Neo Infracon (514332)

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

Key Financials

Strengths

• Positive profit growth of 7.14% despite falling sales
• Piotroski F-Score of 6/9 indicates reasonable financial health
• ROCE of 9.69% is better than ROE, suggesting some operating efficiency
• Book value of ₹12.32 provides a rough asset backing, with P/B at 1.38

Concerns

• Sales declined 9.16% and latest quarter net profit is ₹0 crore
• ROE of 4.66% is very low for a real estate developer
• No dividend paid and promoter holding not disclosed
• Current price ₹17.02 is below the stated 52-week range, signaling distress or data uncertainty

AI Analysis

At ₹17.02, Neo Infracon is a ₹10 crore microcap. That alone makes me cautious. The business earns only 4.66% on equity; I can get a similar return without taking real estate construction risk. Book value is ₹12.32, so I am paying 1.38 times book. But book value only matters if the assets can be converted into cash, and this company is not showing that. Sales fell 9.16%, and the latest quarter shows ₹2 crore of sales and zero net profit. That is not a compounding franchise. ROCE is 9.69%, which is higher than ROE, but still not enough to signal a durable moat. There is no dividend, promoter holding is not disclosed, and the stock is trading below the stated 52-week range. Those are red flags. Piotroski F-score of 6/9 suggests the balance sheet is not collapsing, and profit grew 7.14% despite lower sales. But that profit growth may come from cost cuts or one-off items, not from underlying demand. With a PEG of 2.28, the market is paying a premium for a tiny growth rate. This looks like a cyclical real estate penny stock, not a wonderful business at a fair price. Graham would want a margin of safety; here the earnings power is thin, returns on capital are weak, and transparency is poor. I would not put my money into a business I cannot understand or trust at this valuation. I would rather wait for clearer evidence of sales growth, better capital allocation, or a much cheaper price.

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