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India Nippon Electricals

NSEI:INDNIPPON
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
INDNIPPON
NSEI
₹10B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

India Nippon Electricals Limited designs, manufactures, and sells electronic ignition systems for auto industry in India and internationally. The last earnings update was 346 days ago. More info.


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INDNIPPON Share Price and Events
7 Day Returns
-0.3%
NSEI:INDNIPPON
1.8%
IN Auto Components
1.1%
IN Market
1 Year Returns
-13.7%
NSEI:INDNIPPON
-22.6%
IN Auto Components
-0.9%
IN Market
INDNIPPON Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
India Nippon Electricals (INDNIPPON) -0.3% 7.7% 8.8% -13.7% 126.3% 380.8%
IN Auto Components 1.8% -1.1% -2.3% -22.6% 33.1% 138.3%
IN Market 1.1% 1.8% 5.7% -0.9% 41% 72.2%
1 Year Return vs Industry and Market
  • INDNIPPON outperformed the Auto Components industry which returned -22.6% over the past year.
  • INDNIPPON underperformed the Market in India which returned -0.9% over the past year.
Price Volatility
INDNIPPON
Industry
5yr Volatility vs Market
Related Companies

INDNIPPON Value

 Is India Nippon Electricals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of India Nippon Electricals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for India Nippon Electricals.

NSEI:INDNIPPON Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 17.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:INDNIPPON
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.16
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.159 (1 + (1- 35%) (0%))
1.106
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.106 * 8.6%)
17.06%

Discounted Cash Flow Calculation for NSEI:INDNIPPON using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for India Nippon Electricals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:INDNIPPON DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 17.06%)
2019 104.05 Est @ -14.13% 88.88
2020 96.12 Est @ -7.62% 70.14
2021 93.17 Est @ -3.07% 58.08
2022 93.28 Est @ 0.12% 49.67
2023 95.46 Est @ 2.35% 43.42
2024 99.19 Est @ 3.91% 38.54
2025 104.15 Est @ 5% 34.57
2026 110.16 Est @ 5.76% 31.23
2027 117.10 Est @ 6.3% 28.36
2028 124.92 Est @ 6.68% 25.84
Present value of next 10 years cash flows ₹468.74
NSEI:INDNIPPON DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹124.92 × (1 + 7.55%) ÷ (17.06% – 7.55%)
₹1,411.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,411.99 ÷ (1 + 17.06%)10
₹292.13
NSEI:INDNIPPON Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹468.74 + ₹292.13
₹760.86
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹760.86 / 22.62
₹33.63
NSEI:INDNIPPON Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹33.63
Current discount Discount to share price of ₹460.10
= -1 x (₹460.10 - ₹33.63) / ₹33.63
-1267.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of India Nippon Electricals is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for India Nippon Electricals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are India Nippon Electricals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:INDNIPPON PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹22.01
NSEI:INDNIPPON Share Price ** NSEI (2019-04-18) in INR ₹460.1
India Auto Components Industry PE Ratio Median Figure of 100 Publicly-Listed Auto Components Companies 16.01x
India Market PE Ratio Median Figure of 2,736 Publicly-Listed Companies 16.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of India Nippon Electricals.

NSEI:INDNIPPON PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:INDNIPPON Share Price ÷ EPS (both in INR)

= 460.1 ÷ 22.01

20.9x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • India Nippon Electricals is overvalued based on earnings compared to the IN Auto Components industry average.
  • India Nippon Electricals is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does India Nippon Electricals's expected growth come at a high price?
Raw Data
NSEI:INDNIPPON PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.9x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
9.3%per year
India Auto Components Industry PEG Ratio Median Figure of 36 Publicly-Listed Auto Components Companies 1.3x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:INDNIPPON PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.9x ÷ 9.3%

2.26x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • India Nippon Electricals is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on India Nippon Electricals's assets?
Raw Data
NSEI:INDNIPPON PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹151.36
NSEI:INDNIPPON Share Price * NSEI (2019-04-18) in INR ₹460.1
India Auto Components Industry PB Ratio Median Figure of 111 Publicly-Listed Auto Components Companies 2.09x
India Market PB Ratio Median Figure of 3,627 Publicly-Listed Companies 1.11x
NSEI:INDNIPPON PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:INDNIPPON Share Price ÷ Book Value per Share (both in INR)

