Effwa Infra (EFFWA)

FairStock Score: 55/100 — STEADY

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

Key Financials

Strengths

• ROCE of 33.87% shows strong capital efficiency, above most capital-heavy waste management peers
• Profit growth of 113.03% outpaced sales growth of 48.23%, reflecting operating leverage
• Promoter holding of 73.03% aligns management with minority shareholders
• Piotroski F-Score of 7/9 indicates sound financial health
• P/E of 18.24 with PEG of 0.23 looks reasonable for the growth rate

Concerns

• Zero dividend yield means investor returns are entirely dependent on continued growth
• No book value, ROE, or debt/equity data available, limiting Graham-style downside analysis
• Stock is roughly 43% below its 52-week high of ₹389.40; may signal prior overvaluation or fading confidence
• Small-cap size of ₹465 Cr with 73% promoter holding can mean low free float and sharp price swings

AI Analysis

When I look at Effwa Infra, I see the kind of growth numbers that catch any investor's eye. A 48.23% rise in sales and a 113.03% jump in profit, against a P/E of 18.24, suggests the market is not yet paying full price for that expansion. The PEG ratio of 0.23 is striking, though I would never rely on a single ratio. The latest quarter's net profit of ₹10 Cr on sales of ₹90 Cr indicates margins around 11%, which provides a useful baseline for watching future reports. What pleases me more is the ROCE of 33.87%. That is the mark of a business that earns more on its capital than most competitors. The Piotroski F-Score of 7/9 reinforces that the underlying financial health is sound. Promoter holding at 73.03% also gives me comfort, as the people running the company have plenty of skin in the game. Still, I must be careful. The stock has fallen from a 52-week high of ₹389.40 to ₹223.50. That could mean Mr. Market has cooled on the story, or the earlier price was simply too optimistic. With zero dividend yield, I must be convinced the company can reinvest at high rates for years. Effwa does operate in waste management, a sector with long-term tailwinds in India, but I have no debt-equity figure or book value available. For a Graham-style investor, that hole in the data is uncomfortable. I cannot fully assess the balance sheet or true downside protection. For now, Effwa looks like a promising fast grower at a reasonable price, and the profit growth is impressive. But I would want to see audited balance-sheet strength, continued order flow, and consistent quarterly margins before calling it a truly outstanding investment. The price is down; quality may be intact. I would watch next quarters carefully.

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