Concord Enviro (CEWATER)

FairStock Score: 54/100 — MIXED

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

Key Financials

Strengths

• Piotroski F-Score of 7/9 indicates sound fundamentals, with good signs across profitability, leverage and operating efficiency.
• Low debt/equity of 0.30 gives the company room to manoeuvre through quarterly losses and project cyclicality.
• Trailing P/E of 11.14 and PEG of 0.29 are optically cheap against reported profit growth of 50.23%.
• Promoter holding of 51.43% aligns promoter interests with minority shareholders.
• ROCE of 15.04% and ROE of 14.51% show adequate capital efficiency despite a tiny book base.

Concerns

• Latest quarter reported net loss of ₹8 Cr on sales of ₹125 Cr, showing earnings volatility and questioning P/E sustainability.
• Sales growth is muted at 1.43%, so the 50.23% profit growth may be a low-base/one-off effect.
• Price-to-book of 15.59 against book value ₹21.43 leaves no asset-side margin of safety.
• Zero dividend yield means investors get no current income while waiting for uncertain re-rating.

AI Analysis

I look first for a simple business and a shareholder-friendly balance sheet. Concord Enviro operates in waste management, a needed activity, but the small ₹620 Cr market cap tells me I must be selective. The P/E of 11.14 and PEG of 0.29 look mouth-watering next to 50.23% profit growth. Yet Graham warned me to treat earnings with suspicion when one quarter tells a different story: sales of ₹125 Cr produced a net loss of ₹8 Cr. A company that loses money in the latest quarter cannot be valued on trailing P/E alone. The balance sheet is not alarming. Debt/equity of 0.30 is low, and Piotroski F-score of 7/9 suggests decent financial health. ROE 14.51% and ROCE 15.04% are acceptable, and promoter holding of 51.43% gives some comfort. But this is no stalwart. Sales growth is only 1.43%; the 50.23% profit growth may be a low-base effect, not compounding demand. With no dividend, my return depends entirely on growth and price re-rating. The harsh arithmetic is price-to-book. At ₹334.10 against book value of ₹21.43, I am paying 15.59 times stated assets. Even for a high-return business, that leaves little margin of safety. The 52-week range shows Mr. Market himself has doubts, falling from ₹579 to ₹235 and now ₹334. In cyclical environmental-infrastructure businesses, low P/E can be a trap at the peak of an order cycle. I need revenue growth to return, margins to stabilise, and positive quarterly earnings before I can call this a wonderful business at a fair price. Today, the score of 56/100 'steady' looks more like a pass than a bargain.

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