Rel. Indl. Infra (RIIL)

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

Key Financials

Strengths

• Promoter holding of 45.43% aligns insider interests with public shareholders and provides ownership stability.
• Piotroski F-Score of 6/9 suggests the company is not in acute short-term financial distress.
• Latest quarter shows a net margin of roughly 25% (₹3 Cr profit on ₹12 Cr sales), indicating some cost discipline.
• Profit growth of 9.85% on zero sales growth shows some expense or margin control.

Concerns

• Valuation is extreme: P/E of 85.84, P/B of 2.78, and PEG of 8.71 leave no margin of safety.
• No top-line growth: sales growth is 0.00%, and latest quarterly sales of ₹12 Cr against a ₹1,062 Cr market cap make the business too small to justify the price.
• Capital efficiency is poor: ROE of 2.38% and ROCE of 2.92% are far below what a good franchise should earn.
• Reported free cash flow is deeply negative at -₹16.59 lakh Cr, and dividend yield is just 0.50%, so shareholders see little cash return.

AI Analysis

Let me begin with the earnings test. Rel. Indl. Infra has a market cap of ₹1,062 Cr and is trading at 85.84 times trailing earnings. That means a starting earnings yield of barely 1.2%. A business growing profits at 9.85% with zero sales growth deserves no more than a market multiple; it certainly does not justify a PEG ratio of 8.71. Mr. Market is paying for a growth story that the numbers simply do not support. A Graham-style investor asks: what will I own? I see a logistics company with a book value of ₹285.71 per share, but a return on equity of only 2.38% and ROCE of 2.92%. Paying ₹793.25, or 2.78 times book, for an asset base earning less than 3% is the opposite of a margin of safety. The latest quarter tells the same story: ₹12 Cr of sales and ₹3 Cr of profit. This is a very small business relative to its ₹1,062 Cr market cap. The reported free cash flow is alarming: -₹16.59 lakh Cr. I cannot reconcile that with a company of this size, and even allowing for bad reporting, negative FCF is a red flag. The Piotroski score of 6/9 is not a reason to buy; it only says the firm is not in immediate distress. Promoter holding of 45.43% is encouraging, and the 0.50% dividend is a token, not a return. Benjamin Graham said to invest with a margin of safety. Rel. Indl. Infra at current levels has none: poor returns, no growth, and an expensive valuation. FairStock Score 0/100 agrees. I would wait for either a much lower price or a clear, sustained improvement in sales, cash flow, and returns before even considering it.

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