Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
R.J. Shah & Co. Ltd. operates as an engineering and construction firm. The company is involved in developing mid-sized hydroelectric projects, either through comprehensive Engineering, Procurement, and Construction (EPC) agreements or by handling the civil engineering aspects combined with hydro-mechanical installations. A significant portion of its expertise is dedicated to subterranean construction, including tunnels, vast underground chambers (caverns), shafts, and inclined passages. These specialized services are provided to a diverse clientele, such as governmental and semi-governmental entities, electricity boards, railway authorities, atomic power facilities, and irrigation departments, which constitute the primary source of the firm's revenue. Established on December 16, 1957, the company's main office is located in Mumbai, India.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD