Inox India Ltd (INOXINDIA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ador Welding

Kirloskar Indus.

KRN Heat Exchan

PTC Industries

Harsha Engg Intl

Esab India

Diffusion Eng

Inox India

Oriental Rail

Mallcom (India)

Emkay Tools

Why is Inox India Ltd ?

High Management Efficiency with a high ROE of 26.25%

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 15.30% of over the last 5 years

OPERATING CF(Y) Lowest at Rs 116.65 Cr
ROCE(HY) Lowest at 29.57%
PAT(Q) At Rs 58.07 cr has Fallen at -10.8% (vs previous 4Q average)

With ROE of 23.3, it has a Very Expensive valuation with a 15.4 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 61.52%, its profits have risen by 12.4% ; the PEG ratio of the company is 5.4

Majority shareholders : Promoters

Market Beating Performance

The stock has generated a return of 61.52% in the last 1 year, much higher than market (BSE500) returns of 2.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Inox India should be less than 10%
Overall Portfolio exposure to Other Industrial Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Inox India for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Inox India

61.84%

1.61

38.42%

Sensex

-3.2%

-0.24

13.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.13%

EBIT Growth (5y)

15.72%

EBIT to Interest (avg)

33.05

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.39

Tax Ratio

24.37%

Dividend Payout Ratio

7.04%

Pledged Shares

Institutional Holding

14.54%

ROCE (avg)

43.59%

ROE (avg)

26.25%

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

15.41

EV to EBIT

55.43

EV to EBITDA

49.67

EV to Capital Employed

19.34

EV to Sales

10.50

PEG Ratio

5.41

Dividend Yield

0.11%

ROCE (Latest)

35.14%

ROE (Latest)

23.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

3What is working for the Company

NET SALES(9M)

At Rs 1,260.00 cr has Grown at 20.85%

-16What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 116.65 Cr

ROCE(HY)

Lowest at 29.57%

PAT(Q)

At Rs 58.07 cr has Fallen at -10.8% (vs previous 4Q average

DPR(Y)

Lowest at 7.04%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.07 times

NET SALES(Q)

At Rs 370.79 cr has Fallen at -6.5% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 75.87 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 20.46%

PBT LESS OI(Q)

Lowest at Rs 64.78 cr.

EPS(Q)

Lowest at Rs 6.40

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Here's what is not working for Inox India

Operating Cash Flow - Annually

Lowest at Rs 116.65 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 64.78 cr has Fallen at -13.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 74.85 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 58.07 cr has Fallen at -10.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 65.10 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 370.79 cr has Fallen at -6.5% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 396.76 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 75.87 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 20.46%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 64.78 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 6.40

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 5.07 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 7.04%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)