What does Cryogenic Tanks, Cold storage & Cryogenic equipment have in common ?
They are all the products and services provided by Inox.
Today we will take a deep dive into whether you should invest in this IPO or not.
But before that,
You need a demat account to buy any share,
So why not open one now, with Motilal Oswal (click here)
Let’s get into it.
The company is the largest supplier of cryogenic equipment in India.
What’s cryogenic equipment you may ask.
Cryo means cold.
They deal in all the industrial and scientific equipment that needs to be at super low temperatures.
Business segments:-
Industrial gas
Lng (Liquefied natural gas)
Cryogenic scientific industrial gas.
Let’s cover them one by one.
Industrial Gas :-
Equipment like Vaporizers, Cryo Bio & Refrigerant Cylinder
Lng (Liquefied natural gas) :-
Infrastructure, Industrial and high horsepower equipment
Cryo :-
Equipment for satellite & launch facilities & cryogenic propulsion systems.
For the last category, ISRO is a client.
They even made the first trailer mounted hydrogen tank for ISRO.
Let’s get to the strengths and weaknesses:-
Strength
Diverse clientele (1201 domestic clients & 228 international)
Repeat customer (48.6% revenue from repeat customer)
Weakness
International Competition
Very low market share (international)
Critical space (very skilled work)
Numbers:-
The company is valued at a PE of 39.2
There isn’t an industry PE, because it’s the only company in its industry (I’ll talk about this later).
The company has a debt to equity ratio of 0.02, which means it’s debt free.
The Sales CAGR (21-23) is 27.13%
Which is pretty good.
And with a 22.62 EBITDA margin, it’s fantastic.
Opinion:-
The stock is fundamentally strong and is debt free,
The company is the leader in its space and has a monopoly because it’s the only company.
It also has a lot of growth prospects.
The only downside is that it’s competing internationally with companies like Linde, Air liquide & Chart.
It also has a very low international market share.
So if you are going to get this stock for your portfolio
Might as well get it from (here)
And if you want to know if this stock is a coffee can stock,
Then click (here) to learn what coffee can investing is.
Summary:-
What Inox India has to offer its clients
Strengths and Weaknesses of the stock
Numbers of the company.
My opinion.
And when do you think this company will become the leader in the world ?
Comment down below.