⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
INDGN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | INDGN | Market Cap | 11,557 Cr. | Current Price | 480 ₹ | High / Low | 640 ₹ |
| Stock P/E | 59.6 | Book Value | 81.6 ₹ | Dividend Yield | 0.42 % | ROCE | 16.6 % |
| ROE | 12.6 % | Face Value | 2.00 ₹ | DMA 50 | 509 ₹ | DMA 200 | 545 ₹ |
| Chg in FII Hold | 0.18 % | Chg in DII Hold | 1.11 % | PAT Qtr | 34.8 Cr. | PAT Prev Qtr | 59.9 Cr. |
| RSI | 38.4 | MACD | -12.8 | Volume | 2,00,251 | Avg Vol 1Wk | 3,79,259 |
| Low price | 456 ₹ | High price | 640 ₹ | PEG Ratio | 5.72 | Debt to equity | 0.03 |
| 52w Index | 13.4 % | Qtr Profit Var | -30.3 % | EPS | 8.08 ₹ | Industry PE | 36.1 |
📊 Core Financials
- Revenue & Profitability: PAT declined from 59.9 Cr. to 34.8 Cr. QoQ (-30.3%), showing earnings pressure.
- Margins: ROE at 12.6% and ROCE at 16.6% are moderate, reflecting average efficiency.
- Debt: Debt-to-equity ratio of 0.03 indicates a virtually debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 0.42% provides minimal shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 59.6 vs Industry PE of 36.1 → significantly overvalued compared to peers.
- P/B Ratio: Current Price (480 ₹) / Book Value (81.6 ₹) ≈ 5.88, expensive relative to book value.
- PEG Ratio: 5.72 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near support (456 ₹) offers limited downside, but valuation remains high.
🏦 Business Model & Competitive Advantage
- Indo-German (INDGN) operates in specialty chemicals and industrial solutions.
- Competitive advantage lies in niche product offerings and low debt structure.
- Overall health is stable financially, but profitability and valuation multiples remain concerns.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer entry between 450 ₹ – 470 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking niche chemical exposure, but caution advised due to high valuation and declining profits.
✅ Positive
- Debt-free balance sheet (Debt-to-equity 0.03).
- Moderate ROE (12.6%) and ROCE (16.6%).
- Institutional support with FII (+0.18%) and DII (+1.11%) increases.
⚠️ Limitation
- High P/E (59.6) compared to industry average (36.1).
- PEG ratio (5.72) indicates valuation mismatch with growth.
- Dividend yield of 0.42% offers limited shareholder reward.
📉 Company Negative News
- PAT declined sharply (-30.3% QoQ), showing earnings weakness.
- Stock trading below DMA 50 (509 ₹) and DMA 200 (545 ₹) indicates bearish technicals.
📈 Company Positive News
- Institutional holdings increased, reflecting confidence from DII and FII investors.
- Debt-free balance sheet provides strong financial stability.
🏭 Industry
- Industry PE at 36.1 is lower than INDGN’s valuation, highlighting overpricing.
- Specialty chemicals sector growth driven by industrial demand and exports.
- Competition from global and domestic players remains strong.
🔎 Conclusion
- INDGN offers financial stability with low debt and moderate returns, but valuation is stretched.
- Declining profits raise concerns about sustainability of current price levels.
- Best suited for cautious investors entering near 450–470 ₹, while long-term holding requires monitoring of earnings recovery.
I can also prepare a comparative HTML report of INDGN versus other specialty chemical companies to highlight relative valuation and profitability strength.