Hi-Green Carbon (HIGREEN)

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

Key Financials

Strengths

• Revenue growth of 91.22% shows strong demand traction for its waste-derived products.
• Promoter holding at 71.91% aligns management’s interests with minority shareholders.
• Latest quarter is profitable: ₹5 Cr net profit on ₹69 Cr sales, indicating a roughly 7% margin.
• ROCE of 11.88% suggests acceptable capital efficiency if sustained.

Concerns

• Profit growth is -10.92% despite 91.22% sales growth, showing severe margin compression.
• P/E of 31.22 is expensive for a business with declining earnings.
• Piotroski F-Score of 4/9 indicates weak financial fundamentals.
• No dividend, and missing book value/debt-equity data leave balance-sheet risk unassessed.

AI Analysis

At first glance, Hi-Green Carbon is the kind of business that gets my attention because waste management is a necessary industry. But as Graham taught, I invest in numbers, not narratives. The numbers here are mixed. Revenue jumped 91.22%, and the latest quarter shows ₹69 crore in sales with ₹5 crore net profit. That sounds good until I see profit growth is actually down 10.92%. So this is growth without corresponding earnings, a common trait in a cyclical business. A 31.22 P/E on declining profits offers little margin of safety. I also lack two key balance-sheet pillars: book value and debt/equity. I cannot judge financial risk, and with a Piotroski F-Score of 4/9, I have reason to be cautious. The 11.88% ROCE is respectable, but not proof of a durable competitive advantage. Promoter holding of 71.91% does align interests with minority shareholders, though it can also reduce liquidity. There is no dividend, so patience is not rewarded while I wait. The 52-week range of ₹101.20 to ₹232.20 tells me this stock is volatile, and at ₹142.20, it sits closer to the bottom, which could be a value signal or a value trap. The PEG of 0.34 looks tempting, but since earnings are falling, I treat that ratio as unreliable. In my circle of competence, I want consistent earnings, strong balance sheets, and a clear moat. This business has none of those confirmed. I would put it on a watchlist, not in the portfolio. If management can convert the impressive sales growth into real profit, improve the F-Score, and show clean books, the story becomes different. Until then, I prefer to wait for better evidence or a much lower price.

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