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India Nippon Electricals Ltd. Stock Analysis

Small Cap
Evaluated by 553 users | BSE: 532240 | NSE: INDNIPPON |
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INEL was incorporated in 1984 and converted into a joint venture in 1986 between Lucas Indian Service, a wholly-owned subsidiary of Lucas-TVS and Kokusan Denki Co, Japan - a group company of Hitachi Japan, to manufacture Electronic Ignition Systems for two-wheelers, three wheelers and portable...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 15.47%16.62%14.22%9.17%10.1%11.2%9.38%14.13%14.3%10.07%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 229261269263328336351452525479
Y-o-Y Gr. Rt.-13.7%3.2%-2.4%24.8%2.5%4.5%28.9%16.1%-8.8%
Adjusted EPS (Rs.) 11.1413.2612.488.539.812.1311.4619.7423.5718.09
Y-o-Y Gr. Rt.-19%-5.9%-31.7%14.9%23.8%-5.5%72.3%19.4%-23.3%
Book Value per Share (Rs.) 74.1482.7490.0393.4698.04117.58127.31152.52177.38185.29
Adjusted Net Profit 25.23028.219.322.227.425.944.753.340.9
Net Op. Cash Flow (Rs. Cr.) 10.717.824.617.629.933.23426.43549.3
Debt to Cash Flow from Ops 0000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
India Nippon Electricals Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.5%7.9%10.9%-8.8%
Adjusted EPS 5.5%13%16.4%-23.3%
Book Value per Share 10.713.613.34.5
Share Price 17.4% 12.5% -14.1% 5.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 15.4216.5414.169.1310.0511.169.3614.1114.299.98
Operating Profit Margin (%) 13.9614.0412.479.3410.5510.6610.7814.2614.8411.89
Net Profit Margin (%) 10.9811.5110.497.356.768.177.399.8710.158.55
Debt to Equity 0000000000
Working Capital Days 10111211513712210398114115116
Cash Conversion Cycle 23243141413819172734
Entity Percentage Holding
Promoters 66.39%
Institutions 3.09%
Non-Institutions 30.52%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of India Nippon Electricals Ltd.'s performance infers:

India Nippon Electricals Ltd. earnings have grown by 13%, whereas share price has appreciated 12.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of India Nippon Electricals Ltd. share prices over the last 10 years. Here is what we found out:

India Nippon Electricals Ltd. share price has appreciated 13.7% annually over the past ten years.

INEL was incorporated in 1984 and converted into a joint venture in 1986 between Lucas Indian Service, a wholly-owned subsidiary of Lucas-TVS and Kokusan Denki Co, Japan - a group company of Hitachi Japan, to manufacture Electronic Ignition Systems for two-wheelers, three wheelers and portable engines. Over the years the company has enlarged its customer base and now supplies to most of the manufacturers of two-wheelers, three wheelers and gensets. INEL makes the entire range of 2/3

INEL was incorporated in 1984 and converted into a joint venture in 1986 between Lucas Indian Service, a wholly-owned subsidiary of Lucas-TVS and Kokusan Denki Co, Japan - a group company of Hitachi Japan, to manufacture Electronic Ignition Systems for two-wheelers, three wheelers and portable engines. Over the years the company has enlarged its customer base and now supplies to most of the manufacturers of two-wheelers, three wheelers and gensets. INEL makes the entire range of 2/3 wheelers, digital and analog ignition products. Commencing its operation in Hosur (Tamil Nadu), over the years INEL has set up two more units with excellent facilities, one at Pondicherry and the other at Rewari (Haryana) to be nearer to customers and offer service such as just-in-time supplies and to improve response time for introduction of new products.

Milestones:

1985 Formation of the company  1986 Established manufacturing unit in Hosur, Tamil Nadu. Commencement of production and supply to TVS Motor Company for Motor Cycles.  1987 Commencement of supply to Bajaj Auto for Motor Cycles  1988 Supply to Hero Motors - Moped  1989 Introduction of Electronic Ignition Systems for TVS Champ  1990 Supply to Birla Yamaha - Genset  1991 Commencement of supply to Hero Honda Motor Cycle  1992 Supply to Honda SIEL Power Products for Genset  1993 Introduction of Integral Unit (IU) for Mopeds to TVS Motor Company. Commencement of supply to Yamaha Motor India for Motor Cycles. Crossed supply of one million Flywheel Magnetos since commencement of production  1994 Export of Ignition coils to Kokusan Denki Co, Japan Recognition by Department of Science & Technology, Government of India  1995 Commencement of supply to Kinetic Motor Co. for Scooters  1997 Commencement of supply to Royal Enfield Motors Decennial Celebrations of INEL  1998 Second Manufacturing Unit established at Pondicherry Commencement of supply of multi-pole Flywheel Magnetos and Regulator for 3W Diesel to Bajaj Auto Certified by BVQI for ISO - 9001 Quality System for Hosur Unit 1999 Commencement of supply to Piaggio Greaves. Commencement of supply to LML-Moped 2001 Introduction / Commencement of supply of Digital CDI ignition system for TVS Motor Company. Commencement of supply to Honda Motorcycle & Scooter India. Third Manufacturing Unit established at Rewari, Haryana Certified by BVQI for QS-9001 Quality system for Hosur Unit  2002 Certified by BVQI for ISO- 14001 EMS System for Hosur Unit. Crossed cumulative supply of 10 million Flywheel Magnetos  2004 A state-of-the-art electronic facility set up in Pondicherry unit. Certified by BVQI ISO 14001 for Rewari Unit. Commencement of supply to Lombardini, Italy  

Products:

• FlyWheel Magneto/Generator • Capacitor Discharge Ignition Unit • Ignition Coil • Integral Unit • Regulator/Rectifier Units

Clients:   • TVS Motor Company • Hero Honda Motors • Honda Motorcycle & Scooter • Bajaj Auto • Yamaha Motors • Royal Enfield • LML  • Hero Motors • Majestic Auto  • Kinetic Motor Company• Greaves Cotton • Lombardini India • Piaggio India • Honda SIEL Power Products • Birla Power Solutions  • Kokusan Denki Co.

Awards and achievement:

• Certificates of recognition from BVQI for ISO 9001 in the year 1998• QS 9000 in the year 2001 and • ISO 14001 in the year 2002

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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