A B Infrabuild (ABINFRA)
CyclicalFairStock Score: 17/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹10.81 |
| Market Cap | ₹690.53 Cr |
| P/E Ratio | 36.03 |
| ROCE | 18.43% |
| ROE | 13.83% |
| Dividend Yield | 0.05% |
| Profit Growth | -35.6% |
| Debt/Equity | 0.68 |
| Sales Growth | 17% |
| Promoter Holding | 30.95% |
| 52-Week Range | ₹8.83 — ₹23.56 |
| Sector | Construction |
| Book Value | ₹2.55 |
Strengths
- Healthy reported profitability with ROE of 23.48% and ROCE of 18.43%
- Moderate leverage with Debt/Equity of 0.58
- Positive bottom-line growth of 13.33% and latest quarter net profit of ₹6 Cr
- Piotroski F-Score of 6/9 indicates reasonable financial health
- Operating profitably despite flat sales suggests some cost discipline
Concerns
- Extremely expensive at P/E of 56.65 and P/B of 11.68 with book value of just ₹1.33
- Top-line sales declined 0.84%, showing no revenue growth to support the valuation
- Low promoter holding of 30.95% and negligible dividend yield of 0.03%
- PEG of 4.25 and FairStock Score of 7/100 flag significant valuation risk
AI Analysis
At ₹15.53, I see a business that fails Graham's first test: a margin of safety. A B Infrabuild may be profitable, with ROE of 23.48% and ROCE of 18.43%, but civil construction is a highly competitive, low-moat industry. The market cap of ₹1,152 crore sits against a book value of just ₹1.33 per share, so I am paying 11.68 times tangible book for a contractor. The P/E of 56.65 is absurd for a company whose sales declined 0.84%. Profit growth of 13.33% is pleasant, but without revenue growth it is likely unsustainable; the latest quarter's ₹74 crore sales and ₹6 crore net profit still annualise to roughly ₹24 crore, leaving the stock priced at nearly 50 times even that optimistic run-rate. Debt/equity of 0.58 is acceptable, and the Piotroski score of 6/9 shows no immediate distress, but the dividend yield of 0.03% means I get no payment for waiting. Promoter holding of only 30.95% is another concern; I want owners heavily invested alongside me. At this price, with PEG of 4.25, all good news is already priced in, and any slowdown in orders or margins will hurt. The 52-week range of ₹8.83 to ₹23.56 tells me this is a volatile cyclical, not a stable compounder. FairStock's 7/100 risk score matches my own caution. This is not a business I can confidently value; it is speculation, not investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer