Godavari Bioref. (GODAVARIB)

FairStock Score: 32/100 — RISKY

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

Key Financials

AI Analysis

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

When I look at a stock, I first ask whether the business earns good returns on the capital it needs. Godavari Bioref fails that first test: ROE is just 4.84% and ROCE only 5.79%. For a company selling at 4.55 times book value — book is ₹73.69 and price is ₹335 — those numbers are not a bargain. A business earning less than 6% on capital is not a wonderful economic machine; it is a cart horse. The reported profit growth of 126.91% catches the eye, but I must be careful. Sales growth is only 2.81%, so this profit jump appears to be margin recovery from a suppressed base, not robust compounding. The latest quarter shines light: ₹460 Cr of sales produced just ₹8 Cr of net profit — a thin, fragile margin. There is no dividend to compensate me while I wait. At 27.97 times earnings, Mr. Market is paying up for that recovery. Still, there are some positives. Promoters own 63.31%, so their side of the boat is heavy. The Piotroski F-Score of 7 suggests the balance sheet is healing. Debt/equity of 0.68 is moderate, not crippling. The PEG of 0.43 hints that, if earnings growth can be sustained, the price may not be too rich. But 'if' is the biggest word in investing. Graham would say today's high profit growth is an opinion, not a fact. I would classify this as a turnaround candidate, not a high-quality compounder. I need to see ROE move meaningfully higher, revenue growth reawaken, and quarterly profit margins widen before I would pay a premium.

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