Understanding the Current Rating
The Sell rating assigned to Ingersoll-Rand (India) Ltd indicates a cautious stance for investors considering this stock at present. This recommendation is based on a detailed assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall outlook and helps investors understand the risks and opportunities associated with the stock.
Quality Assessment
As of 30 December 2025, Ingersoll-Rand (India) Ltd maintains an excellent quality grade. This reflects the company’s strong operational fundamentals, robust return on equity (ROE), and consistent profit growth. The latest data shows a ROE of 40.7%, which is a significant indicator of efficient capital utilisation and profitability. Despite the challenging market conditions, the company’s ability to sustain such a high ROE underscores its operational strength and management effectiveness.
Valuation Perspective
Contrasting with its quality, the stock is currently rated as very expensive on valuation grounds. The Price to Book (P/B) ratio stands at 16.2, signalling that the stock trades at a premium relative to its book value. While this premium might be justified by the company’s strong fundamentals, it also suggests limited upside potential at current price levels. Investors should note that the stock is trading at a discount compared to its peers’ average historical valuations, but the high P/B ratio combined with a PEG ratio of 4.1 indicates that growth expectations are already priced in, leaving little margin for error.
Financial Trend Analysis
The financial trend for Ingersoll-Rand (India) Ltd is currently flat. The company reported flat results in the September 2025 half-year period, with a notably low debtors turnover ratio of 4.43 times, which may point to slower receivables collection. Despite this, profits have risen by 9.7% over the past year, indicating some resilience in earnings. However, the stock’s price performance has not mirrored this profit growth, as it has delivered a negative return of -18.81% over the last 12 months, underperforming the broader BSE500 index, which gained 5.24% in the same period.
Technical Outlook
From a technical standpoint, the stock is currently graded as bearish. Recent price movements show a downward trend, with the stock declining by 9.93% over the past month and 14.47% over three months. The one-day change on 30 December 2025 was a modest +0.44%, but this does little to offset the broader negative momentum. This bearish technical grade suggests that short-term market sentiment remains weak, and investors should be cautious about potential further declines.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Stock Performance and Market Context
Examining the stock’s recent performance, as of 30 December 2025, Ingersoll-Rand (India) Ltd has experienced a challenging period. The year-to-date (YTD) return stands at -19.46%, with a one-year return of -18.81%. This contrasts sharply with the broader market, where the BSE500 index has delivered a positive return of 5.24% over the same timeframe. The stock’s underperformance highlights investor concerns and the impact of valuation and technical factors on market sentiment.
Sector and Market Position
Operating within the Compressors, Pumps & Diesel Engines sector, Ingersoll-Rand (India) Ltd is classified as a small-cap company. This positioning often entails higher volatility and sensitivity to market cycles. The company’s strong quality metrics provide a foundation for long-term value, but the current expensive valuation and bearish technical signals suggest that investors should approach with caution. The flat financial trend further emphasises the need for careful analysis before committing capital.
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What This Rating Means for Investors
The Sell rating on Ingersoll-Rand (India) Ltd serves as a cautionary signal for investors. It suggests that, given the current valuation, technical outlook, and flat financial trend, the stock may face headwinds in the near term. While the company’s excellent quality and strong ROE are positives, these are currently overshadowed by expensive pricing and bearish market sentiment. Investors should carefully weigh these factors and consider their risk tolerance before investing.
For those holding the stock, this rating encourages a review of portfolio exposure and consideration of alternative opportunities with more favourable risk-reward profiles. Prospective investors might prefer to wait for a more attractive entry point, ideally when valuation metrics improve and technical indicators signal a reversal.
Summary
Ingersoll-Rand (India) Ltd’s current Sell rating by MarketsMOJO, updated on 18 Dec 2025, reflects a comprehensive evaluation of its present fundamentals and market position as of 30 December 2025. The company’s excellent quality and profitability are tempered by very expensive valuation, flat financial trends, and bearish technical signals. This combination suggests limited upside potential and increased risk, guiding investors to exercise caution with this stock at this time.
Investors seeking detailed insights and timely updates on Ingersoll-Rand (India) Ltd and other stocks can benefit from MarketsMOJO’s comprehensive analysis tools and expert commentary.
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