Capital Infra (CAPINVIT)

FairStock Score: 3/100 — RISKY

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

Key Financials

Strengths

• Latest quarter shows positive net profit of ₹11 Cr on sales of ₹178 Cr, indicating the company is still operationally alive.
• The company has an ongoing revenue stream of ₹178 Cr in the quarter, so it is no shell entity.
• Declared dividend yield of 13.11% suggests management's willingness to return cash to shareholders, though sustainability is highly questionable.

Concerns

• P/E of 0.00 indicates zero or negative trailing earnings; the single profitable quarter may be an anomaly.
• Piotroski F-Score of 2/9 points to severe financial stress and weak operating efficiency.
• ROCE of 0.00% means the company is generating no return on capital employed, a major red flag for value investors.
• The 13.11% dividend yield appears unsupported by earnings — annualised profit of ~₹44 Cr cannot cover a dividend needing over ₹300 Cr.

AI Analysis

When I look at Capital Infra, the first thing I see is a business I cannot understand clearly. A P/E of 0.00 means there is no meaningful earnings yield, and the Piotroski F-Score of 2 out of 9 tells me the financial health is poor. The 13.11% dividend yield is eye-catching, but it is a siren call. With a market cap of ₹2,513 Cr and latest quarter sales of ₹178 Cr, annualised profit would be roughly ₹44 Cr, implying a P/E of about 57. That is not cheap. The dividend alone, at over ₹300 Cr annually, far exceeds any plausible earnings level. That cash must be coming from somewhere else — reserves, asset sales, or debt — and that makes the risk even higher. Sales growth and profit growth are both 0.00%, so there is no forward momentum. Civil construction is an inherently cyclical industry, and without a moat — no pricing power, no brand, no switching costs — I cannot identify a durable competitive advantage. ROCE is 0.00%, and book value is unavailable, so I cannot measure return on capital. Graham would say the margin of safety is missing. This is not a wonderful business at a fair price; it is a questionable business at any price. The FairStock Score of 2/100 reinforces my suspicion. I would put this in the 'too hard' pile unless the company can demonstrate consistent earnings, positive free cash flow, and a credible explanation for its dividend. For now, I watch from the sidelines.

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