Interarch Build. (INTERARCH)

FairStock Score: 47/100 — MIXED

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

Key Financials

Strengths

• ROCE of 24.81% and ROE of 20.20% show strong capital efficiency.
• Near-zero debt with D/E of 0.01 keeps the balance sheet conservative.
• Sales growth of 43.7% and profit growth of 40.7% are exceptional, with a PEG of 0.54.
• Promoter holding of 59.43% aligns management with minority shareholders.
• Piotroski F-Score of 7/9 indicates healthy financial fundamentals.

Concerns

• P/E of 22.66 and P/B of 5.06 leave limited Graham-style margin of safety.
• Latest quarter net margin is thin at about 7% (₹37 Cr profit on ₹523 Cr sales), exposing to cost pressures.
• Profit growth at 40.67% is slightly below sales growth of 43.70%, implying mild margin compression.
• Dividend yield of only 0.67% means returns depend almost entirely on capital appreciation.

AI Analysis

Looking at Interarch, I see a business that has grown the way a compounder should. Sales up 43.7%, profit up 40.7%, with return on equity at 20.2% and ROCE at 24.8%. That is serious capital efficiency. The balance sheet is pristine: debt-to-equity is 0.01, so the growth is not built on borrowed money. In my experience, a company that can grow while staying unlevered deserves respect. Promoters own 59.43%, so their interests are aligned with mine. The Piotroski score of 7/9 reinforces the healthy fundamentals. Is it a wonderful business? The 22.66 P/E is not a Graham bargain, but with 40% profit growth, the PEG ratio is only 0.54. That suggests the market is not paying enough attention to the growth, or it is pricing in a slowdown. The book value of ₹408.47 and P/B of 5.06 warn me that I am paying a rich price for assets. However, ROE of 20% makes that book value grow quickly. Dividend yield is low at 0.67%; I am not buying this for income. Margin of safety? The stock trades 25% below its 52-week high of ₹2,762.60, but still above its low of ₹1,604.70. Last quarter's net profit of ₹37 Cr on sales of ₹523 Cr gives a thin net margin of around 7%. A construction company with thin margins needs disciplined execution. The FairStock Score of 51/100 says mixed; I would not treat this as a deep-value situation. If I buy, I am relying on continued strong order flow and execution. At 22.66 times earnings, any stumble in growth could compress the multiple. But for an investor with a long horizon, this looks like a fast grower with a clean balance sheet and proper capital allocation.

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