INTELLECT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | INTELLECT | Market Cap | 10,427 Cr. | Current Price | 745 ₹ | High / Low | 1,255 ₹ |
| Stock P/E | 44.9 | Book Value | 141 ₹ | Dividend Yield | 0.54 % | ROCE | 14.2 % |
| ROE | 10.5 % | Face Value | 5.00 ₹ | DMA 50 | 714 ₹ | DMA 200 | 854 ₹ |
| Chg in FII Hold | -1.03 % | Chg in DII Hold | -0.01 % | PAT Qtr | 17.3 Cr. | PAT Prev Qtr | 69.2 Cr. |
| RSI | 62.0 | MACD | 14.8 | Volume | 4,26,544 | Avg Vol 1Wk | 11,04,560 |
| Low price | 595 ₹ | High price | 1,255 ₹ | PEG Ratio | -345 | Debt to equity | 0.01 |
| 52w Index | 22.8 % | Qtr Profit Var | -49.3 % | EPS | 15.0 ₹ | Industry PE | 21.6 |
Financials: Intellect Design Arena shows moderate fundamentals with ROCE at 14.2% and ROE at 10.5%. EPS of ₹15.0 is modest relative to valuation. Debt-to-equity ratio of 0.01 reflects a near debt-free balance sheet. Quarterly PAT dropped sharply from ₹69.2 Cr. to ₹17.3 Cr., raising concerns about earnings stability.
Valuation: P/E of 44.9 is significantly above industry average (21.6), suggesting overvaluation. PEG ratio of -345 highlights poor valuation-to-growth balance. Dividend yield of 0.54% provides limited income support.
Business Model: Intellect operates in financial technology solutions, with strengths in digital banking platforms and enterprise software. Competitive advantage lies in niche domain expertise, but earnings volatility weakens investor confidence.
Entry Zone: Reasonable entry near ₹700–₹740, close to 50 DMA support, but caution advised due to weak earnings. Long-term holding requires monitoring profitability recovery and valuation correction.
Positive
- Debt-to-equity ratio of 0.01 indicates strong financial discipline
- RSI at 62.0 and MACD at 14.8 show positive momentum
- Strong domain expertise in fintech solutions
- Trading above 50 DMA (₹714), showing near-term strength
Limitation
- High P/E (44.9) compared to industry average (21.6) signals overvaluation
- PEG ratio of -345 reflects poor growth-adjusted valuation
- EPS of ₹15.0 is modest relative to price levels
- Quarterly PAT dropped sharply, raising earnings concerns
Company Negative News
- Profit decline from ₹69.2 Cr. to ₹17.3 Cr. (-49.3% variation)
- FII holdings reduced (-1.03%), showing foreign investor caution
Company Positive News
- DII holdings stable (-0.01%), indicating domestic support
- Technical indicators (RSI, MACD) show near-term bullishness
Industry
- Fintech sector continues to expand with digital adoption
- Industry P/E at 21.6 highlights Intellect’s premium valuation
Conclusion
Intellect Design Arena presents a mixed picture: strong balance sheet and fintech domain expertise, but weak earnings and stretched valuations. Entry near ₹700–₹740 may be considered for momentum trades, though long-term investors should wait for earnings recovery and valuation correction before committing.
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