INOX India Limited

Industrials — Specialty Industrial Machinery · NSE

₹1,997.00−₹28.00 (−1.38%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

INOX India Limited manufactures and supplies cryogenic liquid storage and transport tanks for gas companies and engineering, procurement, and construction (EPC) companies in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees752

Annual revenue₹1,552 Cr

How does it make money?

Turns over ₹1,552 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 752 employees supports ₹2.06 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.06 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.

Compared side by side in Peers ↓

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

ROCE has stayed above 15% in every year available and stands at 30.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.1% 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.

Peer median ROE17.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 23.1% and earnings to grow about 26.8% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+23.1%

Est. earnings growth+26.8%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +65% while net margin moved +1% 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+65%

Margin effect+1%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 71.3x is demanding — it needs sustained high growth to justify
✗ P/E is 31% above its own historical median of 54.4x — expensive by its own standards
✗ P/B of 16.22x is a steep premium to book

Quality vs. Valuation

Company Quality

71/ 100

Good

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

Valuation

31/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

71.3x

3Y Median

54.4x

36 monthly readings · mean 58.4x · range 42.6x–79.3x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 31% above its 3y median of 54.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 66.2x.

vs. its own history

Expensive

54.4x median over 36 months · +31%

vs. sector peers

Fair

66.2x median of 4 peers · +8%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

49.0x

PEG

3.84

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 30.6% 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 Attention2

Return on equity is falling
ROE has dropped from 28.2% to 23.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.1% to 30.6% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 802% over 3 years, from ₹9 Cr to ₹81 Cr.
🔴High leverageFinancial
Debt/Equity of 7.25x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 119% against revenue up 65% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.6% 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.
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?

Leverage amplifies any setback
Debt/Equity of 7.25x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 119% against revenue up 65%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 31% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 28.2% to 23.1%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1Revenue growth stays above 14% a year✓ 18.2% CAGR
Latest reported year was 9.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 24.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 30.6%
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

4 good · 3 neutral · 4 weak

Market Cap

₹18,157 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

71.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

16.22x

Rich

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

EPS (TTM)

₹28

Profitable

Profitable on a per-share basis

ROE

23.1%

Strong

Strong capital efficiency

ROCE

30.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

7.25x

High

High leverage

Revenue Growth (YoY)

9.2%

Modest

Modest growth

Profit Growth (YoY)

-4.9%

Falling

Profits are shrinking

Dividend Yield

0.10%

Modest

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

Free Cash Flow

₹11 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

43.5x

Improving

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

Operating Margin

17.9%

Good

Healthy core-business profitability

Net Margin

15.7%

Good

Strong bottom-line conversion

Current Ratio

1.78

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.55

Defensive

Steadier than the market

52W Range Position

73%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2082.0 / 2060.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

34.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹939 Cr	₹1,106 Cr	₹1,280 Cr	₹1,552 Cr	+18.2%
EBITDA	₹213 Cr	₹261 Cr	₹301 Cr	₹372 Cr	+20.4%
EBITDA Margin	22.7%	23.6%	23.5%	24.0%	—
PAT (Net Profit)	₹155 Cr	₹196 Cr	₹226 Cr	₹258 Cr	+18.6%
EPS	₹17.05	₹21.53	₹24.83	₹28.33	+18.4%
ROE	28.2%	30.2%	25.9%	23.1%	—
ROCE	36.1%	38.4%	33.9%	30.6%	—
Total Debt	₹9 Cr	₹16 Cr	₹43 Cr	₹81 Cr	+108.1%
Free Cash Flow	₹130 Cr	₹24 Cr	-₹3 Cr	₹11 Cr	-56.4%

🟢 Revenue has grown at 18.2% a year over 3 years.

🟢 EBITDA has grown at 20.4% a year over 3 years.

🟢 EBITDA Margin has risen from 22.7% to 24.0% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 18.6% a year over 3 years.

🟢 EPS has grown at 18.4% a year over 3 years.

🔴 ROE has fallen from 28.2% to 23.1% over 3 years (-5.1 pts).

🔴 ROCE has fallen from 36.1% to 30.6% over 3 years (-5.5 pts).

🔴 Total Debt has grown at 108.1% a year over 3 years.

🔴 Free Cash Flow has shrunk at 56.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,016 Cr

Total Liabilities

₹898 Cr

Cash & Equivalents

₹16 Cr

Operating Cash Flow

₹117 Cr

Capex

-₹106 Cr

Shareholding (proxy)

Institutional Holding

9.4%

Insider Holding

74.9%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

09 Jun 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,253.33

+12.8% vs CMP

Target Range

₹2,010 – ₹2,500

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

3 mixed3 general

Inox India promoter member disposes shares for ₹9.30 lakh

scanx.trade, 17 Oct

INOX India (NSEI:INOXINDIA) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

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

INOXINDIA 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.

Inox India share price jumps over 5% after firm secures multiple orders worth ₹939 crore

Upstox, 08 JulPrice 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.

Inox India Share Price: 52-week high, price action, peers

Univest, 27 Aug

Inox India Ltd. Peer Comparison – Compare with Others

Value Research, 29 Aug

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