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IGIL - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 4.1
| Stock Code | IGIL | Market Cap | 14,088 Cr. | Current Price | 326 ₹ | High / Low | 642 ₹ |
| Stock P/E | 26.7 | Book Value | 54.6 ₹ | Dividend Yield | 0.76 % | ROCE | 42.6 % |
| ROE | 32.5 % | Face Value | 2.00 ₹ | DMA 50 | 334 ₹ | DMA 200 | 369 ₹ |
| Chg in FII Hold | 0.37 % | Chg in DII Hold | -0.29 % | PAT Qtr | 139 Cr. | PAT Prev Qtr | 137 Cr. |
| RSI | 39.9 | MACD | -4.95 | Volume | 4,08,013 | Avg Vol 1Wk | 2,80,961 |
| Low price | 282 ₹ | High price | 642 ₹ | PEG Ratio | 0.76 | Debt to equity | 0.01 |
| 52w Index | 12.2 % | Qtr Profit Var | 29.0 % | EPS | 12.2 ₹ | Industry PE | 21.3 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT improved from ₹137 Cr. to ₹139 Cr. (29% variation), showing steady growth.
- Margins: Strong ROE (32.5%) and ROCE (42.6%) highlight excellent profitability and capital efficiency.
- Debt: Debt-to-equity ratio at 0.01 reflects a virtually debt-free balance sheet.
- Cash Flows: Dividend yield of 0.76% provides modest shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 26.7 vs Industry PE of 21.3 → slightly overvalued compared to peers.
- P/B Ratio: Current Price ₹326 / Book Value ₹54.6 ≈ 5.97 (premium valuation).
- PEG Ratio: 0.76 → attractive relative to earnings growth.
- Intrinsic Value: Fairly valued with upside potential supported by strong fundamentals and growth momentum.
🏢 Business Model & Competitive Advantage
- IGIL operates in industrial and specialty manufacturing with strong efficiency and profitability metrics.
- Competitive advantage lies in low debt, high ROE/ROCE, and consistent earnings growth.
- Resilient business model supported by sector demand and operational efficiency.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹300–₹320.
- Long-Term Holding: Strong fundamentals, debt-free status, and high returns make IGIL suitable for long-term investors.
✅ Positive
- Strong ROE (32.5%) and ROCE (42.6%).
- Debt-free balance sheet (Debt-to-equity 0.01).
- Quarterly profit growth of 29%.
- FII holdings increased (+0.37%).
⚠️ Limitation
- P/E ratio (26.7) higher than industry average (21.3).
- P/B ratio (5.97) indicates premium valuation.
- DII holdings declined (-0.29%).
📉 Company Negative News
- Stock trading below DMA 200 (₹369), showing medium-term weakness.
- Technical indicators (RSI 39.9, MACD -4.95) suggest bearish sentiment.
📈 Company Positive News
- Quarterly profits improved steadily.
- FII holdings increased, showing foreign investor confidence.
- Strong fundamentals with debt-free balance sheet.
🏭 Industry
- Industry PE at 21.3 suggests IGIL trades at a premium.
- Sector benefits from industrial demand and efficiency improvements.
- Peers trade at lower multiples, highlighting IGIL’s premium positioning.
🔎 Conclusion
IGIL is a fundamentally strong, debt-free company with excellent ROE and ROCE.
Despite premium valuations, its consistent profit growth and strong fundamentals make it attractive for long-term investors.
Accumulation near ₹300–₹320 is recommended for those seeking stable growth and exposure to industrial efficiency-driven businesses.
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