Innova Captab (INNOVACAP)
Fast GrowerFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,036 |
| Market Cap | ₹5,928.5 Cr |
| P/E Ratio | 38.46 |
| ROCE | 14.63% |
| ROE | 10.32% |
| Dividend Yield | 0.39% |
| Profit Growth | 42.3% |
| Debt/Equity | 0.32 |
| Sales Growth | 33.9% |
| Promoter Holding | 50.9% |
| 52-Week Range | ₹622 — ₹1,200.35 |
| Sector | Pharmaceuticals & Biotechnology |
| Book Value | ₹190.62 |
Strengths
- Strong revenue growth of 42.29% with latest quarter sales at ₹450 Cr
- Low debt-to-equity of 0.33 indicates a conservative balance sheet
- Piotroski F-Score of 7/9 reflects sound operational and financial fundamentals
- Promoter holding of 50.90% aligns management interests with shareholders
- Positive net profit in the latest quarter at ₹42 Cr shows the business is profitable
Concerns
- High valuation with P/E of 28.88 and P/B of 5.40 leaves little margin of safety
- ROE of 10.32% and ROCE of 14.63% are moderate, suggesting no wide moat
- Profit growth of 23.25% lags sales growth of 42.29%, indicating possible margin pressure
- Stock is down significantly from its 52-week high of ₹1,122, showing price volatility
AI Analysis
Let's start with what I like: Innova Captab is a pharmaceutical company growing at a brisk pace. Sales are up 42.29%, and the latest quarter shows ₹450 Cr in revenue with ₹42 Cr in net profit. That kind of momentum is not easy to find. Debt is low at 0.33 Debt/Equity, and a Piotroski F-Score of 7/9 tells me the financial health is reasonably sound. Promoter holding at 50.90% also aligns owner and shareholder interests, which I always appreciate. But I must pause. My friend Graham taught me that price is what you pay, value is what you get. At ₹724.25, the P/E is 28.88 and P/B is 5.40 against a book value of ₹134.13. That is not a bargain. The business earns an ROE of only 10.32% and ROCE of 14.63%, which are respectable but not exceptional. A great company should generate consistently high returns on capital; these numbers suggest the moat is modest. The stock is also closer to its 52-week low of ₹622 than its high of ₹1,122, which should make any buyer cautious. The PEG ratio of 0.88 looks attractive, but profit growth of 23.25% is slower than sales growth of 42.29%, meaning margins are being stretched. For a fast-growing pharma player, I need to see profitability catch up with revenue growth. At this valuation, Mr Market is already paying for future success. I would keep it on the watchlist, but I would not hurry to buy without a wider margin of safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer