Eco Recyc. (530643)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹709 |
| Market Cap | ₹1,368.14 Cr |
| P/E Ratio | 42.15 |
| ROCE | 36.82% |
| ROE | 21.72% |
| Dividend Yield | 0% |
| Profit Growth | -59.71% |
| Debt/Equity | — |
| Sales Growth | -40.42% |
| 52-Week Range | ₹225 — ₹709 |
| Sector | Other Utilities |
| Book Value | ₹46.49 |
Strengths
- Historical return on capital employed (36.82%) and ROE (21.72%) indicate a once-efficient business
- Debt/Equity is not reported, possibly suggesting a debt-light balance sheet
- Latest quarter remains profitable (₹2 Cr net profit) despite the downturn
- Stock trading at 52-week high shows strong market sentiment or expectations of recovery
Concerns
- Revenue down 40.42% and profit down 59.71% — a severe deterioration
- P/E of 42.15 and P/B of 15.25 offer no margin of safety at current price
- Piotroski F-Score of 3/9 signals weak fundamental health
- Zero dividend yield means shareholders get no return while waiting
AI Analysis
When I look at Eco Recyc, I see a business whose recent numbers would make Graham roll over in his grave. The sales have collapsed by 40% and profits by nearly 60%, yet the market is paying ₹709 per share — a price-to-earnings multiple of 42 and a price-to-book of 15 times. You are paying a fortune for a company that is shrinking, with no dividend to compensate you while you wait. The Piotroski F-Score of 3 out of 9 is a clear red flag: this is a company with deteriorating fundamentals, not a hidden gem. Yes, the historical ROE of 21.72% and ROCE of 36.82% are impressive, but those are rearview mirror numbers. The latest quarter shows sales of just ₹6 crore and profit of ₹2 crore — annualise that and you get ₹8 crore against a ₹1,368 crore market cap. That is absurd. The stock is at its 52-week high, which tells me investors are pricing in a recovery that has not yet appeared in the financial statements. Maybe waste management is a good industry in India, and maybe the company has some niche strength, but I cannot find a margin of safety here. Book value is only ₹46.49, so you are paying 15 times the net assets for a business with collapsing earnings and a weak F-score. This is not the kind of trade I would make. If the turnaround truly comes, the stock will still be available at a better price once the numbers prove it. For now, this is a speculative bet, not an investment.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer