K&R Rail Engine. (514360)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Looking at K&R Rail Engine through Graham's lens, I see a civil construction business priced at ₹475.40 with a ₹1,812 Cr market cap, but only ₹28.23 book value. That is a P/B of 16.84, so I am paying nearly seventeen times accounting net worth. Yet ROE is -7.65%, the latest quarter produced a ₹1 Cr net loss on ₹12 Cr sales, and sales growth has collapsed -92.24% while profit growth is -113.34%. P/E is 0.00 because there are no positive earnings. I do give credit that ROCE is 8.29%, not negative, and book value is positive at ₹28.23. The five-year revenue CAGR of 2.77% is also positive, but it is overwhelmed by the recent contraction. Piotroski F-Score of 3/9 and FairStock score 0/100 RISKY tell me financial strength and momentum are weak. Debt/equity and promoter holding are not available, so I cannot properly assess leverage or owner alignment. The dividend yield is 0.00%, so there is no cash return while waiting. The 52-week range of ₹19.92 to ₹475.40 is striking: the stock trades at the top after a huge run, but the fundamentals are deteriorating. That smells like speculation, not a margin of safety. A Buffett-style investor wants a durable moat, consistent earnings, and a sensible price. Here, the only possible case is a turnaround: if sales stabilize, losses reverse, and ROE becomes positive. Until then, valuation is unsupported and risk is high. I would pass, not chase. Discipline means avoiding a business that fails both earnings and valuation tests, even if the market is excited.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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