India Pesticides (IPL)

FairStock Score: 24/100 — RISKY

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

Key Financials

Strengths

• Debt-to-equity of 0.05 and Piotroski F-score of 7/9 indicate solid financial health
• Sales growth of 31.19% and profit growth of 33.12% with PEG of 0.50 point to attractive growth valuation
• Promoter holding of 63.65% aligns management with minority shareholders
• ROE of 17.12% is achieved with very low leverage, showing genuine earning quality

Concerns

• ROCE of 13.04% is mediocre and may indicate a limited economic moat
• FairStock Score of 54/100 and price fall from ₹245.84 to ₹150.75 suggest underlying challenges or negative sentiment
• Dividend yield of only 0.48% provides minimal income support if growth slows
• P/B of 2.00 means there is no deep book-value margin of safety

AI Analysis

When I look at India Pesticides, I think like an owner, not a trader. The latest quarter shows sales of ₹226 Cr and net profit of ₹23 Cr, while trailing profit growth is 33.12% on sales growth of 31.19%. That kind of growth, combined with a P/E of just 16.06, catches my attention. The PEG ratio of 0.50 suggests the market is paying only half for the growth rate. But growth alone is never enough. The first thing I check is the balance sheet. Debt-to-equity is 0.05, so this is almost debt-free. Promoters hold 63.65%, so their interests are aligned with mine. ROE of 17.12% is respectable, and a Piotroski F-score of 7/9 tells me the financial health is solid. That gives me some confidence. However, I must demand a margin of safety. At ₹150.75, the stock is at 2.00 times book value of ₹75.52. That is not a deep value bargain, but it is not absurd if the growth is durable. The 52-week range is wide—₹125 to ₹245.84—and the price sits closer to the low. That may reflect fear, and I like fear only when I understand the reason. What bothers me? ROCE is just 13.04%, which is mediocre next to the ROE and suggests limited pricing power or a weaker moat. The dividend yield of 0.48% means I am not being paid to wait. The FairStock Score of 54/100 is mixed, and the sharp fall from ₹245.84 warrants caution. In short, India Pesticides looks like a conservatively financed grower at a fair price. I would keep it on my watchlist, but I would not chase it blind.

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