Envirotech Sys. (ENVIRO)

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

Key Financials

Strengths

• ROCE of 31.63% indicates highly efficient use of capital.
• Sales growth of 59.75% and profit growth of 111.31% show strong business momentum.
• P/E of 12.20 and PEG of 0.14 suggest the stock is reasonably valued relative to recent growth.
• Promoter holding of 68.85% aligns management interests with minority shareholders.
• Piotroski F-score of 7/9 points to generally sound financial health.

Concerns

• No dividend yield; investors depend entirely on growth and capital appreciation.
• Book value, ROE, and debt/equity are not available, leaving balance sheet leverage unknown.
• Small market cap of ₹210 Cr and proximity to the 52-week high of ₹125 imply higher volatility.
• Profit growth of 111.31% is unlikely to persist, so the low PEG may overstate cheapness.

AI Analysis

At ₹114.70, Envirotech Sys carries a market cap of just ₹210 crore. The attractive P/E of 12.20 and a PEG of 0.14 immediately draw my attention, but let me first ask the Graham question: is this a business worth owning? The numbers shout profitable growth. Sales are up 59.75% and profit jumped 111.31%. Latest quarter tells the same story: ₹26 crore sales and ₹6 crore net profit. ROCE at 31.63% is far above what most industrial companies earn, and a Piotroski F-score of 7/9 suggests solid financial health. Promoter holding of 68.85% is reassuring; owners’ interests are aligned with minority shareholders. Yet I must be disciplined. There is no dividend, so all value must come from growth and eventual capital returns. More importantly, I do not have book value, ROE, or debt/equity figures. Graham never bought on incomplete information. Without knowing the leverage, I cannot be fully comfortable. The 52-week range of ₹69 to ₹125 reminds me this is a small, volatile stock. At ₹114.70 we are near the top, so the low P/E could be an illusion if growth decelerates. The PEG of 0.14 implies the market expects enormous continued growth; that is a high bar. Still, if this company can maintain its ROCE and profit trajectory, the valuation is not demanding. I would watch whether growth continues in coming quarters, whether the company begins paying a dividend, and whether it provides more complete balance-sheet data. For now, it looks like a fast grower with founder skin in the game, but I would demand a margin of safety before committing. In this business, overpaying for a small industrial is easy; owning great growth at a fair price is rare.

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