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India Nippon Electricals
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India Nippon Electricals Ltd(INEL), established in 1985 is a leading manufacturer of Ignition Systems for auto industry with special focus on two-wheeler industry in technical collaboration with Mahle Electric Drives Japan Corporation, Japan. In addition to the support from the collaborators, the Company has a developed Research & Development centre recognised by DSIR,Govt of India. The Company has three manufacturing facilities in India and supplies to domestic as well as overseas markets.
The Company is into manufactures vital electronic ignition systems for two-wheelers, Portable Gensets and three wheelers. The vital electronic ignition parts manufactured by INEL includes Flywheel Magnetos, Capacitor Discharge Ignition(CDI) units, Ignition Coils, Integral Units and Regulators/Rectifiers. The company has three manufacturing facilities one each in Tamilnadu(Hosur), Pondicherry, and Haryana(Rewari Dist). The company set up a plant at Pondicherry for producing ignition systems for diesel version of three-wheelers. The Pondicherry plant has commenced commercial production in 1998. The company which started with an one cliente has now supplies to all two-wheeler, three-wheeler and Portable Genset manufactureres in India.
The company signed an agreement with collaborator Kokusan Denki Company, Japan, for introducing Digital Ignition on a new vehicle contemplated shortly for introduction by one of the major customer.
The company's thrust to R&D efforts to design and develop products indeginously start yielding fruits and the contribution of the indigenously designed and developed products to the topline of the company amount to 40%.
It made an offer to buy-back 3,95,600 fully paid up equity shares at a price not exceeding Rs.230/- per equity share. The company has set up new facilities for the manufacture of flywheel magnetos at Rewari, Haryana to serve customers in North India. The company made a bonus issue of 3326680 shares at Rs.10 each in the ratio of 7 bonus shares for 10 shares held in the company. The company enhanced the capacity of Contact Breakers to 52,60,000 No in 2002-03.
The company commercialised new business of EGR controller and Throttle Position Sensor for a Diesel Engine manufacturer for Three wheeler and small commercial vehicle application in 2016-17. Kolhapur unit commenced its operations in 2017. During 2018, the Company introduced BSIV products and also a few electronic products.
During 2019-20, the Company disposed off its investment in Synergy Shakthi Renewable Energy Private Limited (SSREPL) to Lucas TVS Limited. SSREPL shares were valued at Rs. 1.09 per share and the Board approved the sale of 1,80,00,000 equity shares of Rs.10 each held by the Company in SSREPL, constituting 40% of the paid-up equity share capital of SSREPL to Lucas TVS Limited on 27th March, 2020. Consequently, the Company became subsidiary of Lucas India Services with effect from 30 March, 2022.
India Nippon Electricals share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of India Nippon Electricals indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how India Nippon Electricals is valued compared to its competitors.
India Nippon Electricals PE ratio helps investors understand what is the market value of each stock compared to India Nippon Electricals 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of India Nippon Electricals evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively India Nippon Electricals generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of India Nippon Electricals in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of India Nippon Electricals shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of India Nippon Electricals compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of India Nippon Electricals over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of India Nippon Electricals helps investors get an insight into when they can enter or exit the stock. Key components of India Nippon Electricals Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where India Nippon Electricals shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect India Nippon Electricals ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of India Nippon Electricals provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of India Nippon Electricals highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of India Nippon Electricals .
The balance sheet presents a snapshot of India Nippon Electricals ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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