Market leader stock trading at a discount of 39% to add to your watchlist

A market leader in cryogenic equipment and LNG fueling stations is currently trading at a 39 percent discount, making it an attractive opportunity for investors. With robust growth potential in the energy sector, this stock could offer an ideal entry point for those seeking to capitalize on future developments and market shifts.

Price Movement 

Shares of INOX India Ltd are trading at Rs.920.45l each, representing a 39 percent drop from its 52-week high price of Rs.1,506.90 per share. On Friday’s trade, the stock reached an intra-day high of Rs.949 per share, rising 1.11 percent from its previous close of Rs.910.35 apiece. 

Business Overview

Inox India Limited, founded in 1976, is a leading manufacturer and supplier of cryogenic equipment in India. The company operates across three key divisions, Industrial Gas, LNG, and Cryo Scientific, offering a wide array of products and services that cater to multiple industries, including healthcare, energy, steel, aviation, and chemicals.

Market Leader

Inox India is a market leader in the LNG and LCNG fueling station sector, with a dominant market share of approximately 65 percent to 70 percent. The company’s strong presence and expertise in this area have established it as a key player, further solidifying its leadership position in the industry.

Additionally, Inox India commands a dominant position in the Indian cryogenic tank market, holding an estimated 60 percent of the total market share. This strong market presence makes the company the largest supplier of cryogenic tanks in the country.

Recent International Orders

The company has secured several significant international orders, highlighting its growing global presence. A major order for 45 LNG trailers was received from a customer in India, marking the largest-ever order in the LNG division. 

Additionally, the company has received an order for a mini LNG terminal in the Bahamas. A UK customer placed the first-ever order for a large-sized IG tank, designed for Long Duration Energy Storage (LDES) applications. 

Further, the company secured its first-ever 2KL LH2 tank order from a customer in New Zealand. In another notable development, a large-value order was received from a European university for a mega research project, reinforcing the company’s standing in the global market.

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Financial Performance

For the quarter ending December 2024, the company reported revenue from operations of Rs.349 crore, reflecting a 18 percent increase compared to Rs.295 crore in the same quarter of the previous year. Similarly, Profit After Tax (PAT) rose by 23 percent, reaching Rs.58 crore from Rs.49 crore in the same period.

Segmental Revenue and Exports

Inox India reported a total revenue of Rs.349 crore, with the Industrial Gas division contributing 68.4 percent or Rs.239 crore of the total revenue. The LNG division accounted for 14.3 percent (Rs.50 crore), while the Cryo Scientific division generated 12.9 percent (Rs.45 crore). 

The remaining 4.3 percent (Rs.15 crore) came from other business segments. This distribution underscores the company’s diverse revenue streams and strong performance across its key divisions.

Financial Ratio Analysis 

The Return on Capital Employed (ROCE) of the company stands at 31.37 percent, while the Return on Equity (ROE) is 25.95 percent. 

The company’s Price-to-Earnings (P/E) ratio is 41.43x, higher than its industry average of 12.03x. Additionally, the company has a good current ratio of 1.98, debt-to-equity ratio of 0.13 and an Earnings Per Share (EPS) of Rs.21.94.

Written by – Siddesh S Raskar

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