Tale of two companies in the same sector:
While SG Mart's revenue growth in Q3: 15%,
Buildpro's revenue growth in Q3: 28%.
With 96 cr Op. Profit, SG Mart has a Mkt cap of 7586 cr.
With 128 cr Op. Profit, Buildpro has a Mkt cap of 2,758 Cr.
Here is the catch: While SG Mart is guiding for 400 cr EBITDA in FY27, that's more than double. Another thing is that they have underdelivered on what they have promised in the past.
Whereas Buildpro is guiding for 20% volume growth in FY27 and 15% in FY28, with an EBITDA margin of 4% in the medium to long term. Here, management has always been conservative and likes to overdeliver and underpromise.