Inter State Oil (530259)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

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