Gem Enviro (544199)

FairStock Score: 45/100 — MIXED

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Gem Enviro as a waste-management business priced at ₹252.35, with a ₹569 Cr market cap, P/E of 19.71 and dividend yield of 0.58%. The stock is exactly at its 52-week high of ₹252.35, versus a low of ₹31.83, so the market is excited. The good part: five-year revenue CAGR is 30.10%, latest quarter sales were ₹55 Cr with net profit of ₹3 Cr, ROCE is 19.71%, and PEG is 0.13. If that growth is real and durable, a P/E near 20 is not demanding. But I must reconcile the sales growth of 147.05% with profit growth of -25.49%. Top line is booming while bottom line is shrinking, which suggests margin pressure or low-quality growth. Piotroski F-Score 4/9 and FairStock 45/100 confirm mixed financial quality. I have no ROE, book value, debt/equity or promoter holding, so I cannot judge balance-sheet safety or management alignment. Waste management can have local route density, contracts and permits as moats, but the figures do not prove a durable moat. At this price, near the 52-week high, I see no clear Graham margin of safety unless earnings start growing again. The PEG of 0.13 only matters if earnings are not falling. I would wait for profit growth to turn positive and for the missing balance-sheet numbers to confirm strength. For now, the numbers are too mixed. Until then, this is a watchlist candidate, not a Buffett-style compounder.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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