Indo Count Inds. (ICIL)

FairStock Score: 19/100 — RISKY

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

Key Financials

Strengths

• Promoter holding of 58.74% aligns owner and minority shareholder interests
• Debt/equity of 0.54 is manageable, not excessive
• ROCE of 13.52% suggests some underlying capital efficiency despite weak ROE
• Latest quarter sales of ₹1,063 Cr indicate the business still has meaningful scale
• Book value of ₹108.89 provides a reference point, though price is well above it

Concerns

• Sales growth of -7.70% and profit growth of -65.48% show severe operational deterioration
• P/E of 46.29 with falling earnings offers no value cushion
• ROE of 5.36% and Piotroski F-score of 3/9 point to weak fundamentals and rising financial stress
• Dividend yield of 0.75% gives negligible income support while waiting for recovery

AI Analysis

At ₹267.65, Indo Count Inds trades at ₹5,262 Cr market cap. The first thing I notice is the P/E of 46.29. That is not a value price; it is a growth price. But there is no growth here — sales fell 7.70% and profits collapsed 65.48%. Last quarter's profit was just ₹24 Cr on ₹1,063 Cr sales. As Graham said, the market may be a voting machine in the short run, but the weighing machine eventually punishes earnings destruction. Return on equity is only 5.36% — barely acceptable, and certainly not enough to justify 2.46 times book value. The Piotroski F-score of 3/9 reinforces my unease: this is a company showing multiple warning flags in profitability, leverage and asset efficiency. Debt/equity of 0.54 is not alarming, and ROCE of 13.52% shows some underlying capital productivity, but the trend is moving in the wrong direction. Promoter holding of 58.74% is reassuring; still, high ownership cannot replace sound business economics. With a 52-week range of ₹216.90 to ₹446.80, the stock has fallen a long way, but a falling price does not equal undervaluation. FairStock score of 0/100 says I am not alone in seeing risk. As a value investor, I want a margin of safety: a wide gap between price and intrinsic value. At 46 times trailing earnings, with declining sales and profits, I see no such gap. This looks like a cyclical textile business experiencing a downturn. I would not be a buyer today. I need evidence of margin stabilization, positive sales growth, and improving returns before considering it. Patience, not prediction, is the value investor's edge.

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