Readymix Cons. (READYMIX)

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

Key Financials

Strengths

• ROCE of 30.21% indicates strong return on capital employed
• Sales growth of 56.66% and profit growth of 143.33% show strong momentum
• P/E of 7.81 with PEG of 0.08 suggests undervaluation if growth persists
• Piotroski F-Score of 7/9 points to generally sound financials
• Promoter holding of 72.06% aligns management with minority shareholders

Concerns

• ROE, book value, and debt/equity are not available, so leverage and asset quality cannot be assessed
• Zero dividend yield means no income cushion while waiting for value to be recognized
• Latest quarter net profit of ₹1 Cr on sales of ₹28 Cr implies a thin margin, leaving little room for cost overruns
• Small market cap of ₹93 Cr makes the stock vulnerable to volatility and project-specific setbacks

AI Analysis

At first glance, Readymix Cons. is the kind of small-cap that makes me pause. Market cap ₹93 Cr, price ₹89.95, P/E 7.81. That is a low multiple for a business that grew sales 56.66% and profits 143.33%. A PEG of 0.08 suggests either a market that doesn't believe the growth or an undiscovered gem. I don't need the market to agree; I need the numbers to add up. ROCE of 30.21% is impressive—it shows the business generates good returns on capital employed, a sign management may have a durable advantage. Promoter holding at 72.06% aligns owners with shareholders, and the Piotroski F-score of 7/9 indicates solid financial health. But I must maintain Graham's discipline. There is no dividend; a zero yield means I rely entirely on price appreciation. I have no book value, ROE, or debt/equity data, so I cannot measure margin of safety in net assets or leverage. The latest quarter shows sales ₹28 Cr but net profit only ₹1 Cr—a thin margin around 3.6%. At a small market cap, one bad project can be painful. Civil construction is cyclical; today's growth may be tied to a few projects. I would demand a margin of safety and watch cash flows before acting. The price is below the 52-week high of ₹117.90, down from a peak, but still above the low of ₹68.80. If growth continues and returns stay high, the current P/E is attractive. But in small caps, I prefer a business I can understand and a balance sheet I can verify. This one has promise, but the data available is not enough to make me ignore the risks.

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