Roadstar Infra (ROADSTAR)

FairStock Score: 13/100 — RISKY

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

Key Financials

Strengths

• Latest quarter net profit of ₹29 Cr on sales of ₹287 Cr gives a roughly 10% net margin.
• Piotroski F-Score of 7/9 indicates decent underlying financial health.
• Sales growth of 8.17% provides modest top-line momentum.
• Focused road-asset portfolio—toll, annuity, and hybrid-annuity—offers revenue visibility.
• Dividend yield of 14.83% signals shareholder return, though sustainability is questionable.

Concerns

• P/E of 0.00 and unavailable book value/debt-equity make a fair valuation impossible.
• ROCE of only 4.83% is weak for a capital-intensive infrastructure business.
• 14.83% dividend yield implies a payout far above annualised earnings of about ₹116 Cr.
• FairStock Score of 12/100 and profit growth of just 1.18% signal elevated risk.

AI Analysis

Roadstar Infra has the kind of business I can understand—road assets with toll, annuity, and hybrid-annuity revenue. But my rules begin with avoiding loss, and the price is not the most important number; the balance sheet is. Here, I see a P/E of 0.00, with book value and debt/equity both N/A. That is not a valuation I can trust. The latest quarter gives a little hope: sales of ₹287 Cr and net profit of ₹29 Cr, a net margin of about 10%. The Piotroski F-Score of 7/9 also suggests the company is not in freefall. Yet a 4.83% ROCE is poor for a capital-heavy infrastructure business. Profit growth of 1.18% is stagnant, while sales grew only 8.17%—no signs of a wide-moat compounder. I must also be careful with the 14.83% dividend yield. If I annualise the latest quarter's ₹29 Cr profit, earnings are roughly ₹116 Cr against a market cap of ₹2,733 Cr. That implies a P/E of about 23.5, and total dividends at that yield would be around ₹405 Cr—far more than annual earnings. Such a payout cannot continue unless it is a return of capital or a one-time cash distribution. Benjamin Graham said to treat a stock as an ownership stake and demand a margin of safety. With data missing and a FairStock Score of 12/100, the margin is absent. This is not a fast grower; it looks like a possible turnaround, but the evidence is too thin. I would wait for full annual results, a clean equity base, and proof that the dividend is covered before committing capital.

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