Integra Engg. (505358)

FairStock Score: 7/100 — RISKY

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

Key Financials

Strengths

• ROE of 18.98% and ROCE of 24.45% indicate solid historical capital efficiency.
• Latest quarter remains profitable with ₹42 Cr sales and ₹3 Cr net profit.
• Stock is near the upper end of its 52-week range, reflecting strong market interest.
• Part of the industrial products segment, which may benefit from long-term infrastructure and manufacturing demand.

Concerns

• P/E of 34.55 and P/B of 9.76 are very rich, especially while profit is falling 43.37%.
• Sales declined 9.75%, and latest quarterly net profit of ₹3 Cr on ₹42 Cr sales shows a thin margin.
• Piotroski F-Score of 3/9 signals deteriorating financial health.
• No dividend yield, so shareholders get no income support while waiting for recovery.

AI Analysis

Let's examine Integra Engg. the way I examine any business: first understand the economics, then decide what price makes sense. The historical return metrics are respectable—ROE of 18.98% and ROCE of 24.45%—which tells me the company has earned healthy returns on capital in recent periods. But investing is about the future, and the current numbers point downward. Sales are down 9.75%, and profit has fallen 43.37%. The latest quarter shows ₹42 Cr of sales and only ₹3 Cr of net profit. That is a thin margin, and with a Piotroski F-Score of 3/9, the financial health is deteriorating. The market price, however, is not marked down for trouble. At ₹243.15, the stock trades at 34.55 times earnings and 9.76 times book value, even though book value is just ₹24.92. There is no dividend to provide a margin of safety or reward patient waiting. I also do not see an obvious moat in this data; industrial products compete on execution, cost, and relationships, but those can erode quickly in an economic downturn. The 52-week range of ₹118 to ₹270 shows a doubling, and at the current price near the top, the market seems to expect recovery. But I cannot buy a business whose earnings are falling by 43% and pay a P/E of 34. That is paying a rich price for a damaged earnings stream. Graham taught me to focus on downside first. Here the downside is clear: if earnings fall further, the multiple compresses further. The upside depends entirely on a turnaround that is not yet visible in the numbers. I will keep it on my watch list, not in my portfolio. I need proof of stabilization before I pay this price.

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