Ingersoll-Rand (India) Limited

Industrials — Specialty Industrial Machinery · NSE

₹4,043.60−₹54.40 (−1.33%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, 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, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Ingersoll-Rand (India) Limited manufactures and sells industrial air compressors and related services in India.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees540

Annual revenue₹1,372 Cr

How does it make money?

Turns over ₹1,372 Cr a year. Of every ₹100 of sales, about ₹19 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 540 employees supports ₹2.54 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.5%

Net margin18.7%

Revenue / employee₹2.54 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 54.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 41.6% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE54.9%

ROE41.6%

Peer median ROE17.1%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 15.2% and earnings to grow about 20.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.2%

Est. earnings growth+20.1%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +21% while net margin moved +16% 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+21%

Margin effect+16%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 47.7x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 53.1x
✗ P/B of 20.73x is a steep premium to book

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

46/ 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

47.7x

3Y Median

53.1x

40 monthly readings · mean 54.5x · range 39.5x–79.1x

Sector Median

66.2x

median of 4 sector peers

🟢Current valuation is approximately 10% below its 3y median of 53.1x. 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 28% below the peer median of 66.2x.

vs. its own history

Fair

53.1x median over 40 months · -10%

vs. sector peers

Cheap

66.2x median of 4 peers · -28%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

47.7x

P/B

20.73x

EV/EBITDA

34.7x

PEG

4.00

Dividend Yield

1.85%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 22.6% to 26.5% over 3 years.
Cash generation is improving
Free cash flow is up 46% over 3 years.
Return on equity is rising
ROE has improved from 31.6% to 41.6%.
Return on capital is rising
ROCE has improved from 42.7% to 54.9%.
High return on capital employed
ROCE of 54.9% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 96% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 96% over 3 years, from ₹5 Cr to ₹9 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 54.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 22.6% to 26.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 28% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small 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 24%✓ 26.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 20.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹195 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 52%✓ 54.9%
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 · 3 neutral · 2 weak

Market Cap

₹12,765 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

20.73x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹84.74

Profitable

Profitable on a per-share basis

ROE

41.6%

Strong

Strong capital efficiency

ROCE

54.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.47x

Moderate

Moderate leverage

Revenue Growth (YoY)

20.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

19.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.85%

Modest

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

Free Cash Flow

₹195 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4,043.6

P/E (Forward)

33.8x

Improving

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

Operating Margin

25.1%

Good

Healthy core-business profitability

Net Margin

18.4%

Good

Strong bottom-line conversion

Current Ratio

1.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

52%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4137.9 / 4407.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,131 Cr	₹1,180 Cr	₹1,318 Cr	₹1,372 Cr	+6.7%
EBITDA	₹255 Cr	₹311 Cr	₹373 Cr	₹364 Cr	+12.5%
EBITDA Margin	22.6%	26.3%	28.3%	26.5%	—
PAT (Net Profit)	₹183 Cr	₹222 Cr	₹268 Cr	₹256 Cr	+11.9%
EPS	₹57.86	₹70.45	₹84.74	₹81.1	+11.9%
ROE	31.6%	38.3%	43.9%	41.6%	—
ROCE	42.7%	50.7%	57.9%	54.9%	—
Total Debt	₹5 Cr	₹6 Cr	₹11 Cr	₹9 Cr	+25.1%
Free Cash Flow	₹133 Cr	₹158 Cr	₹216 Cr	₹195 Cr	+13.5%

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 12.5% a year over 3 years.

🟢 EBITDA Margin has risen from 22.6% to 26.5% over 3 years (+3.9 pts).

🟢 PAT (Net Profit) has grown at 11.9% a year over 3 years.

🟢 EPS has grown at 11.9% a year over 3 years.

🟢 ROE has risen from 31.6% to 41.6% over 3 years (+10.0 pts).

🟢 ROCE has risen from 42.7% to 54.9% over 3 years (+12.2 pts).

🔴 Total Debt has grown at 25.1% a year over 3 years.

🟢 Free Cash Flow has grown at 13.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹999 Cr

Total Liabilities

₹383 Cr

Total Debt

₹9 Cr

Cash & Equivalents

₹158 Cr

Operating Cash Flow

₹274 Cr

Capex

-₹79 Cr

Shareholding (proxy)

Institutional Holding

9.8%

Insider Holding

75.2%

Corporate Actions

Dividend Rate

₹75

Ex-Dividend Date

13 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹5,029

+24.4% vs CMP

Target Range

₹5,029 – ₹5,029

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive2 mixed1 negative2 general

Ingersoll-Rand (India) - 8 small, midcap stocks with upside potential of up to 50%. How many are in your portfolio?

The Economic Times, 17 Oct

Don't Race Out To Buy Ingersoll-Rand (India) Limited (NSE:INGERRAND) Just Because It's Going Ex-Dividend

Simply Wall Street, 09 JulCapital return

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

Ingersoll Rand (India) Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 13 AugAnalyst view

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

INGERRAND Forecast — Price Target — Prediction for 2027

TradingView, 26 JunAnalyst view

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

Ingersoll Rand issues corrigendum to postal ballot notice on director appointment

scanx.trade, 13 Oct

Ingersoll-Rand (India) standalone net profit declines 4.21% in the March 2026 quarter

Business Standard, 30 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong13.5/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong13.5/15

🔴ValuationDemanding5.3/15

🟢RiskLow6.7/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 24%26.5%
✓Revenue growth stays above 5% a year6.7% CAGR
✓Free cash flow remains positive₹195 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 52%54.9%