Konstelec Engg. (KONSTELEC)

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

Key Financials

Strengths

• Quarterly revenue of ₹105 Cr against market cap of ₹58 Cr shows meaningful sales scale
• Sales growth of 24.14% indicates demand and order momentum
• Promoter holding of 66.81% aligns promoter interests with minority shareholders
• Current price is 41% below the 52-week high of ₹75.65, cooling some speculative premium

Concerns

• Profit growth is -58.49%; latest quarter net margin is only 1.9% (₹2 Cr profit on ₹105 Cr sales)
• P/E of 22.33 on declining earnings offers no obvious margin of safety
• Piotroski F-Score of 4/9 suggests weak financial health
• No dividend; key metrics like Book Value, ROE, and Debt/Equity are unavailable, and ROCE is only 9.24%

AI Analysis

At ₹44.45, Konstelec Engineering is a small-cap civil construction company with a market cap of just ₹58 crore. My first test is always: does this business generate dependable earnings? The latest quarter sales of ₹105 crore produced only ₹2 crore net profit—a 1.9% margin. A construction company earning thin margins is common, but when profit growth is -58.49%, the earnings power is clearly deteriorating. The trailing P/E of 22.33 is not cheap for a business with collapsing profits; the PEG of 0.93 appears to assume the 24.14% sales growth will translate into earnings, but the profit figure contradicts that. A 9.24% ROCE is modest and tells me there is no durable competitive advantage; civil construction is a competitive, cyclical business without pricing power. Promoter holding of 66.81% is a positive sign, yet I must also weigh the Piotroski F-Score of 4/9, which signals weak financial health. There is no dividend, no book value or debt-equity data provided, so I cannot compute a Graham-style margin of safety. I need margin stability, lower debt, and evidence that profits can recover before I consider this a value candidate. Sales growth is useful, but without profit, it is just effort. I will keep it on my watchlist and wait. Price is down from ₹75.65, but a falling price is not automatically cheap.

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