Current Rating Overview
MarketsMOJO’s 'Hold' rating for Ingersoll-Rand (India) Ltd indicates a balanced outlook for investors, suggesting that the stock is fairly valued at present and may not offer significant upside or downside in the near term. This rating was assigned following a reassessment on 03 February 2026, when the company’s Mojo Score improved from 44 to 50 points, moving the grade from 'Sell' to 'Hold'.
It is important to note that all financial data, returns, and fundamental indicators referenced in this article are as of 15 February 2026, providing an up-to-date view of the company’s performance and market standing.
Quality Assessment
Ingersoll-Rand (India) Ltd demonstrates excellent quality metrics, a key factor supporting its current rating. The company boasts a robust long-term Return on Equity (ROE) averaging 31.26%, signalling efficient capital utilisation and strong profitability. Operating profit growth has been impressive, with an annualised rate of 37.16%, reflecting sustained operational strength over recent years.
Additionally, the company maintains a very conservative capital structure, with an average Debt to Equity ratio of zero, indicating no reliance on debt financing. This low leverage reduces financial risk and enhances the company’s resilience in volatile market conditions.
Valuation Considerations
Despite its strong fundamentals, the stock is currently rated 'Hold' largely due to its very expensive valuation. As of 15 February 2026, Ingersoll-Rand (India) Ltd trades at a Price to Book (P/B) ratio of 18.1, which is significantly higher than typical market averages and peers. This elevated valuation reflects high investor expectations but also limits the potential for further price appreciation without corresponding earnings growth.
The company’s ROE of 42.9% further supports the premium valuation, but the Price/Earnings to Growth (PEG) ratio stands at 7.4, indicating that earnings growth is not currently keeping pace with the high price multiples. Investors should be cautious about the premium paid and weigh it against the company’s growth prospects.
Financial Trend Analysis
The financial trend for Ingersoll-Rand (India) Ltd is characterised as flat as of 15 February 2026. The company reported steady but unspectacular results in the December 2025 half-year period, with a Debtors Turnover Ratio at a low 4.43 times, suggesting some challenges in receivables management or slower collections.
Profit growth over the past year has been modest at 5.7%, which, while positive, does not fully justify the high valuation multiples. The stock’s return over the last 12 months has been a healthy 17.65%, outperforming the broader BSE500 index, but this performance is more reflective of market sentiment and technical factors than a sharp acceleration in financial results.
Technical Outlook
From a technical perspective, the stock is currently mildly bearish. Despite short-term gains—such as a 5.26% increase on the latest trading day and a 16.54% rise over the past month—the three-month performance shows a slight decline of 0.91%. This mixed technical picture suggests some near-term volatility and consolidation, which aligns with the 'Hold' rating signalling neither a strong buy nor a sell signal.
Investors should monitor price action closely, as the stock’s technical indicators may influence short-term trading opportunities but do not currently support a decisive directional bias.
Market Position and Shareholding
Ingersoll-Rand (India) Ltd operates within the Compressors, Pumps & Diesel Engines sector and is classified as a small-cap company. The majority shareholding is held by promoters, which often provides stability and alignment of interests with long-term investors. The company’s market-beating performance over the last one year and three years further underscores its competitive position within its sector.
Summary for Investors
Ingersoll-Rand (India) Ltd’s 'Hold' rating reflects a stock with strong underlying quality and solid long-term fundamentals but tempered by a very expensive valuation and flat recent financial trends. For investors, this rating suggests maintaining existing positions rather than initiating new ones, as the stock’s current price already factors in much of its growth potential.
Those considering entry should weigh the premium valuation against the company’s operational strengths and monitor upcoming financial results for signs of acceleration. Conversely, investors seeking to reduce exposure might find this an appropriate time to reassess holdings given the mild technical weakness and valuation concerns.
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Performance Metrics at a Glance
As of 15 February 2026, Ingersoll-Rand (India) Ltd has delivered a one-day gain of 5.26%, a one-week increase of 7.98%, and a one-month rise of 16.54%. However, the three-month return shows a slight decline of 0.91%, while the six-month gain is a modest 3.16%. Year-to-date, the stock has appreciated by 6.02%, and over the past year, it has generated a strong 17.65% return.
These figures highlight the stock’s resilience and ability to outperform broader market indices such as the BSE500 over multiple time frames, reinforcing its appeal to investors seeking steady growth within the small-cap segment.
Outlook and Considerations
Investors should consider that while Ingersoll-Rand (India) Ltd’s fundamentals remain robust, the current valuation demands cautious optimism. The company’s flat financial trend and mildly bearish technical signals suggest that significant upside may be limited in the short term.
Long-term investors may find value in the company’s strong quality metrics and market position, but should remain vigilant for any changes in earnings momentum or shifts in valuation multiples that could alter the stock’s risk-reward profile.
Conclusion
Ingersoll-Rand (India) Ltd’s 'Hold' rating by MarketsMOJO reflects a stock with solid fundamentals and market-beating returns, balanced by expensive valuation and mixed technical signals. This rating advises investors to maintain a neutral stance, carefully monitoring developments while recognising the company’s strengths and current market pricing.
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