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Pennar Industries Limited (IN:PENIND)
:PENIND
India Market
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Pennar Industries Limited (PENIND) AI Stock Analysis

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IN:PENIND

Pennar Industries Limited

(PENIND)

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Neutral 53 (OpenAI - Gpt-5.6Sol)
Rating:53Neutral
Price Target:
₹163.00
▼(-17.90% Downside)
Action:Reiterated
Date:08/29/26
The score is primarily held back by weakening cash-flow quality (lower operating cash flow and sharply negative free cash flow) alongside higher leverage, which increases financial risk. This is partially offset by steady revenue growth and improved profitability versus earlier years, plus a moderate P/E valuation. Technicals are neutral-to-soft, reflecting limited momentum and longer-term trend pressure.
Positive Factors
Steady Revenue Growth
Consistent revenue expansion indicates sustained demand for Pennar’s products and services. Growth across successive years provides a durable base for operating leverage, although future benefits will depend on maintaining customer orders and capacity utilization.
Negative Factors
Rising Leverage
Higher borrowings increase interest and refinancing exposure while reducing flexibility during weaker demand periods. Although equity also grew, the elevated debt load can constrain investment choices and amplify downside risk if operating performance deteriorates.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Consistent revenue expansion indicates sustained demand for Pennar’s products and services. Growth across successive years provides a durable base for operating leverage, although future benefits will depend on maintaining customer orders and capacity utilization.
Read all positive factors

Pennar Industries Limited (PENIND) vs. iShares MSCI India ETF (INDA)

Pennar Industries Limited Business Overview & Revenue Model

Company Description
Established in 1975 and headquartered in Hyderabad, India, Pennar Industries Limited functions as a leading engineering company serving both domestic and international markets. The firm offers a wide array of products and services, including speci...
How the Company Makes Money
Pennar Industries makes money primarily by manufacturing and supplying steel and steel-based engineered products, earning revenue from (1) sale of processed/value-added steel and metal-formed products and (2) sale of precision-engineered component...

Pennar Industries Limited Financial Statement Overview

Summary
Income statement strength is moderate (Score 66) with steady revenue growth and a multi-year earnings recovery, but balance-sheet risk is elevated (Score 52) due to rising debt (11.6B in FY2026 vs 8.1B FY2025). Cash flow is the main weakness (Score 41): operating cash flow fell to 0.77B in FY2026 from 1.48B FY2025, and free cash flow turned sharply negative (-2.52B), increasing funding dependence and near-term risk.
Income Statement
66
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue34.98B36.20B32.27B31.31B28.95B22.66B
Gross Profit13.20B10.49B9.05B11.82B10.93B3.14B
EBITDA3.76B3.55B3.47B3.13B2.55B1.88B
Net Income1.30B1.39B1.19B983.40M754.20M418.30M
Balance Sheet
Total Assets33.31B35.51B29.54B26.40B23.18B21.41B
Cash, Cash Equivalents and Short-Term Investments2.67B2.71B1.91B1.09B1.70B835.20M
Total Debt9.93B11.62B8.12B7.85B6.85B6.45B
Total Liabilities22.62B23.87B19.55B17.63B15.39B14.05B
Stockholders Equity10.70B11.63B9.98B8.77B7.78B7.35B
Cash Flow
Free Cash Flow-1.18B-2.52B218.90M-218.90M1.73B1.37B
Operating Cash Flow1.15B766.50M1.48B2.25B2.44B1.95B
Investing Cash Flow-2.41B-3.56B-1.10B-2.57B-279.70M-984.60M
Financing Cash Flow1.17B3.44B124.20M-223.00M-1.13B-922.30M

Pennar Industries Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price198.55
Price Trends
50DMA
164.51
Positive
100DMA
163.36
Positive
200DMA
170.73
Negative
Market Momentum
MACD
0.64
Negative
RSI
57.78
Neutral
STOCH
73.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PENIND, the sentiment is Positive. The current price of 198.55 is above the 20-day moving average (MA) of 159.96, above the 50-day MA of 164.51, and above the 200-day MA of 170.73, indicating a neutral trend. The MACD of 0.64 indicates Negative momentum. The RSI at 57.78 is Neutral, neither overbought nor oversold. The STOCH value of 73.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PENIND.

Pennar Industries Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹29.72B33.980.35%1.36%4.42%
68
Neutral
₹22.77B40.510.26%20.87%12.63%
61
Neutral
₹218.30B72.6217.44%-4.41%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
54
Neutral
₹57.15B28.930.58%19.79%-16.98%
54
Neutral
₹11.69B18.4349.44%41.82%
53
Neutral
₹22.52B15.839.17%14.00%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PENIND
Pennar Industries Limited
169.60
-77.55
-31.38%
IN:ISGEC
ISGEC Heavy Engineering Ltd.
786.95
-217.85
-21.68%
IN:JASH
Jash Engineering Ltd.
478.70
-34.13
-6.65%
IN:JYOTICNC
Jyoti Cnc Automation Limited
1,002.85
106.30
11.86%
IN:JYOTISTRUC
Jyoti Structures Ltd.
10.02
-5.87
-36.94%
IN:THEJO
Thejo Engineering Ltd.
2,125.30
208.64
10.89%

Pennar Industries Limited Corporate Events

Pennar Industries Allots Rs 50.4 Crore Promoter Warrants, Discloses Promoter Share Pledge
Jun 18, 2026
Pennar Industries has approved the allotment of 3 million convertible equity warrants on a preferential basis to promoter entity Pennar Holdings Private Limited at an issue price of Rs. 168 per warrant, aggregating to Rs. 50.40 crore. The warrants...
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: Aug 29, 2026