Current Rating Overview
The stock's rating was revised to 'Sell' on 18 December 2025, reflecting a reassessment of its overall investment appeal. This rating indicates that, based on MarketsMOJO's comprehensive evaluation, investors should consider reducing exposure or avoiding new purchases at this time. The current Mojo Score stands at 44.0, down from 50 previously, signalling a less favourable outlook compared to recent months.
How the Stock Looks Today: Quality Assessment
As of 10 January 2026, Ingersoll-Rand (India) Ltd maintains an excellent quality grade. This suggests that the company exhibits strong operational fundamentals, including robust profitability and efficient management practices. Notably, the return on equity (ROE) remains impressive at 40.7%, indicating effective utilisation of shareholder capital to generate profits. Such a high ROE is a positive indicator of the company's core business strength and competitive positioning within the Compressors, Pumps & Diesel Engines sector.
Valuation Considerations
Despite the strong quality metrics, the stock is currently rated as very expensive in terms of valuation. The price-to-book (P/B) ratio stands at 16.1, which is significantly above typical market averages and suggests that the stock is trading at a premium relative to its book value. While the company’s profits have grown by 9.7% over the past year, the price-to-earnings-to-growth (PEG) ratio is elevated at 4.1, signalling that the market may be pricing in expectations that are difficult to justify given the current earnings trajectory. This expensive valuation reduces the margin of safety for investors and contributes to the cautious stance reflected in the 'Sell' rating.
Financial Trend and Performance
The financial trend for Ingersoll-Rand (India) Ltd is characterised as flat as of 10 January 2026. The company reported flat results in the September 2025 half-year period, with a notably low debtors turnover ratio of 4.43 times, indicating slower collection efficiency. Over the last year, the stock has underperformed the broader market significantly. While the BSE500 index has delivered a positive return of 6.14% over the past 12 months, Ingersoll-Rand’s stock price has declined by 17.45%. This divergence highlights challenges in translating operational quality into shareholder returns, possibly due to valuation pressures and market sentiment.
Technical Outlook
From a technical perspective, the stock is currently graded as bearish. Recent price movements show consistent downward momentum, with the stock declining 0.26% on the latest trading day and posting losses of 5.89% over the past week and 7.57% over the last month. The six-month and one-year returns stand at -18.35% and -17.45% respectively, underscoring sustained selling pressure. This bearish technical stance suggests that short-term market sentiment remains weak, which may further weigh on the stock’s price performance in the near term.
Implications for Investors
The 'Sell' rating on Ingersoll-Rand (India) Ltd reflects a combination of factors that investors should carefully consider. While the company’s operational quality remains excellent, the very expensive valuation and flat financial trend limit upside potential. Additionally, the bearish technical signals indicate that the stock may continue to face downward pressure. For investors, this rating suggests prudence in holding or acquiring shares at current levels, favouring a cautious approach until valuation and technical conditions improve.
Sector and Market Context
Operating within the Compressors, Pumps & Diesel Engines sector, Ingersoll-Rand (India) Ltd is classified as a small-cap stock. Its recent underperformance relative to the broader market index highlights sector-specific and company-specific challenges. Investors should weigh these factors alongside broader economic conditions and sector trends when making portfolio decisions.
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Summary of Key Metrics as of 10 January 2026
To summarise, the stock’s key metrics paint a mixed picture:
- Mojo Score: 44.0 (Sell grade)
- Return on Equity: 40.7%
- Price to Book Value: 16.1 (Very Expensive)
- PEG Ratio: 4.1 (High relative to growth)
- Stock Returns: -17.45% over 1 year, underperforming BSE500’s 6.14%
- Debtors Turnover Ratio (HY): 4.43 times (lowest)
- Technical Grade: Bearish
These figures reinforce the rationale behind the current 'Sell' rating, highlighting valuation concerns and technical weakness despite strong underlying quality.
Investor Takeaway
Investors should interpret the 'Sell' rating as a signal to exercise caution with Ingersoll-Rand (India) Ltd shares. The combination of stretched valuation, flat financial trends, and bearish technical indicators suggests limited near-term upside and potential downside risk. Those holding the stock may consider reviewing their positions, while prospective buyers might await more favourable entry points supported by improved fundamentals or technical signals.
MarketsMOJO’s rating system integrates multiple dimensions of analysis to provide a holistic view of stock attractiveness. In this case, the 'Sell' recommendation reflects a balanced assessment of quality, valuation, financial trend, and technical outlook as of the current date, 10 January 2026.
Looking Ahead
Future developments such as improved earnings growth, valuation re-rating, or a shift in technical momentum could alter the stock’s outlook. Investors should monitor quarterly results, sector dynamics, and broader market conditions to reassess the stock’s potential.
Ingersoll-Rand (India) Ltd’s current standing serves as a reminder of the importance of comprehensive analysis that goes beyond headline ratings, emphasising the need to consider multiple factors before making investment decisions.
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