INOXINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | INOXINDIA | Market Cap | 13,224 Cr. | Current Price | 1,457 ₹ | High / Low | 1,620 ₹ |
| Stock P/E | 53.3 | Book Value | 111 ₹ | Dividend Yield | 0.14 % | ROCE | 37.0 % |
| ROE | 27.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,309 ₹ | DMA 200 | 1,198 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.45 % | PAT Qtr | 65.4 Cr. | PAT Prev Qtr | 57.1 Cr. |
| RSI | 58.8 | MACD | 78.4 | Volume | 2,25,240 | Avg Vol 1Wk | 1,84,655 |
| Low price | 952 ₹ | High price | 1,620 ₹ | PEG Ratio | 2.66 | Debt to equity | 0.10 |
| 52w Index | 75.6 % | Qtr Profit Var | 25.8 % | EPS | 26.8 ₹ | Industry PE | 24.4 |
Core Financials:
INOX India demonstrates strong fundamentals. ROE is excellent at 27.9% and ROCE at 37.0%, reflecting high efficiency. EPS of ₹26.8 is solid, supported by quarterly PAT growth (₹65.4 Cr vs ₹57.1 Cr, +25.8%). Debt-to-equity is very low at 0.10, indicating financial strength.
Valuation:
Stock P/E of 53.3 is significantly higher than industry average (24.4), suggesting overvaluation. PEG ratio of 2.66 indicates stretched growth expectations. Price-to-book is ~13.1, expensive relative to intrinsic value. Dividend yield is negligible at 0.14%.
Business Model & Health:
INOX India specializes in cryogenic equipment and industrial gas solutions, benefiting from strong demand in energy and industrial sectors. Competitive advantage lies in niche expertise, high efficiency, and strong balance sheet. However, valuation risks remain due to premium pricing.
Entry Zone:
Ideal entry zone: ₹1,250–₹1,350. Current price ₹1,457 is above fair entry. Long-term holding is viable given strong fundamentals, but investors should be cautious of valuation risks.
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Positive
- Excellent ROE (27.9%) and ROCE (37.0%)
- Strong quarterly PAT growth (+25.8%)
- Very low debt-to-equity (0.10)
- Niche expertise in cryogenic equipment
Limitation
- High P/E (53.3) vs industry (24.4)
- PEG ratio (2.66) suggests overvaluation
- Price-to-book (~13.1) is expensive
- Dividend yield negligible (0.14%)
Company Negative News
- Slight decline in FII holdings (-0.01%)
- Valuation concerns may limit near-term upside
Company Positive News
- Strong quarterly PAT growth (₹65.4 Cr vs ₹57.1 Cr)
- DII holdings increased (+0.45%)
- Technical indicators show bullish momentum (RSI 58.8, MACD 78.4)
Industry
Industrial manufacturing sector trades at industry P/E of 24.4, supported by infrastructure and energy demand. INOX India trades at a premium due to niche expertise and strong fundamentals, but valuation risks are higher compared to peers.
Conclusion
INOX India is a fundamentally strong company with excellent efficiency and low debt. Rating: 4.2. Entry near ₹1,250–₹1,350 is preferable. Long-term holding is justified by strong fundamentals, but investors should monitor valuation risks. Exit strategy around ₹1,600–₹1,620 if fundamentals stagnate.
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