MoneyWorks4Me

Check Before You Invest : India Nippon Electricals Ltd

BSE: 532240 NSE: INDNIPPON ISIN: INE092B01025
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does India Nippon Electricals Ltd belong to?
India Nippon Electricals Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is India Nippon Electricals Ltd a good quality company?
India Nippon Electricals Ltd is a good quality company, based on a consistently good 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 India Nippon Electricals Ltd undervalued or overvalued?
India Nippon Electricals Ltd appears Overvalued, as its key valuation ratios are higher 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 23.16 20.48
Price to Book 3.24 2.09
Price to Sales 2.32 1.77
EV to EBITDA 17.19 13.27
Q.4 Is India Nippon Electricals Ltd a good buy now?
India Nippon Electricals 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 India Nippon Electricals Ltd?
India Nippon Electricals Ltd revenue growth is 26.5% for FY-2026, which is above its 5-year CAGR of 17.3%, indicating faster growth.

Q.2 Gross Profit margin of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.8% for FY-2026, which is in line with its 5-year median of 13.8%, indicating stable margins.

Q.3 Operating Profit Margin of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.1% for FY-2026, which is above its 5-year median of 9.18% indicating increasing margins.

Q.4 Net Profit Margin of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Net Profit Margin is 10.41% for FY-2026, is above its 5-year median of 8.82%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.8 13.8
Operating Profit Margin (%) 11.1 9.18
Net Profit Margin (%) 10.41 8.82

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Return on Asset is 11.09%, which is above its 5-year historical median of 8.59%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Return on capital employed is 19.13% for FY-2026, which is above its 5-year historical median of 13.37%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Return on equity is 14.52% for FY-2026, which is above its 5-year historical median of 10.98%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Cash conversion cycle is 35 days, in line with its 5-year historical median of 35 days, indicating stable 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 0.96
ROE (%) 14.52 10.98
ROCE (%) 19.13 13.37
Cash Conversion Cycle 35 days 35 days

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

Q.9 Debt to Equity ratio of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of India Nippon Electricals Ltd?
India Nippon Electricals Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of India Nippon Electricals Ltd?

Q.1 Promoter shareholding and pledge status of India Nippon Electricals Ltd?
Promoters hold 70.37% of the India Nippon Electricals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does India Nippon Electricals Ltd performance compare with that of its Peers?

Q.1 Revenue growth of India Nippon Electricals Ltd vs industry peers?
India Nippon Electricals Ltd revenue CAGR is 17.30%, compared to the industry median CAGR of 12.83%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 26.5 12.8
Gross Profit Growth (%) 21.1 19.2
Operating Profit Growth (%) 26.6 15.7
Net Profit Growth (%) 35.4 25.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.08 1.25
ROE (%) 14.52 12.01
ROCE (%) 19.13 13.63
Cash Conversion Cycle (days) 35.07 44

Valuation & price assessment

Q.1 Stock return of India Nippon Electricals Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.4% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.4% 24.2% 36.2% 49.9%
Q.2 Valuation ratios of India Nippon Electricals Ltd vs historical?
The current P/E ratio of 23.16 is higher than its historical median of 20.48, 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 23.16 20.48 28.71
Price to Book 3.24 2.09 2.99
Price to Sales 2.32 1.77 1.35
EV to EBITDA 17.19 13.27 11.85

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