Arrow Greentech (ARROWGREEN)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• Exceptional capital efficiency: ROE 27.41% and ROCE 53.25%
• Almost debt-free with D/E of 0.01, reducing financial risk
• Promoter holding of 64.81% aligns shareholder interests
• Piotroski F-Score of 7/9 indicates sound operational health
• Attractive P/E of 11.85 relative to high profitability

Concerns

• Top-line growth stagnant at 1.72% and profit growth only 3.50%
• PEG of 4.54 suggests market is overpaying for limited growth
• High P/B of 5.02 leaves little margin of safety
• Dividend yield of 0.99% offers minimal income support

AI Analysis

At first glance, Arrow Greentech looks like a high-return machine. A 27.41% return on equity and 53.25% return on capital employed, with virtually zero debt (D/E 0.01), speak to a business with real earning power and conservative management. The low P/E of 11.85 and high promoter holding of 64.81% further pique my interest. But I must remember that a wonderful business can still be a poor investment if you overpay or if growth stalls. Here the recent trajectory is muted—sales grew only 1.72% and profit 3.50% on a trailing basis. The PEG ratio of 4.54 tells me the market is already paying a premium for that underwhelming growth, and the price-to-book of 5.02 offers little margin of safety in an asset-light sense. With a dividend yield under 1%, the reward for waiting is thin. The Piotroski F-Score of 7/9 confirms solid financial health, but it doesn't compensate for the lack of growth catalyst. The latest quarter shows ₹56 Cr sales and ₹13 Cr net profit—an impressive 23% margin, but I won't overread one quarter. As Graham would say, price is what you pay, value is what you get. The stock is well off its 52-week high of ₹825.60, but not cheap enough to ignore the stagnant top line. I'd keep an eye on whether the company can revive volume growth or use its balance sheet for meaningful expansion. Until then, this is a high-quality but slow-growing compounder—one to watch, not chase.

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