IKIO Tech (IKIO)

FairStock Score: 13/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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