India Nipp.Elec. (INDNIPPON)
CyclicalFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,123.2 |
| Market Cap | ₹2,540.84 Cr |
| P/E Ratio | 22.12 |
| ROCE | 15.43% |
| ROE | 14.78% |
| Dividend Yield | 1.38% |
| Profit Growth | 56.2% |
| Debt/Equity | — |
| Sales Growth | 26.59% |
| Promoter Holding | 70.37% |
| 52-Week Range | ₹675 — ₹1,566.1 |
| Sector | Auto Components |
| Book Value | ₹363.08 |
Strengths
- Sales growth of 26.59% and profit growth of 56.20% show strong recent operating momentum.
- ROE of 14.78% and ROCE of 15.43% reflect decent capital efficiency.
- Piotroski F-Score of 7/9 indicates sound recent financial health.
- Promoter holding of 70.37% aligns management interests with minority shareholders.
- PEG of 0.46 suggests growth is available at a reasonable valuation if it persists.
Concerns
- Stock is ~38.7% below its 52-week high of ₹1,278.20, which may signal deteriorating market sentiment.
- P/E of 19.03 and P/B of 2.61 are not deep-value levels for a cyclical auto components business.
- Debt/Equity is N/A, leaving leverage and balance-sheet risk unassessable from the given data.
- High growth may be cyclical rather than durable; ~9% net margin could compress in an auto-demand downturn.
AI Analysis
I am drawn to businesses with a durable moat, not just a good quarter. India Nipp.Elec. has delivered impressive numbers: sales up 26.59%, profit up 56.20%, and a PEG of 0.46. But I must remind myself that an auto-components company is a cyclical animal. The current up-tick may reflect the automobile cycle, not a permanent compounding machine. At ₹782.85, the stock is about 38.7% below its 52-week high of ₹1,278.20. That should make me cautious, not excited. The P/E of 19.03 and P/B of 2.61 are reasonable only if growth persists; auto history is not kind to such assumptions. On the positive side, ROE of 14.78% and ROCE of 15.43% are respectable, and the Piotroski score of 7/9 suggests financial soundness. Promoter holding of 70.37% is a strong alignment signal. I also note the FairStock score of 53/100 speaks to a mixed picture. The latest quarter—₹272 Cr sales and ₹25 Cr net profit—implies a net margin of about 9%, which can compress quickly in a downturn. Debt/equity is listed as N/A; that is a red flag to me because I cannot judge leverage with a missing number. The 1.87% dividend yield is nice but not a substitute for margin of safety. With price down sharply and earnings high, this could be a value trap or an opportunity. I do not have enough certainty. I would wait for evidence that the cycle has not rolled over, or for a lower price that builds in more safety.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer