IL&FS Inv.Manag. (IVC)

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

Key Financials

Strengths

• Asset-light AMC business with historically high reported ROE of 30.10%
• Promoter holding of 50.42% aligns ownership with minority shareholders
• Dividend yield of 6.82% offers some cash return if maintained
• Small market cap of ₹230 crore could allow room for operational recovery

Concerns

• Sales growth is deeply negative at -21.01%, and profit growth is -159.44%
• Latest quarter shows a net loss of ₹3 crore on sales of only ₹7 crore
• Piotroski F-Score of 3/9 signals weak financial health and operational deterioration
• After earnings collapse, P/E of 28.92 and P/B of 2.79 leave little margin of safety

AI Analysis

At ₹7.80, this is a small ₹230 crore market cap asset management company. The first thing I see is a business in trouble: sales down 21% and profit growth down 159%, with latest quarter sales of only ₹7 crore and a net loss of ₹3 crore. A Piotroski F-score of 3 out of 9 confirms weak financial health. I cannot call this a wonderful business. Asset management can be a great compounding machine when assets under management grow, but here the top line is shrinking and losses have appeared. ROE of 30% looks impressive, but it is misleading when profits are currently negative and ROCE is only 6.5%. The 6.82% dividend yield is attractive only if dividends are sustainable; paying out while losing money is not a long-term shareholder-friendly sign. Book value is ₹2.80, so at ₹7.80 I am paying 2.79 times book for a franchise whose earnings are collapsing. The 50.42% promoter holding is good alignment, but promoters alone do not create moats. In Graham's language, this is a speculative situation, not an investment. I need margin of safety; a shrinking AMC with negative earnings has none for me. It might be a turnaround if operational trends reverse, but the numbers do not yet show that. The 52-week range ₹6.02-₹9.88 suggests a beaten-down stock, but cheap can get cheaper. I would watch for sustained positive quarterly profits, stabilization of sales, and dividend coverage before I consider buying. For now, this is not a Buffett-style compounder.

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