Inox India Ltd
Inox India Ltd
IndustrialsIncorporated in 1976, Inox India Limited offers solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions[1]Inox India specializes in supplying cryogenic equipment, particularly tanks. The company offers comprehensive solutions for equipment and systems operating in cryogenic conditions.[2]
Inox India is a debt-free, high-ROE compounder growing sales at 22% CAGR over 5 years with unanimous analyst buy ratings. However, at 67.5x PE and 15.6x book value, the stock prices in significant future growth, warranting a high-conviction but risk-aware accumulation strategy.
Key Fundamentals
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Key Insights
Strengths
4- Company is almost debt free.
- Company has delivered good profit growth of 22.0% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 28.7%
- Company has been maintaining a healthy dividend payout of 22.0%
Weaknesses
1- Stock is trading at 16.2 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2d agoInox India is a debt-free, high-ROE compounder growing sales at 22% CAGR over 5 years with unanimous analyst buy ratings. However, at 67.5x PE and 15.6x book value, the stock prices in significant future growth, warranting a high-conviction but risk-aware accumulation strategy.
- Company is virtually debt-free, providing strong balance sheet resilience and financial flexibility in a capital-intensive industrials sector
- Consistent ROE of 29% over 3 and 5 years demonstrates exceptional capital efficiency, well above the industrial sector median of 12-15%
- Compounded profit growth of 22% CAGR over 5 years signals durable earnings power and operational leverage
- Revenue growth of 22% CAGR over 5 years with TTM sales growth of 22% shows no signs of deceleration in the core business
- All 3 analysts covering the stock have a Buy rating (100% buy consensus), reflecting strong institutional conviction
- Stock has delivered 62% returns in the last 1 year, indicating strong momentum and market re-rating
- Healthy dividend payout ratio of 22% despite being in a high-growth phase shows shareholder-friendly management
- Market cap of Rs 17,408 Cr positions Inox India as a mid-cap with room for further institutional ownership expansion
- PE ratio of 67.5x is extremely elevated for an industrials company, leaving minimal margin of safety if growth disappoints
- Price-to-book ratio of 15.6x implies the market is pricing in years of supernormal returns, creating significant downside risk on any earnings miss
- Dividend yield of just 0.1% offers negligible income support, meaning total returns are entirely dependent on capital appreciation
- TTM profit growth of 18% has decelerated from the 5-year CAGR of 22%, suggesting potential margin pressure or growth normalization
- Last year ROE of 26% has declined from the 3-year and 5-year average of 29%, indicating possible return compression
- Only 3 analysts cover the stock, meaning limited institutional scrutiny and potential liquidity risk during corrections
- 52-week high and low data unavailable, limiting technical risk assessment and suggesting possible data gaps in coverage
- At 67.5x earnings, even a 20% earnings miss could trigger a 30-40% de-rating given the premium valuation multiple
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Rich valuation at 56x forward Jun 11
After surging 25% in one month and 67% YTD in 2026, the stock trades at ~56x one-year forward earnings. SBI Securities analyst suggests waiting for a correction before fresh entry as profit-taking may follow SpaceX listing.
- Promoter group selling shares Jun 17
Multiple promoter group members sold shares in May-June 2026: Lata Madhusudan Rungta sold 30,500 shares for ₹5.65 crore, Manju Jain sold 11,000 shares for ₹16.02 crore (May 26) and another 2,840 shares (Jun 12).
- ICICI target below current price Jun 11
ICICI Securities has a buy rating with a target price of ₹1,400, well below the current trading range of ₹1,850-1,868, suggesting the stock has run ahead of fundamental valuations.
- Record FY26 revenue up 21.2% Jun 11
Inox India delivered highest-ever annual revenue of ₹1,632 crore for FY26, up 21.2% YoY, with adjusted EBITDA of ₹388 crore (+20.2%) and adjusted PAT of ₹261 crore (+19.3%).
