Indrapr.Medical (INDRAMEDCO)

FairStock Score: 48/100 — MIXED

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

Key Financials

Strengths

• ROE of 34.88% and ROCE of 39.10% show exceptional capital efficiency
• Debt/Equity of 0.05 gives a highly conservative balance sheet
• Profit growth of 24.96% outpaced sales growth of 14.37%, indicating operating leverage
• Piotroski F-Score of 7/9 reflects sound financial health
• Promoter holding of 51% aligns management with minority shareholders

Concerns

• P/B of 7.17 is expensive and leaves little margin of safety if growth slows
• Price is near the 52-week low despite a P/E of 20.15, suggesting skeptical market sentiment
• Dividend yield of only 1.12% offers limited income support
• FairStock Score of 51/100 is mixed, not a clean fundamental signal

AI Analysis

When I look at Indrapr.Medical, I try to ignore the tape and ask what the business earns on capital. The answer is impressive: ROE of 34.88% and ROCE of 39.10%, with debt/equity of just 0.05. That is the kind of return on tangible capital that Graham would call a genuine business, not a speculation. It earns these returns while growing sales 14.37% and profits 24.96%—profits expanding faster than revenue, which tells me operating leverage and likely pricing power in a scarce hospital network. The Piotroski F-score of 7/9 supports clean financials. Promoter holding of 51% aligns owners and management. At ₹406, however, I must be disciplined. The stock trades at 20.15 times earnings and 7.17 times book value. The PEG ratio is about 1.02, which is reasonable only if the 25% profit growth is sustainable. I cannot pay 7 times book without a wide, durable moat, and while these numbers are good, the FairStock Score of 51/100 and the price sitting well below the 52-week high of ₹640.85 remind me that Mr. Market is unsure. I would not chase it. A 1.12% dividend is modest, so returns must come from growth and multiple support. For an Indian retail investor, this is a business to study more, not to buy blindly. If they can maintain 35% ROE and keep debt this low, the compounding could be extraordinary; if competition or regulation hits margins, the high P/B leaves no cushion. In Graham's language, pay fair price for excellent management and capital allocation, but keep margin of safety. Today, at 20 times earnings, that margin is thin.

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