Igarashi Motors Q3 FY26: ₹216 Cr Sales, EPS ₹1.11 → Annualised ₹4.44, Yet P/E 68x… Motor Ban Raha Hai Ya Valuation Rocket?
1. At a Glance – “Yeh Motor Company Hai Ya Emotional Rollercoaster?”
If you ever wanted to see a company where motors spin faster than profits, welcome to Igarashi Motors India Ltd. A company sitting at ₹829 Cr revenue, barely squeezing ₹13.6 Cr PAT, and somehow still commanding a P/E of 68x — this is not valuation, this is optimism on steroids.
Let’s be honest — this is like ordering a full thali and getting only papad. Revenue is there. Global clients are there. Export story is there. Technology is there. But profits? Missing like your gym motivation after Day 3.
And yet, investors are paying premium pricing as if this is the next auto component superstar.
So the real question: 👉 Is this a hidden turnaround story… or just a “global supply chain ka junior partner” stuck in low-margin hell?
Let’s investigate like a slightly sarcastic forensic auditor.
2. Introduction – “Global Supplier, Local Margin Problems”
Igarashi Motors sounds fancy. Japanese parent. Export-driven business. Advanced automotive components. Clients like Bosch, BorgWarner, Vitesco.
Basically, this company is the backstage technician of the automotive world — you don’t see it, but without it, your car won’t breathe properly.
But here’s the twist.
Despite being in a high-tech space, their profitability looks like a roadside chai stall’s margin.
Revenue: ₹829 Cr
PAT: ₹13.6 Cr
Net margin: ~1.6%
That’s not a business. That’s survival mode.
And it gets worse.
Profit growth (TTM): -48%
ROE: 5.3%
ROCE: 7.73%
This is not “efficient capital allocation.” This is “bhai paisa laga diya, return bhool jao.”
So now the puzzle: 👉 Why is a low-margin, slow-growth company trading at premium valuation?
Let’s dig deeper.
3. Business Model – WTF Do They Even Do?
Alright, imagine your car.
You press accelerator → throttle opens → engine responds.
Who makes the tiny motor controlling that? 👉 Igarashi.
They manufacture:
Permanent Magnet DC Motors
Actuator motors (ETC, EGR, VTG)
Seat motors, window motors, fuel pump components
BLDC motors for fans and appliances
In short: 👉 “Chhote motors, bada impact.”
They operate across:
ICE vehicles
Hybrid
EV
So technically, they are future-proofed.
But here’s the catch:
👉 They are NOT selling directly to car companies. They sell to Tier-1 suppliers.
Meaning:
No pricing power
No brand power
Just “cost + margin = survival”
Classic middleman problem.
And then comes BLDC segment — which management thought will be a savior.
Reality?
👉 Lower margin than existing business
So they basically diversified… into a lower-profit business.
Genius or desperation?
4. Financials Overview – “Numbers Thoda Sad Lag Rahe Hain”
