1. At a Glance
Founded in 1913, this quiet wealth ninja invests in equities, pays consistent dividends, has zero debt, and a share price that sounds like a house EMI. The company prints ₹356 EPS like it’s no big deal—and trades at just 18x earnings.
2. Introduction with Hook
If investing was a sport, this company would be the 110-year-old yogi doing perfect backflips in silence while the rest of the market screams like gym bros. Welcome to Industrial & Prudential Investment Company Ltd (IPICL)—a century-old NBFC that’s more private than your therapy notes and more profitable than your crypto phase (hopefully).
- Founded: 1913
- Dividend (FY25): ₹110/share
- EPS (FY25): ₹356
- Return on Equity: ~8%
- Book Value: ₹4,799
- Promoter Holding: 68.17%
3. Business Model (WTF Do They Even Do?)
This is not your typical NBFC dishing out loans and EMIs.
IPICL is essentially a family office in disguise.
Here’s their game plan:
- Core Business: Long-term equity investments.
- Revenue Model: Capital appreciation + dividend income + occasional tactical profit booking.
- No Lending Ops (despite being classified as NBFC).
- Zero Borrowings, no frills, no mess.
It’s a Buffett-esque equity compounder that quietly plays with listed stocks. They don’t ring bells, they don’t run ads, they just file 13-digit EPS reports.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹7 Cr |
| Other Income | ₹53 Cr |
| Net Profit | ₹60 Cr |
| EPS | ₹356.25 |
| Dividend | ₹110/share |
| Dividend Yield | 1.35% |
| ROE | 7.59% |
| ROCE | 8.0% |
Other Income is the entire business. They make money sitting tight—like your grandpa who invested in TISCO in 1980 and never sold.
5. Valuation
Let’s be honest, ₹6,650/share sounds scary—until you see the fundamentals:
- P/E: 18.7x
- P/BV: 1.39x
- Dividend Yield: 1.35%
Fair Value Range:
| Method | Estimate |
|---|---|
| DCF (conservative CAGR 8%) | ₹5,600–₹6,800 |
| Dividend Discount Model (assuming 30% payout) | ₹6,200–₹7,200 |
| Book Value Based (1.4–1.7x BV) | ₹6,700–₹8,100 |
Verdict: Fully valued, not frothy. You’re paying for steady compounding, not story stocks.
6. What’s Cooking – News, Triggers, Drama
- Dividend of ₹110/share announced (June 2025)
- Results due 5 Aug 2025 — investors watching for EPS continuation
- FIIs showing interest (0.56% stake now, up from 0%)
- Consistent TDS compliance and clean corporate governance
- No drama, no dilution, no debt. It’s the Jain monk of the NBFC universe.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | ₹2 Cr |
| Reserves | ₹803 Cr |
| Borrowings | ₹0 Cr |
| Other Liabilities | ₹30 Cr |
| Investments | ₹827 Cr |
| Other Assets | ₹7 Cr |
| Total Assets | ₹834 Cr |
Key Points:
- 99% of assets are financial investments.
- No fixed assets. Even their office might be an email.
- No leverage. Pure equity.
8. Cash Flow – Sab Number Game Hai
| Year | Operating | Investing | Financing | Net Flow |
|---|---|---|---|---|
| FY25 | ₹12 Cr | ₹4 Cr | ₹-15 Cr | ₹0 Cr |
| FY24 | ₹14 Cr | ₹-4 Cr | ₹-10 Cr | ₹0 Cr |
Insights:
- Operational cash positive thanks to dividends/interest.
- Investing cash varies depending on equity trades.
- Financing cash = dividend payout. That’s it.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 7.59% |
| ROCE | 8.0% |
| OPM | 85% |
| Debt/Equity | 0.00 |
| P/BV | 1.39x |
| Working Capital Days | -35 |
| Tax Rate | ~0% |
Verdict:
Zero debt? Check.
High margins? Check.
Low tax? Suspicious, but explainable due to tax-efficient dividend income.
ROE is a bit sleepy but stable.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | Other Income | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹7 Cr | ₹39 Cr | ₹45 Cr | ₹266.86 |
| FY24 | ₹6 Cr | ₹45 Cr | ₹49 Cr | ₹295.14 |
| FY25 | ₹7 Cr | ₹53 Cr | ₹60 Cr | ₹356.25 |
Trends:
- Revenue = rounding error.
- Other Income is the real business.
- Profit grows at 17–24% CAGR.
- EPS growth: silent killer.
11. Peer Comparison
| Company | Price | P/E | EPS | ROE | Div Yield | P/B |
|---|---|---|---|---|---|---|
| Tata Investment Corp | ₹6,594 | 107 | ₹61.6 | 1% | 0.41% | 6.1x |
| JSW Holdings | ₹22,035 | 125 | ₹175 | 0.7% | 0% | 28.2x |
| Maharashtra Scooters | ₹14,540 | 94.7 | ₹153.4 | 0.6% | 0.96% | 26.4x |
| IPICL | ₹6,650 | 18.7 | ₹356 | 7.6% | 1.35% | 1.39x |
Verdict:
IPICL has the best combo of low valuation, real EPS, and decent ROE.
Others are glorified NAV traders. IPICL is a business.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 68.17%
- FIIs: 0.56%
- Public Holding: 31.19%
- No. of Shareholders: 2,202
- Dividend Payout Ratio: ~31%
- No Dilution or Buybacks in 10+ years
Silent operator, clean history, and promoter skin-in-the-game = investor peace of mind.
13. EduInvesting Verdict™
This is not a stock that trends on Twitter. It’s a century-old compounding engine with:
- No debt
- No hype
- No ugly quarters
- Clean cash flow
- Real EPS, not adjusted or “othered”
IPICL is for patient capital. If you like your portfolio with a side of sleep and compound interest, this could be your anchor.
But if you’re looking for revenue explosions, AI disruption, or EV dreams… try the next circus.
Metadata
– Written by EduInvesting Team | 16 July 2025
– Tags: NBFC, IPICL, Compounding Stocks, Old Money, Investment Companies, Zero Debt, High Dividend Yield
