Savy Infra (SAVY)

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

Key Financials

Strengths

• Low P/E of 8.49 offers valuation comfort if earnings are sustainable.
• Latest quarter showed strong sales of ₹216 Cr and net profit of ₹18 Cr, implying a net margin of about 8.3%.
• ROCE of 61.88% suggests efficient capital deployment, though leverage is unknown.
• Promoter holding of 61.81% aligns owner interests with minority shareholders.

Concerns

• Sales growth and profit growth are both 0.00%, indicating no proven expansion.
• Piotroski F-Score of 3/9 signals weak fundamental health.
• Book value, debt/equity, and ROE are unavailable, limiting balance sheet assessment.
• No dividend is paid, so shareholders rely entirely on uncertain capital gains.

AI Analysis

At first glance, Savy Infra looks like a typical Indian construction stock selling at a single-digit multiple. At ₹139.80, the market cap is ₹278 Cr, and the P/E of 8.49 suggests the market is not paying up for future growth. I like price discipline, but I must also understand what I own. Civil construction is a tough business: no durable moat, intense competition, and earnings tied to project execution and the economy. The high ROCE of 61.88% is eye-catching, but with book value and debt/equity not available, I cannot verify the quality of capital or leverage behind that return. A prudent investor cannot rely on a single ratio. The lack of sales and profit growth — both shown as 0.00% — is a warning. A business that is not growing while earning 8.49 times earnings needs careful scrutiny. The latest quarter, however, shows sales of ₹216 Cr and net profit of ₹18 Cr, implying a margin of about 8.3%. If sustained, that would make the stock look even cheaper, but construction earnings are lumpy and I would not extrapolate from one quarter. Promoter holding of 61.81% is positive, aligning interests with minority holders. But the Piotroski F-Score of 3/9 is poor, pointing to weak financial health. No dividend means the investor depends entirely on price appreciation and growth, neither of which has been proven. In Graham's language, this is not a clear margin-of-safety buy yet. It may be a cyclical opportunity if order books improve and financial risks are clarified. I need more consistent earnings and full data on equity and debt before committing capital.

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