Igarashi Motors India Limited (IGARASHI) AI Stock Analysis

• Market Cap: ₹9.70B
• Dividend Yield: 0.57%
• Average Volume (3M): 6.04K
• Price to Earnings (P/E): 98.2
• Beta (1Y): 1.53
• Revenue Growth: 0.94%
• EPS Growth: -32.59%
• Country: IN
• Employees: 675
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.11
• Shares Outstanding: 31,475,048
• 10 Day Avg. Volume: 5,433
• 30 Day Avg. Volume: 6,038
• PEG Ratio: 0.42
• Price to Book (P/B): 3.30
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 152.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹321.00 ▼(-30.64% Downside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is held up by decent financial performance (growth, improving operating margins, and manageable leverage), but is pressured by weak technicals (price below key moving averages and negative momentum indicators) and an expensive valuation (very high P/E with low yield).

Positive Factors

Revenue Growth

Sustained double-digit top-line expansion demonstrates durable demand from automotive and industrial OEM customers and the company’s ability to secure ongoing supply programs. Strong revenue growth helps absorb fixed costs, supports scale economics, and underpins medium-term investment capacity and supplier/customer negotiating leverage.

Improving Operating Margins

Operational margin improvement and stable gross margins reflect manufacturing efficiency, cost control and possibly better product mix. These durable operating gains tend to persist through incremental volume and program ramp-ups, improving cash generation potential and resilience to commodity or wage pressures over the next several months.

Balance Sheet & Cash Recovery

A recovered free cash flow profile, combined with a moderate debt position historically noted in the pack, indicates improving cash conversion and financial flexibility. This supports funding of working capital and program-related capex without heavy new borrowing, making the company structurally better able to execute multi-month OEM contracts and investment plans.

Negative Factors

Low Net Profit Margin

A net margin under 3% leaves limited room to absorb cost inflation, input price shocks, or customer price pressure. Even with operating gains, persistently thin net profitability constrains retained earnings, limits reinvestment capacity and makes the business more vulnerable to cyclical downturns or program delays over the medium term.

Weak FCF Conversion

Poor conversion of accounting earnings into free cash flow reduces the company’s ability to self-fund capex, pay consistent dividends, or rapidly de-lever. Even with a recovery in absolute FCF, a low conversion ratio is a structural concern that can limit strategic flexibility and increase reliance on external financing during slower demand periods.

Low ROE & EPS Decline

A low return on equity paired with a large negative EPS growth rate signals weak profitability generation relative to shareholder capital and volatile earnings. This structural underperformance can hinder the firm’s ability to generate attractive long-term shareholder returns and may reflect deeper issues in pricing, mix or cost structure that persist beyond short-term cycles.

Igarashi Motors India Limited Business Overview & Revenue Model

Company Description

Igarashi Motors India Limited manufactures and sells electric micro motors and its accessories for the automotive sector in India, the United States, Japan, Germany, Hong Kong, and internationally. Its products include electric DC micro motors, stamping and motor components, and printed circuit boards. The company was formerly known as CG Igarashi Motors Limited and changed its name to Igarashi Motors India Limited in July 2003. The company was incorporated in 1992 and is based in Chennai, India. Igarashi Motors India Limited operates as a subsidiary of Agile Electric Sub Assembly Private Limited.

How the Company Makes Money

IGARASHI generates revenue primarily through the manufacturing and sale of electric motors and related components to various sectors, including the automotive industry, home appliances, and industrial applications. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and suppliers, often involving long-term contracts and partnerships that ensure consistent demand for their products. Key revenue streams include the sale of standard and customized motor solutions, as well as after-sales services and support. Additionally, IGARASHI may benefit from economies of scale and cost efficiencies in production, further enhancing its profitability. Strategic partnerships with major automotive and industrial players also contribute to its earnings, allowing the company to secure a stable market position and expand its reach.

Igarashi Motors India Limited Financial Statement Overview

Summary

Revenue growth and slightly improved EBIT/EBITDA margins support a solid operating trend, but the net profit margin fell to 2.87% and cash-flow quality is mixed (low free cash flow to net income), limiting the score. Balance sheet leverage is manageable (debt-to-equity 0.33) but ROE is modest (5.19%).

Income Statement

Igarashi Motors India Limited has shown strong revenue growth over the years, with nearly a 19% increase in 2025 compared to 2024. The company maintains a solid gross profit margin but faced a drop in net profit margin to 2.87% in 2025, indicating some challenges in cost management or pricing pressure. EBIT and EBITDA margins have slightly improved, reflecting operational efficiency gains.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.33, suggesting a balanced approach to leverage. The equity ratio remains robust, indicating financial stability. However, the return on equity is relatively low at 5.19%, suggesting room for improvement in generating returns from shareholders’ equity.

Cash Flow

Cash flow analysis shows a strong recovery in free cash flow in 2025, which is a positive indicator. The operating cash flow to net income ratio is healthy, demonstrating effective conversion of net income into cash flow. However, the free cash flow to net income ratio is low, indicating potential challenges in sustaining free cash flow levels.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	8.24B	8.41B	7.25B	6.56B	5.57B	5.33B
Gross Profit	2.97B	2.99B	2.26B	2.20B	1.59B	1.89B
EBITDA	843.61M	974.32M	731.79M	659.12M	534.62M	846.90M
Net Income	152.65M	241.68M	95.73M	52.38M	11.90M	256.20M
Balance Sheet
Total Assets	8.02B	7.75B	7.74B	7.26B	6.77B	7.00B
Cash, Cash Equivalents and Short-Term Investments	77.95M	198.53M	196.79M	219.46M	263.08M	147.75M
Total Debt	1.43B	1.51B	1.38B	1.21B	1.00B	951.23M
Total Liabilities	3.37B	3.09B	3.27B	2.87B	2.38B	2.60B
Stockholders Equity	4.65B	4.66B	4.47B	4.40B	4.38B	4.39B
Cash Flow
Free Cash Flow	112.89M	100.93M	-33.75M	-20.07M	365.87M	267.31M
Operating Cash Flow	461.47M	938.19M	503.43M	340.34M	727.67M	406.49M
Investing Cash Flow	-196.46M	-900.55M	-511.91M	-316.10M	-545.76M	59.51M
Financing Cash Flow	-231.59M	-50.65M	1.12M	-35.60M	-237.06M	-378.37M

Igarashi Motors India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 462.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IGARASHI, the sentiment is Negative. The current price of 462.8 is above the 20-day moving average (MA) of 342.52, above the 50-day MA of 378.84, and below the 200-day MA of 469.30, indicating a bearish trend. The MACD of -21.16 indicates Positive momentum. The RSI at 28.01 is Positive, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IGARASHI.

Igarashi Motors India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	72 Outperform	₹16.76B	10.02	―	0.95%	-4.65%	9.95%
TALBROAUTO	65 Neutral	₹14.47B	15.60	―	0.32%	0.74%	-17.90%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HITECHGEAR	60 Neutral	₹11.91B	378.45	―	0.74%	-17.86%	-49.46%
RANEHOLDIN	60 Neutral	₹15.85B	-9.62	―	2.97%	54.99%	-66.73%
INDNIPPON	58 Neutral	₹16.97B	18.47	―	1.57%	22.67%	24.50%
IGARASHI	55 Neutral	₹9.70B	98.19	―	0.57%	0.94%	-32.59%

Igarashi Motors India Limited Corporate Events

Igarashi Motors Closes Trading Window Ahead of Q3 FY2025 Results

Igarashi Motors India Limited has announced that it will close its trading window for dealings in its securities from January 1, 2026, until 48 hours after the board meeting convened to consider the company’s unaudited financial results for the third quarter ending December 31, 2025. The company has notified all designated persons, including directors, employees, registrars and transfer agents, auditors, and their immediate relatives, that they are prohibited from trading in the company’s equity shares during this period, in line with SEBI’s Prohibition of Insider Trading Regulations and listing obligations, underscoring its compliance framework and governance practices around financial result disclosures.