At a Glance
India Motor Parts & Accessories Ltd (IMPAL) has dropped Q1 FY26 numbers with the enthusiasm of a mechanic handing you a bill: Net Profit ₹20 Cr (-2% YoY) and Revenue ₹197 Cr (flat). The company trades at ₹1,069, a P/E of 15.7x, and here’s the kicker – its investment portfolio (₹1,529 Cr) is worth more than the entire market cap. Sounds like a value stock? Hold that thought.
Introduction
This 1950s-era distributor is like that quiet uncle at family functions – under the radar, debt-free, dividend-paying, and hoarding investments that could fund a startup spree. But while the investments shine, the core business moves at the speed of a Maruti 800 uphill – steady but uninspiring.
Business Model (WTF Do They Even Do?)
- Primary Play: Distributes spare parts from 50+ manufacturers to garages & retailers.
- Portfolio: Brake systems, steering, powertrain, engine components – basically everything your car breaks.
- Revenue Driver: Distribution margins (thin as a rusted washer).
- Bonus: Investment portfolio in group companies adding hidden value.
The business is old-school, cash-based, and recession-proof, but low growth keeps it stuck in neutral.
Financials Overview
Q1 FY26 Snapshot
- Revenue: ₹197 Cr (-0.6% YoY)
- EBITDA: ₹14 Cr (OPM 7%)
- PAT: ₹20 Cr (-2% YoY)
- EPS: ₹16.3
FY25 Recap
- Revenue: ₹789 Cr
- PAT: ₹83 Cr
- ROE: 3.5%
Commentary: Revenue flat, margins stable, but profitability driven by “other income” (₹46 Cr) from investments – not operations.
Valuation
- P/E Method
- EPS (TTM): ₹66.7
- Industry P/E: 18x
- Fair Value ≈ ₹66.7 × 18 = ₹1,200
- P/B Method
- Book Value: ₹1,800
- CMP/BV: 0.6x
- Even at 1x P/B, price should be ₹1,800.
- Sum-of-Parts (Investments)
- Investments: ₹1,529 Cr
- Core Business: ₹500–600 Cr (conservative)
- Fair Value ≈ ₹2,000+
🎯 Fair Value Range: ₹1,200 – ₹1,800
Current price ₹1,069 is undervalued vs assets.
What’s Cooking – News, Triggers, Drama
- Dividend: ₹30/share approved at AGM.
- Investments: Holding worth ₹1,529 Cr – market ignoring this gem.
- Growth: Core sales barely growing at 8% CAGR in 5 years.
- Promoter Stake: Low at 33.8% – control risk but also prevents over-leveraging.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 2,505 |
| Liabilities | 259 |
| Net Worth | 2,234 |
| Borrowings | 0 |
Remarks: Cleanest balance sheet in auto distribution. Almost no debt.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 31 | 27 | 18 |
| Investing | 4 | 15 | 13 |
| Financing | -33 | -30 | -35 |
Remarks: Operational cash shrinking – but dividends continue like clockwork.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 3.5% |
| ROCE | 4.3% |
| P/E | 15.7x |
| PAT Margin | 10% |
| D/E | 0.0 |
Remarks: ROE is sad, but D/E is rock bottom. A safe but sleepy play.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 708 | 741 | 789 |
| EBITDA | 62 | 57 | 62 |
| PAT | 74 | 74 | 83 |
Remarks: Steady P&L – think tortoise, not hare.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| IMPAL | 789 | 83 | 15.7x |
| (No direct peers) | — | — | — |
Remarks: No real listed peers; valuation is tricky but assets justify the price.
Miscellaneous – Shareholding, Promoters
- Promoters: 33.8% (low)
- FIIs: 3.8% (down)
- DIIs: 1.4%
- Public: 61%
Observation: High public shareholding means stock can swing wildly with small triggers.
EduInvesting Verdict™
IMPAL is the classic value-investor dream – market cap lower than its investments, debt-free, with steady dividends. However, the core distribution business grows at the speed of a bullock cart, and ROE is anemic.
SWOT Quickie
- Strengths: Debt-free, strong investment portfolio, healthy dividend.
- Weaknesses: Low promoter stake, poor ROE, flat core growth.
- Opportunities: Unlock value via investment sale or restructuring.
- Threats: Distribution margins shrinking, competition from OEM channels.
Final Word: This stock is like a locked treasure chest – you know there’s gold inside, but until management unlocks value, the market yawns.
Written by EduInvesting Team | 30 July 2025
SEO Tags: India Motor Parts Q1 FY26, IMPAL Share Analysis, Value Investing Auto Stocks
