Gensol Engineer. (GENSOL)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At first glance, Gensol Engineering stops me cold: a market cap of just ₹97 crore against a book value of ₹171.64 per share and a P/B of 0.14. The market is pricing this at 14% of stated net worth. As Graham said, price is what you pay, value is what you get, but I must ask why the discount is so wide. A P/E of 0.94 and PEG of 0.02 are almost too good to be true. The latest quarter delivers ₹345 crore in sales and ₹18 crore net profit, while sales and profit are compounding at 56.42% and 32.52% respectively. Those are fast-grower numbers, yet the valuation is that of a forgotten asset. ROE of 19.97% is solid and Piotroski's F-Score of 7 out of 9 suggests operations are not deteriorating. But I see no obvious moat; this is an electrical equipment business that must earn its returns daily against competitors. More importantly, debt/equity of 2.28 bothers me. ROCE of only 14.33% against a 19.97% ROE means leverage is doing a lot of heavy lifting. If profits wobble, debt doesn't. Promoter holding of 35.87% is below what I like to see, dividends are zero, and the 52-week range of ₹16.50 to ₹46.02 shows how volatile this can be. If the ₹171.64 book value is tangible, the margin of safety is enormous at ₹24.24. If it is not, the leverage turns this asset play into a trap. I would study the annual report, receivables, and debt covenants before acting. At this price, curiosity is earned, but conviction requires hard evidence.

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