IFCI (IFCI)

FairStock Score: 62/100 — STEADY

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

Key Financials

Strengths

• Government promoter holding of 72.57% provides ownership stability and potential institutional support.
• Debt/Equity of 0.43 is conservative for a financial institution, giving some balance sheet cushion.
• Piotroski F-Score of 6/9 indicates improving operating efficiency and financial fundamentals.
• Profit growth of 412% and positive quarterly net profit of ₹21 Cr suggest earnings are turning around from a low base.

Concerns

• Valuation is rich: P/E of 40.45, P/B of 1.89 vs ROE of 4.54%, and price is far above Graham Number of ₹36.64.
• Business quality is weak: sales growth is -2.80%, and latest quarterly net margin is only around 4.6%.
• Financial stress signals are visible: Altman Z-Score of 0.95, negative free cash flow of ₹1,054 Cr, and zero dividend yield.
• The 412% profit growth is from a low base and may not be sustainable; current absolute profit is thin at ₹21 Cr quarterly.

AI Analysis

IFCI is the kind of institution that demands a cold-eyed look. The reported profit growth of 412% looks striking, but a ₹21 Cr quarterly profit on ₹456 Cr of sales means the earnings power is still thin. A P/E of 40.45 and a P/B of 1.89 against a book value of ₹32.26 is not a bargain. The Graham Number of ₹36.64 is a useful anchor; at ₹61.07, I am paying roughly two-thirds above that conservative valuation. With ROE at 4.54%, this is not a business compounding wealth for shareholders. Despite the government promoter holding of 72.57%, that does not give me a moat; it gives me a policy-dependent parent. Negative sales growth and negative free cash flow of ₹1,054 Cr reinforce my caution. Altman Z-Score of 0.95 sits in the danger zone, so financial health is weaker than the tidy D/E of 0.43 might suggest. The positive Piotroski F-Score of 6 provides some evidence of improving fundamentals, and the low PEG of 0.58 shows that the market is pricing in future growth, but value investors pay for today's facts, not optimistic projections. I would keep this on the watchlist, not in the portfolio. A turnaround requires many years of consistent profitability, rising ROE, and positive cash flow before I would consider it. At this price, the margin of safety is negative. In Graham's words, price is what you pay, value is what you get. Here, I am not convinced I would get my money's worth.

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