Real Eco-Energy (530053)

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

Key Financials

Strengths

• ROE of 22.03% shows high accounting profitability on a small equity base.
• Piotroski F-Score of 6/9 indicates moderate financial health with no immediate distress signal.
• Latest quarter is profitable, with net profit of ₹1 Cr; the company has avoided losses in this period.
• Profit growth of 1,000% gives an optically low PEG of 0.04, attractive only if earnings growth is proven durable.

Concerns

• Sales growth is 0.00% while profit growth is 1,000%, so earnings are not backed by expanding core operations.
• Valuation is extreme: P/E 37.90, P/B 56.93, and a ₹348 Cr market cap against annualised sales of roughly ₹4 Cr implies a P/S of about 87x.
• Latest quarter's ₹1 Cr net profit on ₹1 Cr sales implies a 100% net margin, unsustainable for a refining and marketing business.
• No dividend, undisclosed promoter holding, and a 52-week range of ₹3.78 to ₹33.59 point to speculative price action and low transparency.

AI Analysis

Let me start with the most basic test: what am I buying? A ₹348 Cr market cap against quarterly sales of just ₹1 Cr. Annualised, that is about ₹4 Cr of revenue, so the market is paying roughly 87 times sales for a refining and marketing company. That is not investing; that is hope. The P/E of 37.9 and P/B of 56.93 are equally troubling. For every ₹0.59 of book value, I am being asked to pay ₹33.59. The 22.03% ROE looks good at first, but the 6.69% ROCE tells a different story: the business is not earning impressive returns on the capital used. When ROE and ROCE diverge so sharply, I question the quality of the equity or suspect one-off items. Profit growth of 1,000% with sales growth at 0.00% is a classic red flag. Profits without revenue growth usually mean a low base, non-operating gains, or accounting levers—not a durable moat. The PEG of 0.04 is a trap if the growth is not sustainable. The 52-week range of ₹3.78 to ₹33.59 shows a stock that has already been repriced by speculators. There is no dividend, promoter holding is undisclosed, and the latest quarter's net profit equals its sales at ₹1 Cr, an impossible-looking margin for any honest refining business. The Piotroski score of 6/9 keeps it from being an outright fraud label, but that is faint praise. Graham would ask for a margin of safety. At this price, there is none. I would wait on the sidelines.

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