Igarashi Motors (IGARASHI)

FairStock Score: 23/100 — RISKY

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

Key Financials

Strengths

• Promoter holding of 75% aligns management with minority shareholders.
• Debt/equity of 0.31 is conservative, giving balance-sheet flexibility.
• Sales growth remains positive at 2.51% with latest quarter revenue of ₹216 crore.
• Book value of ₹146.29 per share provides some underlying asset support.

Concerns

• Extremely high valuation: P/E 83.12, PEG 33.12, and P/B 2.50 with low returns.
• Weak profitability: ROE 2.96%, ROCE 7.73%, net profit down 32.17% and quarterly net profit only ₹4 crore.
• Piotroski F-Score of 4/9 and FairStock Score of 0/100 indicate financial stress and risk.
• Low dividend yield of 0.70% offers little income support.

AI Analysis

At ₹365.30, Igarashi Motors carries a market cap of ₹1,131 crore. Let me start with the obvious: a P/E of 83.12 and a PEG of 33.12 are not numbers Benjamin Graham would ever call an entry price. The company earned only ₹4 crore net profit in the latest quarter; annualise that and the earnings yield is minuscule. The scoreboard is weak: ROE is 2.96%, ROCE is 7.73%, profits have fallen 32.17% while sales grew just 2.51%. Piotroski F-Score of 4/9 points to deteriorating fundamentals, and the FairStock Score of 0 screams risk. What do I like? Promoter holding of 75% is genuinely positive—owner-operators with skin in the game, and a debt/equity ratio of 0.31 is manageable. A low-debt balance sheet is only valuable if management can earn decent returns on capital. Here ROCE is not adequate, and ROE under 3% is poor. Dividend yield of 0.70% offers little compensation. This is not a moat. At best I see an auto component supplier whose earnings are in a weak phase, trading at a price that assumes a dramatic turnaround in profitability. Mr. Market is paying a rich multiple today for a company whose recent results are drifting the wrong way. The 52-week range shows plenty of volatility, and the latest quarter's net margin is thin. I need a wide margin of safety; at 83 times earnings with declining profits, that margin does not exist. I will pass. If the business can eventually improve margins and grow sales meaningfully, I might revisit, but only at a price that reflects the poor near-term fundamentals.

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