BF Utilities (BFUTILITIE)

FairStock Score: 57/100 — STEADY

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

Key Financials

Strengths

• P/E of 12.47 with 21.74% profit growth gives a PEG of 0.74, so earnings growth is not fully priced.
• ROCE of 29.88% indicates strong operating efficiency in the road asset business.
• Latest quarter shows ₹235 Cr sales and ₹103 Cr net profit, implying healthy operating leverage.
• Promoter holding of 56.72% aligns majority shareholders with minority investors.
• Piotroski F-Score of 7/9 suggests reasonable financial discipline.

Concerns

• ROE of only 3.60% is weak; the high ROCE is not translating into strong returns for equity holders.
• Stock trades at 13.45 times book value while book value is just ₹43.96 per share, leaving little Graham-style margin of safety.
• No dividend means minority shareholders rely entirely on capital appreciation.
• Debt/Equity is not disclosed, and infrastructure assets are typically capital-intensive with hidden leverage risk.

AI Analysis

Let's think about this like a business owner, not a stock ticker chaser. BF Utilities is in a straightforward sector: toll and annuity road assets. The price of ₹591.30 gives me a market cap of ₹1,904 Cr and a P/E of 12.47. That is not an expensive multiple if the earnings growth is real—and the figures suggest it is: sales are up 11.98%, net profit up 21.74%, giving a PEG of 0.74. The latest quarter, with ₹235 Cr of sales and ₹103 Cr of net profit, shows operating leverage. A gatekeeper would also note ROCE of 29.88%, which tells me the underlying assets throw off good cash relative to capital employed. Promoters own 56.72%, so their wealth is tied with mine, and a Piotroski score of 7/9 is a decent health check. But I cannot ignore the uncomfortable parts. Book value is just ₹43.96 per share while the market pays ₹591.30—13.45 times book. That is a thin margin of safety by Graham's standards. ROE of 3.60% is poor; for a shareholder, the equity base earns very little. No dividend reinforces the idea that, as a minority shareholder, I am relying solely on capital appreciation. And with Debt/Equity not disclosed, I am flying partly blind in a capital-hungry infrastructure business. The 52-week range—₹368.70 to ₹898.70—tells me this is no bond-like annuity at this price; it can fall hard. In Buffett's language, this is a steady but leveraged toll taker. I like the growth and valuation on earnings, but I would only nibble at the current price, keeping a large margin of safety and watching the debt picture closely.

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