= 460.1 ÷ 151.36

3.04x

* Primary Listing of India Nippon Electricals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • India Nippon Electricals is overvalued based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess India Nippon Electricals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. India Nippon Electricals has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

INDNIPPON Future Performance

 How is India Nippon Electricals expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is India Nippon Electricals expected to grow at an attractive rate?
  • India Nippon Electricals's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • India Nippon Electricals's earnings growth is positive but not above the India market average.
  • India Nippon Electricals's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:INDNIPPON Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:INDNIPPON Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 9.3%
NSEI:INDNIPPON Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 11.2%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 11%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:INDNIPPON Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:INDNIPPON Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-03-31 5,661 600 1
2019-03-31 5,148 548 1
NSEI:INDNIPPON Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 4,524 267 498
2017-03-31 3,511 417 296
2016-03-31 3,359 330 289

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • India Nippon Electricals's earnings are expected to grow by 9.3% yearly, however this is not considered high growth (20% yearly).
  • India Nippon Electricals's revenue is expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:INDNIPPON Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 year ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from India Nippon Electricals Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:INDNIPPON Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-03-31 26.51 26.51 26.51 1.00
2019-03-31 24.22 24.22 24.22 1.00
NSEI:INDNIPPON Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 22.01
2017-03-31 13.07
2016-03-31 12.79

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • India Nippon Electricals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess India Nippon Electricals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
India Nippon Electricals has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

INDNIPPON Past Performance

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

  • India Nippon Electricals's last earnings update was 346 days ago.
The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare India Nippon Electricals's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Insufficient data to establish if India Nippon Electricals's year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare India Nippon Electricals's 1-year earnings growth to the 5-year average due to insufficient past data.
  • India Nippon Electricals's earnings growth has exceeded the IN Auto Components industry average in the past year (68.4% vs 25.6%).
Earnings and Revenue History
India Nippon Electricals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from India Nippon Electricals Company Filings, last reported 1 year ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:INDNIPPON Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 4,523.85 497.97 528.26
2017-03-31 3,510.81 295.67 447.51
2016-03-31 3,358.70 289.22 395.24
2015-03-31 3,277.32 230.76 348.09
2014-03-31 2,626.69 212.27 386.96
2013-03-31 2,690.05 292.29 348.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • India Nippon Electricals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • India Nippon Electricals used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • India Nippon Electricals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess India Nippon Electricals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
India Nippon Electricals has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

INDNIPPON Health

 How is India Nippon Electricals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up India Nippon Electricals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • India Nippon Electricals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • India Nippon Electricals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of India Nippon Electricals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • India Nippon Electricals has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from India Nippon Electricals Company Filings, last reported 1 year ago.

NSEI:INDNIPPON Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 3,423.96 0.00 1,232.22
2017-03-31 2,754.24 0.00 1,248.98
2016-03-31 2,565.70 0.00 957.95
2015-03-31 2,228.11 0.00 700.28
2014-03-31 2,129.89 80.05 545.12
2013-03-31 2,042.72 0.00 474.40
  • India Nippon Electricals has no debt.
  • India Nippon Electricals had no debt 5 years ago.
  • India Nippon Electricals has no debt, it does not need to be covered by operating cash flow.
  • India Nippon Electricals has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess India Nippon Electricals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. India Nippon Electricals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

INDNIPPON Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.41%
Current annual income from India Nippon Electricals dividends.
If you bought ₹2,000 of India Nippon Electricals shares you are expected to receive ₹28 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • India Nippon Electricals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • India Nippon Electricals's dividend is below the markets top 25% of dividend payers in India (1.94%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:INDNIPPON Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 0.8%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:INDNIPPON Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2020-03-31
2019-03-31
NSEI:INDNIPPON Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-02-11 6.500 1.540
2018-05-08 7.000 1.492
2018-01-29 6.000 1.182
2017-03-30 5.000 1.227
2017-01-27 4.500 1.636
2016-03-28 4.500 1.998
2016-01-29 4.000 2.218
2015-08-04 4.500 2.340
2015-02-09 4.750 2.335
2014-05-23 4.500 2.785
2014-01-28 4.500 4.878
2013-05-28 5.000 6.215
2013-02-06 4.500 5.306
2012-05-30 4.500 5.012
2012-02-06 2.857 3.341
2011-09-21 3.393 4.202
2010-05-26 2.500 2.751
2009-12-21 2.500 3.149
2009-06-29 2.143 3.665
2009-06-01 2.143 4.715
2009-04-20 2.143 5.366

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of India Nippon Electricals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess India Nippon Electricals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can India Nippon Electricals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. India Nippon Electricals has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

INDNIPPON Management

 What is the CEO of India Nippon Electricals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ravinder Sharma
CEO Bio

Mr. Ravinder Sharma serves as the Chief Executive Officer of India Nippon Electricals Limited. Mr. Sharma served as the President of Electrical Division at Varroc Engineering Pvt. Ltd. Mr. Sharma joined the Varroc family in September 2011 as Vice President of R&D - Electrical Division. Apart from the remarkable qualifications, his expertise stems from a 28-year experience in the industry, particularly in the R&D domain. He started his career with Eicher Research & Development Centre in the Design & Testing of Light Commercial Vehicles with Mitsubishi Motors. During his tenure at Eicher, he worked for the improvement of structural design of vehicles to suit Indian road conditions. Mr. Sharma joined Denso India Ltd. where he worked for 23 years and served as the General Manager of Product Design and Process Engineering. He got extensive training in Denso Corp. Japan and Thailand in Design, Development & Testing of the products. He established complete R&D and Testing facility and Systematic Product Development Process. He led a special task force for the Localization of Products in India with Denso Quality. As a core group member at Denso in India, he was instrumental in the introduction of many new generation Products and Technologies. He has implemented many novel ideas to, reduce the product cost substantially and lead the Indian Market for Body Electricals and Thermal product line, while also establishing the image of "High Quality, Reasonable cost". He also headed the Manufacturing Engineering Department and was responsible for revamping the Production processes as a major manufacturing Strategy. Mr. Sharma is a Mechanical Engineer and has completed his MBA from the Thunderbird University.

CEO Compensation
  • Insufficient data for Ravinder to compare compensation growth.
  • Insufficient data for Ravinder to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team Tenure

Average tenure of the India Nippon Electricals management team in years:

3.7
Average Tenure
  • The tenure for the India Nippon Electricals management team is about average.
Management Team

Arvind Balaji

TITLE
MD & Non-Independent Director
COMPENSATION
₹21M
AGE
44
TENURE
4.7 yrs

Elango Srinivasan

TITLE
Chief Financial Officer
COMPENSATION
₹5M
TENURE
3.7 yrs

Ravinder Sharma

TITLE
Chief Executive Officer

R. Shankar

TITLE
Chief Technical Officer

G. Venkatram

TITLE
Company Secretary & Compliance Officer
AGE
36
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the India Nippon Electricals board of directors in years:

5.5
Average Tenure
61
Average Age
  • The tenure for the India Nippon Electricals board of directors is about average.
Board of Directors

Tirumalai Balaji

TITLE
Chairman
COMPENSATION
₹904K
AGE
70

Arvind Balaji

TITLE
MD & Non-Independent Director
COMPENSATION
₹21M
AGE
44
TENURE
6.5 yrs

K. Raghavan

TITLE
Non-Executive Independent Director
COMPENSATION
₹692K
AGE
63

R. Vijayaraghavan

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
68
TENURE
5.9 yrs

V. Krishnan

TITLE
Non-Executive Independent Director
COMPENSATION
₹1M
AGE
72
TENURE
10.5 yrs

Jayshree Suresh

TITLE
Non-Executive Independent Woman Director
COMPENSATION
₹782K
TENURE
5.1 yrs

Tadaya Momose

TITLE
Non Executive Non Independent Director
AGE
59

Mukesh Somani

TITLE
Non Executive Non Independent Director
COMPENSATION
₹595K
AGE
48
TENURE
2.9 yrs

Priyamvada Balaji

TITLE
Non-Independent Non-Executive Director
COMPENSATION
₹95K
TENURE
1.3 yrs

Anant Talaulicar

TITLE
Independent Additional Director
AGE
57
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess India Nippon Electricals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. India Nippon Electricals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

INDNIPPON News

Simply Wall St News

Did The Underlying Business Drive India Nippon Electricals's (NSE:INDNIPPON) Lovely 365% Share Price Gain?

For example, the India Nippon Electricals Limited (NSE:INDNIPPON) share price is up a whopping 365% in the last half decade, a handsome return for long term holders. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, India Nippon Electricals achieved compound earnings per share (EPS) growth of 11% per year.

Simply Wall St -

Should You Be Holding India Nippon Electricals Limited (NSE:INDNIPPON)?

Today I've chosen to put the spotlight on India Nippon Electricals Limited (NSE:INDNIPPON) due to its excellent fundamentals in more than one area. … Below, I've touched on some key aspects you should know on a high level … If you're interested in understanding beyond my broad commentary,

Simply Wall St -

Read This Before Considering India Nippon Electricals Limited (NSE:INDNIPPON) For Its Upcoming ₹3.00 Dividend

To qualify for the dividend check of ₹3.00 per share, investors must have owned the shares prior to 21 February 2019, which is the last day the company's management will finalize their list of shareholders to which they will send dividend payments. … Investors looking for higher income-generating stocks to add to their portfolio should keep reading, as I examine India Nippon Electricals's latest financial data to analyse its dividend characteristics. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Does India Nippon Electricals Limited (NSE:INDNIPPON) Have A Place In Your Portfolio?

Historically, India Nippon Electricals Limited (NSE:INDNIPPON) has been paying a dividend to shareholders. … Does India Nippon Electricals tick all the boxes of a great dividend stock? … Check out our latest analysis for India Nippon Electricals

Simply Wall St -

India Nippon Electricals Limited (NSE:INDNIPPON): Why Return On Capital Employed Is Important

and want to begin learning the link between India Nippon Electricals Limited (NSE:INDNIPPON)’s return fundamentals and stock market performance. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in India Nippon Electricals, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

A Holistic Look At India Nippon Electricals Limited (NSE:INDNIPPON)

India Nippon Electricals Limited (NSE:INDNIPPON) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … If you're interested in understanding beyond my high-level commentary,

Simply Wall St -

Should You Buy India Nippon Electricals Limited (NSE:INDNIPPON) For Its Dividend?

Historically, India Nippon Electricals Limited (NSE:INDNIPPON) has paid dividends to shareholders, and these days it yields 1.7%. … Let's dig deeper into whether India Nippon Electricals should have a place in your portfolio. … See our latest analysis for India Nippon Electricals

Simply Wall St -

Does India Nippon Electricals Limited's (NSE:INDNIPPON) PE Ratio Signal A Selling Opportunity?

India Nippon Electricals Limited (NSE:INDNIPPON) is currently trading at a trailing P/E of 25, which is higher than the industry average of 22.4. … Though this might seem to be a negative, you might change your mind after I explain the assumptions behind the P/E ratio. … See our latest analysis for India Nippon Electricals

Simply Wall St -

India Nippon Electricals Limited (NSE:INDNIPPON): A Look At Solid Capital Returns

and looking to gauge the potential return on investment in India Nippon Electricals Limited (NSE:INDNIPPON). … Buying India Nippon Electricals makes you a partial owner of the company. … To understand India Nippon Electricals’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

What is Behind India Nippon Electricals Limited's (NSE:INDNIPPON) Superior ROE?

India Nippon Electricals Limited (NSE:INDNIPPON) delivered an ROE of 14.55% over the past 12 months, which is relatively in-line with its industry average of 14.22% during the same period. … If INDNIPPON borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface.

Simply Wall St -

INDNIPPON Company Info

Description

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 magneto, stator, and rotor products, as well as CDI and TCI products, regulator and rectifier units, ignition coils, exhaust gas recirculation controllers, engine controller units, auto choke-generation purpose engines, dual output ignition products, non-contact and contact type throttle position sensors, and PM alternators. Its products have applications in two-wheelers, three wheelers, and portable engines. The company was incorporated in 1984 and is based in Chennai, India.

Details
Name: India Nippon Electricals Limited
INDNIPPON
Exchange: NSEI
Founded: 1984
₹10,408,117,182
22,621,424
Website: http://www.indianippon.com
Address: India Nippon Electricals Limited
No. 11 & 13, Patullos Road,
Chennai,
Tamil Nadu, 600002,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI INDNIPPON Equity Shares National Stock Exchange of India IN INR 15. May 1997
BSE 532240 Equity Shares Mumbai Stock Exchange IN INR 15. May 1997
Number of employees
Current staff
Staff numbers
0
India Nippon Electricals employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 12:48
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2018/12/17
Last earnings filing: 2018/05/08
Last earnings reported: 2018/03/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.