NSEI:INDNIPPON

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India Nippon Electricals

Executive Summary

India Nippon Electricals Limited designs, manufactures, and sells electronic ignition systems for auto industry in India and internationally. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has India Nippon Electricals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: INDNIPPON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

8.0%

INDNIPPON

3.7%

IN Auto Components

1.3%

IN Market


1 Year Return

-3.2%

INDNIPPON

2.8%

IN Auto Components

4.3%

IN Market

Return vs Industry: INDNIPPON underperformed the Indian Auto Components industry which returned 9.7% over the past year.

Return vs Market: INDNIPPON underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

INDNIPPONIndustryMarket
7 Day8.0%3.7%1.3%
30 Day-4.8%-0.3%1.8%
90 Day20.9%16.9%13.8%
1 Year-0.5%-3.2%3.9%2.8%6.3%4.3%
3 Year-29.4%-33.3%-26.5%-28.7%4.4%-0.5%
5 Year110.7%91.2%11.2%6.6%46.0%35.1%

Price Volatility Vs. Market

How volatile is India Nippon Electricals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is India Nippon Electricals undervalued compared to its fair value and its price relative to the market?

27.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDNIPPON (₹344.75) is trading above our estimate of fair value (₹152.97)

Significantly Below Fair Value: INDNIPPON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: INDNIPPON is good value based on its PE Ratio (27.5x) compared to the IN Auto Components industry average (29.2x).

PE vs Market: INDNIPPON is poor value based on its PE Ratio (27.5x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INDNIPPON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INDNIPPON is overvalued based on its PB Ratio (1.9x) compared to the IN Auto Components industry average (1.3x).


Next Steps

Future Growth

How is India Nippon Electricals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

53.2%

Forecasted Automobiles industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as India Nippon Electricals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has India Nippon Electricals performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDNIPPON has a large one-off gain of ₹136.0M impacting its June 30 2020 financial results.

Growing Profit Margin: INDNIPPON's current net profit margins (7.4%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: INDNIPPON's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: INDNIPPON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: INDNIPPON had negative earnings growth (-57.5%) over the past year, making it difficult to compare to the Auto Components industry average (-56.6%).


Return on Equity

High ROE: INDNIPPON's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is India Nippon Electricals's financial position?


Financial Position Analysis

Short Term Liabilities: INDNIPPON's short term assets (₹3.1B) exceed its short term liabilities (₹951.1M).

Long Term Liabilities: INDNIPPON's short term assets (₹3.1B) exceed its long term liabilities (₹145.6M).


Debt to Equity History and Analysis

Debt Level: INDNIPPON is debt free.

Reducing Debt: INDNIPPON had no debt 5 years ago.

Debt Coverage: INDNIPPON has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: INDNIPPON has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is India Nippon Electricals's current dividend yield, its reliability and sustainability?

1.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: INDNIPPON's dividend (1.96%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: INDNIPPON's dividend (1.96%) is low compared to the top 25% of dividend payers in the Indian market (2.22%).


Stability and Growth of Payments

Stable Dividend: INDNIPPON's dividend payments have been volatile in the past 10 years.

Growing Dividend: INDNIPPON's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.9%), INDNIPPON's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average board tenure


CEO

Arvind Balaji (46 yo)

6.08yrs

Tenure

₹27,604,000

Compensation

Mr. Arvind Balaji has been the Managing Director of India Nippon Electricals Limited since August 2014. Mr. Balaji is the Joint Managing Director at Lucas-TVS Limited since February 2004. Mr. Balaji has be ...


CEO Compensation Analysis

Compensation vs Market: Arvind's total compensation ($USD375.35K) is above average for companies of similar size in the Indian market ($USD48.91K).

Compensation vs Earnings: Arvind's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Arvind Balaji
MD & Non-Independent Director6.08yrs₹27.60mno data
Tirumala Balaji
Non-Executive Chairmanno data₹995.00kno data
Venkataratnam Krishnan
Independent Director11.92yrs₹1.19mno data
Anant Talaulicar
Independent Director1.42yrs₹695.00kno data
Ranganathan Vijayaraghavan
Independent Director7.33yrs₹1.30mno data
Kadaba Gopi Vallabh Raghavan
Independent Director6.08yrs₹755.00kno data
Priyamvada Thirumalaikumara Balaji
Non-Independent Non-Executive Director2.67yrs₹620.00kno data
Jayshree Parekh
Non-Executive Independent Woman Director6.5yrs₹940.00kno data
Tadaya Momose
Non Executive Non Independent Directorno datano datano data
Mukesh Somani
Non Executive Non Independent Director4.33yrs₹720.00kno data

6.3yrs

Average Tenure

66yo

Average Age

Experienced Board: INDNIPPON's board of directors are considered experienced (6.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

India Nippon Electricals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: India Nippon Electricals Limited
  • Ticker: INDNIPPON
  • Exchange: NSEI
  • Founded: 1984
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹7.799b
  • Shares outstanding: 22.62m
  • Website: https://www.indianippon.com

Number of Employees


Location

  • India Nippon Electricals Limited
  • No. 11 & 13, Patullos Road
  • Chennai
  • Tamil Nadu
  • 600002
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532240BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 1997
INDNIPPONNSEI (National Stock Exchange of India)YesEquity SharesININRMay 1997

Biography

India Nippon Electricals Limited designs, manufactures, and sells electronic ignition systems for auto industry in India and internationally. The company offers AC generator products, such as flywheel magn ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:20
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.