⚠ 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.
INOXINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | INOXINDIA | Market Cap | 9,998 Cr. | Current Price | 1,100 ₹ | High / Low | 1,289 ₹ |
| Stock P/E | 42.6 | Book Value | 111 ₹ | Dividend Yield | 0.18 % | ROCE | 37.0 % |
| ROE | 27.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,130 ₹ | DMA 200 | 1,144 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.57 % | PAT Qtr | 57.1 Cr. | PAT Prev Qtr | 60.4 Cr. |
| RSI | 45.4 | MACD | -9.89 | Volume | 37,113 | Avg Vol 1Wk | 40,689 |
| Low price | 885 ₹ | High price | 1,289 ₹ | PEG Ratio | 2.13 | Debt to equity | 0.10 |
| 52w Index | 53.2 % | Qtr Profit Var | 15.5 % | EPS | 26.6 ₹ | Industry PE | 24.2 |
📊 Core Financials
- Revenue & Profitability: PAT declined slightly from 60.4 Cr. to 57.1 Cr. QoQ, but overall profitability remains strong.
- Margins: ROE at 27.9% and ROCE at 37.0% are excellent, reflecting strong efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.10 indicates very low leverage, providing financial stability.
- Cash Flow: Dividend yield of 0.18% is modest, suggesting reinvestment focus for growth.
💹 Valuation Indicators
- P/E Ratio: 42.6 vs Industry PE of 24.2 → overvalued compared to peers.
- P/B Ratio: Current Price (1,100 ₹) / Book Value (111 ₹) ≈ 9.91, expensive relative to book value.
- PEG Ratio: 2.13 indicates valuation is stretched compared to growth prospects.
- Intrinsic Value: Current price appears overvalued, trading below DMA 50 (1,130 ₹) and DMA 200 (1,144 ₹), showing technical weakness.
🏦 Business Model & Competitive Advantage
- INOX India specializes in cryogenic engineering solutions, including industrial gases, LNG storage, and distribution systems.
- Competitive advantage lies in niche expertise, strong ROE/ROCE, and low debt structure.
- Business health is solid, but valuation multiples suggest limited upside unless earnings accelerate.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry closer to 950 ₹ – 1,000 ₹, near support levels and intrinsic value zone.
- Long-Term Holding: Strong fundamentals make it suitable for long-term investors, but caution advised due to high valuation multiples.
✅ Positive
- Excellent ROE (27.9%) and ROCE (37.0%).
- Low debt-to-equity ratio (0.10) ensures financial stability.
- Strong niche business model in cryogenic engineering.
⚠️ Limitation
- High P/E (42.6) and P/B (9.91) make the stock expensive.
- PEG ratio of 2.13 suggests valuation mismatch with growth.
- Dividend yield of 0.18% offers limited shareholder reward.
📉 Company Negative News
- PAT declined slightly from 60.4 Cr. to 57.1 Cr. QoQ.
- Stock trading below DMA 50 and DMA 200 indicates short-term weakness.
📈 Company Positive News
- DII holdings increased (+0.57%), showing domestic institutional confidence.
- Strong quarterly profit variation (+15.5%) indicates resilience.
🏭 Industry
- Industry PE at 24.2 is lower than INOX India’s valuation, highlighting overpricing.
- Industrial gas and cryogenic engineering sector is growing with demand in energy and healthcare.
- INOX India benefits from specialized expertise and rising LNG infrastructure demand.
🔎 Conclusion
- INOX India has strong fundamentals with excellent ROE and ROCE, supported by low debt.
- However, the stock is currently overvalued compared to industry peers.
- Best suited for long-term investors entering near 950–1,000 ₹, with potential upside as earnings expand in niche cryogenic markets.
Would you like me to also prepare a sector comparison of INOX India against other industrial engineering firms to highlight relative valuation and growth prospects?