Why is India Nippon Electricals Ltd ?
1
The company is Net-Debt Free
2
Poor long term growth as Operating profit has grown by an annual rate 16.07% of over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- PAT(9M) At Rs 79.70 cr has Grown at 20.60%
- ROCE(HY) Highest at 15.95%
- DEBTORS TURNOVER RATIO(HY) Highest at 5.18 times
4
With ROE of 12.1, it has a Fair valuation with a 3.1 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 33.41%, its profits have risen by 18% ; the PEG ratio of the company is 1.4
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Returns over the last 3 years
- Along with generating 33.41% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to India Nipp.Elec. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is India Nipp.Elec. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
India Nipp.Elec.
38.43%
0.79
42.25%
Sensex
-7.59%
-0.55
13.43%
Quality key factors
Factor
Value
Sales Growth (5y)
15.56%
EBIT Growth (5y)
16.07%
EBIT to Interest (avg)
60.58
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.19
Sales to Capital Employed (avg)
1.18
Tax Ratio
23.81%
Dividend Payout Ratio
34.47%
Pledged Shares
0
Institutional Holding
0.54%
ROCE (avg)
12.40%
ROE (avg)
10.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
40
Price to Book Value
3.08
EV to EBIT
23.61
EV to EBITDA
20.04
EV to Capital Employed
3.58
EV to Sales
2.22
PEG Ratio
1.42
Dividend Yield
1.38%
ROCE (Latest)
15.18%
ROE (Latest)
12.06%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
No Trend
Technical Movement
11What is working for the Company
PAT(9M)
At Rs 79.70 cr has Grown at 20.60%
ROCE(HY)
Highest at 15.95%
DEBTORS TURNOVER RATIO(HY)
Highest at 5.18 times
NET SALES(Q)
Highest at Rs 304.48 cr
-1What is not working for the Company
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 6.22 cr
Loading Valuation Snapshot...
Here's what is working for India Nipp.Elec.
Profit After Tax (PAT) - Nine Monthly
At Rs 79.70 cr has Grown at 20.60%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 304.48 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Highest at 5.18 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for India Nipp.Elec.
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 6.22 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents






