NDR INVIT Trust (NDRINVIT)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Revenue growth of 33.5% shows strong demand for the underlying services.
• Latest quarter net margin around 31% (₹33 Cr profit on ₹106 Cr sales) indicates decent operating efficiency.
• Dividend yield of 2.88% provides some income cushion.
• PEG of 1.08 suggests valuation is not extreme if earnings growth resumes.

Concerns

• Profit growth of -10.82% despite 33.5% sales growth suggests weak conversion to earnings.
• P/E of 36.28 is high for a business with declining profits.
• ROCE of 4.74% is low, implying poor return on capital.
• Piotroski F-Score of 4/9 and FairStock Score of 24/100 flag fundamental risk.
• Book value, debt/equity, and promoter holding are N/A, limiting risk assessment.

AI Analysis

Let me look at NDR INVIT Trust as an owner, not a trader. The first thing I see is a market price of ₹129, capitalizing the trust at ₹5,109 crore. Against that, the latest quarter's net profit is only ₹33 crore; annualize that, and you're paying about 36 times earnings. That is not a Benjamin Graham bargain. Sales are growing at 33.5%, which is pleasing, but profits have actually fallen 10.82%. This is contradictory: a business isn't worth a premium if revenue gains never reach the shareholder. The return on capital employed is 4.74%—well below what I require from a company with an economic moat. If the business could redeploy capital at high returns, the scorecard would show it; instead the Piotroski F-Score of 4/9 tells me the fundamentals are deteriorating. The FairStock Score of 24/100 reinforces my caution. On the positive side, the dividend yield of 2.88% offers some reward while waiting, and the latest quarter's net margin works out to about 31%, so the underlying operations are not collapsing. The PEG ratio of 1.08 suggests the market expects a recovery, but with profit growth negative, a PEG calculated on past earnings is meaningless to me. I also have no visibility on book value, debt/equity, or promoter holding. In any investment, I need to know who owns the business and how much leverage it carries; with those figures blank, I cannot calculate a margin of safety. This looks like a turnaround or special situation, not a compounder. If profit growth turns positive and ROCE improves, I might revisit it, but at the current price, the risk-reward is unfavourable for a value investor.

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