IFB Industries Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹1,192.40+₹1.30 (+0.11%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

The 60-second version of IFB Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

IFB Industries Limited, together with its subsidiaries, manufactures and trades in home appliances in India and internationally. It operates through the Engineering, Home Appliances, Motor, and Steel segments.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees2,397

Annual revenue₹5,489 Cr

How does it make money?

Turns over ₹5,489 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 2,397 employees supports ₹2.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.29 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 16.5% and earnings to grow about 26.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.5%

Est. earnings growth+26.5%

Analysts3

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +34% while net margin moved +617% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+34%

Margin effect+617%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

70/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

30.1x

3Y Median

111.4x

40 monthly readings · mean 156.2x · range 30.5x–480.6x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 73% below its 3y median of 111.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 56% below the peer median of 68.5x.

vs. its own history

Cheap

111.4x median over 40 months · -73%

vs. sector peers

Cheap

68.5x median of 3 peers · -56%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.0x

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 4.2% to 5.9% over 3 years.
Debt is being paid down
Total debt is down 56% over 3 years.
Cash generation is improving
Free cash flow is up 387% over 3 years.
Return on equity is rising
ROE has improved from 2.2% to 14.4%.
Return on capital is rising
ROCE has improved from 6.3% to 17.0%.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.2% to 5.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 56% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 73% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 56% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹190 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.3% CAGR
Latest reported year was 18.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 5.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹190 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹4,831 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.1x

Fair

Fairly valued against the generic band

P/B Ratio

4.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹39.59

Profitable

Profitable on a per-share basis

ROE

14.4%

Moderate

Moderate capital efficiency

ROCE

17.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

18.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

64.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹190 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.5%

Weak

Thin margins leave little room for error

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1203.7 / 1287.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,094 Cr	₹4,327 Cr	₹4,966 Cr	₹5,489 Cr	+10.3%
EBITDA	₹171 Cr	₹218 Cr	₹310 Cr	₹325 Cr	+23.9%
EBITDA Margin	4.2%	5.0%	6.2%	5.9%	—
PAT (Net Profit)	₹15 Cr	₹50 Cr	₹119 Cr	₹144 Cr	+112.6%
EPS	₹3.69	₹12.43	₹29.35	₹35.43	+112.5%
ROE	2.2%	7.0%	14.1%	14.4%	—
ROCE	6.3%	10.8%	17.1%	17.0%	—
Total Debt	₹353 Cr	₹164 Cr	₹250 Cr	₹156 Cr	-23.8%
Free Cash Flow	₹39 Cr	₹285 Cr	₹11 Cr	₹190 Cr	+69.5%

🟢 Revenue has grown at 10.3% a year over 3 years.

🟢 EBITDA has grown at 23.9% a year over 3 years.

🟢 EBITDA Margin has risen from 4.2% to 5.9% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 112.6% a year over 3 years.

🟢 EPS has grown at 112.5% a year over 3 years.

🟢 ROE has risen from 2.2% to 14.4% over 3 years (+12.2 pts).

🟢 ROCE has risen from 6.3% to 17.0% over 3 years (+10.7 pts).

🟢 Total Debt has shrunk at 23.8% a year over 3 years.

🟢 Free Cash Flow has grown at 69.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,484 Cr

Total Liabilities

₹1,489 Cr

Cash & Equivalents

₹121 Cr

Operating Cash Flow

₹299 Cr

Capex

-₹109 Cr

Shareholding (proxy)

Institutional Holding

5.2%

Insider Holding

77.9%

Analyst Consensus

Recommendations

1 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹1,552.67

+30.2% vs CMP

Target Range

₹1,500 – ₹1,598

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 positive3 mixed1 general

IFB Industries Share Price Target 2026: Rs 1,550 Analyst Forecast

Univest, 15 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Will Weakness in IFB Industries Limited's (NSE:IFBIND) Stock Prove Temporary Given Strong Fundamentals?

Simply Wall Street, 28 Jan

IFB Industries shares plunge over 17% post Q3 results; Profit dips 23% YoY

Business Standard, 27 JanPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

IFB Industries Q4 results: Net profit rises two fold to Rs 42.67 crore

The Economic Times, 26 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

IFB Industries, Surya Roshni shares jump up to 15% in early trade; here is why

Business Today, 26 MayPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

IFB Industries net profit surges 64.6% in Q1FY27 on revenue growth

scanx.trade, 06 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 5 tripwires holding · see Key things to watch ↑