Inox Green (INOXGREEN)

FairStock Score: 19/100 — RISKY

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

Key Financials

Strengths

• Conservative balance sheet with debt/equity of 0.05
• Promoter holding of 56.12% aligns management with minority shareholders
• Sales growth of 33.80% shows business momentum
• Piotroski F-Score of 7/9 indicates improving financial health
• Latest quarter net profit of ₹25 crore on ₹82 crore sales suggests margin expansion

Concerns

• ROE of 2.95% and ROCE of 2.60% are far below acceptable return levels
• P/E of 84.68 and P/B of 3.60 leave no margin of safety
• Profit growth of 435.70% is likely from an unsustainable low base
• Zero dividend yield and FairStock Score of 24/100 make this a risky investment

AI Analysis

Benjamin Graham used to say that the stock market is a voting machine in the short term and a weighing machine in the long term. Today, Inox Green trades like a very popular vote. At ₹177.55, the market capitalizes the company at ₹6,790 crore, while the latest quarter produced only ₹82 crore of sales and ₹25 crore of profit. The reported P/E of 84.68 and P/B of 3.60 tell me that investors are paying for tomorrow’s success, not today’s earning power. The company’s return on equity is just 2.95%, and ROCE is only 2.60%. Those are not acceptable returns for a power generator, no matter how encouraging the growth rate looks. Sales growth of 33.80% is positive, and profit growth of 435.70% grabs attention, but such a percentage jump usually means the base was dangerously low. A 7/9 Piotroski score suggests some improvement in financial health, and the debt-to-equity of 0.05 gives me comfort that the balance sheet is not reckless. Promoter holding of 56.12% is also a good sign. Yet there is no dividend to reward a patient shareholder, and the FairStock Score of 24/100 labels this risky. When I calculate the price-to-book at 3.60 times ₹49.27 book value, the margin of safety vanishes. This is not the kind of business where I can predict earnings with high certainty at a fair price. It might be an improving story, but the market has already priced in a perfect ending. I prefer to wait until the returns on capital actually justify the valuation, or until the price drops to a level that compensates me for the uncertainty.

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