⚠ 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.
INTELLECT - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.6
| Stock Code | INTELLECT | Market Cap | 14,670 Cr. | Current Price | 1,053 ₹ | High / Low | 1,255 ₹ |
| Stock P/E | 58.9 | Book Value | 141 ₹ | Dividend Yield | 0.39 % | ROCE | 14.2 % |
| ROE | 10.5 % | Face Value | 5.00 ₹ | DMA 50 | 1,056 ₹ | DMA 200 | 1,002 ₹ |
| Chg in FII Hold | -0.30 % | Chg in DII Hold | 0.04 % | PAT Qtr | 69.2 Cr. | PAT Prev Qtr | 55.5 Cr. |
| RSI | 41.2 | MACD | -15.7 | Volume | 95,027 | Avg Vol 1Wk | 2,11,980 |
| Low price | 555 ₹ | High price | 1,255 ₹ | PEG Ratio | -453 | Debt to equity | 0.01 |
| 52w Index | 71.1 % | Qtr Profit Var | 186 % | EPS | 17.9 ₹ | Industry PE | 26.4 |
📊 Core Financials
- Revenue & Profit: Quarterly PAT rose from ₹55.5 Cr. to ₹69.2 Cr. (186% growth), showing strong improvement.
- Margins: ROE at 10.5% and ROCE at 14.2% indicate moderate efficiency.
- Debt: Debt-to-equity ratio at 0.01 reflects a virtually debt-free balance sheet.
- Cash Flows: Dividend yield of 0.39% is minimal, suggesting reinvestment focus.
💹 Valuation Indicators
- P/E Ratio: 58.9 vs Industry PE of 26.4 → highly overvalued compared to peers.
- P/B Ratio: Current Price ₹1,053 / Book Value ₹141 ≈ 7.47 (premium valuation).
- PEG Ratio: -453 → distorted due to inconsistent earnings growth.
- Intrinsic Value: Overvalued relative to fundamentals, trading on growth expectations and sector positioning.
🏢 Business Model & Competitive Advantage
- Intellect Design Arena provides digital technology solutions for banking, financial services, and insurance (BFSI).
- Strong competitive advantage through niche focus on financial technology and innovation-driven products.
- Global client base and specialized offerings in digital transformation support long-term demand.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation only near ₹950–₹1,000.
- Long-Term Holding: Suitable for growth-oriented investors, but valuations are stretched; cautious allocation advised.
✅ Positive
- Quarterly profit growth of 186%.
- Debt-free balance sheet.
- DII holdings increased (+0.04%).
⚠️ Limitation
- High P/E ratio (58.9) compared to industry average.
- Weak ROE (10.5%) and ROCE (14.2%).
- PEG ratio distorted, limiting valuation clarity.
📉 Company Negative News
- Decline in FII holdings (-0.30%).
- Stock trading below DMA 50 (₹1,056) and weak MACD (-15.7) indicate bearish momentum.
📈 Company Positive News
- Quarterly profits improved significantly.
- DII holdings increased slightly, showing domestic institutional support.
- Strong sectoral demand for digital transformation in BFSI.
🏭 Industry
- Industry PE at 26.4 highlights Intellect’s premium valuation.
- IT services and fintech sector benefits from digital adoption and regulatory compliance needs.
- Peers trade at lower multiples, highlighting Intellect’s overvaluation.
🔎 Conclusion
Intellect Design Arena is a debt-free fintech solutions provider with strong profit growth and niche positioning in BFSI.
However, high P/E and premium valuations limit near-term upside, while ROE and ROCE remain modest.
Accumulation near ₹950–₹1,000 is recommended for growth-focused investors, with cautious allocation due to stretched valuations.
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