Nxt-Infra Trust (NXT-INFRA)

FairStock Score: 5/100 — RISKY

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

Key Financials

Strengths

• Latest quarter remains profitable at ₹13 Cr net profit on ₹76 Cr sales, so the entity is not in a cash-burn stage.
• Dividend yield of 12.86% is high, offering potential income if the distribution is sustainable.
• Headline P/E of 14.59 appears reasonable relative to past reported earnings, not a high-multiple story.
• Existing revenue base of ₹76 Cr in the latest quarter shows the business is still operational.

Concerns

• Profit growth of -71.95% signals severe earnings erosion.
• Sales growth of -12.71% means the business is contracting.
• Piotroski F-Score of 2/9 and FairStock Score of 5/100 both flag poor financial health.
• ROCE at 0.00% and no book value disclosure prevent any meaningful return-on-capital or asset-value check.

AI Analysis

In my investment reading, an equity is a claim on a business, and a business is only as good as its long-term earning power. Here I see a business with declining sales and collapsing profits. Sales are down 12.71%, and profits have fallen 71.95%. The latest quarter shows a net profit of only ₹13 Cr on sales of ₹76 Cr. If I annualise that quarterly profit, I get roughly ₹52 Cr—against a market cap of ₹2,851 Cr. That is far richer than the headline P/E of 14.59 suggests, because that headline earnings figure is likely already stale. The 12.86% dividend yield is eye-catching, but dividend payments come from cash and earnings. When profit growth is minus 71.95%, I question whether that yield is sustainable. Graham taught me to look for financial strength, not hope. The Piotroski F-Score of 2/9 is a warning sign. The FairStock Score of 5/100 reinforces the risk. ROCE is 0.00%, and book value is not disclosed, so I cannot calculate a margin of safety or assess return on tangible capital. There is no moat visible in these numbers: a business with a moat does not usually show sales shrinking 12.71% and profits shrinking nearly 72% at the same time. Perhaps this is a cyclical low or a temporary project-related downturn. If so, I need proof—stabilised revenue, improving margins, and a consistent recovery in quarterly profit. Until then, this is not a business I can value with confidence. In Buffett's language, it is better to wait for the sure thing than to reach for a high yield while the foundation is cracking. I would keep this on my watch list and require several quarters of improvement before considering an investment.

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