India Nippon Electricals Ltd (INDNIPPON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rico Auto Inds

Rajratan Global

Uniparts India

Wheels India

Talbros Auto.

NDR Auto Compon.

India Nipp.Elec.

Rane (Madras)

MM Forgings

Divgi Torq

Precision Camshf

Why is India Nippon Electricals Ltd ?

Company has a low Debt to Equity ratio (avg) at 0 times

Healthy long term growth as Operating profit has grown by an annual rate 32.13%

Positive results in Sep 25

PAT(9M) At Rs 73.43 cr has Grown at 22.96%
ROCE(HY) Highest at 14.49%
NET SALES(Q) At Rs 272.56 cr has Grown at 23.5% (vs previous 4Q average)

With ROE of 11.4, it has a Attractive valuation with a 2.3 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 14.04%, its profits have risen by 24.5% ; the PEG ratio of the company is 0.8

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

Consistent Returns over the last 3 years

Along with generating 14.04% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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, Medium Return

Absolute

Risk Adjusted

Volatility

India Nipp.Elec.

14.04%

0.38

37.18%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.36%

EBIT Growth (5y)

32.13%

EBIT to Interest (avg)

55.75

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

1.16

Tax Ratio

21.33%

Dividend Payout Ratio

39.10%

Pledged Shares

Institutional Holding

0.38%

ROCE (avg)

12.27%

ROE (avg)

10.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.34

EV to EBIT

19.99

EV to EBITDA

15.96

EV to Capital Employed

2.67

EV to Sales

1.78

PEG Ratio

0.84

Dividend Yield

1.54%

ROCE (Latest)

13.33%

ROE (Latest)

11.39%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

PAT(9M)

At Rs 73.43 cr has Grown at 22.96%

ROCE(HY)

Highest at 14.49%

NET SALES(Q)

At Rs 272.56 cr has Grown at 23.5% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 29.53 cr.

PBT LESS OI(Q)

At Rs 25.18 cr has Grown at 28.3% (vs previous 4Q average

-2What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 8.43 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.58 times

Loading Valuation Snapshot...

Here's what is working for India Nipp.Elec.

Profit After Tax (PAT) - Nine Monthly

At Rs 73.43 cr has Grown at 22.96%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 272.56 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 272.56 cr has Grown at 23.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 220.75 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 29.53 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 25.18 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 25.18 cr has Grown at 28.3% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 19.62 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Here's what is not working for India Nipp.Elec.

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 8.43 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 4.58 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio