Energy InfrTrust (542543)

FairStock Score: 21/100 — RISKY

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests moderately sound financials and some improvement, not acute distress.
• Latest quarter sales of ₹923 Cr show meaningful operating scale in gas transmission/marketing.
• Declared dividend yield of 18.28% offers high current income attraction, if the distribution is sustainable.
• Current price of ₹90 is above the 52-week low of ₹75, so downside is not being repriced at the moment.

Concerns

• Sales growth is -7.63%, meaning the core business is shrinking rather than compounding.
• P/E of 62.57 is expensive for a business with ROCE of only 4.20% and net margin around 2.7%.
• Implied annual distribution (~₹1,136 Cr) is more than 10 times reported annualised net profit (~₹100 Cr), so the yield likely includes return of capital or debt-funded cash flows.
• FairStock Score is only 21/100 and key Graham data (book value, ROE, promoter holding) is missing, so margin of safety cannot be established.

AI Analysis

At ₹90, Energy InfrTrust has a market cap of ₹6,219 crore and a price-earnings multiple of 62.57. That is a demanding price for a business that earned only ₹25 crore on ₹923 crore of revenue in the latest quarter—a net margin of roughly 2.7%. Revenue is shrinking, with sales growth of -7.63%, so I do not see a growing franchise. The reported 1,000% profit growth is a low-base mirage; when profits have been near zero, the percentage can explode while the absolute rupee earning remains tiny. Graham taught me to focus on earnings power, not shock percentages. Return on capital employed is just 4.20%, far below what a transmitter of gas should earn if it had a strong moat. The 18.28% dividend yield is the obvious hook, but I must do the arithmetic: on a ₹6,219 crore market cap, that implies distributions of roughly ₹1,136 crore a year, whereas reported net profit annualises to only about ₹100 crore. That is a red flag. Either the yield is being paid out of debt, or it includes return of my own capital. I cannot count return of principal as yield. The Piotroski score of 6/9 is mildly encouraging, but the FairStock Score of 21/100 says 'risky,' and I agree. No book value, no return on equity, no promoter holding data—so many essential facts are missing that any serious Graham analysis is impossible. Gas transmission infrastructure can be a good business if tolls are contracted and cash flows are stable, but these numbers do not demonstrate that. At 62.57 times earnings, with shrinking revenue, thin margins, and an unsupported distribution, there is no margin of safety. This is a pass.

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