GPT Infraproject (GPTINFRA)
CyclicalFairStock Score: 13/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1
Key Financials
| Current Price | ₹115.8 |
| Market Cap | ₹1,463.3 Cr |
| P/E Ratio | 14.87 |
| ROCE | 21.87% |
| ROE | 18.32% |
| Dividend Yield | 3.45% |
| Profit Growth | -1.1% |
| Debt/Equity | 0.5 |
| Sales Growth | -8.62% |
| Promoter Holding | 69.37% |
| 52-Week Range | ₹96.22 — ₹150 |
| Sector | Construction |
| Book Value | ₹47.68 |
Strengths
- Promoter holding is high at 69.37%, aligning management with minority shareholders.
- Debt/equity is low at 0.33, giving the balance sheet a cushion.
- ROE of 18.32% and ROCE of 21.87% indicate decent capital efficiency.
- Latest quarter delivered ₹284 Cr sales and ₹20 Cr net profit, showing stable execution.
- Dividend yield of 2.42% provides some shareholder return.
Concerns
- Sales growth of just 2.10% and profit decline of -5.93% indicate stagnant operations.
- Piotroski F-score of 4/9 suggests deteriorating financial health.
- PEG of 8.32 and P/E of 17.48 are expensive given nearly flat growth.
- Civil construction is low-moat and cyclical; P/B of 2.95 leaves no margin of safety.
AI Analysis
Benjamin Graham taught me to weigh facts, not hopes. Looking at GPT Infraproject, I see a civil construction company priced at ₹116.97, market capitalisation of ₹1,567 crore. Construction is a tough business: low barriers to entry, intense competition, and dependence on government spending cycles. A promoter holding of 69.37% is encouraging, and the debt-to-equity of 0.33 suggests the balance sheet is not stretched. Book value stands at ₹39.63, but the share trades at 2.95 times that book, and 17.48 times earnings. For a business whose sales grew just 2.10% and profits fell 5.93%, that is not a bargain. The ROE of 18.32% and ROCE of 21.87% look respectable, but past returns can evaporate quickly in this industry. The latest quarter—sales of ₹284 crore and net profit of ₹20 crore—shows a decent margin, yet the Piotroski F-score of only 4 out of 9 reminds me that quality is deteriorating. A F-score below 7 is a yellow flag. The PEG ratio of 8.32 tells me the market is paying a heavy price for very little growth. The dividend yield of 2.42% offers modest comfort, but I do not buy cyclical contractors for yield. If the business cannot grow earnings, the stock price will eventually correct to its fundamentals. With a FairStock Score of 15/100, the odds are not in my favour. I need a margin of safety; I do not see one here. This looks more like a value trap than a Graham special. I will leave it alone and wait for a better price or a demonstrated recovery in profits and order book.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer