Akash InfraProj. (AKASH)

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

Key Financials

Strengths

• Trading at a 44% discount to stated book value: P/B of 0.56 versus book value of ₹50.05.
• High promoter holding of 74.59% aligns owner-manager interests with minorities.
• Latest quarter turned profitable with ₹1 Cr net profit on ₹11 Cr sales.
• Piotroski F-Score of 6/9 suggests the balance sheet is not deteriorating badly.
• PEG ratio of 0.06 reflects the market has not yet priced in a sustained earnings recovery.

Concerns

• Sales declined 21.56% year-on-year, so the topline is still contracting.
• ROCE of only 3.32% shows poor capital productivity.
• Debt/Equity of 1.03 is meaningful leverage, and the company pays no dividend.
• Trailing P/E of 55.75 is expensive unless the 1000% profit growth proves durable.

AI Analysis

At ₹27.97, Akash InfraProj presents the kind of bargain that Graham would examine: the market cap is ₹44 Cr, while book value stands at ₹50.05 per share, so I am paying just 56 paise for every rupee of stated equity. That is a margin of safety on the balance sheet. Yet I must not let a low P/B hypnotise me. This is a small civil construction company with debt/equity of 1.03 and ROCE of only 3.32%. Last year sales fell 21.56%, so the business is not humming. The reported profit growth of 1000% is from a tiny base; one year earlier profits were small. The latest quarter shows ₹11 Cr of sales and ₹1 Cr of net profit, which is encouraging, but one quarter does not make a trend. On trailing earnings, the P/E of 55.75 is rich, so the market already expects this improvement to continue. The PEG of 0.06 is only meaningful if that growth is durable, and with declining sales, I am not ready to believe that. There is no dividend, so my return must come from better operations or from the market recognising hidden assets. Positively, promoter holding is 74.59%, which aligns them with minority shareholders to some extent, and the Piotroski F-Score of 6/9 suggests financial health is not broken. Still, I would want to see a stable order book, positive cash flow, and reducing debt. Without those, this could remain a value trap. I view Akash InfraProj as a small-cap turnaround/asset play, suitable only for a small position after deeper diligence.

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