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India Nippon Electricals Limited (INDNIPPON) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹22.5B

IN India Nippon Electricals Limited INDNIPPON · NSE
Price₹1,123
Fair Value₹671.79
Upside-40.2%
Quality58/100
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Expensive Growth
Solidly profitable · 10.4% net margin
Low debt · generates free cash flow
1.59% dividend yield
Mixed vs. peers (7/14)
Moderate moat 56/100
Evidence: High Range ₹335.35 – ₹980.33 Share as image

Fair value as of: Aug 13, 2026

From 25 valuation models · updated 3 days ago

Share price −4.2% over the past month.

A solid business, but screening 40% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹980.33). The favourable scenario is already priced in.
  • The model range is unusually wide (₹335.35 to ₹980.33). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

₹1,242 ₹304.81 Fair Value ₹671.79 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹304.81 – ₹1,242 · fair‑value band ₹335.35 – ₹980.33 · the ₹1,123 price screens above the ₹671.79 fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

India Nippon Electricals Limited (INDNIPPON) currently trades at ₹1,123, while our model-based Fair Value estimate is ₹671.79, implying the stock looks roughly 40.2% overvalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, India Nippon Electricals Limited generated revenue of ₹10.7B at a net margin of 10.4%. Revenue grew 26.6% year over year. It earns a return on equity of 14.5%. The balance sheet holds a net cash position of ₹43.2M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹335.35 (bear case) to ₹980.33 (bull case); at ₹1,123, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 66% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at -40%, INDNIPPON screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹38.72 ₹68.19 ₹119.73 80
Residual Income ₹349.90 ₹437.47 ₹1,038 76
ROIC Compounder ₹279.98 ₹326.19 ₹371.72 72
All 25 models by family
DCF Models
FCF DCF ₹39.29 ₹72.35 ₹132.37 38
Owner Earnings ₹520.17 ₹988.23 ₹1,838 31
5Y Revenue Exit ₹287.54 ₹598.28 ₹1,043 39
5Y EBITDA Exit ₹317.41 ₹661.83 ₹1,115 41
5Y P/E Exit ₹535.65 ₹1,126 ₹1,834 38
10Y Revenue Exit ₹191.67 ₹461.57 ₹918.63 36
10Y EBITDA Exit ₹225.87 ₹508.99 ₹980.24 37
10Y P/E Exit ₹372.49 ₹855.53 ₹1,601 35
Earnings-Based
Graham-Dodd ₹334.18 ₹1,722 ₹2,381 54
Lynch FV ₹470.26 ₹671.79 ₹873.33 50
PEG = 1.0 ₹470.26 ₹671.79 ₹873.33 46
EPV ₹279.98 ₹326.19 ₹366.62 59
Dividend Discount
Gordon GGM ₹142.31 ₹295.88 ₹469.39 70
DDM Multi-Stage ₹142.31 ₹249.50 ₹310.54 61
Multiples
P/E Multiple ₹810.87 ₹1,081 ₹1,351 63
P/S Multiple ₹425.10 ₹566.80 ₹708.50 58
P/B Multiple ₹626.58 ₹835.44 ₹1,044 55
EV/EBIT ₹603.11 ₹803.23 ₹1,003 53
EV/EBITDA ₹474.28 ₹631.46 ₹788.64 54
EV/Revenue ₹399.51 ₹569.55 ₹739.59 43
Asset-Based
NCAV (Graham) ₹181.54 ₹243.26 ₹363.08 50
Growth DCF
Growth DCF ₹38.72 ₹68.19 ₹119.73 80
Economic Profit
Residual Income ₹349.90 ₹437.47 ₹1,038 76
ROIC Compounder ₹279.98 ₹326.19 ₹371.72 72
Growth Earnings
Growth-Adj P/E ₹724.07 ₹1,034 ₹1,345 68

