Inox India, a story worth looking?

[ca.rishab]

About Inox India Limited

Established in 1976, Inox India Limited has been a stalwart in manufacturing and supplying cryogenic equipment. With a rich history spanning over four decades, the company operates through three distinctive divisions: Industrial Gas, LNG and Cryo Scientific.

The diverse product portfolio includes standard cryogenic tanks, beverage kegs, bespoke technology, equipment, and solutions. Additionally, the company undertakes large-scale turnkey projects across various industries, including industrial gases, LNG, green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.

Strengths

Established Reputation: Inox India Limited boasts a strong and established reputation as a leading manufacturer and supplier of cryogenic equipment.

Diverse Product Portfolio: The company’s product range spans across various industries, including industrial gases, LNG, green hydrogen, and healthcare, providing diversification and revenue stability.

Global Reach: With exports to 66 countries, Inox has a robust global presence, tapping into markets such as the United States, Saudi Arabia, the Netherlands, Brazil, and more.

Comprehensive Divisions: The three divisions (Industrial Gas, LNG, and Cryo Scientific) contribute to a comprehensive and versatile business model, catering to different technological and industrial needs.

Risks

Market Dependence: Inox’s performance is subject to market conditions, and any downturn in sectors like energy, steel, or aviation could impact its financials.

Regulatory Challenges: The company operates in a sector that may be influenced by evolving regulations, and changes in compliance requirements could pose challenges.

Global Economic Factors: Economic fluctuations globally can impact demand for industrial equipment, affecting Inox’s export-oriented business.

Technological Changes: Rapid technological advancements may require continual investment in research and development to stay competitive, posing a risk of obsolescence.

Disc. : Invested since IPO

[balaram]

Quarterly Results

[DrHarshilRohit]

[ca.rishab]

Impact of this patent could be understood via this article, though not a detailed one;

INOX India wins patent for new type of container for ultra-cool fluids

[Prince_AI]

Anyone tracking closely may share recent result view and guidance. The stock has kind of come out from the hot stocks list and is more or less moving range bound, and currently near support levels. Govt. has full focus on the divisions it is catering to.
D: Small holding

[Webull]

Putting few Anti thesis generated from AI:slight_smile:

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Competition and Market Dynamics: The sources acknowledge that INOX India faces competition in both domestic and international markets. While it currently enjoys a dominant position in the Indian cryogenic tank market with a share of over 60%, the entry of global players like Linde and CIMC-Enric poses a threat.56

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Linde, in particular, is a major customer of INOX India, but it has recently started its own tank manufacturing facility in India.7 Though it might take a few years for Linde’s facility to reach full capacity, its presence could eventually erode INOX India’s market share and pricing power in the domestic market.

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The sources lack a comprehensive analysis of the competitive landscape, making it difficult to assess:

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The pricing strategies and market share dynamics of INOX India’s key competitors.

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The potential impact of new entrants and technological advancements on the company’s market position.

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INOX India’s differentiation strategy and its ability to sustain its competitive advantage in a changing market environment.

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Dependence on Government Policies and Projects: INOX India’s growth is significantly linked to government initiatives, particularly in the LNG and green hydrogen sectors. For example, the company is heavily reliant on orders for LNG fueling stations, a market driven by government targets.89

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This dependence on government policies raises concerns because:

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Changes in government priorities or budgetary constraints could lead to delays or cancellations of infrastructure projects, directly impacting INOX India’s order book.

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The pace of adoption of new technologies like green hydrogen is uncertain and subject to various regulatory and market factors, which could affect the realization of INOX India’s growth projections in this segment.

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The company’s future success is closely tied to the execution of government plans, exposing it to political risks and potential policy shifts.

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Exposure to External Factors and Macroeconomic Risks: As a manufacturer, INOX India is susceptible to various external factors that can impact its profitability. The sources briefly mention some of these risks, but they lack a detailed analysis of their potential impact.1011

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Key external factors include:

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Fluctuations in raw material prices: Steel, a crucial input for INOX India’s products, is subject to price volatility. Significant price increases could squeeze margins if the company cannot pass on these costs to customers.

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Supply chain disruptions: Global supply chain issues, similar to those experienced in recent years, can lead to delays in production, increased costs, and difficulty in fulfilling orders on time.

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Global economic slowdown: A global recession or a significant slowdown in major economies could impact demand for INOX India’s products, particularly in its export markets, leading to reduced revenue and profitability.

In conclusion, while INOX India possesses several positive attributes and operates in promising sectors, potential investors should carefully weigh these concerns before making an investment decision. The lack of detailed financial information, the increasing competitive pressure, the reliance on government policies, and the exposure to external factors create uncertainties that could negatively impact the company’s future performance. Further research and due diligence are recommended to assess these risks and gain a more comprehensive understanding of INOX India’s investment prospects.

[Nithin.S]

Hi Everyone,

I am following this thread on Inox India. I want to segment wise margin for this company. If any one has anything. Do share relevant data…!

Thank you.
Nithin.

[Nik]

Even at the CMP of 1092 with Management giving a 20% Revenue growth guidance in the recent concall along with the extremely subdued H1 where is the trailblazing growth that will make this stock a Garp?

No doubt about the potential TAM of all the 3 division or the skill set of the company but where is the Growth? The execution?

Even the beer keg segment is expected to contribute just abt 50 cr until March 2024.

@ca.rishab would really appreciate how are you looking at the situation?

