next 12 months and sets a target price of ₹819.

SRM Contractors is a niche EPC specialist building critical infrastructure in India’s toughest hilly terrains — roads, bridges, tunnels, and slope-stabilisation projects across J&K, Ladakh, Uttarakhand and the Northeast. The company has a robust order book of ₹1,461 crore, providing 18–24 months of strong revenue visibility.

SRM has strong financials with record FY25 performance (+54% revenue growth, +104% PAT growth) and superior return ratios (ROE ~30%, ROCE ~35%). We expect SRM’s revenues to grow at 40% CAGR from FY25 to FY28E, with margins expanding from 15.5% to 20%+ as scale improves and high-margin slope-stabilisation projects ramp up.

Waya believes SRM is a great company to invest in with experienced management, superior financials and strong growth outlook.