Gretex Corporate (GCSL)

FairStock Score: 17/100 — RISKY

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

Key Financials

Strengths

• Low debt-to-equity ratio of 0.04, indicating a conservative balance sheet
• Promoter holding of 61.64% aligns management interests with minority shareholders
• Latest quarter is profitable with ₹7 Cr net profit on ₹42 Cr sales
• Book value of ₹45.84 provides a tangible asset base

Concerns

• Sales down 35.83% and profit down 53.47% show a sharp business contraction
• P/B of 7.45 is expensive relative to book value of ₹45.84
• ROCE of just 2.70% reflects poor capital efficiency
• Piotroski F-Score of 3/9 and FairStock Score of 0/100 signal high financial risk

AI Analysis

When I study Gretex Corporate, I do not see a business I can confidently understand or value. It is a capital-market related services firm, which means its fortunes are tied to the mood of the market rather than to any durable pricing power. The figures reinforce that caution. Sales have shrunk 35.83% and profits have fallen 53.47%, while the latest quarter shows only ₹42 Cr of sales and ₹7 Cr of net profit. A business that swings this violently makes my forecasting nearly impossible. The balance sheet has one virtue: debt-to-equity is just 0.04, so Gretex is not loaded with borrowings. But that is where the praise ends. Return on capital employed is a weak 2.70%, meaning the company is not generating attractive returns on the money invested in it. ROE is 12.40%, but I am being asked to pay 7.45 times book value for a book of ₹45.84. In other words, I pay ₹341.55 for assets that earned only modestly, and the trend is moving in the wrong direction. The P/E is quoted at 0.00, which tells me the earnings figure is not meaningful. The Piotroski F-Score of 3 out of 9 and a FairStock Score of 0 out of 100 further warn me that financial health is poor. Promoter holding at 61.64% is high, and that can be a good sign, but good ownership cannot replace a mediocre business at an expensive price. The dividend yield of 0.12% is negligible, so I receive almost no income while waiting for uncertain growth. In the true Graham spirit, I need a margin of safety. At current levels, Gretex offers none. This is a cyclical, not a steady compounder. I will keep it on my watchlist, but I will not put my money here until I see sustained profitability, better returns on capital, and a much lower price.

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