INOXINDIA - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🧊 Investment Analysis: INOX India Ltd. (INOXINDIA)

Investment Rating: 3.8

🧠 Fundamental Strengths

ROE (29%) and ROCE (38%) indicate excellent capital allocation and profitability — impressive for an industrial manufacturing firm.

EPS of ₹24.9 reflects strong earnings, supported by a healthy quarterly profit increase of 48.6%.

Debt-to-equity of just 0.05 shows a nearly debt-free balance sheet, offering long-term stability.

FII & DII holding increases suggest rising institutional confidence.

📉 Valuation Concerns

P/E: 48.3 is significantly higher than the industry average of 30.7, indicating a pricey valuation.

PEG Ratio: 2.47 implies earnings growth is not keeping pace with valuation expansion — a red flag for value investors.

Dividend Yield: 0.17% is minimal — capital appreciation is the main play here.

📊 Technical Indicators

Trading below 50-DMA (₹1,193) but above 200-DMA (₹1,125) — technically consolidating.

RSI at 38.7 signals the stock is approaching oversold territory.

MACD (-3.90) and declining volume suggest short-term weakness, making this a watch-list candidate.

🎯 Ideal Entry Price Zone: ₹1,020 – ₹1,070 This bracket aligns with previous support and the 200-DMA, offering better margin of safety during a technical pullback.

🧭 If You're Already Holding

✅ Hold Strategy

Investment Horizon: 2–4 years

Maintain position if

ROE & ROCE remain consistently strong

EPS climbs past ₹30 in the next few quarters

PEG improves to <2.0 through sustained earnings growth

🚪 Exit Strategy

Consider partial profit booking near ₹1,320–₹1,350, where historical resistance lies.

Full exit if

ROE falls below 20%

PEG remains above 2.5 despite growth

Price dips below ₹1,000 with bearish volume & RSI <30

INOX India has premium fundamentals but is trading at elevated multiples — ideal for long-term conviction holders who believe in sector upside. Want to compare this with specialty engineering peers like Praj Industries or Va Tech Wabag for sharper positioning? I can lay that out for you. 🧮📘

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