GHV Infra (505504)

FairStock Score: 23/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue grew 646.10% and profit grew 391.55%, showing strong recent execution momentum.
• Latest quarter is profitable: ₹138 Cr sales and ₹15 Cr net profit, implying a roughly 10.9% net margin.
• Piotroski F-Score of 6/9 indicates some fundamental improvement in financial health over the past year.
• PEG of 0.17 suggests that if the high growth persists, the headline P/E may not reflect the forward earnings power.

Concerns

• P/E of 86.34 with ROE of -6150.56% points to an expensive valuation that is not backed by a healthy equity base.
• Current price of ₹18.84 is far below the stated 52-week range of ₹204.80-₹368.50, raising serious data or corporate-action concerns.
• ROCE of 0.00% and dividend yield of 0.00% mean there is no measurable return on capital or income to stockholders.
• FairStock Score of 23/100 is 'RISKY', while book value, debt/equity, and promoter holding are not disclosed.

AI Analysis

Let me begin with the most obvious red flag: the share trades at ₹18.84, yet its 52-week range is ₹204.80-₹368.50. Either the data is wrong, or there has been a corporate surgery that makes past comparisons meaningless. Graham said: 'The essence of investment management is the management of risks, not the management of returns.' I cannot manage a risk I cannot measure. This is a civil construction company, an industry where I must be careful. Contractors take on large projects, but they lack pricing power, face cyclical demand, and often carry hidden liabilities. The reported sales growth of 646% and profit growth of 391% might look exciting, but they say nothing about sustainable earning power. The P/E of 86.34 means the market is capitalizing earnings at a very high multiple, and with a quarterly profit of only ₹15 Cr on sales of ₹138 Cr, the margin is thin. The ROE of -6150.56% is not a typo to dismiss; it is a warning that shareholder equity is distressed or negative. A business that earns nothing on capital cannot create value for long. ROCE of 0.00% confirms there is no return on capital being generated at the operating level. There is no dividend, so the only way to make money is speculative price appreciation. The FairStock score of 23/100 matches my own scepticism. Growth investors may look at the PEG of 0.17 and see cheapness, but a PEG based on 646% growth in a low-quality construction company is a trap. Graham would demand a margin of safety: a real asset backing, a reasonable P/E, and a balance sheet I can trust. None of those exist here. This is not an investment; it is a speculation. I would rather watch from the sidelines than lose money trying to be smart.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer