Indo Farm Equipment Ltd. (IN:INDOFARM)
:INDOFARM
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Indo Farm Equipment Ltd.
(INDOFARM)
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Rating:56Neutral
Price Target:
₹140.00
▼(-6.32% Downside)
Action:Reiterated
Date:06/05/26
The score is primarily held back by weak cash flow quality (operating cash flow below net income and negative free cash flow) and margin compression despite strong revenue growth. Technicals are mixed with a longer-term downtrend still in place, and valuation is neutral-to-slightly-unfavorable given the 26.6x P/E and no dividend yield.
Positive Factors
Strong revenue growth
Sustained top-line expansion (+88.2% YoY in FY2026) points to broad demand recovery and successful sales execution. Durable revenue growth increases scale, absorbs fixed costs, funds reinvestment into products and distribution, and supports multimonth strategic planning.
Negative Factors
Gross margin erosion
A sharp decline in gross margin (39.2% to 25.6%) signals persistent cost pressure or a shift to lower-margin mix. This materially reduces operating leverage and the firm's capacity to convert revenue into durable profits, stressing long-term margin sustainability absent corrective measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Sustained top-line expansion (+88.2% YoY in FY2026) points to broad demand recovery and successful sales execution. Durable revenue growth increases scale, absorbs fixed costs, funds reinvestment into products and distribution, and supports multimonth strategic planning.
Read all positive factors
Indo Farm Equipment Ltd. (INDOFARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹6.54B
Dividend YieldN/A
Average Volume (3M)32.97K
Price to Earnings (P/E)25.9
Beta (1Y)1.71
Revenue GrowthN/A
EPS GrowthN/A
CountryIN
Employees938
SectorIndustrials
Sector Strength72
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)3.85
Shares Outstanding48,051,600
10 Day Avg. Volume17,961
30 Day Avg. Volume32,965
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
Indo Farm Equipment Limited manufactures and sells agricultural, industrial, and construction equipment in India. The company operates through the Tractor, Crane, NBFC, and Others segments. It offers tractors, rotary tillers, and harvesters, as we...
How the Company Makes Money
INDOFARM makes money primarily by selling manufactured equipment, with revenue largely driven by (1) tractor sales and other farm machinery/equipment sales to dealers/distributors and end customers; and (2) sales of related parts and spares that s...
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 |
|---|---|---|---|
Income Statement | |||
| Total Revenue | 2.34B | 4.40B | 3.87B |
| Gross Profit | 744.77M | 1.13B | 1.51B |
| EBITDA | 346.60M | 580.77M | 583.44M |
| Net Income | 184.96M | 246.94M | 235.47M |
Balance Sheet | |||
| Total Assets | 7.85B | 7.70B | 7.62B |
| Cash, Cash Equivalents and Short-Term Investments | 1.00B | 761.82M | 1.11B |
| Total Debt | 1.80B | 1.50B | 1.73B |
| Total Liabilities | 2.43B | 2.14B | 2.31B |
| Stockholders Equity | 5.42B | 5.56B | 5.31B |
Cash Flow | |||
| Free Cash Flow | 125.61M | -118.04M | 466.60K |
| Operating Cash Flow | 389.98M | 177.44M | 3.61M |
| Investing Cash Flow | -475.59M | 198.60M | -9.02M |
| Financing Cash Flow | 774.14M | -240.30M | 10.74M |
Indo Farm Equipment Ltd. Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹45.81B | 23.11 | ― | 2.90% | 19.34% | 18.27% | |
73 Outperform | ₹302.57B | 12.78 | ― | 0.75% | 13.24% | 89.75% | |
65 Neutral | ₹33.79B | 44.16 | ― | 1.06% | -14.21% | -20.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
58 Neutral | ₹42.58B | 41.69 | ― | 1.06% | 17.76% | 83.26% | |
56 Neutral | ₹6.54B | 25.90 | ― | ― | ― | ― | |
56 Neutral | ₹219.17B | 56.32 | ― | 0.07% | 41.80% | 91.43% |
* Industrials Sector Average
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Indo Farm Equipment Ltd. Corporate Events
Indo Farm Equipment Posts Earnings Call Transcript for FY 2026
May 29, 2026
Indo Farm Equipment Limited has released the official transcript of its investor and analyst earnings call for the quarter and year ended March 31, 2026. The company noted that the transcript, which follows an earlier publication of the call’...
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.