INOXINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of INOX India Ltd (INOXINDIA), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and factored in recent performance trends and technical indicators as of September 2025.

📊 Fundamental Analysis of INOX India Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹60.4 Cr vs ₹65.1 Cr — slight dip, but YoY growth remains healthy (↑13.5%).

EPS: ₹25.6 — strong earnings base.

ROE: 27.9%, ROCE: 37.0% — exceptional capital efficiency, well above industry norms.

Leverage & Liquidity

Debt-to-equity: 0.05 — virtually debt-free, excellent financial resilience.

Dividend Yield: 0.16% — minimal, reinvestment-focused.

Cash Flow & Stability

Consistent profitability and low leverage support strong operating cash flows.

DII holdings increased (↑0.42%), signaling institutional confidence.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 50.4 Overvalued vs industry PE of 33.6

P/B Ratio ~12.7 High — reflects premium on earnings, not assets

PEG Ratio 2.51 Elevated — growth not justifying price

Intrinsic Value ~₹1,100–₹1,150 Below current price — limited upside

🏭 Business Model & Competitive Edge

Segment Focus: Cryogenic storage, transport, and turnkey solutions — critical for LNG, industrial gases, and hydrogen.

Moat: Engineering precision, diversified client base, and strong execution capabilities.

Growth Drivers

Rising demand for LNG and hydrogen infrastructure.

Government push for clean energy and industrial decarbonization.

Export potential and turnkey EPC contracts in emerging markets.

📈 Technical & Entry Guidance

Current Price: ₹1,258

DMA 50/200: ₹1,172 / ₹1,134 — bullish trend.

RSI: 65.0 — nearing overbought zone.

MACD: 20.0 — strong positive momentum.

🎯 Entry Zone

Ideal Buy Range: ₹1,150–₹1,180 — wait for pullback.

Stop Loss: ₹1,080

Target: ₹1,350–₹1,400 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, sector tailwinds, and engineering moat justify long-term holding.

Buy on dips: Preferably near ₹1,170 zone.

Growth Triggers: Hydrogen economy, LNG infrastructure, and global EPC expansion.

⭐ Fundamental Rating

4.2

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