Ramky Infra (RAMKY)
CyclicalFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹390.05 |
| Market Cap | ₹2,699.06 Cr |
| P/E Ratio | 9.96 |
| ROCE | 16.85% |
| ROE | 13.16% |
| Dividend Yield | 0% |
| Profit Growth | -47.2% |
| Debt/Equity | 0.27 |
| Sales Growth | 24.3% |
| Promoter Holding | 69.81% |
| 52-Week Range | ₹327.5 — ₹705 |
| Sector | Construction |
| Book Value | ₹312.69 |
Strengths
- Conservative balance sheet: debt/equity of just 0.28 and Piotroski F-Score of 7/9.
- Decent profitability: ROE of 13.16% and ROCE of 16.85%.
- Reasonable earnings valuation: P/E of 14.14 and PEG of 0.62 given 39.27% profit growth.
- Strong promoter alignment with 69.81% holding.
Concerns
- Revenue growth is only 6.50% while profit growth is 39.27%, suggesting margin-driven, possibly short-lived gains.
- Latest quarter net margin of ~16% (₹78 Cr profit on ₹489 Cr sales) is unusually high for civil construction and may not be sustainable.
- No dividend yield, so returns depend entirely on reinvestment and future share price.
- P/B of 2.46 and FairStock Score of 48/100 mean it is not cheap on an asset-value basis.
AI Analysis
Ramky Infra has a balance sheet a prudent man can respect: debt-equity of just 0.28, a Piotroski score of 7/9, and ROCE of 16.85%. Promoter holding of 69.81% also means my interests are broadly aligned with those who run the firm. At ₹513.55, the market cap is ₹3,161 crore, or 14.14 times earnings. With profit growth of 39.27%, the PEG ratio of 0.62 looks attractive. But a Graham buyer must separate price from quality. This is a civil construction company, and construction is a cyclical, competitive, low-moat business. Sales grew only 6.50% while profits grew 39.27%. That divergence is not a sign of a durable franchise; it is usually margin manipulation by project phases or cost tailwinds. The latest quarter shows ₹489 crore of revenue and ₹78 crore of net profit—a 16% net margin. In civil contracting, that is a suspiciously rich margin and unlikely to persist. Book value is ₹208.53, so I am paying 2.46 times net assets. There is no dividend, so my entire return depends on management reinvesting at high rates. FairStock Score of 48/100 is mixed, and I trust that language. This stock might be a well-run business at a reasonable price, but it is not a wonderful business at a wonderful price. I would need evidence of an order book, stable margins, and honest cash conversion before treating it as a long-term compounder.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer