Inter State Oil (530259)

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

Key Financials

Strengths

• Sales grew 23.25%, showing top-line momentum in the latest reported period.
• Price-to-book of 1.39 against book value of ₹25.48 provides some downside cushion.
• ROE of 14.14% is respectable if earnings can stabilise.
• Latest quarter sales of ₹26 Cr against a ₹19 Cr market cap indicates a meaningful revenue base, though it is not yet profitable.

Concerns

• Profit growth is down 66.67%, and the latest quarter net profit is approximately ₹0 Cr, indicating broken earnings power.
• P/E of 18.49 is not cheap on depressed earnings, and there is no dividend yield.
• Piotroski F-Score of 4/9 and ROCE of 8.04% signal weak financial health and modest capital efficiency.
• Promoter holding and debt/equity are not available, leaving leverage and governance risks unknown.

AI Analysis

Inter State Oil is exactly the kind of small, cyclical road-transport name I would approach with caution. A market cap of just ₹19 Cr and a share price of ₹35.40 makes this a microcap, not a franchise. Sales growth of 23.25% is encouraging, but that growth has not reached the bottom line: profit is down 66.67%, and the latest quarter shows net profit of roughly ₹0 Cr against sales of ₹26 Cr. Graham would say the first test of a business is earnings power, and right now that test is failing. The balance sheet gives some comfort: book value is ₹25.48, so the stock trades at 1.39 times book, and ROE is 14.14%. But ROCE is only 8.04%; that return on capital is not high enough to build a durable moat. More troubling, the Piotroski F-Score is only 4 out of 9, a weak signal about financial health. The P/E of 18.49 is not cheap when earnings are collapsing; the PEG of 0.80 is misleading because it is based on profit growth that is negative. There is no dividend yield, and promoter holding is not disclosed, so I cannot judge alignment. At this price, the market is paying ₹35.40 for ₹25.48 of book value and a business that is currently breaking even. In a competitive road-transport industry, there is no pricing power; fuel costs, utilisation and competition can swing profits wildly. This is a cyclical, not a permanent compounder. I would want evidence of restored margins, sustained positive quarterly profit, and a clearer balance sheet before treating this as value. The sales growth is interesting, but profits are the ultimate scorecard.

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