CRISIL Research has come out with its report on Innoventive Industries. The research firm estimates operating income of the company to grow by 21% CAGR over FY12-15 to Rs 13.9 bn driven primarily by tubes and oil & gas product divisions. CRISIL assigns valuation grade of 5/5 to the company.
CRISIL Research has come out with its report on Innoventive Industries . The research firm estimates operating income of the company to grow by 21% CAGR over FY12-15 to Rs 13.9 bn driven primarily by tubes and oil & gas product divisions. CRISIL assigns valuation grade of 5/5 to the company.
Pune-based engineering firm Innoventive Industries Ltd (Innoventive) manufactures steel tubes, automotive components, oil & gas related products and other engineering products. Innoventive derives its competitive edge from indigenously-developed products, one of which is patented, and a strong product development pipeline. Innovative products, fiscal incentive for its manufacturing facility in Pune and growing exports will help the company maintain superior operating margins and profitability. However, working capital management will be challenging. We initiate coverage on Innoventive with a fundamental grade of 4/5, indicating superior fundamentals.
Innovation at the core of competitive advantage
Growth drivers: exports and acquisitions
Working capital management will be challenging
Adjusted EPS to grow at 33% CAGR over FY12-15
Valuations: Current market price has strong upside
Disclaimer: This report (Report) has been commissioned by the Company/Investor/Exchange and prepared by CRISIL. The report is based on data publicly available or from sources considered reliable by CRISIL (Data). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data / Report and is not responsible for any errors or omissions or for the results obtained from the use of Data / Report. Opinions expressed herein are CRISIL's opinions as on the date of this Report. The Data / Report are subject to change without any prior notice. Nothing in this Report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. The Report is not a recommendation to buy / sell or hold any securities of the Company. CRISIL especially states that it has no financial liability, whatsoever, to the subscribers / users of this Report. This Report is for the personal information of the authorized recipient only. This Report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside India, for any purpose.
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