Inventurus Knowl (IKS)

FairStock Score: 70/100 — STEADY

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

Key Financials

Strengths

• Elite profitability: ROE of 37.07% and ROCE of 27.20% reflect exceptional capital efficiency.
• Strong growth engine: 5-year revenue CAGR of 36.95% and latest profit growth of 47.04%; latest quarter net profit ₹183 Cr on sales ₹815 Cr.
• Financially sound: debt-to-equity 0.34, Piotroski F-Score 8/9, Altman Z-Score 7.65, and positive free cash flow of ₹559 Cr.
• High promoter holding of 63.72% aligns owners with minority shareholders.

Concerns

• Very demanding valuation: P/E of 35.60, P/B of 13.77, EV/EBITDA of 79.47, and zero dividend yield.
• Graham Number of ₹301.49 and negative margin of safety of -356.33% suggest the price is far above conservative intrinsic value.
• Recent sales growth of 18.48% is below the 5-year CAGR of 36.95%, indicating possible deceleration; any miss could hurt a high-multiple stock.
• DCF intrinsic value of ₹1,743.70 is only about 21% above the current price, leaving a limited cushion for error.

AI Analysis

When I look at Inventurus Knowl, I see a high-quality business wrapped in a very demanding price. The numbers tell a story of exceptional capital compounding: return on equity of 37.07%, return on capital employed of 27.20%, and a manageable debt-to-equity of 0.34. A Piotroski score of 8 out of 9 and an Altman Z-score of 7.65 point to a sound balance sheet, and free cash flow of ₹559 crore gives it breathing room. That is the kind of financial health I admire. Growth is equally impressive. Five-year revenue CAGR of 36.95%, recent sales growth of 18.48%, and latest profit growth of 47.04% show momentum. Promoter holding of 63.72% means owners are still heavily invested, which I always like to see. But a good business is not necessarily a good investment at any price. At ₹1,435.40, the market is paying a P/E of 35.60, a P/B of 13.77, and an EV/EBITDA of 79.47. Graham would demand margin of safety; here, the Graham Number of ₹301.49 puts the stock at a huge premium. A discounted cash flow estimate of ₹1,743.70 offers only a modest cushion. The zero dividend yield only heightens the reliance on future growth. I would call this a fast grower, not a stalwart at a fair price. The quality is real, but the valuation leaves little room for error. I would keep watching whether earnings actually deliver on the price the market already assumes.

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