IIRM Holdings (526530)

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

Key Financials

Strengths

• Profit growth of 53.92% and sales growth of 20.97% show strong recent momentum.
• ROCE of 23.48% indicates efficient operating capital use.
• Piotroski F-Score of 7/9 suggests broadly improving financial health.
• PEG of 0.81 implies growth is potentially underpricing the current P/E if sustained.

Concerns

• P/E of 30.19 and P/B of 13.37 leave minimal margin of safety.
• ROE of 2.86% is far too low for a stock trading at 13.37 times book value.
• Zero dividend yield means returns depend entirely on uncertain capital gains.
• Stock has fallen from ₹128.99 to near its 52-week low of ₹68, showing significant market disappointment.

AI Analysis

At ₹67.51, IIRM Holdings trades at 30.19 times earnings and 13.37 times book value. A price-to-book of 13.37 combined with a return on equity of only 2.86% means I am paying a princely sum for a business that generates very little profit on its stated equity. The 53.92% profit growth and 20.97% sales growth are eye-catching, but as Buffett would say, growth is not value unless it creates durable earning power. The latest quarter shows ₹61 Cr sales and ₹5 Cr net profit; annualized, that is roughly ₹20 Cr, still far short of justifying the ₹460 Cr market cap without further expansion. The 23.48% ROCE is encouraging and suggests operational efficiency, perhaps because the balance sheet's debt/equity is not significant or is unreported. However, with zero dividend yield, the investor's entire return rests on the stock price. The Piotroski F-score of 7 out of 9 indicates recent financial health is decent, but the 52-week range of ₹68 to ₹128.99 reminds me that the market has already cut this stock nearly in half. A PEG of 0.81 is attractive only if 53.92% profit growth is sustainable. Consulting services rarely have wide moats; clients can switch easily and revenue can be lumpy. Graham would insist on a margin of safety, and I do not see one here. I would need much stronger evidence of a durable advantage or a lower price before committing capital.

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