GFL (GFLLIMITED)

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

Key Financials

Strengths

• Trades at a deep discount to book value: P/B of 0.21 against book value of ₹232.42
• High promoter holding of 68.72% aligns owner interests with minority shareholders
• Piotroski F-Score of 6/9 indicates reasonably stable financial health
• Latest quarter net profit of ₹13 Cr, despite negligible sales, suggests some income from investments or assets

Concerns

• ROE of 0.07% and ROCE of -1.89% show assets are producing almost no return on capital
• P/E of 425.71 and PEG of 4.26 imply unrealistic expectations while profit growth is 0%
• Zero dividend yield and zero sales growth mean no income or growth catalyst for shareholders
• FairStock Score of 0/100 and quarterly sales of just ₹1 Cr raise the risk of a value trap

AI Analysis

Looking at GFL, I feel like I'm staring at a cigar butt with one wet end. The numbers tell me this is a holding company, not an operating business. Price ₹47.85 versus book value ₹232.42 gives me a P/B of 0.21 — a 79% discount to stated net assets. On the surface, that's exactly the sort of margin of safety Graham taught me to seek. But then I flip the income statement and my enthusiasm cools. Sales for the latest quarter are just ₹1 Cr; full-year sales growth is zero. ROE is 0.07%, ROCE is -1.89%. In plain words, the assets are earning almost nothing. A great business earns a return on capital well above its cost; this company doesn't. The ₹13 Cr quarterly net profit looks like investment or other income, not sustainable operating earnings. That helps explain the absurd P/E of 425.71. The market is capitalizing a tiny earnings base into a huge multiple. With zero dividend yield and zero growth, I am being paid nothing to wait for the discount to close. Promoter holding of 68.72% is good — owners are heavily aligned — but high promoter lock-in can also keep a holding company perpetually undervalued. Piotroski F-Score of 6/9 suggests the balance sheet isn't crumbling, but the profit engine is practically silent. Graham would call this an asset play, not a franchise. I would not buy a rupee of assets that earn 0.07% on equity unless there is a clear catalyst to unlock value. No such catalyst is visible from these figures. The FairStock score of 0/100 screams risky. For me, this is a possible bargain-bin special-situation watchlist item, not a position.

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