India Motor Part (IMPAL)

FairStock Score: 26/100 — RISKY

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

Key Financials

AI Analysis

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

At ₹1015.85, IMPAL sells at half its book value of ₹2049.55, yet the P/E is 14.60. That combination catches my Graham-trained eye, but I must ask what the book value actually earns. The answer is not encouraging: ROE is only 3.40% and ROCE is 4.38%. A business earning such thin returns on such a large equity base is not a wonderful company. It may be an asset-rich situation waiting for better capital allocation, or simply a low-return trader. Sales grew 9.13% while profit grew only 5.40%, so the latest quarter's net margin of roughly 7.4% is not improving. The 2.87% dividend yield gives some reward while waiting, and the Piotroski F-Score of 7/9 suggests no immediate financial distress. But the FairStock Score of 23/100, labelled risky, and a PEG of 2.01 remind me that cheap on book is not automatically cheap on value. As Graham said, price is what you pay; value is what you get. I need evidence that the assets can generate better cash returns — or that hidden value exists in inventory, receivables, or non-core holdings. Promoter holding of 33.81% is moderate; I would prefer stronger alignment. This is not a high-quality stalwart; it is an asset play whose value depends on management improving capital efficiency or unlocking book value. I would not buy purely because of the low P/B. I would need a credible plan to convert balance-sheet strength into shareholder returns, through higher margins, buybacks, or special dividends. Until then, the margin of safety exists on paper, but business quality remains weak.

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