IKS - Fundamental Analysis

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

Fundamental Rating: 4.1

📊 Core Financials Analysis

Profit Growth: Quarterly PAT growth of 132% is impressive, indicating strong operational momentum.

Profitability

ROCE: 27.2% — solid, reflects efficient capital deployment.

ROE: 33.0% — strong, shows good shareholder value creation.

Debt Position

Debt-to-Equity: 0.48 — moderate leverage, manageable but worth monitoring.

Cash Flow: Not explicitly provided, but strong ROE and PAT growth suggest healthy operating cash flows.

📉 Valuation Metrics

Metric Value Interpretation

P/E Ratio 55.8 Significantly above industry average (31.8), implies premium pricing

P/B Ratio ~15.2 Very high, suggests overvaluation

PEG Ratio 2.23 Over 1 — indicates overvaluation relative to growth

EPS ₹28.3 Strong earnings base

Intrinsic Value Likely below CMP Suggests current price may be stretched

🧠 Business Model & Competitive Edge

Business Model: IKS (likely IKIO Lighting or similar) operates in high-growth segments like energy-efficient lighting, electronics, or industrial automation.

Competitive Advantage

Strong earnings growth and high ROE.

Likely benefits from government push for energy efficiency and infrastructure.

Moderate debt allows for expansion without excessive risk.

📌 Entry Zone & Investment Guidance

Current Price: ₹1,583

DMA 50: ₹1,602 — near-term resistance

DMA 200: ₹1,697 — long-term resistance

RSI: 45.7 — neutral, not overbought

MACD: Negative — bearish momentum

🔍 Suggested Entry Zone: ₹1,400–₹1,500 This range offers a safer entry with better valuation support and technical alignment.

📈 Long-Term Holding Guidance

Suitable for growth-oriented investors, but valuation is a concern.

Monitor PEG ratio and debt levels as the company scales.

Consider accumulating on dips and avoid chasing rallies above ₹1,800 unless backed by earnings upgrades.

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