Brokerage Firm JM Financial Gives INOX India a BUY Rating with ₹1,240 Target. Semiconductor Ecosystem, LNG Demand, and Strong Cash Flow Indicate a Potential 22% Upside.
INOX Stock: Weakness was observed in the domestic stock market on Thursday (April 3rd), primarily attributed to the announcement of increased import tariffs by US President Donald Trump. This decision led to a decline in Asian markets and put pressure on Indian markets. However, amidst this weak sentiment, brokerage firm JM Financial initiated coverage on INOX India, a leading capital goods company, and assigned it a BUY rating.
INOX India: A Leading Cryogenic Equipment Manufacturer
INOX India is the largest manufacturer of cryogenic equipment in India. It holds a leading position in the sector, being approximately four times larger than its nearest competitor. The brokerage firm is positive on this stock due to its b fundamentals and leading market position.
Brokerage Opinion: ₹1,240 Target, 22% Upside
JM Financial has set a long-term target of ₹1,240 for INOX India. This represents a potential upside of approximately 22% from the current level. On Thursday, the stock traded at ₹1,022.50 on the BSE, up 0.88%.
Share Performance: Is This the Right Time to Invest?
INOX India's share price has corrected by approximately 50% from its all-time high. However, it has seen an increase of more than 10% in the last month. Over the three and six-month periods, it has declined by 7.31% and 9.45%, respectively. The stock has recorded a decline of 19.76% in the last year. Following this correction, the brokerage views it as an attractive investment opportunity.
What Will Strengthen INOX India?
The brokerage stated that the company's business model is based on stable revenue growth, high Return on Equity (RoE), and b cash flow. Furthermore, INOX India is likely to benefit from several factors in the future—
- Expansion of the semiconductor ecosystem in India
- Growing demand for LNG adoption as truck fuel
- Scale-up and potential expansion of the kegs business
(Disclaimer: This is the brokerage firm's opinion. Please seek appropriate advice before investing.)
