Check Before You Invest : Inox India Ltd

Snapshot

Q.1 Which industry/sub-sector does Inox India Ltd belong to?

Inox India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Inox India Ltd a good quality company?

Inox India Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Inox India Ltd undervalued or overvalued?

Inox India Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Inox India Ltd a good buy now?

Inox 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

Q.1 Revenue growth of Inox India Ltd?

Inox India Ltd revenue growth is 19.2% for FY-2025, which is above its 5-year CAGR of 15.16%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Inox India Ltd?

Inox India Ltd Return on capital employed is 38.21% for FY-2025, which is in line with its 5-year historical median of 36.43%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Inox India Ltd?

Inox India Ltd Return on Asset is 15.59%, which is in line with its 5-year historical median of 15.53%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Inox India Ltd?

Inox India Ltd Return on equity is 28.76% for FY-2025, which is in line with its 5-year historical median of 27.92%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Inox India Ltd?

Inox India Ltd Cash conversion cycle is 138 days, below its 5-year historical median of 148 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	0.9	0.91
ROE	28.76	27.92
ROCE	38.21	36.43
Cash Conversion Cycle	138 days	148 days

Q.6 Gross Profit margin of Inox India Ltd?

Inox India Ltd Gross profit margin which is the profit after deduction of direct costs, is 24.5% for FY-2025, which is in line with its 5-year median of 24.2%, indicating stable margins.

Q.7 Operating Profit Margin of Inox India Ltd?

Inox India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.08% for FY-2025, which is in line with its 5-year median of 21.75% indicating stable margins.

Q.8 Net Profit Margin of Inox India Ltd?

Inox India Ltd Net Profit Margin is 17.36% for FY-2025, is in line with with its 5-year median of 16.54%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	24.5	24.2
Operating Profit Margin	22.08	21.75
Net Profit Margin	17.36	16.54

Q.9 Debt to Equity ratio of Inox India Ltd?

Inox India Ltd Debt-to-Equity ratio is 0.04, which is lower with the industry average of 0.34, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Inox India Ltd?

Inox India Ltd Debt to cash flow from operations is 0.31, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Inox India Ltd?

Promoters hold 75.00% of the Inox India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Inox India Ltd vs industry peers?

Inox India Ltd revenue CAGR is 15.16%, compared to the industry median CAGR of 12.01%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.2	12
Gross Profit Growth	20.5	NAN
Operating Profit Growth	21.2	NAN
Net Profit Growth	21	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.9	0.91
ROE	28.76	12.81
ROCE	38.21	15.04
Cash Conversion Cycle (days)	138.24	107

Valuation & price assessment

Q.1 Stock return of Inox India Ltd over the last decade?

Over the last 1 year(s), the stock has delivered a CAGR of 46.47% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	46.5%

Q.3 Valuation ratios of Inox India Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	54.52	50.51	29.52
Price to Book	12.47	11.26	2.90
Price to Sales	9.02	8.57	2.94
EV to EBITDA	36.41	34.92	15.76

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