IL&FS Transport (IL&FSTRANS)

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

Key Financials

Strengths

• Latest quarter revenues of ₹807 Cr and 7.66% sales growth show the company still has an active operating franchise.
• High promoter holding of 73.22% provides a large insider stake that could support a future restructuring or resolution.
• At ₹2.47 and ₹81 Cr market cap, the stock is already priced for a distressed scenario, creating potential upside if operations stabilise.

Concerns

• Negative book value of -₹451.72 per share means there is no net asset backing for shareholders.
• Latest quarter net loss of ₹248 Cr and profit growth of -1100.85% show losses are accelerating.
• ROCE of -18.13%, Piotroski F-Score of 3/9, and deeply negative free cash flow signal severe operational and financial distress.
• Debt/Equity of 3.86 and zero dividend yield indicate solvency risk and no return to shareholders.

AI Analysis

IL&FS Transport is the kind of security I would not call an investment. With a book value of -₹451.72 per share, the equity cushion is gone; shareholders are residual claimants in a structure where liabilities have overwhelmed assets. The latest quarter shows ₹807 Cr of sales, yet a net loss of ₹248 Cr. ROCE of -18.13% destroys capital, and profit growth of -1100.85% means losses are compounding. A Piotroski F-Score of 3/9 is a red flag. The P/E of 0.00 is meaningless because earnings are negative. Debt-to-equity of 3.86, even with negative book value, signals dangerous leverage. Free cash flow is deeply negative, so operations are consuming cash. There is no dividend yield, no earnings-based margin of safety. Yes, sales grew 7.66%, but I see no evidence that growth is profitable. Promoter holding in India is often positive, but 73.22% ownership cannot compensate for a broken balance sheet. The market cap is only ₹81 Cr and the price is ₹2.47, near the 52-week range of ₹1.75-₹3.46; this is classic distressed penny-stock territory. Graham's philosophy would tell me to compute net-net value and demand a margin of safety. Here there is no net asset value, only negative book and unresolved obligations. The FairStock Score is N/A, confirming insufficient data. I would need a concrete turnaround plan—equity infusion, debt resolution, and several quarters of positive operating profit—before I could even begin analysis. As of now, this is a speculation, not a value investment.

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