Igarashi Motors India Limited

Consumer Cyclical — Auto Parts · NSE

₹406.50+₹9.90 (+2.50%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Igarashi Motors India Limited manufactures and sells electric micro motors and motor components in India, the United States, Japan, Germany, Hong Kong, and internationally. The company operates through two segments, Automotive and Non-Automotive.

IndustryAuto Parts

SectorConsumer Cyclical

Employees774

Annual revenue₹843 Cr

How does it make money?

Turns over ₹843 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 774 employees supports ₹1.09 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. 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?Little sign of one

Returns on capital of 4.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +75% 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+33%

Margin effect+75%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.6% is weak

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

47/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

76.6x

3Y Median

172.5x

40 monthly readings · mean 182.8x · range 35.6x–371.7x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 3y median of 172.5x. 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 67% above the peer median of 45.7x.

vs. its own history

Cheap

172.5x median over 40 months · -56%

vs. sector peers

Expensive

45.7x median of 4 peers · +67%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

17.6x

PEG

2.37

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
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?

Priced below its own history
The stock trades 56% 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.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹14 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 67% above the peer median. That premium needs a reason that persists, or it closes.
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

1EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 7% a year✓ 9.8% CAGR
Latest reported year was 22.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹14 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹1,279 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

76.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.31

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

4.8%

Weak

Low return on total capital employed

Debt/Equity

0.31x

Low

Conservative leverage

Revenue Growth (YoY)

22.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

168.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.32%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹14 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.5%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.10

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

409.0 / 424.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹636 Cr	₹706 Cr	₹818 Cr	₹843 Cr	+9.8%
EBITDA	₹57 Cr	₹72 Cr	₹93 Cr	₹81 Cr	+12.3%
EBITDA Margin	9.0%	10.2%	11.4%	9.6%	—
PAT (Net Profit)	₹5 Cr	₹10 Cr	₹24 Cr	₹12 Cr	+32.4%
EPS	₹1.66	₹3.04	₹7.68	₹3.86	+32.5%
ROE	1.2%	2.1%	5.2%	2.6%	—
ROCE	3.4%	4.7%	8.4%	4.8%	—
Total Debt	₹121 Cr	₹138 Cr	₹151 Cr	₹145 Cr	+6.2%
Free Cash Flow	-₹2 Cr	-₹3 Cr	₹4 Cr	₹14 Cr	—

🟢 Revenue has grown at 9.8% a year over 3 years.

🟢 EBITDA has grown at 12.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.6% over 3 years.

🟢 PAT (Net Profit) has grown at 32.4% a year over 3 years.

🟢 EPS has grown at 32.5% a year over 3 years.

🟢 ROE has risen from 1.2% to 2.6% over 3 years (+1.4 pts).

🟢 ROCE has risen from 3.4% to 4.8% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 6.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹14 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹834 Cr

Total Liabilities

₹368 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹94 Cr

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

3.1%

Insider Holding

75.3%

Corporate Actions

Dividend Rate

₹1.3

Ex-Dividend Date

31 Jul 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive4 general

Igarashi Motors 34th AGM scheduled on 07 Aug 2026 via VC/OAVM

scanx.trade, 18 Oct

Read This Before Considering Igarashi Motors India Limited (NSE:IGARASHI) For Its Upcoming ₹1.30 Dividend

Simply Wall Street, 27 JulCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Igarashi Motors India Ltd Upgraded to Sell on Technical Improvements Despite Weak Fundamentals

MarketsMojo, 16 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Igarashi Motors India vs Nifty 50: Returns Compared

Univest, 28 Sept

Momentum Stocks: Igarashi Motors, Niraj Cement, Transwarranty Finance gain on sheer momentum

Moneycontrol.com, 17 Jun

Volume Gainers, September 15, 2026 at 4:00 PM

HDFC Sky, 15 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

All 5 tripwires holding · see Key things to watch ↑