VVIP Infratech (544219)

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

Key Financials

Strengths

• Attractive valuation with P/E of 7.38 and PEG of 0.85
• Strong ROCE of 33.34% indicates efficient use of capital
• Piotroski F-Score of 7/9 suggests decent financial health
• Sales growth of 13.06% shows business expansion
• Latest quarter scale of ₹193 Cr sales and ₹25 Cr profit indicates meaningful earning power

Concerns

• Profit growth of 4.39% lags sales growth of 13.06%, hinting at margin pressure
• Zero dividend yield means no income support for shareholders
• Critical data missing: book value, debt/equity, promoter holding, and 52-week range
• Small market cap of ₹272 Cr carries higher volatility and governance risk

AI Analysis

At ₹109, VVIP Infratech has a market cap of ₹272 Cr and trades at 7.38 times earnings. That is the kind of multiple Graham would call interesting, but only if the earnings are real and sustainable. ROCE of 33.34% is impressive; it suggests the business generates strong returns on capital employed. The Piotroski F-Score of 7 out of 9 also hints at solid financial health, not a balance-sheet basket case. Sales grew 13.06%, which is respectable, and with a PEG of 0.85, the valuation appears to price in only modest growth. But I notice a red flag: profit growth is just 4.39% while sales are growing 13%. That tells me margins are under pressure, and in a competitive waste-management business, pricing power may be limited. The latest quarter shows sales of ₹193 Cr and net profit of ₹25 Cr, so there is current earning power, but I need to see whether that can be sustained and translated into annual earnings close to the level implied by the P/E. There is no dividend, so my return depends entirely on capital appreciation and reinvested growth. I am also uncomfortable with the missing data: no book value, no debt-to-equity, no promoter holding. In a small-cap at ₹272 Cr market cap, governance and balance-sheet transparency matter enormously. Without those numbers, I cannot apply Graham's margin of safety with confidence. This looks like a slow grower trading at a reasonable price, but it is not a wonderful business until I see profitability catch up with revenue, and until the company opens its books more fully. If it keeps compounding at high ROCE and improves margins, it could be interesting; today, I'd watch, not jump.

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