RDB Infrastruc. (533285)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹153.1 |
| Market Cap | ₹265.69 Cr |
| P/E Ratio | 100.05 |
| ROCE | 6.75% |
| ROE | 23.35% |
| Dividend Yield | 0% |
| Profit Growth | 40.46% |
| Debt/Equity | — |
| Sales Growth | -18.4% |
| 52-Week Range | ₹25.53 — ₹153.1 |
| Sector | Realty |
| Book Value | ₹1.95 |
Strengths
- Latest quarter profitable with ₹20 Cr sales and ₹2 Cr net profit, implying a 10% net margin.
- ROE of 23.35% indicates strong returns on existing equity, albeit likely leveraged.
- Piotroski F-Score of 6/9 suggests moderate overall financial health.
- Profit growth of 40.46% shows some positive earnings momentum, though sales are declining.
Concerns
- Valuation is extreme: P/E of 100.05 and P/B of 78.51 offer no margin of safety.
- Sales declined 18.40% while profits grew, raising questions about earnings quality.
- ROCE of only 6.75% versus ROE of 23.35% implies heavy leverage; Debt/Equity is not disclosed.
- No dividend, undisclosed promoter holding, and a book value of just ₹1.95 per share.
AI Analysis
Looking at RDB Infrastruc., I see a company that tests my patience. At ₹153.10, I'm asked to pay 100 times earnings and 78.5 times book value for a real estate firm whose sales shrank 18.4% last year. Book value stands at a mere ₹1.95 per share – that's the cushion I get. The latest quarter shows ₹20 Cr sales and ₹2 Cr net profit, a 10% margin, but annualised that's still nowhere near enough to justify a ₹266 Cr market cap. The 23.35% ROE looks dazzling, but when ROCE is only 6.75%, that gap tells me the return is built on borrowed money, not operating excellence. Debt/Equity is unavailable, and that itself is a red flag. Profit growth of 40.46% alongside falling sales smells of cost-cutting or one-time gains, not a durable business. The Piotroski score of 6/9 offers some comfort, but a score of 6 is far from a clean bill of health. I prefer buying a rupee of assets for 70 paise, not ₹78.5. With no dividend and promoter holding undisclosed, I have little evidence that minority shareholders are being treated fairly. This is a cyclical, capital-hungry sector with no moat I can identify. The stock has run from ₹25.53 to ₹153.10 – Mr. Market is euphoric. In my experience, when sales decline and profits rise, it's usually a temporary mirage. The PEG of 2.47 says the growth is more than priced in. I'll watch this from the sidelines. A great business at a fair price is beautiful; a mediocre business at a nosebleed price is a trap.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer