IFGL Refractori. (IFGLEXPOR)

FairStock Score: 14/100 — RISKY

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

Key Financials

Strengths

• Low debt/equity of 0.19 provides financial cushion
• High promoter holding of 72.43% aligns management with shareholders
• Piotroski F-Score of 7/9 indicates decent fundamentals despite recent loss
• Sales growth of 23.70% and profit growth of 34.40% show expansion momentum
• Dividend yield of 2.05% offers some return while waiting

Concerns

• Latest quarter net profit is -₹3 Cr on sales of ₹469 Cr, showing weak margins and a possible earnings downturn
• ROE of 6.39% and ROCE of 5.71% are far too low to justify a P/B of 1.99
• P/E of 40.42 and PEG of 1.39 leave little margin of safety for a cyclical business
• Price has fallen sharply from 52-week high of ₹338.00, and FairStock Score of 29/100 labels the stock risky

AI Analysis

At ₹181, IFGL Refractori carries a market cap of ₹1,233 Cr and asks me to pay 40.42 times earnings and nearly twice book value. For a company earning an ROE of only 6.39% and ROCE of 5.71%, that is not a valuation Graham would admire. A business that returns single digits on capital must offer extraordinary certainty to deserve a premium; this one offers a quarterly loss of ₹3 Cr on sales of ₹469 Cr in the latest quarter. Margin of safety is thin. The positives: debt/equity is low at 0.19, promoter holding is strong at 72.43%, and the Piotroski F-Score of 7/9 suggests no alarming deterioration. Sales grew 23.70% and profit grew 34.40%, with a PEG of 1.39. But cyclicals can show glowing numbers when times are good, and a P/E of 40.42 may be telling me that earnings are depressed or about to normalize. The 52-week range of ₹119.68 to ₹338.00, with the share at ₹181, shows how volatile this business can be. I prefer predictability and high returns on tangible capital. Here I see neither. The dividend yield of 2.05% is modest compensation. FairStock Score of 29/100 calls it risky; I agree. I would wait, watch quarterly margins, and demand a much lower entry price or sustainable higher returns before committing. In the words of Buffett, it is easy to overpay for a cyclical; the time to be greedy is when others are fearful, but only if the business deserves it.

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