Indoco Remedies (INDOCO)

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

Key Financials

Strengths

• Promoter holding of 58.9% aligns management interests with shareholders.
• Sales growth of 8.48% shows the business still has demand traction.
• Piotroski F-Score of 6/9 indicates moderate financial health improvements.
• Book value of ₹124.25 provides some asset backing despite current losses.

Concerns

• Latest quarter net loss of ₹29 Cr and negative ROE of -5.19% show no earnings power.
• P/E of 0.00 with negative profits makes the P/B of 1.72 look expensive.
• Debt/equity of 1.03 combined with ROCE of -0.49% signals poor capital efficiency.
• FairStock Score of 0/100 and dividend yield of 0.10% offer no income or safety cushion.

AI Analysis

Let’s look at Indoco Remedies. A pharmaceutical company with a market cap of ₹1,867 Cr. At ₹214, I’m being asked to pay 1.72 times book value for a business that earned -5.19% on equity in the latest period. That’s not a good trade. The latest quarter tells the story: sales of ₹445 Cr but a net loss of ₹29 Cr. A P/E of 0.00 reflects that there are no earnings to justify a multiple. In Graham’s world, we buy earnings, not hopes. The 8.48% sales growth is nice, but if those sales can’t translate into profits, it’s just expensive turnover. The ROCE at -0.49% confirms capital is barely being put to work. Debt/equity of 1.03 isn’t catastrophic, but it’s not conservative for a company with negative returns. On the positive side, promoter holding of 58.9% shows skin in the game. Piotroski F-score of 6/9 suggests some operational improvements, and book value of ₹124.25 gives a floor, but the current price is 72% above that floor. The dividend yield of 0.10% is negligible—owners are not being paid to wait. Profit growth of 13.20% means little when you’re still losing money; it’s likely from a low base. This doesn’t have the quality of a compounder, nor the margin of safety of a bargain. It looks like a turnaround situation, but the balance sheet isn’t strong enough to give me confidence. I’d like to see a clear path to sustained positive earnings, better capital allocation, and a price closer to book value—or at least proof that the losses are reversing. Until then, I'll watch from the sidelines. Good businesses are predictable; this one is not yet.

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