IGIL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | IGIL | Market Cap | 16,061 Cr. | Current Price | 372 ₹ | High / Low | 442 ₹ |
| Stock P/E | 27.6 | Book Value | 60.0 ₹ | Dividend Yield | 0.65 % | ROCE | 30.7 % |
| ROE | 23.2 % | Face Value | 2.00 ₹ | DMA 50 | 340 ₹ | DMA 200 | 346 ₹ |
| Chg in FII Hold | -1.01 % | Chg in DII Hold | 0.94 % | PAT Qtr | 174 Cr. | PAT Prev Qtr | 132 Cr. |
| RSI | 63.0 | MACD | 0.44 | Volume | 58,54,298 | Avg Vol 1Wk | 21,91,312 |
| Low price | 287 ₹ | High price | 442 ₹ | PEG Ratio | 0.89 | Debt to equity | 0.01 |
| 52w Index | 54.4 % | Qtr Profit Var | 25.2 % | EPS | 13.5 ₹ | Industry PE | 21.0 |
📊 Core Financials: IGIL demonstrates strong fundamentals with ROCE at 30.7% and ROE at 23.2%, reflecting efficient capital utilization. Debt-to-equity ratio of 0.01 highlights a virtually debt-free balance sheet. Quarterly PAT of ₹174 Cr. improved from ₹132 Cr., showing healthy growth. EPS of ₹13.5 supports earnings consistency.
💰 Valuation Indicators: Current P/E of 27.6 is above the industry average of 21.0, suggesting slight overvaluation. P/B ratio of ~6.2 (372/60) indicates premium pricing. PEG ratio of 0.89 suggests growth is reasonably priced. Dividend yield of 0.65% provides modest income return. Intrinsic value appears close to current levels, indicating fair valuation.
🏢 Business Model & Competitive Advantage: IGIL operates with a diversified business model, leveraging efficiency and scale. Its competitive advantage lies in strong profitability, low debt, and consistent growth. Institutional interest remains steady, though FII holdings have declined slightly.
📈 Entry Zone: RSI at 63.0 indicates mildly overbought conditions, while MACD positive suggests momentum. Current price of ₹372 is near support (~₹340). Entry between ₹340–₹360 may be favorable for long-term investors.
⏳ Long-Term Holding Guidance: Strong fundamentals, low debt, and consistent profitability make IGIL a solid candidate for long-term holding. Slight overvaluation warrants cautious entry, but overall health supports compounding potential.
Positive
- 🌟 High ROCE (30.7%) and ROE (23.2%)
- 🌟 Virtually debt-free (Debt-to-equity 0.01)
- 🌟 Strong quarterly PAT growth (₹132 Cr. → ₹174 Cr.)
- 🌟 PEG ratio of 0.89 indicates reasonable growth valuation
Limitation
- ⚠️ P/E (27.6) above industry average (21.0)
- ⚠️ RSI at 63.0 suggests mildly overbought conditions
- ⚠️ Dividend yield of 0.65% is modest
Company Negative News
- 📉 Decline in FII holding (-1.01%)
Company Positive News
- 📈 Increase in DII holding (+0.94%)
- 📈 Strong quarterly profit growth (+25.2%)
Industry
- 🌐 Industry P/E at 21.0 reflects moderate valuation
- 🌐 Sector growth supported by strong demand trends
- 🌐 IGIL positioned well with efficient capital use
Conclusion
✅ IGIL shows strong fundamentals, efficient capital returns, and low debt. Entry between ₹340–₹360 is favorable for long-term investors. While slightly overvalued, its profitability and growth momentum make it a reliable candidate for wealth compounding.
Would you like me to also compare IGIL with peers such as IGL or MGL to highlight sector positioning?