Indo Borax & Ch. (INDOBORAX)

FairStock Score: 41/100 — MIXED

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

Key Financials

Strengths

• Zero debt/equity ratio of 0.00 provides a strong, conservative balance sheet
• Promoter holding of 50.80% shows alignment with minority shareholders
• ROE of 14.41% and ROCE of 18.71% indicate respectable capital efficiency
• Piotroski F-Score of 7/9 suggests recent financial health is sound
• Sales growth of 9.36% shows the business is still expanding

Concerns

• Profit growth of only 2.21% despite 9.36% sales growth points to margin compression
• P/E of 19.98 and PEG of 3.45 make the stock expensive for its modest earnings growth
• P/B of 2.61 against book value of ₹97.31 offers little margin of safety
• Dividend yield of 0.41% provides negligible income while waiting for growth

AI Analysis

Indo Borax is a commodity chemical producer, and my first lesson from Graham is that a commodity business has no pricing power. The numbers confirm this. Revenue grew 9.36%, yet net profit rose only 2.21%. The latest quarter shows ₹41 crore in sales and ₹9 crore in net profit, but the trend is of a company running harder for very little extra earnings. At ₹254.45, with a market cap of ₹784 crore, the stock trades at 19.98 times earnings and 2.61 times book value of ₹97.31. That is not a bargain. For growth, the PEG ratio of 3.45 tells me I am paying over three times the growth rate for a commodity chemical maker. FairStock Score of 28/100 says risky, and I agree. The business does have positive traits. Zero debt is excellent. Promoter holding of 50.80 percent aligns owners with shareholders. Return on equity of 14.41 percent and ROCE of 18.71 percent are decent, and the Piotroski score of 7/9 suggests the recent financial health is okay. But a cyclical company near the lower end of its 52-week range of ₹224 to ₹499.95 can still be expensive if earnings are at a cyclical high. The dividend yield of 0.41 percent is almost nothing, so patience is not rewarded while waiting. In Buffett-style investing, it is far better to buy a wonderful business at a fair price than a fair business at a wonderful price. This is a fair business at a price that offers no margin of safety. I would wait for a lower price, or for evidence that earnings growth has caught up with sales growth, before acting.

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