AGI Infra (AGIIL)
Fast GrowerFairStock Score: 37/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹301.9 |
| Market Cap | ₹3,773.67 Cr |
| P/E Ratio | 38.9 |
| ROCE | 22.03% |
| ROE | 32.61% |
| Dividend Yield | 0.03% |
| Profit Growth | 37.36% |
| Debt/Equity | 0.38 |
| Sales Growth | 6.28% |
| Promoter Holding | 72.94% |
| 52-Week Range | ₹224.7 — ₹424 |
| Sector | Realty |
| Book Value | ₹37.09 |
Strengths
- Strong capital efficiency: ROE of 32.61% and ROCE of 22.03%.
- Conservative leverage: Debt/Equity of only 0.42.
- High promoter holding of 72.94%, aligning owner interests.
- Earnings momentum: 36.92% profit growth and a Piotroski score of 6/9.
Concerns
- Valuation is stretched: P/E of 44.52 and P/B of 17.03 vs book value of ₹21.53.
- Top-line weakness: sales declined 4.28%, so profit growth may be margin/timing-driven.
- Dividend yield of 0.03% is negligible; returns depend entirely on capital appreciation.
- FairStock Score of 37/100 (MIXED) and a 29.5% net margin in the latest quarter raise sustainability questions.
AI Analysis
Let me start with what I like. AGI Infra earns a 32.61% return on equity and 22.03% on capital employed; those are excellent numbers, and with debt/equity of only 0.42, the balance sheet is not overly leveraged. Promoter holding of 72.94% also means owners are in the same boat. A Piotroski score of 6/9 suggests the financials are reasonably sound. Yet the price gives me no comfort. At ₹366.55, the market is asking 44.52 times earnings and 17.03 times book value, while the book value is just ₹21.53. For a real estate developer, that is an extremely rich price. Sales fell 4.28%, which is a red flag. Profit grew 36.92%, but in this business, profits can come from project timing, accounting recognition, or margin changes—not necessarily repeatable quality. The latest quarter shows ₹26 Cr profit on ₹88 Cr revenue, a 29.5% margin; that is impressive but may not be sustainable. The dividend yield of 0.03% means I am not being paid to wait. The PEG ratio of 1.21 only looks reasonable if the 36.92% profit growth continues; a cyclically high margin and high P/E are dangerous when the top line is shrinking. The stock has already moved from ₹217.98 to ₹366.55, close to the ₹424.00 high, so the market has high expectations. FairStock's 37/100 'mixed' score matches my caution. In Graham's language, I want a margin of safety. I don't see it here. This may be a good business, but at this price it is not a good investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer