This Smallcap company, which offers solutions across the value chain of design, manufacturing, engineering, and installation of systems and equipment systems for cryogenic conditions went up 7% in the day’s trade after receiving the order to supply cryogenic tanks from Highview Power (UK).
Price Movement
In Friday’s trading session, Inox India Limited stock was up by 7 percent in the day’s trade after receiving the order to supply cryogenic tanks from Highview Power (UK). The stock has delivered a return of around 27 percent in the past year and outperformed Nifty in the same period. The stock reiterated from the day’s high of Rs. 1212.90 and was trading at Rs. 1200 which is 6.15 percent from the previous closing price of Rs. 1130.50 per share.
What happened
Inox India received an order of Supply 5 Vertical 690kl, high pressure EN Design Vacuum Insulated Cryogenic Tanks from Highview Power (UK). The company needs to Design, manufacturing & supply of Liquid Air Storage Vessels. The time period of the contract period is 15 months.
Financial Performance
Their Q1FY25 results show revenue from operations of Rs. 296 crore which declined by 3.89 percent year on year, from Rs. 308 crore in Q1FY24 and a 7.2 percent increase from Rs. 276 crore in Q4FY24. Their net profit decreased by 7 percent year on year, from Rs. 57 crores in Q1FY24 to Rs. 53 crores in Q1FY25. Quarterly, the profits were up 20.45 percent from Rs. 44 crore.
The return on equity in FY24 stood at 32.71 percent improved from 29.04 percent a year ago. The debt-to-equity ratio was 0.02 times which has decreased from 0.06 times in FY23. However, the return on capital employed has stood at 42.16 percent which has improved from 37.05 percent in FY23.
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Revenue Segment
According to the company’s June 2024 released quarterly report, they considered revenue from Cryogenic tanks which includes comprising of cryogenic tank for LNG, Disposable Cylinders, Cryolines. Industrial Gas contribute around 62 percent of revenue, 15 percent from LNG, 21 percent from Cryo scientific and remaining 2 percent from others in Q1FY25.
Shareholding Pattern
As of September 2024, the shareholding pattern includes promoters holding a major share of 75 percent stake in Inox India, Foreign Institutional Investors (FII) holding around 5.84 percent, Domestic Institutional investors (DII) standing at 7.14 percent, and public holdings standing at 12.02 percent.
About the company
Inox India Limited is the one of the leading supplier of cryogenic equipment in India which specializes in the design, engineering, manufacturing, and installation of systems for cryogenic applications.
Their business model concentrates on three main divisions which is Industrial Gases, focusing on storage and distribution systems, LNG providing engineered solutions for liquefied natural gas and Cryo Scientific catering to technology-intensive research applications.
With over 30 years of experience, Inox India serves a diverse global customer base across various sectors, including energy, healthcare, and aerospace and also being the largest exporter of cryogenic tanks from India. The order book as of Q1FY25 stood at Rs. 1,105 crores. Their exports contribute around half of their revenue.
Written by Santhosh S
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