True Green (533407)

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

Key Financials

Strengths

• Latest quarter shows positive momentum with sales of ₹84 Cr and net profit of ₹2 Cr.
• Book value of ₹17.75 per share provides some asset support against the ₹32.93 price.
• Reported sales growth of 4476% and profit growth of 1000% indicate a sharp recovery from a low base.
• Piotroski F-Score of 6/9 suggests reasonable short-term financial health.
• PEG of 0.08 implies the market is pricing in continued extraordinary growth.

Concerns

• P/E of 228.24 and negative ROE/ROCE show current profitability is far below cost of capital.
• Latest quarter's ₹84 Cr sales generated only ₹2 Cr net profit, a very thin 2.4% margin.
• Extraordinary growth rates are unreliable due to the tiny base; 4476% sales growth is unlikely to persist.
• No dividend, no promoter holding data, and price below the reported 52-week low raise serious transparency and liquidity concerns.

AI Analysis

At ₹32.93, True Green carries a market cap of ₹96 Cr against a book value of ₹17.75 per share. That looks reasonable until I ask what the business earns. A P/E of 228 and a negative ROE of -0.83% tell me this is not a compounding machine. A company that cannot earn a respectable return on owners' capital is unattractive, no matter how fast its reported sales are growing. The 4,476% sales growth and 1,000% profit growth sound spectacular, but they are almost certainly coming off a tiny, depressed base. The latest quarter shows sales of ₹84 Cr but only ₹2 Cr of net profit — a thin margin of roughly 2.4%. That is not the kind of durable economics I seek. In textiles, competition is fierce, pricing power is weak, and there is no evidence of a moat here. ROCE is also negative, so the business is not earning its cost of capital. The PEG of 0.08 is seductive only if you believe this explosive growth is sustainable; I am skeptical. Promoter holding is unavailable, so I cannot judge alignment. There is no dividend, so value depends entirely on price appreciation. Meanwhile, the stock trades below its stated 52-week low, which raises red flags about data quality or liquidity. At 1.86 times book, it is not a Graham-style bargain because the return on equity is negative. This looks more like a low-quality, low-price cyclical having one good quarter than a wonderful business. I would need years of consistent earnings, positive returns on capital, disclosed promoter holdings, and proof that the ₹84 Cr quarterly run-rate is repeatable before I could consider investing a single rupee.

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