Conart Engineers is a construction firm that has spent over five decades quietly building factories, plants, and industrial sheds, almost entirely for private-sector clients in Gujarat’s manufacturing belts. Incorporated in December 1973 and operating since early 1974, it has remained a single-segment civil construction business listed on the Bombay Stock Exchange, with no subsidiaries, no debt beyond vehicle loans, and a consistent approach: act as a general contractor on at-risk contracts, hire site teams project by project, and stay close to the customer’s site. That recurring pattern - a lean, asset-light contractor that subcontracts work, buys steel from domestic suppliers, and earns revenue only when work is certified - explains everything that follows. # Business segments A single industrial construction engine, supplemented by a small rental-property portfolio and a handful of passive equity investments - all run from a Mumbai registered office and a Vadodara branch. ## 1. Industrial general contracting: building factories on an at-risk basis **The company earns its keep by winning private-sector construction contracts, executing the civil work with a mix of permanent staff and site-specific hires, and getting paid only when invoices are certified - a model where the contractor carries the risk of cost overruns.** - **Paid on certified work, not promises** - revenue is recognised using the percentage-of-completion method, meaning income is booked only to the extent work is surveyed and invoices are certified; uncertified receipts are estimated on technical grounds, and client-supplied materials are never counted as revenue. That is how the company protects itself from billing for work that hasn’t been formally accepted. - **Steel is the core raw material** - iron and steel, sourced from domestic suppliers across India, is the primary input, and its price swings with global commodity markets, so the company’s margins are exposed to worldwide pricing levels and freight costs it cannot control. - **Subcontracts the work, keeps the oversight** - the company hires site engineers, supervisors, and storekeepers for each project’s duration and subcontracts parts of the construction, with payments to subcontractors recognised as an expense. This keeps the permanent headcount low - just 60 employees as of March 2025, with roughly half the total workforce on contract at higher wages. - **Concentrated in Gujarat’s industrial corridors** - projects are mostly located in the “nearby area” around Vadodara, with past sites in Panchmahals, Vapi, Sanand, and Bikaner, serving sectors like heavy machinery, pharmaceuticals, chemicals, textiles, and education. The company completed seven industrial projects in FY25 and had another seven under development, all expected to finish within the following year. - **No R&D, but some digital tools** - the company does not conduct research or import technology, though it uses Virtual Design and Construction (VDC) for project planning and modelling, and has steadily upgraded its information technology systems to industry standards. ## 2. Investment properties and financial holdings: a small side portfolio **Alongside its construction work, the company holds flats for resale, collects rental income, and owns quoted and unquoted equity shares - none of which drives the main business.** - **Flats held as investment property** - the company carries flats for resale on its books, valued at roughly Rs 61 lakh as of FY23, and earns rental income from investment properties it holds. - **A handful of equity bets** - the investment portfolio includes quoted shares in five small companies - Mindvision Capital, Bubna Major Bio-tech, Nutech Organic, Pan Asia Industries, and Mcnally Sayaji Engineers - plus unquoted shares in The Saraswat Co-op. Bank. These are passive holdings, not operating businesses. # Group structure and partners **Conart Engineers stands alone - no parent, no subsidiaries, no joint ventures - but it has parked money in two real-estate partnerships over the years.** - **No group, no consolidation** - the company has no holding company, no subsidiaries, and no associate companies, so its financial statements reflect only its own operations. - **A 40% stake in a real-estate LLP** - Conart is a partner in Clue Realestate Marketing Enterprises LLP, holding a 40% share with an investment of Rs 1.2 lakh; when that LLP ceased business, its stock of flats was distributed to partners at fair value in their profit-sharing ratio. - **A newer LLP with a related-party loan** - in July 2023, the board authorised investing up to Rs 3.5 crore over time in another LLP, with Whole-time Director Jimish Sura appointed as a Designated Partner; as of March 2025, the company had a loan balance of Rs 1.4 crore to M/s. Edilife Lifespace LLP, a related party.