Groarc Industrie (532315)

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

Key Financials

Strengths

• Trades at a P/B of 0.52 — price ₹11.17 versus book value ₹21.62 — offering an asset cushion.
• Piotroski F-Score of 6/9 suggests decent short-term balance-sheet health despite weak earnings.
• Latest quarter is positive with ₹1 Cr net profit on ₹1 Cr sales, and ROCE is positive at 2.91%.

Concerns

• Sales growth is -58.46%, indicating severe top-line shrinkage.
• ROE is -0.19%, so book value is not earning a return; ROCE of 2.91% is below risk-free levels.
• P/E of 0.00 and 1,000% profit growth are misleading due to negligible earning base.
• No dividend, promoter holding N/A, and insufficient data reduce confidence in governance and disclosure.

AI Analysis

Let me begin with what I know: Groarc Industrie is a micro-cap software products company selling at ₹11.17, or barely half its book value of ₹21.62. In Graham's language, a stock priced at 0.52 times book offers a margin of safety only if the assets are real and capable of earning a return. Here, the return is troubling. ROE is -0.19%, so the business is not earning its keep on equity, and ROCE of 2.91% is below what a passive investor could get without the aggravation. Sales have collapsed 58.46%; the latest quarter shows only ₹1 crore of revenue and ₹1 crore of net profit, so the '1,000% profit growth' is a mathematical artifact of a tiny base, not a sign of durable earnings power. A P/E of 0.00 tells me earnings are too small or irregular to matter. The Piotroski F-Score of 6 out of 9 gives me some comfort on the balance-sheet side, but the income statement is the engine that ultimately drives value, and that engine is sputtering. With a market cap of ₹23 crore, this is a small and illiquid situation; a lack of dividend, N/A promoter holding, and an insufficient-data score further lower my conviction. I am not looking for a quick trade; I want businesses with clear, growing earning power. Groarc may be an asset play, but assets without earnings are only worth what someone else will pay. I would wait for sales to stabilise and for returns on both equity and capital employed to move durably above zero, with evidence that book value is being replenished rather than eroded. Until then, the discount to book is interesting, but not yet compelling in the Buffett/Graham tradition.

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