RPP Infra Proj. (RPPINFRA)

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

Key Financials

Strengths

• Conservative balance sheet with debt/equity of only 0.18
• Trades below book value: P/B 0.85 against book value of ₹99.66
• Respectable ROCE of 20.09% suggests the operating business can generate returns in normal conditions
• Positive sales growth of 6.94% shows revenue stability despite profit weakness

Concerns

• Latest quarter net profit of just ₹1 Cr on sales of ₹380 Cr implies razor-thin margins
• Profit growth of -96.45% is a severe collapse; the P/E of 10.23 is based on stale earnings
• ROE of 8.01% is weak and the Piotroski F-score of 4/9 points to financial stress
• Low promoter holding of 39.18% and a competitive, low-moat construction industry reduce conviction

AI Analysis

Whenever I see a stock trading at ₹84.41 against a book value of ₹99.66, my Graham instincts sit up. But price below book is not automatically cheap; the asset must generate earnings. RPP Infra is a civil construction company, which immediately lowers my enthusiasm. Construction is a competitive, low-margin, working-capital-heavy business. There is no pricing power, no brand moat, and the promoter holding of 39.18% is not a strong alignment signal. The balance sheet is the best part: debt/equity of 0.18 is conservative, and ROCE of 20.09% shows the operating engine can work when conditions are normal. But the income statement is alarming. The latest quarter had sales of ₹380 Cr and net profit of just ₹1 Cr. That is a microscopic margin. Profit growth of -96.45% is not a small blemish; it is a collapse. So the P/E of 10.23 is based on past earnings, not current earning power. ROE of 8.01% is below what I expect from a durable business. The Piotroski score of 4/9 is another weak health indicator. Could this be an asset play? The P/B of 0.85 offers nominal support, but construction assets are mostly receivables and contract work; those can shrink quickly in disputes or delays. Dividend yield of 0.65% will not compensate you while waiting. I cannot call this a wonderful business. Sales growth of 6.94% means little if profits vanish. This looks like a cyclical company in a bad patch, possibly a future turnaround, but I need evidence of margin recovery before I commit. I would wait for several quarters of improving net profit, better ROE, and stable working capital. Until then, it remains a watchlist candidate, not a position.

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