Indo Tech Transformers Ltd. (INDOTECH) AI Stock Analysis

• Market Cap: ₹14.13B
• Dividend Yield: N/A
• Average Volume (3M): 1.83K
• Price to Earnings (P/E): 16.8
• Beta (1Y): 1.91
• Revenue Growth: 34.48%
• EPS Growth: 40.61%
• Country: IN
• Employees: 286
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 23.33
• Shares Outstanding: 10,620,000
• 10 Day Avg. Volume: 2,059
• 30 Day Avg. Volume: 1,826
• PEG Ratio: 1.04
• Price to Book (P/B): 8.63
• Price to Sales (P/S): 3.96
• P/FCF Ratio: 61.19
• 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: 68 Neutral
• Price Target: ₹1,472.00 ▼(-7.00% Downside)

Score is driven primarily by strong financial performance (growth, margins, and improving free cash flow). This is partially offset by weak technicals (below key moving averages and negative MACD), while valuation (P/E ~17) appears reasonable but not clearly compelling without dividend data.

Positive Factors

Strong revenue growth

Sustained double-digit revenue growth improves scale economies, enhances bargaining power with suppliers, and supports long-term reinvestment in capacity and R&D. For a transformer manufacturer, steady project wins and order flow strengthen competitive positioning across utilities and industrial customers.

Improving free cash flow conversion

Rising free cash flow and healthy operating cash conversion reduce reliance on external financing, enable capex and working-capital funding, and give management flexibility for maintenance, expansion, or shareholder returns. This durability supports stability across economic cycles.

Prudent leverage & improved ROE

A conservative capital structure and rising ROE signal efficient capital deployment and lower insolvency risk. That financial strength sustains competitive bids for large projects, funds growth initiatives, and cushions the firm against cyclical downturns in power infrastructure spending.

Negative Factors

Rising liabilities need monitoring

Growing liabilities can tighten liquidity and increase interest or covenant risk over time, especially in a project-driven business with lumpy receivables. If unchecked, rising obligations could force higher working-capital borrowing or constrain capital spending and bidding capacity.

Lack of forward guidance

Absence of management guidance and earnings call highlights reduces forward visibility for investors and stakeholders. Over the medium term this can obscure capacity planning, hinder market confidence, and make it harder to assess sustainability of margins and cash generation.

High systemic volatility (beta)

A near-1.9 beta implies earnings and stock performance are sensitive to broader market cycles and economic shifts. For capital-intensive transformer manufacturing, this signals revenue and margin variability tied to infrastructure spending cycles and tender timing, complicating long-term forecasting.

Indo Tech Transformers Ltd. Business Overview & Revenue Model

Company Description

Indo Tech Transformers Limited manufactures and sells transformers in India and internationally. It offers power, distribution, large power, open ventilated dry type, and special application transformers, as well as mobile sub-station transformers and sub-stations for use in the generation, transmission, and distribution of electric power. The company was incorporated in 1976 and is based in Kancheepuram, India. Indo Tech Transformers Limited operates as a subsidiary of Prolec GE, S. de R.L. de C.V. As of March 31, 2020, Indo Tech Transformers Limited operates as a subsidiary of Shirdi Sai Electricals Limited.

How the Company Makes Money

Indo Tech Transformers Ltd. generates revenue primarily through the manufacturing and sale of electrical transformers and related products. The company's revenue model is structured around direct sales to utility companies, industrial clients, and infrastructure projects, which represent significant key revenue streams. INDOTECH also engages in after-sales services, including maintenance and repair, which provides recurring income. Additionally, partnerships with government agencies and private sector enterprises for large-scale infrastructure projects enhance its earnings potential. The company's focus on research and development allows it to innovate and offer customized solutions, further attracting customers and boosting revenue.

Indo Tech Transformers Ltd. Financial Statement Overview

Summary

Strong overall fundamentals: excellent revenue growth and improving profitability (robust gross margin and significantly improved net margin), healthy EBIT/EBITDA margins, and materially better free cash flow with good cash conversion. Balance sheet is solid with prudent leverage and improved ROE, though rising liabilities warrant monitoring.

Income Statement

Indo Tech Transformers Ltd. demonstrates excellent revenue growth, with a strong revenue increase from 2024 to 2025. The gross profit margin is robust, indicating efficient production cost management. The net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, showcasing strong operational efficiency. Overall, the income statement reveals a well-managed business with growing profitability.

Balance Sheet

The company maintains a strong equity position, with a favorable debt-to-equity ratio indicating prudent use of leverage. The return on equity has improved, reflecting better profitability relative to shareholder equity. The equity ratio is solid, suggesting financial stability and a low risk of insolvency. However, a check on increasing liabilities is advisable to maintain this stability.

Cash Flow

Indo Tech Transformers Ltd. shows a significant improvement in free cash flow, with strong growth in free cash flow from 2024 to 2025. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to reported net income. Free cash flow to net income ratio suggests effective conversion of earnings into cash. The cash flow statement reflects a strong ability to generate cash, which supports ongoing operations and potential growth investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.94B	6.12B	5.04B	3.71B	2.80B	2.05B
Gross Profit	1.82B	1.66B	1.46B	983.17M	751.90M	610.90M
EBITDA	1.09B	915.11M	649.55M	323.26M	182.21M	113.10M
Net Income	771.40M	638.80M	468.60M	257.02M	121.89M	62.86M
Balance Sheet
Total Assets	0.00	4.36B	3.82B	3.01B	2.38B	1.87B
Cash, Cash Equivalents and Short-Term Investments	930.88M	938.40M	575.40M	433.90M	425.03M	94.13M
Total Debt	0.00	81.60M	49.95M	113.35M	5.59M	0.00
Total Liabilities	-2.81B	1.55B	1.65B	1.30B	932.50M	533.67M
Stockholders Equity	2.81B	2.81B	2.17B	1.71B	1.45B	1.33B
Cash Flow
Free Cash Flow	0.00	396.10M	236.47M	-115.54M	183.60M	72.27M
Operating Cash Flow	0.00	557.50M	317.67M	-39.42M	216.94M	78.26M
Investing Cash Flow	0.00	-181.50M	-115.95M	-147.47M	-87.28M	-25.88M
Financing Cash Flow	0.00	14.30M	-80.90M	93.69M	-1.11M	-1.53M

Indo Tech Transformers Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1582.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDOTECH, the sentiment is Neutral. The current price of 1582.85 is above the 20-day moving average (MA) of 1400.10, above the 50-day MA of 1528.24, and below the 200-day MA of 1832.99, indicating a bearish trend. The MACD of -83.36 indicates Positive momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 56.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:INDOTECH.

Indo Tech Transformers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹74.67B	22.72	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹14.13B	16.78	―	―	34.48%	40.61%
TARIL	65 Neutral	₹70.93B	26.34	―	0.07%	33.60%	100.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WENDT	59 Neutral	₹13.98B	62.55	―	0.62%	―	―
HIRECT	58 Neutral	₹21.52B	45.26	―	0.13%	35.05%	99.65%
KECL	49 Neutral	₹5.56B	78.02	―	―	-11.25%	-48.96%

Indo Tech Transformers Ltd. Corporate Events

Indo Tech Transformers Secures Major Order for NTPC Projects

Indo Tech Transformers Ltd. has secured a significant purchase order valued at INR 91.26 Crores for the supply of 11 transformers to Four EF Constructions for NTPC projects. This order is considered a material event due to its substantial value compared to regular transactions, indicating a positive impact on the company’s operations and market positioning.