IVP (IVP)

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

Key Financials

Strengths

• Cheap valuation: P/E 10.12 and P/B 1.13 vs book value of ₹129.02
• Strong recent earnings momentum: profit growth 161.90% and sales growth 12.07%
• Piotroski F-score 7/9 points to improving financial health
• High promoter holding of 71.32% aligns management with minority shareholders
• Modest leverage and positive ROE/ROCE around 10%

Concerns

• Profit growth may be cyclical or from a low base; latest quarter net profit of ₹5 Cr on ₹145 Cr sales implies a thin margin
• ROE of 10.19% and ROCE of 9.99% suggest limited competitive advantage or pricing power
• Debt/equity of 0.69 is manageable but not conservative for a small-cap chemical firm
• Low dividend yield of 0.73% offers little income support, and the wide 52-week range indicates volatility

AI Analysis

At ₹146.29, IVP is a small-cap specialty chemicals play with a market cap of just ₹141 Cr. The first thing that catches my eye is the valuation: a P/E of 10.12 and a P/B of 1.13 against a book value of ₹129.02. In the Graham tradition, paying close to tangible book for a company with improving earnings is a reasonable starting point. The Piotroski F-score of 7/9 suggests financial health is strengthening, and promoter holding of 71.32% means my interests are broadly aligned with owners. Sales grew 12.07%, and reported profit jumped 161.90%, giving a remarkably low PEG of 0.12. But I must be careful: one year of explosive profit growth is not proof of an economic moat. ROE of 10.19% and ROCE of 9.99% are acceptable, not exceptional. They tell me this is a decent, ordinary business, not a compounding machine. Debt/equity of 0.69 is manageable, but for a small chemical company I would prefer a stronger balance sheet. The latest quarter shows net profit of ₹5 Cr on sales of ₹145 Cr, which implies a thin net margin; earnings are clearly sensitive to costs and pricing. Specialty chemicals can be cyclical, and the 52-week range of ₹110 to ₹194 reminds me that Mr. Market gets emotional. The 161.90% profit growth may reflect a true turnaround, a low base, or favourable one-off factors. With insufficient data to judge durability, I would not rush in. At 1.13 times book and 10 times earnings, there is some margin of safety, but I need several more quarters of steady cash profits before calling this a high-conviction Buffett-style purchase.

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