Indl.& Prud.Inv. (501298)

FairStock Score: 27/100 — RISKY

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

Key Financials

Strengths

• Tangible book value of ₹3,279.59 per share provides meaningful asset backing
• P/E of 14.06 is not demanding at first glance
• Dividend yield of 2.10% provides some cash return while waiting
• Profit growth of 8.16% shows some improvement at the bottom line
• Piotroski F-score of 6/9 indicates reasonably sound financial health

Concerns

• ROE of only 3.89% and ROCE of 7.57% show weak returns on the underlying asset base
• Sales declined 9.49%, and latest quarterly sales of ₹1 crore against ₹16 crore net profit suggest low-quality, non-operating earnings
• P/B of 1.92 means paying nearly double book value for a mediocre return profile
• FairStock score of 30/100 flags the company as risky, and promoter holding is not disclosed

AI Analysis

This is an investment company, not an operating business; the balance sheet matters more than the income statement. At ₹6,311, I am paying ₹1.92 for every ₹1 of book value, and book value stands at ₹3,279.59 per share. That floor is useful, but ROE of only 3.89% means the underlying assets are earning barely more than a bank deposit. For an investment holding company, that is poor capital allocation. The P/E of 14.06 looks modest, and reported profit growth of 8.16% is decent, but revenue fell 9.49%, and latest quarter sales of just ₹1 crore against ₹16 crore net profit tells me earnings are coming from investment gains or revaluation, not durable operating income. That makes earnings quality questionable. There is no wide moat in an investment company unless management has a long, proven record of compounding capital; I see no evidence of that here. The 2.10% dividend yield offers some return, but I would demand much more from a low-ROE vehicle. The Piotroski F-score of 6/9 is acceptable, but the FairStock score of 30/100 rightly flags risk. I also cannot celebrate a clean balance sheet without debt data, and promoter holding being unavailable is a transparency concern. This is closer to an asset play: value depends on the real worth of the investments and whether management can close the gap between market price and intrinsic value. At 1.92 times book, the margin of safety is thin. I would rather wait for a price nearer book value or evidence that ROE can consistently climb above 10-12%. The 52-week range shows Mr. Market has offered better entry points. As Buffett would say, price is what you pay, value is what you get. Here, I am not convinced I am getting enough value for the price.

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