ISGEC Heavy (ISGEC)
Fast GrowerFairStock Score: 46/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹732.15 |
| Market Cap | ₹5,383.46 Cr |
| P/E Ratio | 48.55 |
| ROCE | 14.83% |
| ROE | 13.47% |
| Dividend Yield | 0.82% |
| Profit Growth | -82.8% |
| Debt/Equity | 0.33 |
| Sales Growth | 47.7% |
| Promoter Holding | 62.43% |
| 52-Week Range | ₹683.95 — ₹1,113.9 |
| Sector | Construction |
| Book Value | ₹372.2 |
Strengths
- Profit growth of 102.88% is exceptional, and with a PEG of 0.34, the valuation appears reasonable if growth persists
- Low debt/equity of 0.32 provides financial cushion for a cyclical construction business
- Promoter holding of 62.43% aligns management interests with minority shareholders
- Piotroski F-Score of 7/9 indicates solid financial health and earning quality
Concerns
- Price to book of 3.44 is rich for a construction company, leaving little margin of safety
- Sales growth of 16.26% lags profit growth sharply, raising questions about sustainability of earnings expansion
- Dividend yield of 0.56% offers negligible income while waiting for growth to materialize
- FairScore of 47/100 suggests mixed fundamentals and moderate business quality
AI Analysis
Let me look at ISGEC Heavy as a business. The first thing that strikes me is the profit growth of 102.88% against sales growth of 16.26%. That is a fine trick, but I always ask how durable it is. The latest quarter shows net profit of ₹84 Cr on sales of ₹1,739 Cr, a margin around 4.8%. The price-to-earnings ratio of 19.96 is not cheap, but the PEG ratio of 0.34 suggests the market is underpricing growth if the trend continues. Book value is ₹308.43, so at ₹1,061.75 I am paying 3.44 times book. That's high for a construction company, which is a cyclical business. However, the balance sheet is respectable: debt/equity of 0.32 and a Piotroski score of 7 out of 9 tells me the past year was financially healthy. Return on equity of 13.47% and ROCE of 14.83% are decent, not exceptional. The dividend yield is only 0.56%, so I am not being paid to wait. Promoters own 62.43%, which aligns interests. FairScore gives 47/100, a mixed signal. In Buffett's terms, this could be a good grower if management deploys capital well, but I would demand a margin of safety at this price. I'd wait for a pullback or evidence that sales growth picks up to justify the earnings jump.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer