1. At a Glance – The “Auto Component” Company That Earns More From Everything Else
Market Cap: ₹886 Cr
Current Price: ₹760
Stock P/E: 4.93
Price to Book: 0.55
ROE: 10.1%
ROCE: 13.2%
3-Month Return: -10.5%
6-Month Return: -15.2%
IST Ltd just reported Q3 FY26 numbers that would make most auto component CEOs faint. Sales came in at ₹33.7 Cr. Net Profit? ₹62.0 Cr.
Yes, you read that correctly.
Operating Margin is a spicy 67.8%. Earnings Yield stands at 26.2%. And the stock trades at less than half its book value (0.55x).
But wait — there’s a twist. Earnings include “Other Income” of ₹156 Cr on a TTM basis. That’s bigger than their actual sales.
So what exactly is this company? A high-precision engineering firm? An SEZ landlord? An investment holding vehicle wearing a piston-nozzle costume?
Let’s open the bonnet.
2. Introduction – Welcome to the Curious Case of IST
IST Ltd was incorporated in 1976. The official story? Manufacturing high-precision engineering components and assemblies for automobile and consumer goods industries.
Production facility? Dharuhera (Gurgaon). ISO certified. Proper factory vibes.
Clients? Maruti Suzuki, Tata Motors, Fiat, CNH, Suzuki Gujarat — real names, real companies.
But here’s where things get masaledar.
Revenue breakup FY23:
- Manufacturing: 24%
- SEZ operations: 76%
So technically, this “auto component” company makes most of its money from SEZ activities.
And then there’s investment income. And interest income. And rental income. And profit on sale of investments.
If you’re confused, welcome to the club.
Is this an engineering company that accidentally became a landlord?
Or a landlord that occasionally machines throttle shafts?
Let’s decode the business.
3. Business Model – WTF Do They Even Do?
Let’s simplify.
1️ Manufacturing Division
They make:
- Piston Cooling Nozzles
- Throttle Shafts & Valves
- Carburetor components
- CNG kit components
- Various automotive assemblies
These go to two-wheelers and four-wheelers. Solid, traditional, industrial stuff.
Margins here? Good — but not 70% good.
2️ SEZ Operations (The Real Star)
They own Gurgaon Infospace Limited — an IT/ITES SEZ developer.
This segment contributed ~76% of revenue in FY23.
SEZ means:
- Rental income
- Infrastructure leasing
- Development revenue
This is asset-heavy, stable, high-margin business.
3️ Investment
