Cemindia Project (CEMPRO)

FairStock Score: 40/100 — MIXED

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

Key Financials

Strengths

• ROE of 28.71% and ROCE of 27.64% show outstanding capital efficiency.
• Conservative balance sheet with debt/equity of only 0.48; Piotroski F-Score of 7/9 indicates good financial health.
• Promoter holding of 67.46% aligns management interests with minority shareholders.
• Latest quarter delivered sales of ₹2,315 Cr and net profit of ₹111 Cr, reflecting operational scale.

Concerns

• Sales growth is just 1.98%, so the 27.40% profit growth relies on margin expansion that may not be durable.
• P/E of 21.09 and P/B of 7.07 price in high expectations; book value only ₹93.86.
• Stock is ~60% below its 52-week high of ₹1,649.20, suggesting market skepticism.
• Dividend yield of 0.35% offers negligible income support; FairStock Score 45/100 is mixed.

AI Analysis

Cemindia Project is not the kind of business I would usually fall in love with. It is civil construction, a field where competitive advantages are hard to sustain. But the numbers demand attention. The company earns an ROE of 28.71% and ROCE of 27.64%, and it does so with modest leverage — debt/equity is just 0.48. A Piotroski score of 7 out of 9 supports the quality of these earnings. Promoter holding at 67.46% also tells me that those running the business have skin in the game. Still, I have to ask: where is the growth? Sales rose only 1.98%, yet profit jumped 27.40%. That gap can only come from margin expansion. The latest quarter shows sales of ₹2,315 crore and net profit of ₹111 crore, about a 4.8% net margin. In a cyclical industry, that margin can compress as quickly as it appears. The market seems to be asking the same question — the stock is at ₹663.95, more than 50% below its 52-week high of ₹1,649.20. At a P/E of 21.09 and a P/B of 7.07, with book value of just ₹93.86, I am paying a rich multiple for a business with a stagnating top line. The dividend yield of 0.35% is negligible, and the FairStock Score of 45/100 reflects that mixed picture. Even the PEG ratio of 1.00 only looks reasonable if the 27.40% profit growth is sustainable, which is uncertain. This is not a bargain in the Graham tradition. It may be a decent company, but at this price, the margin of safety is thin. I would wait for either revenue acceleration or a cheaper entry point.

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