Gretex Industrie (GRETEX)

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

Key Financials

Strengths

• Promoter holding at 64.95% indicates strong insider alignment
• Sales growth of 187.62% shows rapid expansion in media and entertainment
• Profit growth of 106.06% and PEG of 1.04 suggest growth momentum is being priced somewhat reasonably
• Piotroski F-Score of 7/9 points to decent recent financial health

Concerns

• P/E of 152.24 with latest quarter net profit of ₹0 Cr means valuation rests on future promises, not current earnings
• ROCE of only 5.74% reflects weak return on capital employed
• No dividend and missing data on book value, ROE, and debt/equity limit fundamental assessment
• Media and entertainment businesses often lack durable moats, and high growth may be cyclical or one-off

AI Analysis

Let's start with what I see. Gretex Industrie sells at ₹292, a market cap of ₹419 crore against a P/E of 152. That is not a cheap price by any Graham standard. The company is growing fast — sales up 187.62% and profits up 106.06% — but the latest quarter tells a different story: ₹15 crore of revenue and zero net profit. A business that cannot show a profit in its most recent quarter while trading at 152 times earnings demands extreme caution. The ROCE is only 5.74%, meaning the company earns very little on the capital it employs. That is hardly the hallmark of a franchise with an economic moat. I see no dividend, so the investor is relying entirely on future growth to justify today's price. Positive signs: promoter holding is 64.95%, so owners have skin in the game, and the Piotroski score of 7 out of 9 suggests the recent financial statements are not full of red flags. The PEG ratio of 1.04 tries to say the growth rate justifies the multiple, but with quarterly net profit at zero, I question the quality and durability of that growth. I cannot compute book value, return on equity, or debt-to-equity from the data available. In Graham's world, an investment must be made with facts, not hope. This looks like a fast grower, but at this price, I would wait until profitability is demonstrated consistently and the balance sheet becomes visible. The margin of safety is missing.

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