Intl. Combustion (505737)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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