Intl. Combustion (505737)
TurnaroundScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,309.1 |
| Market Cap | ₹312.91 Cr |
| P/E Ratio | 30.79 |
| ROCE | 11.64% |
| ROE | 2.74% |
| Dividend Yield | 0.93% |
| Profit Growth | -170.67% |
| Debt/Equity | — |
| Sales Growth | -12.8% |
| 52-Week Range | ₹346 — ₹1,309.1 |
| Sector | Industrial Manufacturing |
| Book Value | ₹504.65 |
Strengths
- ROCE of 11.64% suggests the operating capital base is not wholly unproductive.
- Book value per share of ₹504.65 provides some tangible asset backing.
- Latest quarterly sales of ₹72 Cr show the business still has meaningful revenue scale.
- Small market cap of ₹313 Cr may allow for niche opportunities if fundamentals revive.
Concerns
- ROE of 2.74% is far too low to justify a 2.59 P/B multiple.
- Profit growth of -170.67% and a latest-quarter net loss of ₹3 Cr indicate deteriorating earnings.
- Sales growth is negative at -12.80%, and Piotroski F-Score of 3/9 points to financial weakness.
- Stock trades near its 52-week high at ₹1,309 despite weak fundamentals, leaving little margin of safety.
AI Analysis
When I evaluate a stock, I first ask: what does the business return on the capital shareholders have put in? Intl. Combustion's ROE is just 2.74%, while I am being asked to pay 2.59 times book value, or ₹1,309 for every ₹504.65 of net assets. That is a poor trade. A company earning such a low return on equity does not deserve a rich multiple unless there is clear proof of change. I see no such proof. Sales are down 12.80%, and profit growth has collapsed by 170.67%. The latest quarter shows ₹72 Cr of revenue and a ₹3 Cr net loss. The Piotroski F-Score of 3/9 reinforces my worry: this is a business under financial stress, not improving. The market may be anticipating a turnaround, and the stock has moved from ₹346 to ₹1,309 in the past year. But in investing, anticipation without evidence is speculation. The P/E of 30.79 is meaningless when earnings are falling; the dividend yield of 0.93% is too thin to compensate. ROCE of 11.64% shows the core operations are not worthless, so a turnaround is possible. But as Graham said, the margin of safety is the essence of value investment. Here the price has run far ahead of fundamentals. I would wait for a higher F-score, positive profits, and stabilising sales before paying this price. Let Mr. Market prove the recovery; do not pay for it in advance.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer