AVP Infracon (AVPINFRA)

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

Key Financials

Strengths

• P/E of 5.66 is low despite 101.39% sales growth and 81.58% profit growth
• ROCE of 26.24% shows efficient capital deployment
• Piotroski F-Score of 7/9 indicates decent financial health
• Promoter holding of 62.41% aligns management with public shareholders
• Latest quarter sales of ₹193 Cr and net profit of ₹23 Cr demonstrate strong momentum

Concerns

• Zero dividend yield offers no income cushion in a cyclical sector
• Missing data on debt/equity, book value, and ROE limits confidence in the balance sheet
• Civil construction is highly competitive and vulnerable to project delays, input-cost inflation, and cyclical downturns
• Price has dropped from ₹191 to ₹102, reflecting possible earnings skepticism or sector de-rating

AI Analysis

At ₹102, AVP Infracon trades at a P/E of 5.66 and a market cap of ₹246 Cr. Buffett would say price is what you pay, value is what you get. A construction company growing sales 101% and profits 82% while earning 26.24% ROCE looks interesting, but I must ask whether this is a wonderful business or a cyclical enjoying a good year. Civil construction is capital-intensive, competitive, and vulnerable to input costs and project delays. No dividend, no book value or leverage disclosure, and the stock falling from ₹191 to ₹102 in 52 weeks make me cautious. The latest quarter's ₹193 Cr sales and ₹23 Cr net profit show strong execution, but I cannot pay based on extrapolated growth. A PEG of 0.06 screams cheap only if growth is durable; in infrastructure, order book flow and cash conversion matter more than reported profit. Promoter holding at 62.41% is reassuring. The Piotroski score of 7 suggests decent financial health, but I would need debt levels and free cash flow before treating it as a bet. If the company can sustain ROCE and fund working capital without excessive leverage, the low multiple provides margin of safety. If the growth is from one-off contracts, today's earnings power is overstated. As Graham taught, use the figures but demand proof through the cycle. My decision would hinge on balance-sheet strength and visibility of future orders, not just today's impressive P&L.

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