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Indo Farm Equipment Ltd.
(INDOFARM)
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Rating:57Neutral
Price Target:
₹120.00
▼(-19.71% Downside)
Action:Reiterated
Date:09/09/26
The score is primarily driven by solid financial stability and exceptional revenue growth, tempered by meaningful margin compression and weak cash conversion/negative free cash flow. Technical signals are mixed with negative MACD and the stock below longer-term averages, and valuation appears relatively high at ~27.8x earnings without a stated dividend yield.
Positive Factors
Revenue growth
The sharp FY2026 revenue expansion indicates strong recent demand for the company’s equipment offerings and broader sales momentum. If sustained, higher scale can strengthen dealer reach, support operating investment, and create a larger installed base for future parts and service revenue.
Negative Factors
Margin compression
The substantial decline in gross margin and EBIT margin shows that rapid sales growth is not currently translating proportionately into operating profit. Persistent pressure from costs, pricing, or product mix could limit earnings scalability and weaken the benefit of future revenue expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth
The sharp FY2026 revenue expansion indicates strong recent demand for the company’s equipment offerings and broader sales momentum. If sustained, higher scale can strengthen dealer reach, support operating investment, and create a larger installed base for future parts and service revenue.
Read all positive factors
Indo Farm Equipment Ltd. (INDOFARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹5.60B
Dividend YieldN/A
Average Volume (3M)10.86K
Price to Earnings (P/E)22.6
Beta (1Y)1.72
Revenue Growth11.14%
EPS Growth-8.73%
CountryIN
Employees745
SectorGeneral
Sector StrengthN/A
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)5.19
Shares Outstanding48,051,600
10 Day Avg. Volume6,840
30 Day Avg. Volume10,863
Financial Highlights & Ratios
PEG Ratio-2.20
Price to Book (P/B)0.96
Price to Sales (P/S)1.21
P/FCF Ratio-45.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Indo Farm Equipment Ltd. Business Overview & Revenue Model
Company Description
Established in 1994 in Baddi, India, Indo Farm Equipment Limited is a manufacturer and vendor of agricultural, industrial, and construction machinery primarily within India. The company organizes its operations into distinct divisions, including T...
How the Company Makes Money
The company makes money primarily by manufacturing and selling equipment, earning revenue when products are dispatched/sold to dealers, distributors, institutional buyers, or end customers (depending on the channel structure). Key revenue streams ...
Indo Farm Equipment Ltd. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
74
Positive
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.54B | 4.40B | 3.87B | 3.75B | 3.70B | 3.52B |
| Gross Profit | 1.30B | 1.13B | 1.51B | 1.46B | 1.38B | 1.44B |
| EBITDA | 641.62M | 646.18M | 583.44M | 607.43M | 565.43M | 505.39M |
| Net Income | 249.17M | 246.94M | 235.47M | 154.03M | 153.72M | 137.19M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 7.70B | 7.62B | 6.48B | 6.23B | 6.20B |
| Cash, Cash Equivalents and Short-Term Investments | 761.82M | 761.82M | 1.11B | 152.46M | 36.26M | 29.80M |
| Total Debt | 0.00 | 1.50B | 1.73B | 2.72B | 2.81B | 2.75B |
| Total Liabilities | -5.56B | 2.14B | 2.31B | 3.31B | 3.32B | 3.45B |
| Stockholders Equity | 5.56B | 5.56B | 5.31B | 3.17B | 2.90B | 2.75B |
Cash Flow | ||||||
| Free Cash Flow | -115.90M | -118.04M | 466.60K | 314.66M | 207.04M | -165.46M |
| Operating Cash Flow | -1.26M | 177.44M | 3.61M | 405.82M | 301.75M | 99.77M |
| Investing Cash Flow | 170.07M | 198.60M | -9.02M | -25.87M | -83.74M | -259.62M |
| Financing Cash Flow | -22.68M | -240.30M | 10.74M | -256.98M | -219.91M | 164.02M |
Indo Farm Equipment Ltd. Technical Analysis
Negative
149.45
Price Trends
134.91
Negative
142.36
Negative
143.82
Negative
Market Momentum
-5.43
Positive
31.48
Neutral
16.16
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOFARM, the sentiment is Negative. The current price of 149.45 is above the 20-day moving average (MA) of 128.83, above the 50-day MA of 134.91, and above the 200-day MA of 143.82, indicating a bearish trend. The MACD of -5.43 indicates Positive momentum. The RSI at 31.48 is Neutral, neither overbought nor oversold. The STOCH value of 16.16 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOFARM.
Indo Farm Equipment Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹292.55B | 21.12 | ― | 1.92% | 17.98% | -41.45% | |
65 Neutral | ₹7.15B | 13.57 | ― | 0.18% | ― | ― | |
65 Neutral | ₹33.60B | 30.71 | ― | 0.64% | 17.02% | -5.12% | |
57 Neutral | ₹5.60B | 22.56 | ― | ― | 11.14% | -8.73% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹2.70B | 23.82 | ― | 0.69% | 13.26% | -18.89% | |
44 Neutral | ₹18.21B | -23.63 | ― | 6.23% | 8.81% | -248.88% |
* General Sector Average
IN:INDOFARM
Indo Farm Equipment Ltd.
116.55
-122.55
-51.25%
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Indo Farm Equipment Ltd. Corporate Events
Indo Farm Equipment Clarifies NSE Query on Surge in Trading Volume
Sep 9, 2026
Indo Farm Equipment Ltd. has responded to the National Stock Exchange of India after the bourse flagged a significant increase in trading volume in the company’s shares and sought clarification. The firm stated that it is in full compliance ...
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.