India Nippon Electricals Limited (INDNIPPON) AI Stock Analysis

India Nippon Electricals Limited

(NSE:INDNIPPON)

Select Model

Rating:74.2Outperform

Price Target:INR 1,260.00▲(12.06% Upside)

Action:reiterated

Date:09/10/26

The score is driven primarily by strong financial strength (notably very low leverage and rising profitability) and a supportive uptrend in price action. Offsetting these positives are uneven cash generation (sharp free cash flow weakness in 2026) and a valuation that is not especially cheap given the modest dividend yield.

Positive Factors

Revenue and profit growthSteady revenue expansion alongside higher EBIT and net income indicates that the business is converting demand into improved earnings. Continued growth across recent years can support reinvestment, strengthen operating scale, and improve the company’s ability to compete over the next several quarters.

Negative Factors

Unreliable cash conversionWeak and uneven cash conversion reduces the quality and predictability of reported profit. Volatile free cash flow can limit internally funded investment, increase reliance on working-capital management, and make operating performance less resilient even while accounting earnings continue to grow.

India Nippon Electricals Limited (INDNIPPON) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 27.59B
Dividend Yield: 1.38%
Average Volume (3M): 9,213
Price to Earnings (P/E): 22.1
Beta (1Y): 1.08
Revenue Growth: 30.04%
EPS Growth: 31.64%
Country: India
Employees: 598
Sector: General
Sector Strength: 55
Industry: Auto - Parts

India Nippon Electricals Limited Business Overview & Revenue Model

Company Description

Established in 1984 and headquartered in Chennai, India, India Nippon Electricals Limited develops, produces, and markets electronic ignition systems for the automotive industry both domestically and internationally. Their extensive product lineup en...

How the Company Makes Money

The company makes money by manufacturing and selling automotive ignition and electronic components. Its revenue is primarily generated through (1) OEM/B2B sales: supplying ignition and electronic parts that are fitted into new vehicles/engines by veh...

India Nippon Electricals Limited Financial Statement Overview

Summary

Strong overall fundamentals: steady multi-year revenue growth and rising EBIT/net income, supported by an exceptionally low-debt balance sheet and improving ROE through 2025. The key drag is cash flow reliability—free cash flow has been volatile and weakened sharply in 2026, raising concerns about cash conversion despite profit growth.

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

52Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	10.68B	10.68B	8.45B	7.24B	6.56B	5.66B
Gross Profit	1.91B	1.50B	1.17B	2.15B	2.02B	1.53B
EBITDA	1.56B	1.64B	1.24B	912.60M	754.60M	748.20M
Net Income	1.11B	1.11B	822.80M	593.00M	482.30M	502.50M
Balance Sheet
Total Assets	10.67B	10.67B	9.39B	8.37B	7.18B	6.41B
Cash, Cash Equivalents and Short-Term Investments	1.60B	1.60B	1.68B	1.99B	1.74B	1.69B
Total Debt	19.00M	19.00M	21.10M	29.40M	36.50M	39.10M
Total Liabilities	2.46B	2.46B	2.28B	2.14B	1.57B	1.37B
Stockholders Equity	8.21B	8.21B	7.11B	6.23B	5.60B	5.04B
Cash Flow
Free Cash Flow	-176.40M	61.40M	331.70M	387.00M	316.50M	-206.76M
Operating Cash Flow	9.40M	482.90M	564.20M	626.90M	568.60M	70.52M
Investing Cash Flow	-125.00M	-266.00M	-194.00M	-386.00M	-456.70M	280.77M
Financing Cash Flow	-6.10M	-361.90M	-293.60M	-246.00M	-219.10M	-152.72M

India Nippon Electricals Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price1124.35

Price Trends

50DMA1181.51Negative

100DMA1129.71Negative

200DMA956.11Positive

Market Momentum

MACD-19.94Positive

RSI43.26Neutral

STOCH47.96Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDNIPPON, the sentiment is Negative. The current price of 1124.35 is below the 20-day moving average (MA) of 1174.05, below the 50-day MA of 1181.51, and above the 200-day MA of 956.11, indicating a neutral trend. The MACD of -19.94 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 47.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDNIPPON.

India Nippon Electricals Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:INDNIPPON against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:INDNIPPON	74Outperform	INR 25.43B	22.07	―	1.38%	30.04%	31.64%
IN:BOSCHLTD	69Neutral	INR 1.39T	58.91	―	0.57%	13.63%	-11.32%
IN:MINDACORP	68Neutral	INR 151.03B	29.72	―	0.22%	26.59%	96.82%
IN:VARROC	68Neutral	INR 117.48B	59.30	―	0.20%	14.66%	47.32%
IN:LUMAXTECH	60Neutral	INR 137.96B	38.01	―	0.27%	32.82%	71.53%
IN:MSUMI	60Neutral	INR 233.30B	36.99	―	1.65%	35.93%	11.75%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:INDNIPPON and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:INDNIPPON	India Nippon Electricals Limited	1124.35	151.95	15.63%
IN:BOSCHLTD	Bosch Limited	47032.80	10258.62	27.90%
IN:LUMAXTECH	Lumax Auto Technologies Limited	2024.15	873.14	75.86%
IN:MINDACORP	Minda Corp. Ltd.	631.70	45.36	7.74%
IN:MSUMI	Motherson Sumi Wiring India Ltd	35.18	-11.79	-25.10%
IN:VARROC	Varroc Engineering Limited	768.90	147.32	23.70%

India Nippon Electricals Limited Corporate Events

India Nippon Electricals Publishes Q1 FY27 Unaudited Results in Newspapers

Aug 8, 2026

India Nippon Electricals Limited has notified the stock exchanges that it has published an extract of its unaudited standalone financial results for the quarter ended June 30, 2026 in the Business Standard and Dinamani newspapers. The disclosure has...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 10, 2026

India Nippon Electricals Limited AI Stock Analysis