Orient Green (GREENPOWER)

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

Key Financials

Strengths

• Price-to-book of 1.08 is close to asset value, limiting downside if assets are worth carrying value
• Debt-to-equity of 0.41 is manageable for a capital-intensive power company
• Piotroski F-Score of 7 indicates improving fundamentals across profitability, leverage, and efficiency
• Sales growth of 4.23% shows some operational traction
• 52-week range of ₹7.98–₹15.04 suggests current price is well off the highs

Concerns

• Negative ROE of -0.43% and a latest quarter net loss of ₹21 crore show weak earnings power
• Promoter holding of just 24.38% raises corporate governance doubts and alignment risk
• No dividend yield means shareholders get no income while waiting for a turnaround
• PEG of 1.85 with low profit growth is not attractive for value seekers

AI Analysis

At ₹10.99, Orient Green trades barely above its book value of ₹10.16, so the market is pricing this power generator as a near-breakup story. But a good price isn't enough. I need a business that earns a decent return on equity; here ROE is minus 0.43%, and the latest quarter shows a net loss of ₹21 crore on just ₹36 crore of sales. That tells me the operating engine is sputtering. ROCE of 6.65% is below what I'd expect from a capital-heavy utility, and with debt/equity at 0.41, leverage is not crushing but not cheap. The P/E of 19.22 with negative quarterly earnings makes me suspicious of trailing earnings quality. Promoter holding of only 24.38% is a genuine red flag — when the people who run the shop own so little, their interests may not align with minority shareholders. The Piotroski F-Score of 7 suggests some financial improvement, and sales grew 4.23%, but modest topline growth cannot mask the lack of pricing power or moat. Power generation is a commodity business with no brand advantage, and Orient Green's returns show it. Profit growth of 16.57% sounds nice, but from a low or negative base, that number is fool's gold. This is not a quality compounder. It might be a turnaround candidate if the losses are transient and the balance sheet holds, but I see no margin of safety at 1.08 times book. I'd rather wait for either a cheaper price — maybe 0.7 times book — or evidence of consistent positive ROE. Until then, this goes to the 'too hard' pile.

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