Grovy India (539522)

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

Key Financials

Strengths

• Latest quarter is profitable: ₹3 Cr sales with ₹1 Cr net profit.
• ROE is positive at 11.88%.
• Stock trades at its 52-week high of ₹160, showing strong market momentum from the ₹32 low.
• Company still pays a small dividend, yielding 0.24%.

Concerns

• Sales collapsed by 84.73% and profit by 70.33%.
• Piotroski F-Score of 3/9 suggests weak financial health and possible distress.
• Valuation is extreme: P/B of 10.82 against book value of ₹14.79; P/E of 25.23 for a shrinking business.
• ROCE is just 7.63%, while dividend yield is a negligible 0.24%.

AI Analysis

I always begin with the underlying business. Grovy India is in residential and commercial projects, a business that can throw up big surges and collapses. Here, the collapse is evident: sales are down 84.73% and profit is down 70.33%. The latest quarter had sales of ₹3 Cr and net profit of ₹1 Cr, so it is still earning something. But that does not give me confidence, especially when the Piotroski F-Score is only 3 out of 9. Such a score—looking at profitability, leverage, and efficiency—points to a stressed balance sheet and weak operating discipline. I cannot rely on numbers I do not have: debt-to-equity is not available, promoter holding is not available, and the FairStock Score says insufficient data. In investing, unknowns are not the same as lovable. Moat? There is none. A real-estate project company with revenue falling this fast has no pricing power or durable advantage. The reported ROE is 11.88%, which sounds acceptable, but ROCE is only 7.63%, and the price-to-book is a staggering 10.82 against a book value of ₹14.79. That means I am paying ₹160 for a business whose net assets are roughly ₹15 per share. The P/E of 25.23 would be rich for a stable compounder; it is very rich for a shrinking, project-driven business. Graham said price is what you pay, value is what you get. At ₹160, the market is already pricing in a strong turnaround. The dividend yield of 0.24% gives me nothing for waiting. If this is truly a turnaround, I want evidence—consistent orders, rising quarterly revenue, better cash flow—not just hope and a rising share price. Until the fundamentals catch up with the quote, I would leave Grovy India in the 'too hard' pile. A disciplined investor needs a margin of safety; this price does not offer one.

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