IKIO Tech (IKIO)
Fast GrowerFairStock Score: 13/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹204.97 |
| Market Cap | ₹1,584.02 Cr |
| P/E Ratio | 34.39 |
| ROCE | 8.22% |
| ROE | 3.23% |
| Dividend Yield | 0% |
| Profit Growth | 36.95% |
| Debt/Equity | 0.11 |
| Sales Growth | 11.18% |
| Promoter Holding | 72.5% |
| 52-Week Range | ₹103.53 — ₹248.88 |
| Sector | Consumer Durables |
| Book Value | ₹77.91 |
Strengths
- Debt/equity of just 0.10 keeps financial risk low
- Promoter holding of 72.50% aligns interests with minority shareholders
- Piotroski F-Score of 7/9 indicates decent financial health
- Sales and profit are growing in double digits: 19.81% and 16.62% respectively
- Latest quarter is profitable with ₹146 Cr revenue and ₹11 Cr net profit
Concerns
- P/E of 57.74 and PEG of 3.17 leave no margin of safety
- ROE of only 3.23% and ROCE of 8.22% show weak returns on capital
- Zero dividend yield means no income support while waiting for growth
- FairStock Score of 14/100 and the sharp fall from ₹252.90 to ₹143.25 reflect market skepticism
AI Analysis
Reading IKIO Tech, I am reminded why price and value are different. This is a growing consumer electronics business: sales up 19.81%, profits up 16.62%, and the latest quarter shows ₹146 Cr sales and ₹11 Cr net profit. With a debt/equity of only 0.10 and promoter holding of 72.50%, the financial house is stable, and the Piotroski F-Score of 7/9 supports that. But the numbers that matter to me are returns and price. The company earns only a 3.23% ROE and an 8.22% ROCE. For a business asking me to pay ₹1,097 Cr, a 57.74 times trailing earnings, that is a thin return on the capital employed. Graham taught me that growth is the ally of value only when it comes at a sensible price. At a PEG of 3.17, the market is paying over three times the growth rate, and with a dividend yield of zero, I receive no income while I wait. The stock has fallen from ₹252.90 to ₹143.25, and the FairStock score of 14/100 suggests the market already sees danger. This is not a wonderful business at a fair price; it is a fair business at a price that demands perfection. I would want to see return on equity move decisively higher — say above 15% — before I consider it. I would also need evidence that 20% sales growth translates into profit growth of the same quality for several quarters. Until then, I watch from the sidelines. Cigar-butt investing has its place, but this is no cigar butt, and the price is no bargain.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer