Market Leader in Cryogenic Equipment Trading at a 39% Discount – A Stock to Watch!
Cryogenic Equipment : Investors looking for a solid opportunity in the energy and cryogenic equipment sector should keep a close watch on INOX India Ltd. The company, a market leader in cryogenic equipment and LNG fueling stations, is currently trading 39% below its 52-week high, offering an attractive entry point for long-term investors. With strong fundamentals, increasing global orders, and robust financial performance, this stock could be a hidden gem in the making.
Stock Price Movement
Shares of INOX India Ltd are currently priced at ₹920.45 per share, significantly down from its 52-week high of ₹1,506.90 per share. During Friday’s trade, the stock touched an intra-day high of ₹949, registering a 1.11% increase from its previous close of ₹910.35.
This steep discount presents a great buying opportunity for investors who believe in the company’s long-term growth prospects.
Business Overview
Established in 1976, INOX India is a leading manufacturer and supplier of cryogenic equipment. The company operates through three key divisions:
- Industrial Gas
- LNG (Liquefied Natural Gas)
- Cryo Scientific
INOX India’s products cater to diverse industries, including healthcare, energy, steel, aviation, and chemicals. Its reputation as a dominant player in the Indian and international markets is a testament to its strong business model and technological expertise.
Market Leadership
INOX India holds a massive market share of approximately 65%-70% in the LNG and LCNG fueling station sector, solidifying its leadership in this industry. Additionally, it commands 60% of the Indian cryogenic tank market, making it the largest supplier of cryogenic tanks in the country.
This stronghold gives INOX India a significant competitive advantage, ensuring sustained growth and revenue generation.
Expanding International Presence
INOX India has been actively securing major international orders, which further strengthens its global footprint. Some of its recent achievements include:
- Largest LNG Order in India – Received an order for 45 LNG trailers, the biggest order ever in the company’s LNG division.
- Mini LNG Terminal in the Bahamas – Expanding its presence in the international LNG market.
- UK’s First Large-Sized IG Tank for Long Duration Energy Storage (LDES) – Demonstrating its technological expertise.
- First 2KL LH2 Tank Order from New Zealand – Marking a significant entry into the hydrogen energy segment.
- Large Order from a European University for a Mega Research Project – Highlighting its growing credibility in global markets.
These orders reflect INOX India’s increasing demand worldwide, making it an exciting stock to monitor.
Financial Performance
INOX India posted strong financial results for the quarter ending December 2024, showcasing steady growth:
| Financial Metric | Q3 FY24 | Q3 FY23 | Growth (%) |
|---|---|---|---|
| Revenue from Operations | ₹349 Cr | ₹295 Cr | 18% |
| Profit After Tax (PAT) | ₹58 Cr | ₹49 Cr | 23% |
The company’s ability to deliver double-digit revenue and profit growth indicates strong operational efficiency and business resilience.
Segment-Wise Revenue Breakdown
INOX India’s revenue comes from diverse business segments, ensuring balanced growth:
| Division | Revenue (₹ Cr) | Contribution (%) |
|---|---|---|
| Industrial Gas | ₹239 Cr | 68.4% |
| LNG | ₹50 Cr | 14.3% |
| Cryo Scientific | ₹45 Cr | 12.9% |
| Other Segments | ₹15 Cr | 4.3% |
The company’s Industrial Gas segment remains its largest revenue driver, followed by LNG and Cryo Scientific divisions.
Key Financial Ratios
To further understand INOX India’s financial strength, here’s a look at its key ratios:
| Financial Ratio | Value |
|---|---|
| Market Cap | ₹8,313 Cr |
| Current Price | ₹916 |
| 52-Week High / Low | ₹1,507 / ₹884 |
| Stock P/E | 41.7 |
| Book Value | ₹82.7 |
| Dividend Yield | 0.00% |
| Return on Capital Employed (ROCE) | 43.1% |
| Return on Equity (ROE) | 32.7% |
| Debt-to-Equity Ratio | 0.13 |
| Price-to-Earnings (P/E) Ratio | 41.7 |
| Industry P/E | 25.3 |
| Graham Number | ₹205 |
| Intrinsic Value | ₹462 |
| RSI (Relative Strength Index) | 39.2 |
| EPS (Earnings Per Share) | ₹22.5 |
| Debt | ₹97.1 Cr |
| Free Cash Flow (3 Years) | ₹216 Cr |
| DMA 200 (200-Day Moving Average) | ₹1,102 |
These figures indicate strong profitability, low debt levels, and solid financial health, making INOX India a stable investment option.
Should You Buy INOX India Stock?
At a 39% discount from its peak, INOX India offers an attractive investment opportunity, considering:
- Market Leadership – Dominant position in the cryogenic and LNG sector.
- Strong Financials – Consistent revenue and profit growth.
- Global Expansion – Increasing international orders and presence.
- Robust ROCE & ROE – High returns on capital and equity.
- Low Debt – A healthy balance sheet with a low debt-to-equity ratio.
However, its high P/E ratio (41.7x) compared to the industry average of 25.3x suggests it might be overvalued, so investors should consider long-term growth potential before investing.
Final Thoughts
With its solid financials, expanding global presence, and leadership in the cryogenic sector, INOX India is a compelling stock to watch. Investors looking for exposure to energy, industrial gas, and LNG sectors should closely monitor this stock for potential entry opportunities.
While market volatility may continue in the short term, long-term investors could benefit from the company’s steady growth and strong fundamentals.
Would you consider adding INOX India to your watchlist? Let us know your thoughts!
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.