GRE Renew (544682)

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

Key Financials

Strengths

• ROCE of 33.52% is unusually strong for civil construction
• Latest quarter net margin around 9% on ₹44 Cr sales and ₹4 Cr profit
• P/E of 19.73 is moderate if earnings are sustainable
• Small market cap of ₹139 Cr offers niche upside potential

Concerns

• Piotroski F-score of 3/9 signals weak financial health
• Zero sales and profit growth, with no dividend yield
• Critical data missing: book value, ROE, debt-to-equity, promoter holding
• Civil construction is cyclical, competitive, and project-dependent

AI Analysis

Let me start with what I like: ROCE of 33.52% is genuinely impressive. In civil construction, earning that kind of return on capital is rare and suggests some pricing power or execution efficiency. The latest quarter shows sales of ₹44 Cr and net profit of ₹4 Cr, which translates to a solid net margin near 9%. At ₹97.08 with a market cap of ₹139 Cr, the trailing P/E of 19.73 is not outrageous if the business can maintain its profitability. But I have serious reservations. Book value, ROE, and debt-to-equity are all unavailable. Graham taught me to never invest in a business I cannot measure from the inside out. Without these numbers, I cannot assess how much real equity is behind this stock or whether the 33.52% ROCE is real or leveraged. Sales and profit growth are both 0.00% — there is no growth engine, and the dividend yield is zero, so I get no return while waiting. The Piotroski F-score of 3/9 is a flashing warning light. It suggests financial health is weak, and in a cyclical, competitive industry like civil construction, weak financials kill companies. Civil construction also tends to be project-driven, lumpy, and vulnerable to economic cycles. One good quarter does not make a wonderful business. I would need years of data, order book visibility, cash flow trends, and a clean balance sheet before I could pay ₹97 for this. Right now, this looks more like a cyclical at an uncertain point in the cycle than a durable compounding machine. I would keep it on the watchlist, not in the portfolio.

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