[Webull]

LNG trucks expected to observe adoption over the coming decade: Inox India expects LNG storage
tanks to be a key growth driver over the next decade on account of a strong shift toward LNG powered
long range heavy duty commercial vehicles. LNG trucks can potentially reach 1 mn over the next
decade indicating a 50,000-60,000 annual sales. The company believes that the shift to LNG will be
propelled by (1) shift to clean energy (2) LNG offers 15-20% in saving compared to diesel and (3) 1
LNG tank can power truck for 500 km, which makes it suitable for long distance trucks compared to
CNG, which offers a relatively lower capacity.

LNG truck storage tank a Rs50-60 bn opportunity: LNG storage tank account of Rs 1 mn of the total
cost of the truck (Rs 0.5 mn/tank). This equates to a Rs50-60 bn opportunity assuming annual sales
in the range of 50-60k. Additionally, the company has capability in end-to-end setup for LNG and LCNG
station, potential market size is close to Rs50 bn over next 3-5 years. Inox is very confident of
capturing a large share of this opportunity on account of their deep capabilities in the space and tieups with leading players such as Adani.
Kotak_Institutional_Equities_Midcap_Conference_November_21_22_in.pdf (2.1 MB)

Disc-invested

[Sagnik_Karmakar]

However, no effect on price.

[Amiya]

Finally, good result by Inox India.

[Pujan_Shah]

Does Inox Green (Devansh Jain) have any contracts with this company? Devansh Jain has shown huge potential in that space, are we seeing any synergies between Inox India and Inox Green, GFL group?

[Rishi_Patel]

The Jain family got separated a long time back, so it seems unlikely that there are synergies between thee two groups.

[cdas3317]

INOX business growth drivers & Moat (from Q1FY26 investor presentation):

Category	Details / Analysis
1. Core Business Segments	INOX operates across three primary business verticals: Industrial Gas (IG), LNG, and Cryo-Scientific Division (CSD). Each of these is aligned with megatrends like clean energy transition, hydrogen, space-tech, and cryo-biological storage.
2. Business Moat	- Technological Leadership: Expertise in cryogenic engineering & system integration; core focus on complex fabrication. - Import Substitution Play: Strong domestic manufacturing capabilities reducing reliance on foreign suppliers. - Diverse Applications: Products used in energy, space, semiconductors, medical, food, pharma, and defence.
3. Cryogenic Technology Applications	Used in Green Hydrogen, LNG transportation, LOX for steel & medical, Space & Defence, Semiconductor fabs (Dholera), and IMOTanks for pharma/biological storage.
4. Growth Drivers – LNG	- Transition to LNG from conventional fuels in transport & industry. - LNG for City Gas Distribution (CGD), marine & mining sectors. - Government policy push: CGD expansion, LNG retailing infra. - Export opportunities in SE Asia and Africa.
5. Growth Drivers – Cryo-Scientific	- Increasing demand for Cryo Biobank tanks (IMOTanks) in vaccine & stem cell storage. - Cryogenic solutions for Semiconductor projects (e.g., Dholera). - Orders from leading global research labs and pharma majors.
6. Growth Drivers – Industrial Gas	- Industrial gas use in steel, refineries, food processing, and medical oxygen. - Large projects expected from Green Hydrogen, ammonia, and integrated steel plants. - Order uptick from public & private capex revival.
7. Strategic Tailwinds	- Hydrogen Mission, Atmanirbhar Bharat, and PLI Schemes (for semiconductors and clean energy). - High-end manufacturing and cryogenic components qualify for global tenders. - Critical supplier for India’s space ambitions (ISRO, NSIL).
8. Order Book Visibility	- FY25: Quarterly avg order ₹383 Cr - Q1FY26: ₹415 Cr (YoY growth of 8.4%) - Shift in revenue mix: higher share of Cryo-Scientific (35%) and IG (44%), while LNG reduced to 20% vs 32% (FY25 avg) – indicates growth beyond fossil-linked demand.
9. Export Potential	- INOX has developed strategic markets in Southeast Asia, Middle East, Africa, Turkey, and Europe for cryogenic solutions. - Rising demand for ISO containers and LNG systems globally.
10. Capacity Expansion & Capex	- Ongoing expansion to scale up capacity of mobile LNG systems and cryogenic storage. - New products (e.g., Smart Biobank solutions, H2-compatible tanks) under development. - Investing in automation and lean manufacturing for productivity.
11. Client Base / Stickiness	- High client stickiness in pharma, defence, space, and research – high entry barriers. - Recognized supplier to global and domestic leaders (ISRO, DRDO, IITs, top pharma).
12. Key Concerns / Constraints	- Historically conservative revenue guidance (~18-20% YoY), possibly due to: • Execution constraints (customized products = longer lead times) • Limited scale-up opportunities in short-term without infra investments • Regulatory bottlenecks (in LNG infra and cryo export licensing) - Competition risk in commoditized segments like static tanks.
13. Strategic Participation	- Promoter group in Dholera Semiconductor Fab project—positioned to supply specialized cryogenic systems critical for chip fabrication. This is a strong long-term strategic moat.
14. Innovation / R&D	- R&D into H2-compatible tanks, space propulsion-grade components, and AI-integrated cryo-monitoring systems. - Long pipeline of patents and proprietary tech in thermal insulation and fabrication.
15. Regulatory Tailwinds	- ALMM mandates in solar + new government push in LNG transport, bio-CNG blending, RE/H2/green ammonia policies indirectly benefit INOX. - Pharma compliance upgrades in India and Africa fueling demand for high-quality cryogenic storage.

[AnchalKansal]

Hi Everyone, I’m visiting the management of Inox India ltd in Vadodara. We have podcast shoot with their promoter. Do let me know if you’d like me to ask any questions on your behalf. Thank you

[axsubram]

Pl share updates, info, learnings and if possible the podcast link