Organic Recyclin (543997)

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

Key Financials

Strengths

• Sales growth of 70.23% and profit growth of 78.88% show strong execution and operating leverage.
• P/E of 9.79 and PEG of 0.13 indicate the market is pricing in very little of the growth.
• Latest quarter net profit of ₹12 Cr on sales of ₹30 Cr suggests healthy margins.
• Piotroski F-Score of 7/9 points to solid financial health across profitability, leverage, and efficiency.

Concerns

• No dividend yield, so investor return depends entirely on future price appreciation.
• Book value, ROE, debt/equity, and promoter holding data are unavailable, limiting assessment of balance sheet and governance.
• Current price of ₹281 is close to the 52-week high of ₹299.95, leaving a limited margin of safety if growth slows.
• Small market cap of ₹216 Cr could lead to volatility and liquidity issues.

AI Analysis

Organic Recyclin presents an interesting paradox: a small waste-management company growing at extraordinary speed but priced like a struggling business. At ₹281, market cap is ₹216 Cr, P/E is 9.79. For a business growing sales 70.23% and profit 78.88%, that is remarkably inexpensive. The PEG ratio of 0.13 screams value if growth is sustainable. The latest quarter shows sales of ₹30 Cr and net profit of ₹12 Cr, implying healthy margins. The Piotroski F-Score of 7 out of 9 also supports a fundamentally sound position. ROCE at 12.17% is acceptable but not exceptional; it tells me the company is earning decent returns on capital, though not a franchise with overwhelming pricing power. As Graham would say, price is what you pay, value is what you get. At this price, growth seems undervalued. But I must be honest: there are gaps. No book value, ROE, debt/equity, or promoter holding data has been provided. In India, promoter holding matters greatly for minority shareholders; lack of disclosure is a red flag. Zero dividend means investors depend entirely on price appreciation. The 52-week range is ₹206 to ₹299.95, and the current price is near the high, so a lot of good news is already in the price. Waste management can be a good business with recurring contracts, but it is also regulated and potentially capital-intensive. I would want proof of a moat: long-term contracts, pricing power, and geographic advantages. The F-score is encouraging, but financial strength today does not guarantee competitive strength tomorrow. If growth continues at even half this rate, the stock remains cheap; if growth fades, the low P/E can become a value trap. My approach would be to study the annual report, cash flows, and contract pipeline. I would not buy blindly; I would wait for more data or a better margin of safety.

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