Urban Enviro (URBAN)

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

Key Financials

Strengths

• ROCE of 28.13% indicates strong capital efficiency.
• Sales growth of 20.46% and profit growth of 19.13% show solid momentum.
• P/E of 10.34 and PEG of 0.52 suggest attractive valuation relative to growth.
• Promoter holding of 51.19% aligns management with minority shareholders.
• Piotroski F-Score of 7/9 points to decent financial health.

Concerns

• Zero dividend yield means no cash return to shareholders.
• Missing book value, debt/equity, and ROE data limit the depth of fundamental analysis.
• Small market cap of ₹121 crore raises liquidity and volatility risks.
• Price is well below the 52-week high of ₹193.20, indicating weak near-term sentiment.

AI Analysis

Looking at Urban Enviro, I first notice the valuation. At ₹139.85, the market cap is just ₹121 crore, and the trailing P/E is 10.34. For a company growing sales at 20.46% and profits at 19.13%, that is modest. The PEG ratio of 0.52 suggests the market is paying little for that growth. In the waste management space, which I see as a necessary and increasingly regulated utility-like business, such characteristics can be attractive. The ROCE of 28.13% is excellent; it tells me management is earning strong returns on capital employed, and the Piotroski F-Score of 7 out of 9 points to a reasonable financial foundation. Promoter holding at 51.19% is comforting, as owners remain aligned with public shareholders. But I must be careful. There are important blanks: no book value, no debt-to-equity ratio, no ROE. As Graham would say, you cannot make a sound investment based on a few ratios; you need the full picture. The absence of a dividend is also a negative for me, because it forces me to rely entirely on future price appreciation. And with a market cap of just ₹121 crore, this is a small ship that can be rocked by low liquidity. The share price has fallen from ₹193.20 to ₹139.85, so Mr. Market is already in a pessimistic mood. Even so, the latest quarter with sales of ₹87 crore and net profit of ₹9 crore shows operating momentum. My inclination is to treat this as a fast grower, but a fast grower I would want to study more. I would only act if the balance sheet is clean and the cash flows confirm reported profits. The price is not demanding, but in small companies, cheap can become cheaper if the business stumbles. I would want a margin of safety after I know the missing numbers.

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