IL&FS Engg. (IL&FSENGG)

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

Key Financials

Strengths

• Promoter holding is fairly high at 42.25%, indicating some alignment with shareholders.
• Latest quarter turned a small net profit of ₹2 crore on sales of ₹62 crore, a sign of possible stabilisation.
• Profit growth of 136.91% shows improvement, even if from a very low base.
• Piotroski F-Score of 5/9 suggests some fundamental improvement, not all red flags.
• 52-week range of ₹21 to ₹38 means the stock is not at an extended high.

Concerns

• Book value is deeply negative at minus ₹242.63 crore, meaning shareholders' equity is wiped out.
• Debt/equity is not available because equity is negative, indicating severe financial distress.
• Sales are shrinking at -8.17%, so the business is not growing its revenue base.
• ROCE is 0.00%, showing the company earns no meaningful return on capital employed.

AI Analysis

Let me start with what I see clearly. This is not a business that Graham would have called a bargain; with book value at minus ₹242.63 crore, the company actually has negative net worth. A price-to-book ratio is not available because shareholders' equity is wiped out. That alone tells me the financial foundation is broken or still healing. The P/E of 0.00 is meaningless when earnings are negligible, and ROCE of 0.00% confirms the company is not yet earning an acceptable return on capital employed. Sales declined by 8.17%, so the top line is shrinking, not growing. The reported profit growth of 136.91% looks impressive only because the base was tiny; the latest quarter shows sales of ₹62 crore and net profit of just ₹2 crore. That is a thin margin, and one quarter does not make a trend. The Piotroski F-Score of 5/9 is mediocre, not a clean bill of health. Promoter holding at 42.25% is reasonable, but in a stressed civil construction company, ownership alone does not create value. Dividend yield is zero, so I am not being paid to wait. At ₹27.05, the stock sits inside its 52-week range of ₹21 to ₹38, so there is no deep margin of safety from price alone. This is a turnaround candidate, not a stalwart. I need evidence of sustained profitability, positive cash flow, and a real plan to repair the balance sheet. Until I see that, this remains a speculative operation, not an investment.

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