Widest divergence: Growth Earnings (₹1,034) versus Growth DCF (₹68.19). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹10.7B
Revenue growth (YoY) +26.6%
Net margin 10.4%
Return on equity 14.5%
Free cash flow ₹61.4M FY2026
P/E ratio 22.9
More key figures
Operating margin 14.8%
EPS (TTM) ₹49.15
Dividend yield 1.6%
EPS growth (YoY) +56.1%
Net cash ₹43.2M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 56 · Market factors (momentum, volatility) 86

Profitability 54
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 12
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 93
Price trend over the last 3–12 months (market factor)
52W Momentum 90
Distance to the 52-week high (market factor)
Net Issuance 84
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

India Nippon Electricals Limited manufactures and sells electronic ignition systems for the automotive industry in India and internationally.

Full company description

India Nippon Electricals Limited manufactures and sells electronic ignition systems for the automotive industry in India and internationally. The company offers AC generator/flywheel magneto products, such as stator and rotor products, as well as CDI and TCI products; regulator and rectifier units; ignition coils; exhaust gas controller and engine controller units; auto choke-generation purpose engines; dual output ignition products; throttle position sensors; and PM alternators. It also provides speed, lever, temperature, linear and rotatory position, differential/absolute, throttle position, steering angle, liquid level, pressure, TPMS, RPAS ultrasonic, and TMAP sensors. In addition, the company offers DC-DC converters, traction motors, and motor controllers; ISG machines and controllers; and EFI ECU products. Its products have applications in two-wheelers, three-wheelers, small gasoline engines, portable gensets, general purpose engines, and non-automotive industries. The company was incorporated in 1984 and is based in Chennai, India. India Nippon Electricals Limited is a subsidiary of Lucas Indian Service Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

India Nippon Electricals Limited reported revenue of ₹10.7B in FY2026 versus ₹5.7B in FY2022, a compound +17.2%/yr. Reported net income was ₹1.1B in FY2026, compounding +22.0%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹10.7B
Latest YoY
+26.5%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.3%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Revenue +17.2%/yr
FY22 ₹5.7B
FY23 ₹6.6B
FY24 ₹7.2B
FY25 ₹8.4B
FY26 ₹10.7B
Net income +22.0%/yr
FY22 ₹503M
FY23 ₹482M
FY24 ₹593M
FY25 ₹823M
FY26 ₹1.1B
Character of growth · EPS growth decomposed (2015-2026) +14.2 % p.a.
Revenue per share +11.1 pp

of which total revenue +11.2 pp · buybacks/dilution +0.0 pp

EBIT margin +2.4 pp
Tax rate +1.3 pp
Residual (interest, one-offs) −0.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

INDNIPPON screens 40% overvalued. Compare with Hyundai Mobis Co →

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Cite: Fair Value Calculator (2026). "India Nippon Electricals Limited Fair Value". https://www.fairvalue-calculator.com/stock/INDNIPPON

Peer Group

Auto Parts · 641 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 58 · Above median
Fair Value upside −40% · Below median
Return on equity (TTM) 15% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 27% · Top 25%
Dividend yield (TTM) 1.6% · Below median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 22.9× · Pricier than median
P/B 2.74× · Pricier than median
P/S (TTM) 2.11× · Pricier than median
P/FCF 3.9× · Pricier than median
EV/EBITDA 19.0× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 16
FUTURE 100 · sector 24
PAST 58 · sector 26
HEALTH 100 · sector 95
DIVIDEND 32 · sector 34

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is India Nippon Electricals Limited (INDNIPPON) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹671.79 versus a price of ₹1,123, about −40% (overvalued).
What is the fair value of INDNIPPON?
Our model-based fair value for India Nippon Electricals Limited is ₹671.79 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹1,123.
What is the quality score of INDNIPPON?
India Nippon Electricals Limited has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of India Nippon Electricals Limited (INDNIPPON)?
India Nippon Electricals Limited reported trailing-twelve-month revenue of about ₹10.7B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of INDNIPPON?
The net profit margin of India Nippon Electricals Limited is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.
Does India Nippon Electricals Limited pay a dividend?
India Nippon Electricals Limited currently shows a dividend yield of about 1.59% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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