NSEI:INDNIPPON

Stock Analysis Report

India Nippon Electricals

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet and fair value.


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

-2.0%

INDNIPPON

-2.0%

IN Auto Components

-1.2%

IN Market


1 Year Return

-28.8%

INDNIPPON

-20.1%

IN Auto Components

4.0%

IN Market

Return vs Industry: INDNIPPON underperformed the Indian Auto Components industry which returned -20.1% over the past year.

Return vs Market: INDNIPPON underperformed the Indian Market which returned 4% over the past year.


Shareholder returns

INDNIPPONIndustryMarket
7 Day-2.0%-2.0%-1.2%
30 Day3.0%8.5%4.8%
90 Day-3.4%12.5%7.5%
1 Year-27.6%-28.8%-19.3%-20.1%6.1%4.0%
3 Year33.5%27.4%3.9%1.5%34.2%27.3%
5 Year52.6%39.4%18.9%14.5%37.4%24.5%

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?

11.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: INDNIPPON (₹328.45) is trading above our estimate of fair value (₹206.13)

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 (11.3x) compared to the Auto Components industry average (14.3x).

PE vs Market: INDNIPPON is good value based on its PE Ratio (11.3x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: INDNIPPON is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: INDNIPPON is overvalued based on its PB Ratio (1.7x) compared to the IN Auto Components industry average (1.4x).


Next Steps

Future Growth

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

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INDNIPPON's forecast earnings growth (13.1% per year) is above the savings rate (7.6%).

Earnings vs Market: INDNIPPON's earnings (13.1% per year) are forecast to grow slower than the Indian market (19% per year).

High Growth Earnings: INDNIPPON's earnings are forecast to grow, but not significantly.

Revenue vs Market: INDNIPPON's revenue (12.4% per year) is forecast to grow faster than the Indian market (11.2% per year).

High Growth Revenue: INDNIPPON's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if INDNIPPON's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INDNIPPON has a high level of non-cash earnings.

Growing Profit Margin: INDNIPPON's current net profit margins (12.7%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: INDNIPPON's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: INDNIPPON's earnings growth over the past year (20.8%) is below its 5-year average (22.5% per year).

Earnings vs Industry: INDNIPPON earnings growth over the past year (20.8%) exceeded the Auto Components industry -10.7%.


Return on Equity

High ROE: INDNIPPON's Return on Equity (15.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is India Nippon Electricals's financial position?


Financial Position Analysis

Short Term Liabilities: INDNIPPON's short term assets (₹3.2B) exceeds its short term liabilities (₹1.0B)

Long Term Liabilities: INDNIPPON's short term assets (3.2B) exceeds its long term liabilities (60.5M)


Debt to Equity History and Analysis

Debt Level: INDNIPPON is debt free.

Reducing Debt: INDNIPPON has no debt compared to 5 years ago when its debt to equity ratio was 1.8%.

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

Inventory Level: INDNIPPON has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if INDNIPPON's debt is covered by short term assets.


Next Steps

Dividend

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

2.13%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: INDNIPPON's dividend (2.13%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: INDNIPPON's dividend (2.13%) is low compared to the top 25% of dividend payers in the Indian market (2.4%).


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 low payout ratio (24.2%), INDNIPPON's dividend payments are well 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

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

5.5yrs

Average board tenure


CEO

Arvind Balaji (45yo)

5.3yrs

Tenure

₹30,166,000

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 ($USD420.36K) is above average for companies of similar size in the Indian market ($USD33.44K).

Compensation vs Earnings: Arvind's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.5yrs

Average Tenure

65yo

Average Age

Experienced Board: INDNIPPON's board of directors are considered experienced (5.5 years average tenure).


Insider Trading

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.


Management Team

  • Arvind Balaji (45yo)

    MD & Non-Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹30.17m
  • Ravinder Sharma

    President

    • Tenure: 0yrs
  • Elango Srinivasan

    Chief Financial Officer

    • Tenure: 4.3yrs
    • Compensation: ₹5.12m
  • R. Shankar

    Chief Technical Officer

    • Tenure: 0yrs
  • G. Venkatram (37yo)

    Chief Investor Relations Officer

    • Tenure: 0yrs
    • Compensation: ₹2.23m

Board Members

  • Tirumalai Balaji (71yo)

    Non-Executive Chairman

    • Tenure: 0yrs
    • Compensation: ₹904.00k
  • Venkataratnam Krishnan (73yo)

    Independent Director

    • Tenure: 11.1yrs
    • Compensation: ₹1.39m
  • Anant Talaulicar (58yo)

    Independent Director

    • Tenure: 0.6yrs
  • Ranganathan Vijayaraghavan (69yo)

    Independent Director

    • Tenure: 6.5yrs
    • Compensation: ₹1.09m
  • Kadaba Raghavan (65yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹1.02m
  • Arvind Balaji (45yo)

    MD & Non-Independent Director

    • Tenure: 5.3yrs
    • Compensation: ₹30.17m
  • Priyamvada Thirumalaikumarabalaji

    Non-Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: ₹660.00k
  • Jayshree Parekh (67yo)

    Non-Executive Independent Woman Director

    • Tenure: 5.7yrs
    • Compensation: ₹895.00k
  • Tadaya Momose (60yo)

    Non Executive Non Independent Director

    • Tenure: 0yrs
  • Mukesh Somani (49yo)

    Non Executive Non Independent Director

    • Tenure: 3.5yrs
    • Compensation: ₹680.00k

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: ₹7.566b
  • 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 Analysis2019/11/13 12:52
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.