Likhitha Infra. (LIKHITHA)

FairStock Score: 25/100 — RISKY

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

Key Financials

Strengths

• Zero debt/equity of 0.00 provides balance-sheet safety and flexibility.
• ROCE of 27.61% suggests historically efficient capital deployment; ROE of 15.50% is reasonable.
• Promoter holding of 70.25% aligns majority interests with minority shareholders.
• P/E of 11.26 looks modest if the business can stabilize, and book value stands at ₹85.35 per share.

Concerns

• Sales fell 11.79% and profit fell 45.43%, showing a sharp business slowdown.
• Latest quarter net profit of only ₹9 Cr on ₹111 Cr sales indicates weak momentum.
• Piotroski F-Score of 3/9 points to deteriorating fundamental strength.
• Zero dividend yield and a P/B of 2.84 provide no income cushion and limited margin of safety by Graham standards.

AI Analysis

I cannot pretend to like what I see at Likhitha Infra. As an investor, I first look at financial health, and here the balance sheet is clean: debt/equity is 0.00, which gives the company staying power. ROCE of 27.61% is eye-catching, and ROE of 15.50% is respectable. Promoters own 70.25%, so interests are aligned. But the business itself is clearly in a downturn: sales fell 11.79% and profits collapsed 45.43%. The latest quarter shows only ₹9 Cr net profit on ₹111 Cr sales. A Piotroski F-Score of 3 out of 9 confirms poor operational and financial strength right now. The stock is not obviously cheap either. At ₹242.50, the P/E is 11.26, but that is based on trailing earnings that are falling; book value is ₹85.35, so you are paying 2.84 times book. Graham taught me to demand a margin of safety, and a zero-debt balance sheet helps, but a 26/100 fair-stock score and no dividend yield mean I am not being paid to wait. This looks like a cyclical civil-construction business caught in a slowdown, not a durable franchise with pricing power. If the company can stabilize execution and keep costs down, the strong ROCE and debt-free capital could support recovery. But value in this type of situation is a trap if earnings keep falling. I would need several quarters of improving sales and profit, and better fundamental signals from the F-Score, before I would call this an attractive investment. Until then, I will sit on my hands.

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