Globus Power (526025)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹30.27 |
| Market Cap | ₹299.52 Cr |
| P/E Ratio | 0 |
| ROCE | -7.29% |
| ROE | 80.47% |
| Dividend Yield | 0% |
| Profit Growth | -27.27% |
| Debt/Equity | — |
| Sales Growth | 0% |
| 52-Week Range | ₹11 — ₹30.27 |
| Sector | Power |
| Book Value | ₹0.48 |
Strengths
- Positive book value of ₹0.48 per share provides a small, though entirely inadequate, floor against zero equity wipeout.
- Reported ROE of 80.47% is high, although it appears to be driven by a tiny book value rather than operating success.
- The stock has risen from ₹11 to ₹30.27, showing market momentum, but this is price behavior, not fundamental strength.
Concerns
- Zero operating revenue: latest quarter sales are ₹0 Cr and sales growth is 0.00%.
- Operating capital is destructive: ROCE is -7.29%, and Piotroski F-Score is only 2/9.
- Valuation is extreme: P/B is 63.06, P/E is not meaningful, and market cap of ₹300 Cr sits against book value of only about ₹0.48 per share.
- Profitability is deteriorating: profit growth is -27.27%, latest quarter net profit is -₹0 Cr, and promoter holding is not disclosed.
AI Analysis
Let me start with the first test: does this business earn money? The latest quarter shows sales of ₹0 Cr and net profit of -₹0 Cr, and sales growth is 0.00%. Profit growth is -27.27%. I cannot value a power generator that is not generating any revenue. The P/E of 0.00 is not a bargain; it is an accounting artifact. The stock is at ₹30.27 but book value is just ₹0.48, so I am paying 63 times net worth for a business with no current earnings. The reported ROE of 80.47% looks impressive at first, but ROCE is -7.29%, meaning operating capital is not producing returns; that ROE is likely the product of a tiny equity base or non-operating items, not a durable moat. The Piotroski score of 2/9 confirms poor financial health. There is no dividend, no promoter holding disclosure, and no clear growth engine. What has happened? The price has moved from ₹11 to ₹30.27, but price action is not evidence of intrinsic value. Graham taught me to buy with a margin of safety; here the safety is absent. If a company cannot show me consistent sales and profit, I will not invent a story. This is a speculative situation, not an investment. I would put it in the 'too hard' pile and wait for actual cash flow, operational assets, or a sane valuation before using my capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer