Kridhan Infra (KRIDHANINF)

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

Key Financials

Strengths

• Promoter holding is 47.15%, giving promoters a meaningful stake and alignment with minority shareholders.
• Market cap is only ₹32 Cr, so a moderate contract win, asset sale, or restructuring could materially change per-share value.
• No dividend payout means management is not under pressure to distribute cash that may be needed for operations or restructuring.
• Listing on NSE/BSE provides price discovery and a transparent market for the stock.

Concerns

• Book value is negative at ₹-32.64 Cr, meaning liabilities exceed assets and shareholders have no net asset backing.
• Latest quarter sales are ₹0 Cr and ROCE is 0.00%, indicating the operating business is effectively idle.
• Piotroski F-Score of 2/9, ROE of -2.26%, and profit growth of -82.14% point to severe financial distress.
• P/E of 38.02 is misleading when earnings are near zero; dividend yield is 0%.

AI Analysis

Even at ₹2.51 and a market cap of just ₹32 Cr, this is not a cheap share; it is a damaged business. Graham taught us to start with the balance sheet, and here the book value is negative ₹32.64 Cr. That means liabilities exceed assets; the equity cushion is gone. With latest quarterly sales of ₹0 Cr and net profit near ₹0 Cr, there is no operating engine earning any return. The P/E of 38.02 is meaningless when profitability is collapsing—profit growth is -82.14% and ROE is -2.26%. ROCE is zero, so capital is not being deployed productively. A Piotroski F-score of 2/9 confirms very poor financial health. The only positive is a 47.15% promoter holding, suggesting existing owners have some skin in the game. But that is not enough. Zero sales growth means the civil construction business is not generating revenue; I would need to see new contracts, cost discipline, and an equity infusion just to make the balance sheet solvent. This is not a moat business—it is a potential turnaround with substantial execution and solvency risk. Price near the lower end of its 52-week range cannot compensate for negative book value. In Buffett's language, this is not a wonderful business bought at a fair price; it is a troubled business that must be fixed first. For a retail investor, waiting for evidence of genuine recovery—debt resolution, positive operating cash flow, and a real order book—is far safer than hoping for a small-cap revival. I would not invest unless the company first shows it can survive without dilution and earn more than its cost of capital.

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