International Ge (IGIL)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• ROE of 37.71% and ROCE of 53.62% show exceptional capital efficiency and likely pricing power
• Very low leverage with Debt/Equity at 0.10; balance sheet is conservative
• Free cash flow of ₹195 Cr and Piotroski F-Score of 8/9 indicate healthy financial quality
• Promoter holding of 76.55% aligns management interests with minority shareholders
• Sales growth of 19.88% and profit growth of 29.40% demonstrate strong momentum

Concerns

• Price of ₹355.10 is far above Graham Number of ₹66.97 and DCF value of ₹150.51, leaving a deeply negative margin of safety
• P/E of 26.83 and P/B of 10.89 imply high expectations and no asset cushion
• PEG of 2.78 suggests the stock is paying a hefty premium for its growth rate
• Dividend yield of just 0.76% offers negligible downside support; quarterly net margin of 42% looks unusually rich and may need scrutiny

AI Analysis

Reading International Ge, I am reminded that a wonderful business can still be a bad investment at the wrong price. The business itself has some genuinely attractive qualities. It earns 37.71% on equity and 53.62% on capital employed. That is the kind of return on invested capital that Graham would call a protected franchise or exceptionally skilled capital allocation. Debt is almost negligible at 0.10 debt/equity, and free cash flow of ₹195 Cr supports the reported earnings. The Piotroski score of 8/9 reinforces a clean financial picture, and promoter holding of 76.55% means the people running the show have their own capital at risk alongside mine. Growth is not imaginary: sales expanded 19.88% and profit 29.40%, and latest quarter's ₹320 Cr sales converted into ₹135 Cr net profit. That is an unusually rich margin and needs to be watched for sustainability. But at ₹355.10, the scorecard changes. The stock trades at 26.83 times earnings and 10.89 times book value. The Graham Number is only ₹66.97, the DCF value is ₹150.51, and the implied margin of safety is deeply negative. PEG of 2.78 tells me the market is paying more than twice the growth rate, which leaves no room for disappointment. With a dividend yield of just 0.76%, the shareholder is dependent entirely on a continuation of high growth. If the business stumbles—or merely grows a little slower—the multiple can hit both earnings and valuation. Quality is evident, but price is not my friend. I would put it on the watchlist and wait for a considerably lower price or a correction in expectations.

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