INOXINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.2
| Stock Code | INOXINDIA | Market Cap | 13,142 Cr. | Current Price | 1,448 ₹ | High / Low | 1,620 ₹ |
| Stock P/E | 51.6 | Book Value | 125 ₹ | Dividend Yield | 0.14 % | ROCE | 32.4 % |
| ROE | 25.0 % | Face Value | 2.00 ₹ | DMA 50 | 1,373 ₹ | DMA 200 | 1,232 ₹ |
| Chg in FII Hold | -0.01 % | Chg in DII Hold | 0.45 % | PAT Qtr | 71.9 Cr. | PAT Prev Qtr | 65.4 Cr. |
| RSI | 54.8 | MACD | 17.3 | Volume | 2,20,313 | Avg Vol 1Wk | 1,66,931 |
| Low price | 1,031 ₹ | High price | 1,620 ₹ | PEG Ratio | 2.84 | Debt to equity | 0.07 |
| 52w Index | 70.8 % | Qtr Profit Var | 10.4 % | EPS | 27.8 ₹ | Industry PE | 25.2 |
📊 Financials: Inox India reports quarterly PAT of ₹71.9 Cr, up from ₹65.4 Cr, showing consistent earnings growth. ROE at 25% and ROCE at 32.4% are excellent, reflecting strong efficiency and profitability. Debt-to-equity ratio of 0.07 highlights a near debt-free balance sheet, ensuring financial stability. EPS of ₹27.8 supports robust earnings power.
💹 Valuation: P/E ratio of 51.6 is significantly higher than industry average (25.2), suggesting premium valuation. Book value of ₹125 vs current price ₹1,448 shows the stock trades at a steep premium. PEG ratio of 2.84 indicates growth is priced in. Dividend yield of 0.14% is minimal, offering little income support. Intrinsic value appears lower than current market price, reflecting overvaluation.
🏦 Business Model: Inox India specializes in cryogenic equipment and industrial gas solutions, serving energy, healthcare, and infrastructure sectors. Its competitive advantage lies in technological expertise, diversified applications, and strong demand from clean energy initiatives. Low debt and high efficiency strengthen its overall health.
📈 Entry Zone: Safer entry near ₹1,250–1,350, closer to support levels. Current price reflects premium valuation. Long-term holding is attractive given strong fundamentals, but investors should wait for corrections to reduce valuation risk.
Positive
- ✅ Excellent ROE (25%) and ROCE (32.4%) highlight strong efficiency.
- ✅ Near debt-free balance sheet (Debt-to-equity 0.07).
- ✅ Consistent profit growth with rising PAT.
Limitation
- ⚠️ High P/E ratio (51.6) vs industry average (25.2).
- ⚠️ Premium valuation vs book value (₹125 vs ₹1,448).
- ⚠️ Low dividend yield (0.14%) offers limited income support.
Company Negative News
- 📉 FII holdings decreased (-0.01%), showing slight foreign investor caution.
- 📉 Valuation risk due to steep premium pricing.
Company Positive News
- 📈 DII holdings increased (+0.45%), reflecting domestic institutional confidence.
- 📈 Strong demand from clean energy and industrial sectors.
Industry
- 🏭 Industry average P/E at 25.2 highlights Inox India’s premium valuation.
- 🏭 Rising demand for cryogenic equipment in energy and healthcare.
- 🏭 Government push for clean energy supports long-term growth.
Conclusion
🔎 Inox India is a fundamentally strong company with excellent ROE, ROCE, and near debt-free status. However, it trades at a steep premium, making entry risky at current levels. Entry near ₹1,250–1,350 offers better value. Long-term holding is attractive given strong sectoral demand and efficiency, but valuation risks must be managed.
Would you like me to also compare Inox India’s fundamentals with Linde India or Air Liquide to see how it stacks up against global cryogenic and industrial gas leaders?