Suntech Infra. (SUNTECH)

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

Key Financials

Strengths

• Low P/E of 6.04 with 25.31% profit growth gives a PEG of 0.29, suggesting the market is underpricing growth.
• ROCE of 22.39% indicates efficient capital use in a low-margin construction business.
• Piotroski F-Score of 7/9 points to sound current financial health.
• High promoter holding of 69.64% aligns promoters with minority shareholders.
• Profit growth of 25.31% is outpacing sales growth of 16.90%, showing improving operating leverage.

Concerns

• Zero dividend yield; investor return depends solely on price appreciation and growth.
• Critical balance sheet data missing—book value, ROE, debt/equity—so solvency risk cannot be assessed.
• Civil construction is cyclical and fragmented; no clear durable moat or pricing power.
• Market cap of ₹77 Cr and stock near its 52-week high of ₹42.95 leave limited margin of safety and possible liquidity risk.

AI Analysis

At first glance, Suntech Infra's numbers attract a value investor: a P/E of 6.04, a PEG of 0.29, and profit growth of 25.31% against 16.90% sales growth. That gap tells me margins are moving in the right direction, and with ROCE at 22.39%, the business earns a respectable return on capital. The Piotroski F-Score of 7 out of 9 reinforces that the underlying financial health is currently sound. Promoters owning 69.64% also gives me comfort on alignment. But I cannot stop at the income statement. In civil construction, the business quality depends heavily on the cycle, execution, and the balance sheet. Here I face a major handicap: there is no reported book value, ROE, or debt-equity ratio. Graham would call this insufficient information; I don't buy what I cannot value. Also, with zero dividend, the return depends entirely on growth and market re-rating. At ₹40.70 against a 52-week range of ₹28.70 to ₹42.95, the stock is near the high, leaving little room for error in a cyclical sector. A small market cap of ₹77 Cr also means limited institutional attention, possible illiquidity, and governance risks. A P/E of 6 can look cheap, but if construction spending slows, earnings and margins can compress quickly. The latest quarter—sales ₹68 Cr, net profit ₹3 Cr—shows thin 4.4% net margins typical of this industry. This is not a Wide Moat company. It may be a well-run player in a cyclical space, but I need more transparency on the balance sheet and a wider margin of safety before committing. For now, I would watch rather than jump.

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