Giriraj Civil (GIRIRAJ)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• Strong revenue and profit growth: sales up 86.72% and profit up 127.15%.
• Latest quarter sales of ₹134 Cr shows meaningful scale for a small-cap contractor.
• ROCE of 20.32% suggests decent capital efficiency.
• Piotroski F-score of 7/9 points to generally improving financial health.
• Promoter holding of 54.96% aligns promoters with minority shareholders.

Concerns

• Thin net margin of roughly 5% in the latest quarter (₹7 Cr profit on ₹134 Cr sales).
• Critical data missing: book value, ROE, and debt-to-equity, so balance-sheet risk cannot be fully assessed.
• Zero dividend yield means investors depend entirely on reinvestment and growth.
• 52-week range of ₹52.30 to ₹378.00 shows extreme volatility; current price is far below the high, suggesting cyclical risk.

AI Analysis

At ₹189, Giriraj Civil is a small-cap civil contractor with a market cap of ₹321 crore and a trailing P/E near 15. The sales growth of 86.72% and profit growth of 127.15% are certainly impressive, but Graham warned me to measure a growth rate against both the base and the durability of the business. The latest quarter shows sales of ₹134 crore and net profit of ₹7 crore, which means a net margin of just over 5%. That is thin. Civil construction is a competitive, tendered industry where pricing power is scarce and moats are shallow. A good year can be followed by a bad year, so I cannot simply project 127% profit growth into the future. The ROCE of 20.32% is a genuine positive, and the Piotroski F-score of 7/9 suggests the company is financially sound right now. The promoter holding of 54.96% is another encouraging sign, and the 52-week range of ₹52.30 to ₹378.00 reminds me that the stock has been through violent swings. At ₹189, it sits far below the high, but I must ask: is the market giving me a bargain or reflecting lower future prospects? I do not know because key data is missing. There is no book value, ROE, or debt-to-equity disclosed here. Without those, I cannot assess the true balance-sheet risk. The dividend yield is zero, so the only return is through earnings compounding and eventual valuation. The PEG of 0.14 looks cheap only if the growth rate is real and sustainable. In this commodity-like business, I am not confident. I would rather pass on an exciting number than risk capital in a business I cannot fully understand. This is a possible cyclical bargain, but not a certain one.

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