IDEAFORGE Price action## ideaForge Technology Ltd (IDEAFORGE) Price Analysis
**Current Price and Recent Performance**
As of June 3, 2025, ideaForge Technology Ltd (IDEAFORGE) is trading at approximately ₹529 on the NSE . The stock has experienced significant volatility in recent months, with a 52-week high of ₹864 and a low of ₹301 . Over the past few weeks, the price has rebounded sharply from the ₹360–₹400 range in early May to above ₹520 by the end of May, indicating strong recent momentum .
**Valuation and Financials**
- Market capitalization stands at about ₹2,413 crore .
- The stock is trading at roughly 3.9 times its book value, which is considered high for its sector .
- Return on capital employed (ROCE) is negative at -9.36%, and return on equity (ROE) is also negative at -9.81% for the latest period, reflecting operational challenges or recent losses .
- The company is almost debt-free, which is a positive factor for financial stability .
- No dividends have been declared, and the company’s interest coverage ratio is low, suggesting limited ability to cover interest expenses from profits .
**Operational Highlights and Risks**
- ideaForge operates in the unmanned aircraft systems (UAS) segment, a high-growth and innovative sector .
- Promoter holding is relatively low at 29.2%, which may affect investor confidence .
- The company’s debtor days and working capital days have increased significantly, indicating potential challenges in cash flow management .
- Over the last three years, ROE has averaged just 0.86%, highlighting weak profitability .
**Recent Price Action**
- After a sharp rally from ₹360 in early May to over ₹530 by the end of the month, the stock has stabilized in the ₹528–₹559 range in early June .
- Trading volumes have been high during this period, suggesting increased investor interest and possible speculative activity .
**Summary**
ideaForge Technology Ltd has shown strong recent price momentum but faces fundamental challenges, including negative returns, high valuation relative to book value, and growing working capital requirements. The company’s debt-free status and position in a high-potential industry are positives, but weak profitability and low promoter holding are key risks. Investors should monitor operational improvements and cash flow management before considering long-term positions .
