ITL Industries (522183)

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

Key Financials

Strengths

• P/E of 8.70 with 17% profit growth gives a PEG of 0.50, offering growth at a reasonable price.
• ROCE of 15.56% and ROE of 13.46% indicate efficient use of capital.
• Piotroski F-Score of 7/9 suggests solid financial health and improving fundamentals.
• Sales and profit growth of roughly 17% each show consistent momentum despite a small ₹141 Cr market cap.

Concerns

• Debt/Equity and promoter holding are N/A, reducing transparency for a retail investor.
• Latest quarter net margin is thin at about 5.9% (₹3 Cr profit on ₹51 Cr sales), leaving little room for cost shocks.
• Dividend yield is only 0.36%, so returns depend almost entirely on growth and re-rating.
• Stock is at the top of its 52-week range of ₹221.05–₹438.00, so the margin of safety is thinner than the low P/E alone suggests.

AI Analysis

When I look at ITL Industries, I see a small industrial-products company that appears to combine respectable growth with a bargain price. At ₹438, the market caps it at just ₹141 crore. The trailing P/E of 8.70 and a PEG of 0.50 tell me I am not paying much for the growth; in fact, the market seems to be offering it almost free. Sales have grown 17.05% and profits 17.83%, which is healthy for any business, especially one earning a 13.46% return on equity and a 15.56% return on capital employed. Book value stands at ₹253.67, so I am buying at 1.73 times book—not dirt cheap, but reasonable for a business compounding at these rates. The Piotroski F-Score of 7/9 adds confidence: the underlying financials are improving, not deteriorating. That said, I must be honest about what I do not know. Debt-to-equity is not available, and promoter holding is not disclosed. As Graham would say, lack of information is a risk, not a comfort. The dividend yield is negligible at 0.36%, so my return must come from earnings growth and eventual re-rating. The latest quarter's net margin is only around 5.9%—₹3 crore profit on ₹51 crore sales—leaving little room for error. Also, the stock sits at the top of its 52-week range; I am buying after a strong run, not in the depths of pessimism. Still, a 17% grower at 8.7 times earnings with a 7/9 F-score deserves a place on my watchlist. I would want to monitor whether growth is funded conservatively and whether margins can hold.

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