Refex Renewables (531260)

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

Key Financials

Strengths

• Reported ROE of 23.54% suggests some recorded equity is generating returns, though it must be verified with book value.
• Revenue base exists: latest quarter sales of ₹16 Cr and positive sales growth of 1.26%.
• Positive ROCE of 4.64%, though low, indicates annual operations are not entirely capital-destructive.
• Small market cap of ₹213 Cr and an active 52-week range suggest speculative interest that could aid a turnaround.

Concerns

• Latest quarter net loss of ₹11 Cr on sales of ₹16 Cr implies severely negative operating margins.
• P/E is 0.00 and profit growth declined by 1.58%; trailing earnings power is absent.
• Book value, debt/equity, and promoter holding are N/A, so leverage and insider alignment cannot be assessed.
• Piotroski F-score of 4/9 and zero dividend yield indicate weak financial health and no income support.

AI Analysis

Let me begin with what I can measure. At ₹473.80, the market cap is only ₹213 crore. That looks like a small, potentially interesting asset until I look at earnings: the P/E is 0.00, which tells me there are no meaningful trailing profits. The latest quarter reinforces my worry. Sales were ₹16 crore, but the company lost ₹11 crore. Losing nearly ₹11 crore on ₹16 crore of sales is a terrible operating result, and profit growth is already negative at -1.58%. ROE of 23.54% looks attractive, but with book value unavailable and debt/equity unavailable, I cannot trust that number; it may be an illusion created by thin equity or accounting distortions. The true return on capital is only 4.64%, far below what I would demand. Sales growth of 1.26% is negligible, and there is no dividend to compensate me while I wait. The Piotroski F-score of 4/9 suggests weak financial health. The 52-week range of ₹209 to ₹789 tells me the stock has been a speculator's plaything, not a steady compounding machine. Graham taught me to focus on net current assets, earnings power, and debt. None of those are visible here. The latest quarter shows a loss, not a turnaround; the balance sheet is a blank. I cannot calculate a margin of safety. The name says 'Renewables,' but the industry says civil construction; I need clarity about what this company actually owns and earns. Until I see real book value, positive cash flow, improving quarterly margins, and honest debt figures, this is just an expensive puzzle. At ₹473.80, I will pass.

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