Goel Construction Company Ltd | SME IPO

Understanding Shariah Compliance in IPOs and Stocks:

Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Goel Construction Company Ltd, ensuring that your investment choices are not only profitable but also ethical.

Analyzing The Company

Company Name: Goel Construction Company Ltd
Industry: Civil Construction
Listing At: BSE SME

Overview:

Goel Construction Company Limited (GCCL), a civil construction company based in Rajasthan, was founded in 1997. It specializes in large-scale capital expenditure (CAPEX) projects, with its core expertise in building structures for the cement, power, dairy, and other industrial sectors.

Company Overview & Expertise 👷‍♂️

GCCL’s work is concentrated on civil and structural projects for industrial facilities and infrastructure. The company has a reputation for reliability, timely delivery, and a strong commitment to safety and quality. Its services are critical for industrial operations, as it builds essential structures like clinkerization lines and silos for cement plants, cooling towers and chimneys for power plants, and processing facilities for dairy plants. GCCL also works on projects for the steel, pharmaceutical, and institutional sectors, including schools, hospitals, and residential campuses.

The company’s mission is to deliver exceptional engineering services on time and within budget, with a focus on environmental responsibility and community development. Its vision is to become a leader in the Indian construction industry by delivering world-class infrastructure projects.

Operational Strength & Reach 🗺️

As of June 30, 2025, GCCL has completed over 100 projects across 12 states in India. The company has executed 19 projects with a total contract value of approximately ₹1,13,499.37 lakhs since its inception.

Currently, GCCL has 14 ongoing projects in eight states, supported by an order book of ₹59,660.28 lakhs, which provides strong revenue visibility. The company has a large workforce of 1,191 permanent employees and maintains its own fleet of 202 pieces of equipment and machinery to ensure efficient and timely project execution while controlling costs. This fleet includes specialized equipment like boom placers, transit mixers, and tower cranes.

Competitive Advantages 📈

GCCL attributes its success to several key competitive strengths:

Strong project management and execution capabilities, allowing it to handle complex, large-scale projects.
Long-standing customer relationships, which lead to repeat business.
A robust order book that ensures a steady pipeline of future revenue.
A consistent track record of financial performance.
The efficient management of its own equipment fleet, which reduces dependence on external rentals and optimizes project timelines and costs.

Shariah Status

The IPO is Shariah Compliant, please see below image.

IPO Timeline (Tentative Schedule)

IPO Open Date: Monday, September 2, 2025
IPO Close Date: Wednesday, September 4, 2025
Tentative Allotment: Thursday, September 8, 2025
Initiation of Refunds: Monday, September 9, 2025
Credit of Shares to Demat: Monday, September 9, 2025
Tentative Listing Date: Tuesday, September 10, 2025
Cut-off time for UPI mandate confirmation: 5 PM on September 4, 2025

Lot Size

Individual investors (Retail)
- Minimum: 2 Lots, 800 Shares, ₹2,09,600
- Maximum: 2 Lots, 800 Shares, ₹2,09,600
S-HNI
- Minimum: 3 Lots, 1,200 Shares, ₹3,14,400
- Maximum: 9 Lots, 3,600 Shares, ₹9,43,200
B-HNI
- Minimum: 10 Lots, 4,000 Shares, ₹10,48,000
Employee
- Minimum: 2 Lots, 800 Shares, ₹2,09,600
- Maximum: 4 Lots, 1,600 Shares, ₹4,19,200

Financials

Financial Performance of Goel Construction Co. Ltd. (Amounts in ₹ Crore)

The company has shown consistent growth in key financial metrics from FY2023 to FY2025.

Total Income: The company’s total income has grown steadily, from ₹272.94 crore in FY2023, to ₹388.79 crore in FY2024, and reaching ₹594.34 crore in FY2025.
Profit After Tax (PAT): PAT has also seen a robust increase, rising from ₹14.30 crore in FY2023, to ₹22.64 crore in FY2024, and climbing to ₹38.32 crore in FY2025.
EBITDA: The company’s EBITDA has followed a similar upward trend, increasing from ₹23.41 crore in FY2023 to ₹36.29 crore in FY2024, and further to ₹57.91 crore in FY2025.
Assets: The total assets have grown progressively, from ₹205.04 crore in FY2023, to ₹219.51 crore in FY2024, and reaching ₹265.09 crore in FY2025.
Net Worth: The net worth has demonstrated strong growth, increasing from ₹70.62 crore in FY2023, to ₹93.27 crore in FY2024, and standing at ₹131.59 crore in FY2025.
Reserves and Surplus: Reserves and surplus have also consistently increased, from ₹69.59 crore in FY2023, to ₹92.23 crore in FY2024, and reaching ₹120.22 crore in FY2025.
Total Borrowing: Total borrowing has remained relatively stable over the three years, at ₹28.51 crore in FY2023, ₹30.51 crore in FY2024, and ₹28.71 crore in FY2025.

KPI

Here are the Key Performance Indicators (KPIs) and their values:

ROCE (Return on Capital Employed): 33.69%
Debt/Equity: 0.22
RoNW (Return on Net Worth): 34.09%
PAT Margin (Profit After Tax Margin): 6.50%
EBITDA Margin: 9.81%
Price to Book Value: 2.26

SEBI Disclaimer

Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.

Goel Construction Company Ltd | SME IPO | Shariah Status | Overview

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