Indo Tech Transformers Ltd. (INDOTECH) AI Stock Analysis

Indo Tech Transformers Ltd.

(NSE:INDOTECH)

Select Model

Rating:71Outperform

Price Target:INR 2,987.00▲(10.48% Upside)

Action:reiterated

Date:09/30/26

The overall score is primarily driven by the company's outstanding financial health, characterized by rapid earnings growth and a virtually debt-free balance sheet. However, short-term bearish technical momentum and a premium valuation multiple moderate the final score.

Positive Factors

Multi-year growthThe substantial expansion in revenue and net income indicates stronger business scale and earnings capacity over multiple years. This growth can support reinvestment, deepen the company’s position in transformer markets, and provide a durable foundation for continued operating development.

Negative Factors

Inconsistent cash conversionCash generation has not consistently matched the company’s earnings trajectory, with a prior negative year and a recent decline in free cash flow. Such variability can constrain internally funded investment and makes liquidity more dependent on working-capital and project-cycle outcomes.

Indo Tech Transformers Ltd. (INDOTECH) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 36.11B
Dividend Yield: 0.37%
Average Volume (3M): 4,520
Price to Earnings (P/E): 29.0
Beta (1Y): 1.70
Revenue Growth: 21.99%
EPS Growth: 28.73%
Country: India
Employees: 286
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

Indo Tech Transformers Ltd. Business Overview & Revenue Model

Company Description

Headquartered in Kancheepuram, India, Indo Tech Transformers Limited, established in 1976, specializes in the manufacturing and worldwide distribution of transformers. Their comprehensive product portfolio spans a variety of transformer types, includ...

How the Company Makes Money

INDOTECH primarily makes money by manufacturing and selling transformers and transformer-related products to customers such as power utilities, industrial users, and other electrical infrastructure participants. Revenue is generated from (1) sale of...

Indo Tech Transformers Ltd. Financial Statement Overview

Summary

Exceptional top- and bottom-line growth and a virtually debt-free balance sheet drive strong performance, though operating cash flow conversion slightly lags behind net income growth.

Income Statement

92Very Positive

Balance Sheet

94Very Positive

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	8.46B	7.82B	6.12B	5.04B	3.71B	2.80B
Gross Profit	1.95B	1.84B	1.66B	1.46B	983.17M	751.90M
EBITDA	1.35B	1.31B	915.11M	649.55M	323.26M	182.21M
Net Income	993.00M	927.70M	638.80M	468.60M	257.02M	121.89M
Balance Sheet
Total Assets	0	5.55B	4.36B	3.82B	3.01B	2.38B
Cash, Cash Equivalents and Short-Term Investments	1.14B	1.14B	938.40M	575.40M	433.90M	425.03M
Total Debt	0	52.00M	81.60M	49.95M	113.35M	5.59M
Total Liabilities	-3.74B	1.81B	1.55B	1.65B	1.30B	932.50M
Stockholders Equity	3.74B	3.74B	2.81B	2.17B	1.71B	1.45B
Cash Flow
Free Cash Flow	-90.70M	247.40M	396.10M	236.47M	-115.54M	183.60M
Operating Cash Flow	400.00K	587.90M	557.50M	317.67M	-39.42M	216.94M
Investing Cash Flow	-211.90M	-572.60M	-181.50M	-115.95M	-147.47M	-87.28M
Financing Cash Flow	24.90M	-29.60M	14.30M	-80.90M	93.69M	-1.11M

Indo Tech Transformers Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price2703.60

Price Trends

50DMA3317.62Negative

100DMA3267.38Negative

200DMA2518.09Positive

Market Momentum

MACD-164.89Positive

RSI34.79Neutral

STOCH37.31Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOTECH, the sentiment is Negative. The current price of 2703.60 is below the 20-day moving average (MA) of 3011.63, below the 50-day MA of 3317.62, and above the 200-day MA of 2518.09, indicating a neutral trend. The MACD of -164.89 indicates Positive momentum. The RSI at 34.79 is Neutral, neither overbought nor oversold. The STOCH value of 37.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDOTECH.

Indo Tech Transformers Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:INDOTECH against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TARIL	83Outperform	INR 89.69B	29.22	―	0.08%	27.23%	21.70%
IN:VOLTAMP	76Outperform	INR 104.59B	32.39	―	0.97%	17.84%	-2.60%
IN:INDOTECH	71Outperform	INR 28.71B	29.04	―	0.37%	21.99%	28.73%
IN:VGUARD	62Neutral	INR 122.42B	29.87	―	0.54%	13.36%	26.08%
IN:BBL	57Neutral	INR 26.39B	20.32	―	1.50%	26.44%	-11.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:HPL	54Neutral	INR 14.56B	15.90	―	0.44%	14.96%	-4.12%

* General Sector Average

Performance Comparison

IN:INDOTECH and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:INDOTECH	Indo Tech Transformers Ltd.	2703.60	1003.06	58.98%
IN:BBL	Bharat Bijlee Limited	2334.90	-641.63	-21.56%
IN:HPL	HPL Electric & Power Limited	226.45	-212.17	-48.37%
IN:TARIL	Transformers and Rectifiers (India) Limited	298.80	-145.70	-32.78%
IN:VGUARD	V-Guard Industries Limited	280.20	-88.89	-24.08%
IN:VOLTAMP	Voltamp Transformers Limited	10338.30	2958.63	40.09%

Indo Tech Transformers Ltd. Corporate Events

Indo Tech Transformers wins ₹55-crore transformer order from Waaree Renewable

Aug 31, 2026

Indo Tech Transformers Ltd. has received a Letter of Award from Waaree Renewable Technologies Ltd. to manufacture and supply five power transformers, comprising three 170/175 MVA units and two 125 MVA units, with a total order value of about ₹5...

India Ratings Revises Indo Tech Transformers’ Outlook to Positive, Affirms BBB+ Rating

Aug 17, 2026

India Ratings and Research has reaffirmed Indo Tech Transformers Ltd.’s bank loan facilities rating at IND BBB+ with a short-term rating of IND A2, while revising the outlook to Positive and assigning the same rating to additional limits. The o...

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 30, 2026

Indo Tech Transformers Ltd. AI Stock Analysis