J Kumar Infra (JKIL)
CyclicalFairStock Score: 27/100 — RISKY
Score breakdown: P/E: 3/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹497.65 |
| Market Cap | ₹3,765.49 Cr |
| P/E Ratio | 9.88 |
| ROCE | 19.98% |
| ROE | 14.07% |
| Dividend Yield | 0.8% |
| Profit Growth | -4.77% |
| Debt/Equity | 0.18 |
| Sales Growth | -89.88% |
| Promoter Holding | 46.65% |
| 52-Week Range | ₹425 — ₹672 |
| Sector | Construction |
| Book Value | ₹447.92 |
Strengths
- Low leverage with debt/equity of only 0.25 provides balance sheet stability.
- ROCE of 19.98% and ROE of 14.07% indicate acceptable capital efficiency.
- P/B of 1.40 against book value of ₹372.77 is not expensive on an asset basis.
- Promoter holding of 46.65% aligns management with minority shareholders.
Concerns
- Sales declined 12.18% and profit declined 6.59%, showing a shrinking business.
- Piotroski F-Score of 3/9 signals weak financial health and poor earnings quality.
- FairStock Score of 24/100 flags the stock as risky.
- Dividend yield of only 0.76% offers little income support while waiting for recovery.
AI Analysis
Whenever I see a cheap P/E, my first thought is not 'bargain' but 'what am I missing?' J Kumar Infra trades at 9.96 times earnings and 1.4 times book, with book value of ₹372.77 per share. That looks modest against the price of ₹521.15. But the business is shrinking: sales declined 12.18% and profit declined 6.59%. A construction company with falling revenue is a cyclical, not a compounding machine. The balance sheet is conservative—debt/equity is only 0.25, and ROCE of 19.98% and ROE of 14.07% are respectable. Still, the Piotroski F-score of 3/9 is a glaring warning. It suggests deteriorating fundamentals and weak earnings quality, which is exactly what I check before trusting a low multiple. The dividend yield is only 0.76%, so I am not being paid to wait. Promoter holding at 46.65% is okay, but not enough to offset execution and cyclical risks. In Graham's language, price is important but safety is paramount. At 24/100 FairStock Score, the risk is high. I would not anchor on the 52-week range—₹425 to ₹685—because a falling business can break through both ends. This looks like a potential cyclical value trap: cheap on trailing earnings, but earnings are heading down. I need evidence of a turnaround—stable quarterly sales, better cash conversion, and a visible path to growth—before deploying capital. A low P/E is no substitute for certainty. Wait for the downtrend to break; then reassess.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer