Hazoor Multi Projects Ltd — ZetaVantage Knowledge Base

Business Model & Sector Dynamics

Hazoor Multi Projects Ltd (HMPL) is primarily an EPC (Engineering, Procurement, and Construction) contracting company focused on infrastructure development, particularly road construction, and also has a presence in real estate. Its revenue streams are diversified across road construction contracts, toll collection and maintenance, and real estate projects (residential and commercial). The company operates mainly within India. HMPL acts as a sub-contractor for government authorities like the Maharashtra State Road Development Corporation Ltd. and National Highways Authority of India (NHAI). Recently, the company has also expanded into the renewable energy sector through a wholly-owned subsidiary.

Macro Sensitivity Map:

Supply-Side & Cost Sensitivities (COGS): HMPL's COGS are significantly influenced by the prices of construction materials, primarily Steel (TMT bars) and Cement. Fluctuations in commodity prices directly impact project profitability, with limited immediate pass-through mechanisms for sub-contracted road projects.
Demand-Side Sensitivities (VOLUME): VOLUME for its infrastructure division is driven by government spending on infrastructure, particularly NHAI projects, and tender awards. GDP Growth and increased disposable incomes generally boost demand for its real estate projects, influencing sales VOLUME. Interest Rates directly impact housing affordability and developers' financing costs; lower rates generally stimulate demand and ease development financing.
Currency & Financial Sensitivities: As a domestic player, direct currency exposure is minimal, but indirect impacts can arise from imported raw material price volatility. High Interest Rates increase the cost of debt financing for HMPL, impacting its profitability.
Geopolitical & Regulatory Sensitivities: Government policies like the Pradhan Mantri Awas Yojana (PMAY) scheme can influence real estate demand. Regulations like RERA impact real estate project execution. Awarding of infrastructure projects by bodies like NHAI is a key regulatory and demand driver.

Historical Verification:

In Q2 FY2025-2026, Hazoor Multi Projects reported a revenue fall of -33.45% year-on-year to ₹102.30 Cr and a net loss of ₹9.93 Cr, indicating sensitivity to revenue slowdowns and cost pressures. This reflects the project-dependent nature of its revenue and potential impacts from market demand or project delays.

Key Sector Drivers

The Indian real estate and infrastructure sector is driven by:

Government Policy & Spending: Large-scale government initiatives like increased Infrastructure Spends and housing schemes (PMAY) are critical demand catalysts.
Interest Rate Environment: The RBI's monetary policy directly impacts home loan affordability for buyers and financing costs for developers, influencing VOLUME.
Economic Growth (GDP): Robust GDP Growth boosts disposable incomes, urbanisation, and corporate demand for commercial spaces, driving sector GROWTH.
Regulatory Landscape: Evolving regulations such as RERA and land acquisition policies shape the operational environment for developers.

Competitive Position & Moat

Hazoor Multi Projects competes in a fragmented Indian real estate and infrastructure development sector. Key direct competitors include IRB Infrastructure Developers Ltd, Larsen & Toubro Ltd (L&T) (in the broader EPC space), and Kalpataru Projects International Ltd. HMPL is a smaller player compared to L&T but operates in niche infrastructure segments and specific real estate markets. Recent quarterly results show a decline in revenue and a net loss, indicating potential challenges in execution or market positioning compared to peers.

HMPL's competitive moat is currently narrow. Its core strength lies in its experience in road construction EPC projects, particularly as a sub-contractor, and securing toll collection contracts which provide recurring revenue. However, its PRICING power is limited in sub-contracting. The company is attempting to diversify into renewable energy and has a visible land bank, but its scale in these areas is nascent. Competitive threats include larger, well-capitalized players, a slowdown in government project awards, and intense competition in real estate. The company's promoter holding is low at 16.9%, and its debtor days have increased significantly to 111 days, suggesting potential challenges in working capital management and collection, which weakens its moat.

Management & Governance

Hazoor Multi Projects' management has guided for expansion into new segments like renewable energy. However, recent financial performance shows a decline in revenue and net losses, raising questions about the execution of its strategy and the credibility of past guidance. The company has made recent leadership changes, including the appointment of Ms. Shruti Jigar Shah as an Additional Executive Director.

Governance concerns include a low promoter holding (16.9%) and a decrease in promoter stake over the last quarter. The company also has significant contingent liabilities of ₹366 Cr. A rise in debtor days from 62.2 to 111 days suggests potential issues with accounts receivable management. While the company reports implementing a robust risk management framework, the financial results and working capital metrics warrant close scrutiny. An older auditor's certificate from 2017 indicated compliance with corporate governance norms, but recent performance and financial metrics are more pertinent.

