⚠ 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 | 10,772 Cr. | Current Price | 1,188 ₹ | High / Low | 1,289 ₹ |
| Stock P/E | 43.4 | Book Value | 111 ₹ | Dividend Yield | 0.17 % | ROCE | 37.0 % |
| ROE | 27.9 % | Face Value | 2.00 ₹ | DMA 50 | 1,150 ₹ | DMA 200 | 1,147 ₹ |
| Chg in FII Hold | 0.02 % | Chg in DII Hold | 0.57 % | PAT Qtr | 65.4 Cr. | PAT Prev Qtr | 57.1 Cr. |
| RSI | 57.3 | MACD | 8.02 | Volume | 59,463 | Avg Vol 1Wk | 68,441 |
| Low price | 891 ₹ | High price | 1,289 ₹ | PEG Ratio | 2.17 | Debt to equity | 0.10 |
| 52w Index | 74.5 % | Qtr Profit Var | 25.8 % | EPS | 26.8 ₹ | Industry PE | 23.3 |
📊 Financial Overview
- Revenue & Profitability: PAT rose from ₹57.1 Cr. to ₹65.4 Cr. (QoQ), showing consistent earnings growth.
- Margins: ROE at 27.9% and ROCE at 37.0% are excellent, reflecting strong profitability and capital efficiency.
- Debt: Debt-to-equity ratio of 0.10 is very low, indicating a healthy balance sheet.
- Cash Flow: EPS of ₹26.8 is strong, supporting earnings stability.
💹 Valuation Metrics
- P/E Ratio: 43.4 vs Industry PE of 23.3 → trading at a premium compared to peers.
- P/B Ratio: Price ₹1,188 vs Book Value ₹111 → steep premium, reflecting high investor expectations.
- PEG Ratio: 2.17 → suggests valuation is expensive relative to growth.
- Intrinsic Value: Fundamentally strong, but current valuation is stretched; growth must sustain to justify multiples.
🏢 Business Model & Competitive Advantage
- INOX India specializes in cryogenic equipment and industrial gas solutions.
- Competitive advantage lies in niche expertise, strong demand in industrial and energy sectors, and robust profitability metrics.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹1,050–1,150 range looks safer given premium valuation.
- Long-Term Holding: Strong candidate for long-term investors due to excellent ROE/ROCE and low debt. Suitable for growth portfolios.
✅ Positive
- Excellent ROE (27.9%) and ROCE (37.0%).
- Low debt-to-equity ratio (0.10).
- Consistent profit growth with strong EPS (₹26.8).
⚠️ Limitation
- High P/E ratio (43.4) compared to industry average.
- P/B ratio indicates steep premium over book value.
- PEG ratio (2.17) suggests valuation is expensive relative to growth.
📉 Company Negative News
- Valuation multiples are significantly higher than industry peers.
- Premium pricing may limit short-term upside.
📈 Company Positive News
- Quarterly PAT growth of 25.8% shows strong momentum.
- FII and DII holdings increased, reflecting institutional confidence.
- Technical indicators (MACD positive, RSI neutral) show stable momentum.
🏦 Industry
- Industry PE at 23.3 highlights sector trades at lower multiples than INOX India.
- Industrial gas and cryogenic equipment demand supported by energy transition and infrastructure growth.
🔎 Conclusion
- INOX India is fundamentally strong with excellent ROE/ROCE and low debt.
- Valuation is stretched, making entry around ₹1,050–1,150 more attractive.
- Strong long-term holding potential for growth investors, provided earnings momentum continues.