- SpaceX-linked aerospace order ₹200cr Jun 11
CEO Deepak Acharya revealed a significant aerospace order worth ~₹200 crore from a leading US private space company in Q4, with expectations of more high-value orders in Q1 FY27.
- Strong order book at ₹1,514 crore Jun 11
Q4 order inflows of ₹504 crore took total order backlog to ₹1,514 crore. Export revenue of ₹291 crore contributed 61% of quarterly revenue; annual exports at ₹971 crore (59% of revenue).
- Stock surges 25% in one month Jun 11
Shares gained 25% over the past month and 64% since the start of 2026, massively outperforming Nifty50's 11.2% YTD decline, driven by SpaceX IPO buzz and strong fundamentals.
- Rs 2 dividend declared at AGM Jun 23
Inox India declared a final dividend of ₹2 per share at its 49th AGM on June 23, 2026. Record date was June 9 under T+1 settlement.
- Expansion into new segments Jun 11
Company expanding into data centres, nitrogen supply, and distillery kegs segments, supporting its guided 15-20% annual growth outlook beyond core cryogenic business.
- Multiple investor meets scheduled Jun 15
Inox India hosted meetings with IIFL Capital PMS (Jun 15), ICICI Securities (Jun 9), and TATA Mutual Fund (Jun 4), indicating active institutional engagement.
- 49th AGM held via video May 28
AGM scheduled May 28 and held June 23, 2026 via video conferencing. Shareholders approved FY26 financials and reappointment of Pavan Jain as Director.
- No promoter share encumbrance Jun 15
Promoter Manju Jain confirmed zero encumbrance on INOX India shares for FY26, indicating no pledging of promoter holdings.
TL;DR: Inox India is firing on all cylinders operationally with record FY26 revenue of ₹1,632 crore, a robust ₹1,514 crore order backlog, and a transformative aerospace opportunity linked to SpaceX. The key risk is valuation — at 56x forward earnings after a 67% YTD rally, the stock has priced in significant growth and analysts warn of potential profit-taking. Promoter group members have been trimming holdings. The structural thesis around aerospace cryogenics and export growth remains intact, but near-term upside may be capped until valuations cool or earnings catch up.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 235 | 308 | 258 | 291 | 277 | 296 | 307 | 334 | 369 | 340 | 358 | 429 | 461 |
| Expenses | 195 | 237 | 199 | 224 | 223 | 226 | 243 | 265 | 288 | 263 | 280 | 335 | 366 |
| Operating Profit | 40 | 72 | 59 | 67 | 53 | 70 | 64 | 69 | 81 | 76 | 78 | 94 | 95 |
| OPM % | 17% | 23% | 23% | 23% | 19% | 24% | 21% | 21% | 22% | 22% | 22% | 22% | 21% |
| Other Income | 6 | 8 | 7 | 5 | 11 | 5 | 13 | 16 | 14 | 13 | 13 | -1 | 18 |
| Interest | 2 | 1 | 1 | 2 | 2 | 2 | 3 | 2 | 1 | 1 | 2 | 3 | 4 |
| Depreciation | 3 | 4 | 4 | 5 | 5 | 6 | 6 | 6 | 7 | 8 | 8 | 9 | 9 |
| PBT | 41 | 76 | 60 | 64 | 58 | 68 | 69 | 76 | 86 | 81 | 81 | 80 | 100 |
| Tax % | 25% | 25% | 23% | 24% | 24% | 23% | 28% | 23% | 24% | 24% | 25% | 24% | 25% |
| Net Profit | 31 | 57 | 46 | 49 | 44 | 53 | 49 | 58 | 66 | 61 | 61 | 61 | 75 |
| EPS in Rs | 3.37 | 6.29 | 5.1 | 5.35 | 4.86 | 5.8 | 5.45 | 6.43 | 7.22 | 6.73 | 6.7 | 6.69 | 8.29 |
Profit & Loss
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Sales | 650 | 649 | 594 | 783 | 966 | 1,133 | 1,306 | 1,587 |
| Expenses | 506 | 516 | 459 | 615 | 761 | 882 | 1,021 | 1,244 |
| Operating Profit | 144 | 133 | 135 | 168 | 205 | 252 | 285 | 343 |
| OPM % | 22% | 20% | 23% | 21% | 21% | 22% | 22% | 22% |
| Other Income | 28 | 48 | 15 | 21 | 19 | 30 | 48 | 42 |
| Interest | 27 | 26 | 7 | 2 | 4 | 6 | 9 | 9 |
| Depreciation | 9 | 12 | 12 | 12 | 14 | 18 | 25 | 34 |
| PBT | 135 | 144 | 131 | 174 | 207 | 258 | 299 | 342 |
| Tax % | -44% | 32% | 27% | 25% | 25% | 24% | 24% | 25% |
| Net Profit | 193 | 97 | 96 | 130 | 155 | 196 | 226 | 258 |
| EPS in Rs | 213 | 107 | 106 | 14.38 | 17.05 | 21.59 | 24.9 | 28.41 |
| Div. Payout % | 0% | 0% | 0% | 10% | 67% | 51% | 8% | 7% |
Balance Sheet
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Equity Capital | 9 | 9 | 9 | 18 | 18 | 18 | 18 | 18 |
| Reserves | 201 | 270 | 362 | 484 | 531 | 631 | 856 | 1,099 |
| Borrowings | 284 | 145 | 68 | 55 | 9 | 16 | 43 | 81 |
| Other Liabilities | 231 | 205 | 248 | 340 | 589 | 558 | 737 | 813 |
| Total Liabilities | 725 | 629 | 687 | 897 | 1,148 | 1,223 | 1,654 | 2,012 |
| Fixed Assets | 94 | 110 | 102 | 134 | 164 | 255 | 359 | 428 |
| CWIP | 0 | 0 | 2 | 2 | 0 | 5 | 4 | 4 |
| Investments | 81 | 80 | 25 | 312 | 249 | 247 | 267 | 297 |
| Other Assets | 549 | 439 | 558 | 449 | 734 | 716 | 1,023 | 1,282 |
| Total Assets | 725 | 629 | 687 | 897 | 1,148 | 1,223 | 1,654 | 2,012 |
Cash Flow
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Operating | 85 | 188 | 231 | 97 | 177 | 122 | 122 | 117 |
| Investing | 136 | -28 | -152 | -72 | -13 | -26 | -141 | -110 |
| Financing | -186 | -168 | -96 | -26 | -154 | -103 | 17 | 5 |
| Net Cash Flow | 36 | -8 | -17 | -1 | 10 | -6 | -1 | 13 |
| Free Cash Flow | 70 | 175 | 225 | 53 | 132 | 32 | -3 | 11 |
| CFO/OP | 63 | 147 | 192 | 72 | 112 | 74 | 65 | 58 |
Ratios
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|
| Debtor Days | 83 | 83 | 69 | 36 | 54 | 56 | 70 | 72 |
| Inventory Days | 337 | 208 | 215 | 349 | 348 | 314 | 312 | 247 |
| Days Payable | 36 | 20 | 26 | 43 | 52 | 90 | 87 | 80 |
| Cash Conversion Cycle | 384 | 270 | 258 | 342 | 350 | 280 | 295 | 238 |
| Working Capital Days | -16 | 23 | 0 | 23 | 31 | 44 | 61 | 83 |
| ROCE % | — | 30% | 32% | 35% | 37% | 43% | 38% | 33% |
Documents
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Company Information
Incorporated in 1976, Inox India Limited offers solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions[1]Inox India specializes in supplying cryogenic equipment, particularly tanks. The company offers comprehensive solutions for equipment and systems operating in cryogenic conditions.[2]