BGR Energy Sys. (BGRENERGY)

FairStock Score: 6/100 — RISKY

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

Key Financials

Strengths

• Promoter holding is 51.01%, indicating some alignment with minority shareholders.
• Sales growth of 17.65% suggests the business is still generating revenue momentum.
• Piotroski F-Score of 6/9 points to some recent operational and financial improvements.
• The reported profit growth of 42.63% offers a faint sign that losses may be narrowing.

Concerns

• Book value is deeply negative at ₹-268.16 per share, so shareholders have no asset cushion.
• Latest quarter net loss of ₹193 Cr against sales of ₹78 Cr shows severe cash burn.
• P/E is 0.00 and ROCE is -25.01%, meaning the company is destroying capital.
• FairStock Score of 9/100 and zero dividend yield add to the high-risk picture.

AI Analysis

At first glance, BGR Energy is the kind of company I would not spend a minute on. It works in civil construction, a low-margin, capital-hungry business without a durable moat. The numbers confirm my instinct. The latest quarter shows sales of only ₹78 Cr but a net loss of ₹193 Cr. The P/E is effectively zero because there are no positive earnings. Book value is negative at ₹-268.16 per share, meaning liabilities exceed assets; there is no equity cushion for a shareholder. A reported ROE of 129.66% is a mathematical illusion when equity is negative. The real return signal is ROCE of -25.01%, which tells me this company is destroying value on every rupee of capital employed. The 17.65% sales growth means little when profit quality is absent. The 42.63% profit growth is misleading because the latest quarter still produced a massive loss. Promoter holding of 51.01% gives some alignment, and the Piotroski F-score of 6/9 hints at recent improvements, but these do not override negative book value and negative profits. The FairStock Score of 9/100 labels it risky. I want a simple, predictable business with positive owner earnings, low debt, and a reasonable purchase price. BGR has none of these. At ₹326.25, the market cap is ₹2,343 Cr, yet the company has negative equity and negative earnings. Graham would say price is not the same as value. This is a speculative turnaround, not an investment. I would be a buyer only if there were clear evidence of restored profitability, positive book value, and a sustainable execution pipeline. Until then, the margin of safety is absent. BGR belongs in the too-hard pile.

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