Indegene (INDGN)

FairStock Score: 70/100 — STEADY

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

Key Financials

Strengths

• 5-year revenue CAGR of 24.06% and latest quarter sales of ₹942 Cr show strong business demand
• Very low leverage: Debt/Equity of 0.04, supported by Altman Z-Score of 4.50
• Piotroski F-Score of 7/9 suggests solid operational health
• ROCE of 24.80% and ROE of 16.78% indicate efficient capital deployment
• Graham Number of ₹1278.09 is significantly above the current price of ₹491.95

Concerns

• Profit growth of 6.83% lags revenue growth of 15.66%, suggesting margin pressure
• Free cash flow is negative at -₹235 Cr despite reported profits, raising questions about earnings quality
• Promoter holding of 0.00% is an unusual ownership/governance red flag
• P/E of 27.19 and P/B of 4.52 leave little room for execution disappointments, and negative EV/EBITDA needs explanation

AI Analysis

At first glance this is not a Graham cigar butt; it is a growing business with real economic characteristics. Indegene has compounded revenue at 24.06% annually over five years, and the latest quarter shows sales of ₹942 Cr and net profit of ₹103 Cr. With debt/equity of only 0.04, ROCE of 24.80%, and an Altman Z-score of 4.50, the balance sheet is strong. The Piotroski score of 7 out of 9 also tells me the fundamentals are not collapsing. But I must be honest: I buy businesses, not just numbers. Profit growth of only 6.83% against revenue growth of 15.66% tells me the extra revenue is not reaching shareholders at the same pace. And the free cash flow of -₹235 Cr is a red flag. In my world, earnings should eventually show up as cash; if they do not, I want to know where the cash went. The promoter holding of 0.00% is also unusual; if the people running the business do not own part of it, their interests are not fully aligned with mine. At ₹491.95, the P/E of 27.19 is a fair price for a compounder, not a bargain. The Graham Number of ₹1278.09 gives a mathematical margin of safety, but I treat Graham's formula as a starting point, not a conclusion. This looks like a stalwart—steady, well-financed, growing—but I need clearer proof of cash conversion and profit acceleration before putting a large amount of money to work.

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