IGIL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.6

📊 Core Financials Analysis

Revenue & Profit Growth: Strong quarterly profit variation of 62.6% indicates robust earnings momentum.

Profitability

ROCE: 68.0% — exceptionally high, signaling efficient capital usage.

ROE: 54.4% — very strong, showing excellent shareholder returns.

Debt Position

Debt-to-Equity: 0.11 — virtually debt-free, which enhances financial stability.

Cash Flow: While specific cash flow data isn't provided, low debt and high ROCE/ROE suggest healthy operational cash generation.

📉 Valuation Metrics

Metric Value Interpretation

P/E Ratio 35.9 Slightly above industry average (27.5), but justified by growth

P/B Ratio ~14.2 High, indicating premium valuation

PEG Ratio Not available Limits precision in growth-adjusted valuation

EPS ₹11.6 Solid earnings base

Intrinsic Value Likely lower than CMP Suggests overvaluation at current levels

🧠 Business Model & Competitive Edge

Business Model: IGIL (likely Garware Hi-Tech Films) operates in specialty films — a niche with high entry barriers and strong demand in automotive, industrial, and packaging sectors.

Competitive Advantage

High ROCE and ROE reflect operational excellence.

Low debt and consistent profitability offer resilience.

Strong brand and technical expertise in high-margin segments.

📌 Entry Zone & Investment Guidance

Current Price: ₹407

DMA 50: ₹386 — near-term support

DMA 200: ₹413 — long-term average

RSI: 60.6 — neutral to slightly overbought

🔍 Suggested Entry Zone: ₹370–₹390 This range offers a better risk-reward ratio, especially if the stock pulls back from recent highs.

📈 Long-Term Holding Guidance

Ideal for long-term investors seeking high-quality, low-debt, high-ROCE businesses.

Monitor quarterly earnings and volume trends.

Consider partial profit booking if price approaches ₹600+ again without earnings support.

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