Greencrest Finan (531737)

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

Key Financials

Strengths

• Trades at P/B of 0.56, a 44% discount to book value of ₹1.65 per share.
• Latest quarter shows positive net profit of ₹1 Cr on sales of ₹13 Cr.
• ROCE is positive at 5.28%, indicating some operating-level return on capital.
• Small market cap of ₹34 Cr leaves room for a meaningful asset-update story if book value is real.

Concerns

• ROE is negative at -2.46%, indicating shareholder value is being eroded.
• Sales growth is -43.27% and profit growth is -13.83%, showing severe business shrinkage.
• Piotroski F-score of 3/9 points to weak overall financial health.
• No dividend and no meaningful P/E, with promoter holding and debt/equity undisclosed.

AI Analysis

At ₹0.93, Greencrest Finan is being valued at only ₹34 Cr against a book value of ₹1.65 per share, so I am paying 56 paise for every rupee of stated net worth. That looks like a classic Graham bargain, but a bargain is only real if the asset base is stable. Here, ROE is -2.46%: this business is destroying value, not compounding it. Sales have collapsed by 43.27% and profits are still falling year-on-year. The Piotroski score of 3/9 reinforces my suspicion that the balance sheet quality is deteriorating. There is no dividend to compensate me while I wait. The latest quarter does show ₹1 Cr net profit on ₹13 Cr sales, but one quarter cannot offset a multi-year trend of shrinking operations and negative profitability. With ROCE at 5.28%, the operating assets earn less than what a conservative investor would require from a risky small-cap. The P/E of 0.00 tells me the market cannot assign a meaningful multiple to earnings; there is simply no established earnings power. I would not classify this as a growth story. It is an asset play at best, dependent on whether the stated book value can be realized or management can reverse the decline. In Graham's language, I need margin of safety in both assets and earnings. Here the asset margin exists, but the earnings margin does not. I would only consider this after deep due diligence on hidden liabilities, promoter intent, and the realizability of the book value. The price being at the top of its 52-week range despite weak fundamentals is a warning sign. Buying a cheap stock that keeps getting cheaper is not investing. The figures do not yet support a commitment.

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