SBL Infratech (543366)

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

Key Financials

Strengths

• Piotroski F-Score of 6/9 suggests some improvement in financial health and no immediate red flags in profitability or leverage metrics
• PEG of 0.08 highlights that earnings have grown faster than the current valuation, if that growth is sustainable
• Quarterly sales of ₹5 Crore against a market cap of ₹3 Crore indicates a low price-to-sales run-rate if the quarterly pace is maintained
• Profit has grown 200%, showing that even in a declining revenue environment, the company is able to generate some profitability

Concerns

• Sales growth is deeply negative at -34.15%, indicating a shrinking scale of operations in an inherently cyclical and project-driven industry
• Latest quarter net profit is effectively ₹0 Crore, so the quality and sustainability of earnings remain uncertain
• ROCE of only 4.62% is poor and signals weak return on capital employed, a red flag for a capital-intensive business
• Critical data like book value, debt/equity, and promoter holding are unavailable, making the stock speculative rather than analysable

AI Analysis

Looking at SBL Infratech, I am reminded of the difference between price and value. At ₹37, the market capitalisation is only ₹3 Crore. That is tiny. The P/E of 15.18 implies annual profit of roughly ₹0.20 Crore, but the latest quarter shows net profit of ₹0 Crore. A goose that lays an egg only once a year is not the same as a steady business. Sales are down 34.15%, which in a capital-intensive field like residential and commercial projects tells me demand is shrinking. Profit growth of 200% sounds wonderful, but it comes from a very low base, and the PEG of 0.08 is a statistical illusion if earnings cannot be repeated. ROCE of 4.62% is far below what I would require; I could earn more in a fixed deposit with far less risk. There is no dividend, no book value disclosed, and no promoter holding data. That is not a lack of opportunity; it is a lack of visibility. The Piotroski F-Score of 6/9 is respectable, but even that cannot tell me how the company will fare if projects continue to dry up. At this size, one missed project or one delayed payment can destroy the economics. I cannot call this a great business. It may be a cheap asset or a cyclical turnaround, but without a balance sheet, a promoter commitment, and a margin of safety in numbers I can verify, I would rather wait. In investing, the best thing to do when you don't understand is nothing.

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