Inox India - Tanked Up And Ready To Roll; ICICI Securities Initiates Coverage With A Buy

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Inox India Ltd. has witnessed stable growth over FY18-FY23 with revenue/Ebitda/profit after tax compound annual growth rate of 16%/14%/14% to Rs 9.7 billion/2 billion/1.5 billion. It is a debt-free company with cash and equivalents of Rs 3.2 billion as of FY23. The company has built a strong product suite across cryogenic storage tanks ranging from ship fuel storage tanks and mini terminals at ports to fuel dispensation solutions, refrigerant cylinders, non-refillable disposable cylinders, cryogenic solutions for space and medical research, and the recently introduced stainless steel kegs. .Inox India along with the existing growth drivers is well poised to capitalise on new growth drivers such as the shift to a cleaner LNG fuel for transportation (ships and heavy duty commercial vehicles) from diesel, increased use of cryogenic gases in the general industrial purposes, entry into stainless steel kegs market, refrigerant cylinders, etc. We estimate Inox India’s revenue to grow at a 23% CAGR over FY23-FY26E to Rs 17.8 billion, Ebitda expanding at a 26% CAGR to Rs 4.05 billion, as Ebitda margins inch up to 22.7% in FY26E (versus 21% in FY23).Consequently, we envisage PAT growing at a 26% CAGR to Rs 3.0 billion in FY26E. We also see return on equity improving to 31% in FY26E (versus 29% in FY23).Given the strong moat and healthy profitability metrics, we believe a price/earning multiple of 42 times is fair as compared to the average P/E of 38 times for FY26E of our coverage universe..We initiate coverage on Inox India with a Buy and a target price of Rs 1,400, valuing the stock at 42 times FY26E earnings per share of Rs 33.4/share..Click on the attachment to read the full report:.ICICI Lombard - Tech Initiatives To Drive Long-Term Efficiencies: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Inox India - Tanked Up And Ready To Roll; ICICI Securities Initiates Coverage With A Buy

Fuelled by wider cryogenics application, new products and industrial growth, we see FY23–FY26E PAT CAGR of 26%.

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Inox India - Tanked Up And Ready To Roll; ICICI Securities Initiates Coverage With A Buy

Fuelled by wider cryogenics application, new products and industrial growth, we see FY23–FY26E PAT CAGR of 26%.

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