G R Infraproject (GRINFRA)

FairStock Score: 53/100 — MIXED

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

Key Financials

Strengths

• Low valuation: P/E of 8.58 and P/B of 1.13, close to book value of ₹770.29.
• High promoter holding at 74.69%, aligning management with minority shareholders.
• Strong sales growth of 36.22%, indicating robust project execution or order inflows.
• Reasonable leverage with Debt/Equity at 0.63 and ROE of 12.72%.
• Provides a dividend yield of 1.31%, a modest buffer for shareholders.

Concerns

• Profit growth declined 4.78% despite 36.22% sales growth, pointing to margin pressure.
• Piotroski F-Score of 4/9 signals weak financial health and operational efficiency.
• Cyclical nature of civil construction with volatile earnings and order book risks.
• FairStock Score of 55/100 (STEADY) suggests average prospects, no clear catalyst.

AI Analysis

When I look at G R Infraproject, I see a business trading at a price that would have made my mentor Graham smile, but I must dig deeper. The stock quotes at ₹873.75, a P/E of just 8.58 and a P/B of 1.13 against a book value of ₹770.29. That is not a bargainbuster, but it is reasonable if the company can sustain its returns. The return on equity sits at 12.72% and ROCE at 13.95%, decent for a capital-hungry construction business. Debt-to-equity of 0.63 is manageable, and the promoter holding of 74.69% tells me the people running the shop have skin in the game. I also like the dividend yield of 1.31% – a small reward while waiting for value to be recognized. However, the numbers also whisper caution. Sales grew 36.22%, yet profits fell 4.78%. That divergence smells of margin compression and rising costs, common in civil construction. The Piotroski F-Score of 4/9 is a red flag; it suggests poor operating efficiency and a weakening financial position. But the PEG ratio of 0.24 is seductively low, though with negative profit growth, that metric is meaningless without clarity. This is a cyclical business, not a stalwart. The 52-week range of ₹785 to ₹1345 shows volatility, and the current price is closer to the low, which could be a value trap or an opportunity. I would not label this a fast grower because profits are declining. I call it a cyclical. The market is pricing in pessimism; the low P/E reflects that. I need to watch whether the sales growth finally transforms into profits. If margins recover, this could be a satisfying value play. Until then, I remain cautious and patient.

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