IZMO (IZMO)

FairStock Score: 39/100 — MIXED

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

Key Financials

Strengths

• Debt/Equity of 0.03, so the balance sheet is very conservative
• Latest quarter shows strong net margin: ₹12 Cr profit on ₹59 Cr sales
• Profit growth of 93.07% and Piotroski F-Score of 7/9 suggest improving financial health
• PEG ratio of 0.43 indicates the growth may be inexpensive if earnings momentum sustains

Concerns

• Sales growth is just 0.75%; top line is essentially flat
• ROE of 0.35% and ROCE of 7.98% indicate weak capital efficiency
• P/E of 29.87 and P/B of 5.28 are rich for a stagnant-revenue, low-return business
• No dividend yield and FairStock Score of 33/100 highlight risk and lack of shareholder return

AI Analysis

At ₹719.55, IZMO carries a market capitalisation of ₹1,110 Cr, and I must ask what I am buying. The trailing P/E of 29.87 is not cheap, especially when the business grew sales only 0.75%. A 93.07% profit growth figure grabs attention, but a value investor should be careful. Profit can grow from a low base, from cost cuts, or from one-off gains. The latest quarter shows sales of ₹59 Cr and net profit of ₹12 Cr — a healthy 20% margin, but one quarter is not proof of durable economics. The reported ROE of 0.35% and ROCE of 7.98% are far below what I would expect from a quality compounder. With book value at ₹136.25 and price 5.28 times book, the market is paying a rich price for a mediocre return on equity. The balance sheet is conservative: debt/equity of 0.03, and the Piotroski F-Score of 7/9 hints at improving finances. That is good, but not enough. There is no dividend yield; shareholders must rely entirely on price appreciation. Promoter holding of 34.81% is reasonable but not overwhelmingly aligned. The 52-week range of ₹372.30 to ₹1,374.70 shows serious volatility; the stock has fallen sharply from its high. FairStock calls it risky at 33/100, and I agree. The low PEG of 0.43 is only meaningful if the 93% profit growth is sustainable, but with revenue almost flat, I suspect a turnaround rather than a structural fast grower. In Graham's language, this is an enterprise with a sound balance sheet but unimpressive earnings power and unclear moat. I would need evidence of consistent organic revenue growth and higher returns on capital before paying today's price.

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