🧊 At a Glance
Inox India’s stock may have cooled off from its ₹1,507 highs to ₹1,212, but the cryogenic tank maker’s financials are anything but frozen. Over FY21–FY25, the company has expanded revenue from ₹595 crore to ₹1,306 crore — more than 2.2x growth, all while maintaining OPMs in the 21–23% range and posting 23% CAGR in profits. The question is: with a PE nearing 50 and ROCE melting faces at 38%, is the party just getting started… or are we late to the ice bucket challenge?
🏢 About Inox India Ltd
- Founded: 1976
- HQ: Vadodara, Gujarat
- BSE Code: 544046
- NSE Symbol: INOXINDIA
- Speciality: Cryogenic tanks, green hydrogen systems, industrial gas equipment
- Market Cap: ₹11,000+ Cr
- Promoter Holding: 75% (unchanged)
You know how every other infra company brags about “robust pipeline”?
Well, Inox India literally builds them — cold, steel, insulated ones.
🧑💼 Key Managerial Personnel
| Name | Designation |
|---|---|
| Deepak Acharya | CEO |
| Sudhir Sethi | Chief People Officer |
| Pavan Logar | CFO |
| Bhumika Joshi | General Manager |
Management has a combined ice-age of experience in cryogenics. No pun.
📊 Financial Performance (FY21–FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM % | ROCE % | Dividend Payout % |
|---|---|---|---|---|---|---|
| FY21 | 595 | 97 | 107.40 | 23 | 33 | 0% |
| FY22 | 783 | 130 | 14.38 | 21 | 35 | 10% |
| FY23 | 966 | 155 | 17.05 | 21 | 37 | 67% |
| FY24 | 1,133 | 196 | 21.59 | 22 | 43 | 51% |
| FY25 | 1,306 | 226 | 24.90 | 22 | 38 | 52% |
🤯 Translation:
- Revenue grew 2.2x
- Profits grew 2.3x
- ROCE never dipped below 33%
- Dividend payout has become “mature midcap behaviour”
🌍 Segment-Wise: What They Actually Sell
🔹 Industrial Gas Division (~59% revenue)
Cryogenic tanks, storage systems, distribution equipment for industrial gases — including green hydrogen. In short, they make the cold storage for the hot ESG trend.
🔸 Oil & Gas and LNG
Expanding into clean fuel logistics — especially relevant with India’s LNG dreams getting real.
🔹 Cryo Scientific
Catering to space, nuclear and defence sectors. You’re buying the tanks that go to Mars… or at least ISRO.
💸 Balance Sheet & Cash Flow (FY25)
| Metric | Value (₹ Cr) |
|---|---|
| Total Assets | ₹1,654 Cr |
| Borrowings | ₹43 Cr (almost debt-free!) |
| Cash from Ops | ₹122 Cr |
| Cash from Investing | ₹-141 Cr (growth capex) |
| Net Cash Flow | ₹-1 Cr (balanced) |
| ROCE | 38% |
| Debtor Days | 70 |
📌 Almost debt-free.
📌 Investing heavily in expansion.
📌 Still throwing off cash like it’s a party.
📉 Shareholding Pattern
| Entity | Mar 2025 |
|---|---|
| Promoters | 75.00% |
| FIIs | 6.85% (up from 4.65% YoY) |
| DIIs | 6.26% |
| Public | 11.90% |
Takeaway: FII interest rising. Public got bored. Classic.
📈 Fair Value Estimate
Let’s assume:
- FY26 Profit Growth = 18% CAGR
- Fair PE = 45 (based on capital goods peers + premium brand)
- FY25 PAT = ₹226 Cr
- FY26 PAT (Est) = ₹266 Cr
- Market Cap Estimate = ₹266 Cr × 45 = ₹11,970 Cr to ₹13,000 Cr
🧮 Forward FV Range = ₹1,300–₹1,420 per share
At CMP ₹1,212 — there’s still cold room for upside.
🔭 Sectoral Outlook
- 🟢 Green Hydrogen Mission: India wants to produce 5 MMT by 2030. Guess who makes the tanks?
- 🟢 PSU + Infra Push: Inox tanks go into mega LNG terminals, oil & gas infra, and ISRO labs.
- 🟡 Competition: Global cryo giants, but Inox India is Atmanirbhar AF.
- 🔴 Valuation: Not cheap. But for a category leader? That’s premium pricing.
🧠 EduInvesting Take
“Inox India isn’t a hot multibagger — it’s a cold compounder. Think of it as the HDFC Bank of cryogenic cylinders.”
- Boring? Sure.
- Predictable? Yes.
- Profitable? Hell yeah.
- Overvalued? Debatable. But India’s green energy push justifies some froth.
🧊 It’s not explosive, it’s expansion in slow motion. Cryo-style.
⚠️ Risks & Red Flags
- ❄️ Working Capital Days rose from 31 → 72 in FY25. Keep an eye.
- ❄️ Stock Price Correction: Down 20% from highs already.
- ❄️ Capex Drag: Large investments might hurt near-term margins.
🎯 Verdict
Inox India is the Mukesh Ambani of cryogenics.
And no, not just because of the gas — it’s the scale, ROCE, and cold-blooded consistency.
Author: Prashant Marathe
Date: June 11, 2025
Tags: Inox India, Cryogenic Equipment, Green Hydrogen, Nifty500, Industrial Stocks, EduInvesting, Cold Compounders, Inox Tanks, ROCE Kings
