Active Infra. (ACTIVEINFR)

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

Key Financials

Strengths

• Piotroski F-Score 7/9 indicates solid profitability and low bankruptcy risk
• Promoter holding at 73.31% aligns interests with minority shareholders
• ROCE of 15.51% shows acceptable return on capital employed
• Top-line growth of 15.89% shows project traction
• Currently trading at 52-week low, possibly offering an entry if fundamentals hold

Concerns

• P/E of 25.99 is steep relative to 7.30% profit growth (PEG 2.24)
• Profit growth trailing sales growth suggests margin compression
• Missing key balance sheet data (Book Value, Debt/Equity, ROE) limits risk assessment
• Real estate/construction is highly cyclical; earnings can be lumpy

AI Analysis

At ₹170, Active Infra sports a market cap of ₹255 crore. With a P/E of 25.99, I’m paying 26 times earnings for a business whose profit rose only 7.30% last year. Sales grew 15.89%, but profit lagged – a classic sign of cost pressure or lower realisations. The latest quarter (₹39 crore sales, ₹6 crore net profit) suggests a margin of about 15%, but I need more quarters to see if that's sustainable. ROCE of 15.51% is decent, though not mouth-watering. The Piotroski F-Score of 7 out of 9 suggests the financial position is not deteriorating – that’s a positive. But where is the balance sheet? No book value, no debt/equity ratio, no ROE. For a real estate developer, leverage is make-or-break. I cannot underwrite the risk without those numbers. Promoter holding of 73.31% is reassuring – their interests are aligned with ours. The dividend yield of 0.59% is negligible; I’m not being paid to wait. Trading at the bottom of the 52-week range, the stock may look cheap, but a low price is not the same as value. The PEG of 2.24 tells me the growth is too expensive at this price. Real estate is cyclical, and profits swing wildly. If the cycle turns, earnings could fall sharply. I’d need a margin of safety – perhaps a P/E in the mid-teens, plus full disclosure of debt and project-wise cash flows – before considering a purchase. For now, disciplined patience is the right action.

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