IFB Industries (IFBIND)
CyclicalFairStock Score: 30/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,383.6 |
| Market Cap | ₹5,606.18 Cr |
| P/E Ratio | 34.97 |
| ROCE | 19.85% |
| ROE | 15.26% |
| Dividend Yield | 0% |
| Profit Growth | 50.08% |
| Debt/Equity | 0.16 |
| Sales Growth | 16.65% |
| Promoter Holding | 74.96% |
| 52-Week Range | ₹883.2 — ₹2,019.8 |
| Sector | Consumer Durables |
| Book Value | ₹245.53 |
Strengths
- Low leverage with debt/equity of 0.18
- High promoter holding of 74.96% aligns owner interests
- ROCE of 19.85% and ROE of 15.26% are reasonable
- Sales growth of 11.99% shows demand for the brand
- Established presence in household appliances in India
Concerns
- Profit growth is flat at -0.12%; latest quarter net margin is only ~1.8%
- Valuation is expensive: P/E 33.76, P/B 6.14, and PEG 2.82
- Piotroski F-Score of 4/9 and FairStock Score of 21/100 flag fundamental weakness
- No dividend yield offers no income support to shareholders
AI Analysis
IFB is a business I can understand—washing machines, kitchen appliances—but understanding the product doesn't make the stock a bargain. In the latest quarter, IFB generated ₹1,375 Cr in sales but only ₹25 Cr in net profit, a net margin near 1.8%. That is a very thin cushion, and it tells me the business lacks pricing power in a brutally competitive Indian appliance market. Annual profit growth is -0.12%, while sales grew 11.99%; revenue without earnings is not value creation. The balance sheet is decent: debt/equity is 0.18 and ROCE of 19.85% suggests okay capital efficiency. ROE of 15.26% is respectable but not wonderful. But at ₹1,203.80, I am asked to pay 33.76 times earnings and 6.14 times book for a company whose earnings are flat. A PEG of 2.82 is far too high for this quality. The Piotroski F-Score of 4/9 and FairStock Score of 21/100 reinforce my caution. With no dividend yield, I get no income while waiting. Yes, promoter holding is high at 74.96%, which aligns owner interests, and the share is down from its 52-week high of ₹2,019.80. Yet 'down a lot' is not 'cheap.' Graham taught me to buy with a margin of safety. Here the margin is missing. This looks like a cyclical business in a competitive stretch, being valued as a steady grower. I would wait for better earnings stability and a much lower multiple.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer