SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Igarashi Motors India Ltd

BSE: 517380 NSE: IGARASHI ISIN: INE188B01013
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Igarashi Motors India Ltd belong to?
Igarashi Motors India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Igarashi Motors India Ltd a good quality company?
Igarashi Motors India Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Igarashi Motors India Ltd undervalued or overvalued?
Igarashi Motors India Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 100.72 81.54
Price to Book 2.93 3.40
Price to Sales 1.65 2.26
EV to EBITDA 17.62 20.70
Q.4 Is Igarashi Motors India Ltd a good buy now?
Igarashi Motors India Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Igarashi Motors India Ltd?
Igarashi Motors India Ltd revenue growth is 15.6% for FY-2025, which is above its 5-year CAGR of 9.43%, indicating faster growth.

Q.2 Gross Profit margin of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Gross profit margin which is the profit after deduction of direct costs, is 10% for FY-2025, which is above its 5-year median of 8.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.57% for FY-2025, which is above its 5-year median of 10.37% indicating increasing margins.

Q.4 Net Profit Margin of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Net Profit Margin is 2.88% for FY-2025, is above its 5-year median of 1.32%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10 8.7
Operating Profit Margin (%) 11.57 10.37
Net Profit Margin (%) 2.88 1.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Return on Asset is 3.12%, which is above its 5-year historical median of 1.28%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Return on capital employed is 8.05% for FY-2025, which is above its 5-year historical median of 4.98%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Return on equity is 5.3% for FY-2025, which is above its 5-year historical median of 2.16%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Cash conversion cycle is 73 days, below its 5-year historical median of 82 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.08 0.94
ROE (%) 5.3 2.16
ROCE (%) 8.05 4.98
Cash Conversion Cycle 73 days 82 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Debt-to-Equity ratio is 0.28, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Igarashi Motors India Ltd?
Igarashi Motors India Ltd Debt to cash flow from operations is 1.38, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Igarashi Motors India Ltd?

Q.1 Promoter shareholding and pledge status of Igarashi Motors India Ltd?
Promoters hold 75.00% of the Igarashi Motors India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Igarashi Motors India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Igarashi Motors India Ltd vs industry peers?
Igarashi Motors India Ltd revenue CAGR is 9.43%, compared to the industry median CAGR of 13.19%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.6 13.2
Gross Profit Growth (%) 33.3 27.9
Operating Profit Growth (%) 28 28.4
Net Profit Growth (%) 140 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.08 1.05
ROE (%) 5.3 9.8
ROCE (%) 8.05 13.56
Cash Conversion Cycle (days) 72.95 99

Valuation & price assessment

Q.1 Stock return of Igarashi Motors India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-4% 0.6% 4.3% -0.9%
Q.2 Valuation ratios of Igarashi Motors India Ltd vs historical?
The current P/E ratio of 100.72 is higher than its historical median of 81.54, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 100.72 81.54 38.08
Price to Book 2.93 3.40 3.97
Price to Sales 1.65 2.26 2.75
EV to EBITDA 17.62 20.70 18.75

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×