INOXINDIA

INOX reported single digit growth in profit in 9MFY25 owing to trade headwinds. However, it finished the year on a strong note. It recovered lost ground with revenue growth of 34% YoY to INR3.7bn and profit growth of 49% YoY to INR 655m in Q4. For the year, as a whole, revenues grew 16% to INR 13bn and profit grew 15% to INR 2.2bn. Order inflow (OI) for FY25 was INR 15bn, + 30% YoY. Outlook It guided for revenue growth of 18-20% YoY in FY26 1) aided by a sharp rise in order inflow, 2) a slew of approvals for its stainless-steel beer keg, and 3) entry into new segments – LNG Fuel tank, fueling stations, IMO containers, semiconductors etc. INOX has reported a strong revenue CAGR of 14% between FY18-FY25 and ROEs of 28%. We expect INOX to grow at 18% earnings CAGR (FY25-FY27E). We reiterate BUY with a TP of INR 1,400 (based on 40xFY27E earnings).