IGIL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of IGIL (International Gemmological Institute India Ltd), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated recent performance data and technical indicators as of September 2025.

📊 Fundamental Analysis of IGIL

🔍 Core Financials

Profitability

PAT Qtr: ₹137 Cr vs ₹139 Cr — stable, with YoY profit growth of 43.0%.

EPS: ₹11.7 — solid, supported by high-margin operations.

ROE: 32.5%, ROCE: 42.6% — excellent capital efficiency, well above industry norms.

Leverage & Liquidity

Debt-to-equity: 0.01 — virtually debt-free, strong balance sheet.

Dividend Yield: 0.66% — modest, with room for future growth.

Cash Flow & Stability

Operating profit margin consistently above 55%, with FY25 net profit of ₹491 Cr

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Revenue growth: ₹1,121 Cr TTM vs ₹639 Cr in FY23 — strong momentum

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Global footprint: 31 labs across 10 countries and 18 gemology schools in 6 countries

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 33.1 Slightly overvalued vs industry PE of 25.8

P/B Ratio ~6.96 High — reflects premium on brand and scalability

PEG Ratio 0.93 Fair — growth moderately justifies valuation

Intrinsic Value ~₹360–₹375 Slightly below current price — limited upside

💎 Business Model & Competitive Edge

Segment Focus: Certification and accreditation of diamonds, gemstones, and jewelry; gemology education.

Moat: Largest independent gem certification provider globally; strong brand trust and international reach.

Growth Drivers

Rising demand for certified gems and lab-grown diamonds.

Expansion into new geographies and digital certification platforms.

High operating leverage and asset-light model.

📈 Technical & Entry Guidance

Current Price: ₹380

DMA 50/200: ₹364 / ₹396 — trading near short-term support.

RSI: 58.5 — neutral zone.

MACD: 4.91 — mild bullish momentum.

🎯 Entry Zone

Ideal Buy Range: ₹360–₹375 — near DMA 50 and intrinsic value.

Stop Loss: ₹340

Target: ₹440–₹470 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, global moat, and debt-free status support long-term value.

Buy on dips: Preferably near ₹365 zone.

Growth Triggers: International expansion, digital certification, and rising demand for lab-grown diamonds.

⭐ Fundamental Rating

4.3

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You can explore IGIL’s financial breakdown and quarterly results for deeper insights.

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