B.R.Goyal Infra. (544335)

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

Key Financials

Strengths

• Low P/E of 6.37 combined with 163.98% profit growth offers a compelling value-growth setup.
• Latest quarter sales of ₹342 Cr and net profit of ₹16 Cr show strong operational traction.
• ROCE of 17.89% indicates decent returns on capital employed for a construction company.
• Piotroski F-Score of 7/9 suggests reasonably sound financial health and earnings quality.
• PEG of 0.06 implies the market is heavily underpricing near-term growth.

Concerns

• No book value, debt-to-equity, promoter holding, or 52-week range data makes a full balance-sheet assessment impossible.
• Zero dividend yield means the investment case relies entirely on future growth and re-rating.
• Civil construction is cyclical and competitive; the latest net margin of roughly 4.7% leaves a thin buffer.
• Profit growth of 163.98% is unlikely to be sustainable, especially for a small-cap with a ₹224 Cr market cap.

AI Analysis

Looking at B.R.Goyal Infra, I am initially struck by the combination of a P/E of 6.37 and profit growth of 163.98%. That is exactly the kind of disconnect Graham taught us to investigate. The latest quarter shows sales of ₹342 Cr and net profit of ₹16 Cr, a net margin around 4.7%, which is thin but not unusual for civil construction. ROCE at 17.89% suggests the company is earning a decent return on capital employed, and a Piotroski F-Score of 7 out of 9 signals that the reported earnings quality and working-capital position are better than most. The PEG ratio of 0.06 flags extraordinary growth relative to valuation; however, I must be careful. Growth at 60.73% sales and 163.98% profit cannot be extrapolated indefinitely. Civil construction is a cyclical, competitive industry with pricing power limited by tenders and government spending. Low dividend yield of zero means my return depends entirely on continued capital appreciation and reinvestment. Also, the profile gives me no book value, no debt-to-equity, no promoter holding, and no 52-week range; as Buffett, I refuse to rely on numbers I cannot see. Without those, I cannot compute an intrinsic value with confidence. The market cap of ₹224 Cr is small, so liquidity and volatility are risks. Still, this looks like a fast grower trading at a bargain price if the growth is real and financed prudently. I would want to study the balance sheet, cash conversion, order book, and management's capital allocation before committing. The price gives me a margin of safety; the missing data does not. If the company can sustain even a fraction of this growth while maintaining returns on capital, this could be a wonderful business at a fair price.

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