Inox India (INOXINDIA)
Fast GrowerFairStock Score: 57/100 — STEADY
Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,943 |
| Market Cap | ₹17,635.35 Cr |
| P/E Ratio | 69.44 |
| ROCE | 37.98% |
| ROE | 28.4% |
| Dividend Yield | 0.1% |
| Profit Growth | -4.9% |
| Debt/Equity | 0.07 |
| Sales Growth | 9.2% |
| Free Cash Flow | ₹-18.59 Cr |
| Promoter Holding | 75% |
| 52-Week Range | ₹1,068.2 — ₹2,338.95 |
| Sector | Industrial Products |
| Book Value | ₹123.13 |
Strengths
- High ROE of 28.40% and ROCE of 37.98% show exceptional capital efficiency.
- Very conservative balance sheet with Debt/Equity of 0.05 and Altman Z-Score of 5.91.
- Strong sales growth of 23.30% and profit growth of 21.30%; latest quarter net profit ₹61 Cr.
- Promoter holding of 75% aligns interests with minority shareholders.
- Piotroski F-Score of 8/9 indicates solid financial health.
Concerns
- Rich valuation: P/E 41.74, P/B 16.30, EV/EBITDA 34.76.
- Negative free cash flow of ₹-19 Cr raises quality-of-earnings questions.
- Dividend yield of just 0.17% offers negligible income support.
- Margin of safety deeply negative at -378% versus Graham Number of ₹243.30.
AI Analysis
Looking at Inox India, I see a business with admirable operating characteristics and a price that gives me pause. It earns 28.4% on equity and nearly 38% on capital, with just 0.05 debt-to-equity—a combination that signals a durable franchise and disciplined management. The Piotroski score of 8 out of 9 confirms healthy fundamentals, and Altman Z of 5.91 suggests no bankruptcy risk. Promoters holding 75% aligns their interests with mine. Growth is impressive: sales up 23.3%, profits up 21.3%, latest quarter net profit at ₹61 Cr on ₹429 Cr sales. But as Graham taught, no matter how wonderful the business, I must not overpay. At ₹1,568.80, the P/E is 41.7, P/B is 16.3, and EV/EBITDA is 34.8. The Graham Number—a conservative benchmark—is only ₹243.30, meaning I'm paying over six times that. Margin of safety is deeply negative at -378%. Free cash flow is a red flag: minus ₹19 Cr. A business that can't convert earnings to cash needs scrutiny. Dividend yield is negligible at 0.17%, so my return depends entirely on growth continuing and market sentiment. For an Indian retail investor, I'd say this is a well-run company, but valuation leaves little room for error. I would wait for a sharper pullback or a multi-year track record of cash generation before committing. Patience is my friend.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer