Indian Toners (523586)

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

Key Financials

Strengths

• Reasonable valuation: P/E of 9.62 and P/B of 1.51 against book value of ₹190.74.
• Healthy capital returns: ROE of 13.61% and ROCE of 16.26%.
• Solid Piotroski F-Score of 7/9 indicates stable financial health.
• Shareholder reward: dividend yield of 2.44%.
• Positive sales growth of 7.18% and latest quarter sales of ₹42 Cr with ₹6 Cr net profit.

Concerns

• Profit growth of 3.58% trails sales growth of 7.18%, suggesting margin pressure.
• Stock is at its 52-week high of ₹287.35, leaving limited margin of safety.
• PEG of 1.79 implies the market is already pricing in growth.
• Promoter holding is N/A, so owner alignment cannot be assessed.

AI Analysis

When I look at Indian Toners, I first ask what the business gives me for every rupee I pay. At ₹287.35, the market cap is ₹299 Cr and the P/E is 9.62. That is not an expensive price for a profitable specialty chemical company. The company earns 13.61% on equity and 16.26% on capital employed. That tells me management is putting capital to work at a reasonable rate. The Piotroski score of 7/9 also suggests a healthy financial condition. I like dividends, and 2.44% is a modest but welcome return while I wait. But I am not buying a fast grower. Sales grew 7.18%, while profit grew only 3.58%. That gap tells me margins are being squeezed, or costs are rising. The PEG of 1.79 confirms that current earnings already carry some expectation of growth. The stock is at the top of its 52-week range, ₹287.35, so there is no fear in the price. Price is what you pay; value is what you get. At 9.62 times earnings, I am not overpaying, but I do not see a deep margin of safety. The latest quarter shows ₹42 Cr sales and ₹6 Cr net profit. That is respectable, but one quarter is not a trend. Promoter holding is not available, and that bothers me. I want owners with skin in the game. My verdict: Indian Toners is a steady, reasonably priced slow grower, not a spectacular compounder. I would keep it on a watch list and wait for a lower price or higher growth before building a position.

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