RBM Infracon (RBMINFRA)

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

Key Financials

Strengths

• P/E of 7.49 and PEG of 0.04 are low while profit growth is 171.92%, making the stock optically cheap on trailing earnings.
• ROCE of 32.80% indicates strong efficiency in generating returns on capital employed.
• Sales growth of 174.73% and latest quarter net profit of ₹27 Cr on ₹284 Cr sales show strong revenue momentum.
• Piotroski F-Score of 7/9 suggests healthy fundamentals across profitability, leverage and operating efficiency.
• Promoter holding of 62.50% aligns management interests with minority shareholders.

Concerns

• No dividend (0.00%), so total return depends entirely on future capital gains.
• Key balance sheet variables—book value, ROE and debt/equity—are N/A, leaving leverage and net worth unseen.
• Extreme growth rates of ~172-175% may reflect a low base or lumpy projects, not durable compounding.
• Current price ₹428.20 is close to the 52-week high ₹524.80, reducing the margin of safety.

AI Analysis

Looking at RBM Infracon, I see a company growing at a pace that would make most businesses blush, but I must anchor myself to numbers, not stories. The market cap is ₹348 Cr, while the latest quarter alone shows sales of ₹284 Cr and net profit of ₹27 Cr. The trailing P/E stands at 7.49, and with profit growth of 171.92%, the PEG ratio is 0.04. That is optically cheap, but Graham would remind me that a bargain can become a trap if today's growth is borrowed from tomorrow. ROCE at 32.80% is genuinely impressive; it suggests the company earns good returns on capital employed. A Piotroski score of 7 out of 9 gives me reasonable comfort on financial health, and promoter holding of 62.50% keeps skin in the game. Yet I cannot ignore what the table does not tell me. There is no book value, no debt-equity ratio, and no ROE. Without those, I am flying blind on balance sheet strength and true leverage. Dividend yield is zero, so the investor's return depends entirely on growth continuing. And while sales growth of 174.73% is exciting, commercial services businesses often lack a durable moat; high growth can attract competition or reflect lumpy one-off contracts. The price at ₹428.20 is not far from the 52-week high of ₹524.80, so my margin of safety is thinner than I would prefer. I would treat this as a fast grower, not a stalwart. The figures are too good to ignore, but too incomplete to embrace with full conviction. I would want to see debt levels, equity book value, and at least a few more quarters of this growth before committing sizeable capital. If the growth is genuine and debt is low, today's P/E may look silly in hindsight. But first, show me the balance sheet.

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