Established in **1991**, **Purohit Construction Limited** is a Gujarat-based civil construction and infrastructure development firm with over **three decades** of engineering expertise. The company operates as a lean entity, executing projects through a combination of in-house technical management and strategic subcontracting. While its core identity is rooted in civil engineering, the company has historically diversified its interests into **Real Estate Development**, **Media & Entertainment**, **Automotive Retail**, and **Agrochemicals**. The company is publicly traded on **BSE Limited** (Stock Code: **538993**) and the **Ahmedabad Stock Exchange**. --- ### **Core Business Verticals & Brand Portfolio** #### **1. Real Estate & Infrastructure (The "Sopan" Brand)** The company develops residential and commercial projects primarily in the Gujarat region. Its portfolio is unified under the **"Sopan"** brand, which emphasizes transparency and structural integrity. Key projects include: * **Sopan Elegance** & **Sopan Elevation** * **Sopan Lifestyle** & **Sopan Heights** * **Sopan Palladium** & **Devarsh Sopan** #### **2. Media, Entertainment & Digital Integration** The company is expanding its media footprint through **"The Dhruv Patel Show"**, a talk show hosted by veteran actor/director **Dhruv Patel** (known for works in **Hollywood** and **Bollywood**, including films like *Avira* and *Faraak*). * **Digital Strategy:** The company utilizes a **Digital Audience Stack** via **Vserv AudiencePro** on **MX Player** to enhance data-driven reach and advertiser targeting. #### **3. Automotive Retail & Consumer Distribution** Purohit Construction facilitates the distribution of premium brands across several high-growth consumer segments: | Segment | Key Brands / Products | Specifications & Features | | :--- | :--- | :--- | | **Two-Wheelers** | **Yamaha YZF-R15 V4, MT-15 V2, FZ-X** | Performance bikes (**149cc to 155cc**) | | **Scooters** | **Yamaha Aerox 155, Fascino 125 FI** | **Hybrid** technology; **125cc to 155cc** | | **Luxury SUVs** | **Range Rover SV, Autobiography** | **SV Bespoke** commissioning; **Pivi Pro1** infotainment | | **EV/Hybrid** | **Range Rover Plug-in Electric Hybrid** | **452 kW** V8 variant with **Mild Hybrid** tech | | **Agrochemicals** | **PYNA (Umbrella Brand), Maxxcott** | Selective herbicides; targets **45-50%** yield boost | | **Personal Care** | **Hair & Care Triple Blend** | Enriched with **Aloe Vera, Olive Oil & Green Tea** | --- ### **Strategic Roadmap & Macro Alignment** The company aligns its growth strategy with India’s national industrial objectives, specifically the **'Make in India'** and **India Semiconductor Mission** initiatives. * **Semiconductor & ESDM Ecosystem:** The company is positioning itself to capitalize on the **PLI Scheme 2.0** for IT Hardware (budgetary outlay of **₹17,000 crore**). It aims to move into the **micro-components** value chain, leveraging India's position as the world's **second-largest mobile phone manufacturer**. * **Infrastructure Digitalization:** Adoption of SaaS-based tools like **LivSYT** for large-scale project management. * **Regional Development:** Active participation in the **"Viksit Bharat 2047"** vision. This includes supporting the **Smart City Project** in Dahod, involving an upgrade of **11 major roads** with a budget of **₹53 crore**. * **Brand Ambassadorships:** Strategic associations include **Suniel Shetty** (Brand Ambassador for **Toyam Sports Limited** for **3 years**) and **Virat Kohli** (Brand Ambassador for **Duroflex**). --- ### **Financial Performance & Operational Scale** The company is currently navigating a period of significant financial contraction and operational challenges. #### **Comparative Financial Summary** | Metric | FY 2023-24 | FY 2022-23 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Income** | **Rs. 0.05 Lakh** | **Rs. 1.2 Crore** | **-99.96%** | | **Loss Before Tax (LBT)** | **Rs. 43.98 Lakhs** | **Rs. 76.06 Lakhs** | **-42.18%** | | **Loss After Tax (PAT)** | **Rs. 46.24 Lakhs** | **Rs. 75.77 Lakhs** | **-38.97%** | #### **Operational Metrics** * **Revenue Recognition:** Uses the **'Percentage of Completion'** method for ongoing contracts and work bills for completed projects. * **Human Capital:** Maintains a lean team of **6 permanent employees**. * **Liquidity Support:** Operations are currently supported by loans from Directors. In FY 2023-24, the company accepted **Rs. 25,81,874** and repaid **Rs. 19,35,874**, leaving a closing balance of **Rs. 6,46,000**. * **Dividends:** No dividends were recommended for the recent fiscal year due to losses. --- ### **Governance & Leadership Stability** The company maintains a stable leadership structure with long-term appointments to ensure continuity. * **Mr. Narendra Purohit (Chairman & MD):** Oversees strategic direction; received **Nil remuneration** in FY 2023-24 to support company liquidity. * **Mr. Saumil N. Purohit (MD & CFO):** Re-appointed as **Joint Managing Director** for a **3-year term** effective **January 1, 2026**. He brings over **15 years** of experience. * **Ms. Dhwani Jaspalsinh Solanki:** Appointed as **Independent Director** for a **5-year term** (June 2025 – June 2030). --- ### **Risk Factors & Regulatory Environment** #### **1. Legal & Tax Litigation** * **GST Demand:** In **May 2025**, the company received a demand order of **₹4.16 crore** (FY 2017-18) regarding disallowed input tax credits. The company has paid **₹20.83 lakhs** under protest and is currently appealing. * **Naaptol Dispute:** The company is in arbitration over outstanding receivables of **₹113.12 Lacs** and inventory of **₹105.85 Lacs**. A prudent provision of **10% per annum** (totaling **32.5%** as of 2023) has been applied. #### **2. Regulatory Compliance** The company operates under a complex framework including: * **RERA** (Real Estate Regulation and Development Act) * **Town Planning and Urban Development Act, 1976** * **The Building and Other Construction Workers Act, 1996** * **New Labour Codes:** Monitoring the transition to the four new codes (Wages, Social Security, Industrial Relations, and Occupational Safety). #### **3. Market & Operational Risks** * **Development Inertia:** Delays in environmental clearances and financial constraints within the developer ecosystem. * **Cost Volatility:** Rising prices of construction commodities and the increasing cost of skilled manpower. * **Going Concern:** Auditors noted **material uncertainty** regarding the company's ability to continue as a going concern in 2024, given the erosion of revenue and continued losses.