Brahmaputra Inf. (535693)

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

Key Financials

Strengths

• Exceptionally low P/E of 7.30 and P/B of 1.36 against book value of ₹65.31
• High ROE of 37.23% and healthy latest quarter net margin of roughly 16%
• Sales growth of 185.30% and profit growth of 1000% show striking earnings acceleration
• Piotroski F-Score of 7/9 points to sound recent fundamentals

Concerns

• Civil construction is cyclical and highly competitive with no apparent economic moat
• ROCE of 10.78% versus ROE of 37.23% may indicate high leverage; debt-to-equity is not disclosed
• Stock trades far below its 52-week high of ₹178.90 despite booming earnings, signaling market skepticism
• No dividend and missing promoter/FairStock data reduce confidence for a long-term investor

AI Analysis

Let's look at Brahmaputra Inf. with Mr. Graham's eyes. At ₹89, market cap ₹259 Cr, P/E 7.3 and P/B 1.36 versus book value ₹65.31. The headline numbers are intoxicating: sales grew 185%, profits up 1000%, latest quarter sales ₹93 Cr and net profit ₹15 Cr implying healthy margins. ROE 37.23% is superb. Piotroski F-Score 7/9 suggests solid recent fundamentals. But I have to pause. Civil construction is a tough, cyclical, low-moat business. A 185% sales spike may be project-driven, not durable. The stock trades near the bottom of its 52-week range of ₹80.01 to ₹178.90; the market is telling us last year's euphoria faded. ROCE is only 10.78% despite ROE 37.23%, indicating we are probably looking at high financial leverage; D/E is not disclosed, and that is a red flag. No dividend, promoter holding not available, and insufficient data for a FairStock score. The PEG of 0.01 assumes this growth continues forever, but in construction, growth can reverse violently. Graham would ask: do we have a margin of safety? At 7.3 times earnings perhaps yes, if earnings are maintainable. But if the current quarterly profit of ₹15 Cr is peak cycle, then ₹259 Cr market cap may not be as cheap as it looks. I need to see order books, working capital, debt, and cash flows before putting money at work. This is a possible fast grower, but a speculative one. I will keep it on the watch list, not treat it as a Buffett-style compounding machine until it proves its moat and balance-sheet strength over a full cycle.

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