Buy Inox India; target of Rs 1400: ICICI Securities

ICICI Securities's research report on Inox India

Inox India’s (INOX) Q1FY26 result was in line with our estimates. Revenue grew 15% YoY to INR 3.4bn. EBITDA stood at INR 0.7bn with margin at 22.4% (-130bps YoY). APAT stood at INR 0.6bn (+16%YoY). Order inflow stood strong at INR 4.1bn (+34% YoY). As a result, orderbook perched to INR 14.5bn. With diversified use cases for its cryogenic tanks along with opportunities across LNG value chain, INOX stands tall to capture the opportunity with the moat and the trust it has built over the years. We estimate steady growth in industrial gas segment, and increased traction in beer kegs given the recent approvals from global breweries. INOX has reported a strong revenue CAGR of 15% between FY20-FY25 and RoE of 28%.

Outlook

We expect 18% earnings CAGR (FY25-FY27E) for INOX. Reiterate BUY with TP of INR 1,400 (based on 40x FY27E earnings).