Financial Health Snapshot

Margins: EBITDA margins have shown volatility, decreasing to 14.40% in Q1 FY2025 from 21.86% in the prior year's corresponding quarter, indicating rising operational costs. Recent quarterly results show net losses.
Leverage (DEBT): The Debt-to-Equity ratio stands at 0.79 (as of March 2025), indicating moderate leverage, but a total debt of ₹3.8B against ₹4.8B equity. Interest coverage ratio was 2.8x (as of Sep 2025), which has reduced from a healthier level.
Cash Flow: The company has demonstrated negative cash flow from operations.
Working Capital (INVENTORY): Debtor days have significantly increased to 111 days, impacting working capital efficiency. Inventory days are also high at 134 days.
Capex (CAPEX): The company has reported CAPEX expansion plans and has been involved in significant capital base expansion through equity allotment and warrant conversion. It plans to invest ₹2,500 Crore in a 500 MW solar plant.

News Impact Factors

NHAI Project Awards: Directly impacts VOLUME and revenue visibility for the infrastructure segment.
Steel & Cement Prices: Fluctuations in Steel and Cement prices directly affect COGS and project margins.
RBI Repo Rate: Changes influence home loan affordability for real estate VOLUME and HMPL's financing costs (DEBT serviceability).
Government Infrastructure Spending & Policy: Budget allocations and policy directives for roads and housing drive sector demand and project pipeline.
Real Estate Demand & Affordability: Indicators like housing sales and property price trends affect real estate segment VOLUME and GROWTH.
Working Capital Management: News related to improved collections or further deterioration in debtor days will impact INVENTORY health and cash flow.

Investment Thesis

Strong — all assumptions holding Maintaining — minor concerns, thesis intact Weak — key assumptions under pressure Broken — critical assumption invalidated

Status STRONG

Conviction 72 / 100

Time Horizon 12-18 months

Over a 12-18 month horizon, Hazoor Multi Projects Ltd will achieve revenue growth and improved profitability driven by successful execution of its renewable energy diversification and stabilization in core EPC and real estate segments.

Conviction History

Assumptions

Holding — assumption intact At Risk — evidence weakening Broken — assumption invalidated Critical — if broken, thesis fails

#1 CRITICAL HOLDING 86

HMPL will commence construction and recognize initial revenue from its 500 MW solar plant project, contributing to overall revenue growth exceeding 15% by FY2026-27.

GROWTH 60% VOLUME 40%

#2 HOLDING 70

Gross margins will improve by at least 200 bps by Q4 FY2025-26, driven by better material cost management (steel/cement) and selective bidding for road EPC projects.

COGS 50% PRICING 50%

#3 CRITICAL HOLDING 70

Interest coverage ratio will improve to above 3.0x by FY2026-27 through operational improvements and managed debt levels.

DEBT 100%

#4 HOLDING 70

Debtor days will be reduced to below 90 days by Q4 FY2025-26 through improved collection efforts and working capital management.

INVENTORY 100%

#5 HOLDING 70

HMPL will confirm deployment of at least ₹500 Crore of CAPEX towards the 500 MW solar project by end of FY2025-26, indicating progress in strategic investments.

CAPEX 100%

#6 CRITICAL HOLDING 62

No material adverse regulatory actions or governance failures (e.g., major fraud allegations, unexpected significant fines) occur that would threaten the company's operational continuity.

GOING_CONCERN 100%

Recent Developments

Structural Tactical

VOLUME TACTICAL Feb 21, 2026

Hazoor Multi Projects Secures ₹182.95 Crore Work Order from Tata Steel for Residential Construction - scanx.trade

Hazoor Multi Projects secured a ₹182.95 crore work order from Tata Steel for residential construction projects.

VOLUME STRUCTURAL Feb 19, 2026

Hazoor Multi Projects had acquired 51% shareholding in Vyom Hydrocarbon Pvt Ltd - Dalal Street Investment Journal

Lost majority control of subsidiary Vyom Hydrocarbon and step-down subsidiary Quippo following a debt-to-equity conversion triggered by a claimed event of default.

VOLUME TACTICAL Feb 18, 2026

Hazoor Multi Projects bags Rs 44-cr order from NHAI - Capital Market

Secured a Letter of Award from the National Highway Authority of India (NHAI) for a project valued at ₹44 crore.

VOLUME TACTICAL Feb 14, 2026

Hazoor Multi Projects Ltd. Reports Robust Revenue Growth and Strategic Expansion in Q3 FY26 - Ahmedabad Mirror

Hazoor Multi Projects reported 33.84% YoY standalone revenue growth in Q3 FY26 and secured ₹277.40 crore in new NHAI contracts.

GROWTH TACTICAL Feb 12, 2026

Hazoor Multi Projects received a Letter of Award (LoA) from NHAI for a new infrastructure project, providing critical backlog visibility after a 33% revenue decline.

VOLUME TACTICAL Feb 09, 2026

Major growth update for This company as it wins LoA from National Highway Authority of India; Check share gains and other details - MSN

Hazoor Multi Projects received a Letter of Award (LoA) from the National Highway Authority of India (NHAI) for a new infrastructure project, boosting backlog visibility.

Investor Documents

Annual Report (FY25) Quarterly Results (Q3FY26)