Madhav Infra (539894)
CyclicalScore breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹13.23 |
| Market Cap | ₹375.31 Cr |
| P/E Ratio | 8.32 |
| ROCE | 15.65% |
| ROE | 13.69% |
| Dividend Yield | 0% |
| Profit Growth | -255.76% |
| Debt/Equity | — |
| Sales Growth | -63.53% |
| 52-Week Range | ₹6.65 — ₹13.23 |
| Sector | Construction |
| Book Value | ₹8 |
Strengths
- Historical ROE of 13.69% and ROCE of 15.65% show past capital efficiency
- Trailing P/E of 8.32 is optically inexpensive
- Book value of ₹8 per share provides some asset backing
Concerns
- Sales growth collapsed by 63.53%
- Profit growth fell by 255.76% with latest quarterly net loss of ₹4 crore
- Piotroski F-Score of 3/9 indicates weak financial health
- No dividend, and debt/equity plus promoter holding are undisclosed
AI Analysis
Let me be honest: this is not the kind of picture that excites me. Madhav Infra trades at ₹13.23, so I am asked to pay ₹375 crore for the business. Book value is ₹8 per share, meaning the market price is 1.65 times book — no Ben Graham bargain. The trailing P/E of 8.32 looks cheap, but cheap can be a trap when earnings are collapsing. Sales are down 63.53%, and profit growth has fallen by 255.76%. The latest quarter tells the real story: ₹54 crore of sales and a net loss of ₹4 crore. A Piotroski F-score of 3 out of 9 reinforces my caution: this is a financially weak score, not a sign of improving fundamentals. ROE of 13.69% and ROCE of 15.65% are decent, but they are history. In civil construction, there is little moat — projects are bid, competition is intense, and cash flows can be lumpy. I cannot even assess the debt load because debt/equity is not provided, and there is no dividend to reward me while I wait. The stock is at its 52-week high, so Mr. Market is optimistic, but value investing is not about following price momentum. It is about buying below intrinsic value with a margin of safety. Given the severe revenue drop, current losses, weak F-score, and cyclical industry, I would not put my capital here today. I need evidence of a durable turnaround: a stabilised order book, positive quarterly profits, and a stronger balance sheet. Until then, this is a pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer