Incap (517370)

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

Key Financials

Strengths

• Book value per share of ₹29.78 provides some asset backing against the ₹62.54 price, even though P/B is elevated.
• ROE of 3.46% and ROCE of 7.61% are positive, so the business is not yet destroying capital.
• Price is below the stated 52-week low, suggesting expectations are very depressed and any genuine recovery starts from a low base.
• A small dividend yield of 1.13% offers token cash return while waiting for clarity.

Concerns

• P/E of 54.49 is excessive for a company with sales down 56.90% and profits down 30%.
• Latest quarter net profit is roughly ₹0 Cr on sales of ₹7 Cr, leaving no earnings cushion.
• Piotroski F-Score of 3/9 signals weak operational and financial foundations.
• Promoter holding is undisclosed, making governance and promoter alignment difficult to assess.

AI Analysis

Let me begin as Graham would: a business is only worth what its demonstrated earnings power supports. Incap's recent earnings power does not justify a 54.49 P/E. Revenue is down 56.90%; profit is down 30%; the latest quarter shows ₹7 Cr of sales and roughly ₹0 Cr of net profit. The market cap is only ₹33 Cr, so this is a micro-cap, but smallness is not itself a virtue. At ₹62.54, I am being asked to pay 2.10 times book value for a business earning only 3.46% on equity and 7.61% on capital. That is a poor return for a company in ordinary electrical equipment—a segment I would expect to have little pricing power or moat. The Piotroski F-Score of 3/9 is another sign of weak financial health. The price has fallen from ₹160.99 to ₹62.54, and it sits below the stated 52-week low. But a falling knife does not become cheap just because it has fallen; Graham wanted margin of safety, and here the earnings give me none. The dividend yield of 1.13% provides little compensation. There is also no disclosed promoter-holding figure, making it hard to judge alignment. In short, this may someday stabilize and turn around, but I have no evidence of that yet. I need to see sales stop falling, quarterly profits turn solidly positive, and returns on capital climb above the cost of doing business. Until then, the intelligent investor can only watch. Incap is a possible turnaround, not a proven one.

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