Pennar Industries Limited (PENIND) AI Stock Analysis

• Market Cap: ₹23.10B
• Dividend Yield: N/A
• Average Volume (3M): 57.61K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.86
• Revenue Growth: 14.73%
• EPS Growth: 21.44%
• Country: IN
• Employees: 2,679
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.10
• Shares Outstanding: 134,946,230
• 10 Day Avg. Volume: 49,894
• 30 Day Avg. Volume: 57,612
• PEG Ratio: 1.01
• Price to Book (P/B): 2.52
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 114.84
• 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: 63 Neutral
• Price Target: ₹190.00 ▼(-4.31% Downside)

The overall stock score of 63.1 reflects strong financial performance with robust revenue growth and profitability, despite moderate leverage. Technical analysis indicates a bearish trend, and the valuation suggests the stock may be overvalued. The absence of a dividend yield further impacts its attractiveness. No earnings call or corporate events data were available to influence the score.

Positive Factors

Revenue Growth

Consistent revenue expansion across Pennar's diverse product mix and divisions supports durable top-line growth. Long-term contracts with automotive and infrastructure clients and a ~28% gross margin indicate stable demand and pricing power, aiding multi-month revenue visibility.

Balance Sheet Strength

Moderate leverage and an improving ROE reflect a resilient capital base that supports investment and withstands cyclical pressures. A stable equity ratio preserves financial flexibility for capex and working-capital needs, enabling sustained operations across project cycles.

Improved Cash Generation

The shift to positive free cash flow represents a structural improvement in cash generation. Sustainable FCF enhances capacity to self-fund capex, pay down debt, and invest in value-added products or R&D without reliance on external financing over the medium term.

Negative Factors

Margin Pressure

A declining EBIT margin despite revenue growth indicates operational efficiency challenges. Persistently compressed operating margins reduce the company's ability to absorb cost inflation and constrain internal funds for reinvestment, threatening margin sustainability if not addressed.

Weaker Cash Conversion

Lower operating-cash-flow-to-net-income signals that reported profits are converting into less cash. For a business with project-based work and working-capital needs, weaker cash conversion raises risk of liquidity strain, limiting capex or debt-repayment flexibility over months.

Cyclical End-Market Exposure

Heavy exposure to automotive, infrastructure and construction markets creates structural demand cyclicality. Order and revenue volatility across economic cycles can lead to margin swings and timing mismatches in cash flow, reducing predictability over a 2–6 month horizon.

Pennar Industries Limited Business Overview & Revenue Model

Company Description

Pennar Industries Limited operates as an engineering company in India and internationally. The company offers cold rolled steel strips; electrostatic precipitator electrodes; building components, such as purlins, roofing/cladding sheets, and decking profiles; metal crash barriers for flyovers, bridges, national highways, and other projects; sheet piles for infrastructure projects; and sheet metal products for the automobile industry. It also provides solar module mounting structures to support the solar PV panels; railway wagons, and passenger and metro coaches; and storage solutions, including racking, shelving, and special solutions, as well as storage accessories. In addition, the company offers industrial components, such as hydraulic cylinders, auto components, and white goods components; and precision tubes comprising electric resistance welding, CDW/DOM/CEW, bicycle frame, steel, engineering, boiler, heat exchanger, propeller shaft, transformer, fuel and air, furniture, structural, telescopic front fork, and air pre-heater and Indian boiler regulation tubes, as well as automotive shock absorbers. Further, it designs, fabricates, and erects factory buildings, warehouses, power plants, commercial centers, high-rise buildings, aircraft hangars, defense installations, sports stadiums, industrial racking systems, cold-form structures for low-cost housing, metro stations, solar module mounting structures, and telecom transmission towers. Additionally, the company provides design and engineering services; and water treatment chemicals, fuel additives, and specialty water treatment chemicals, as well as water and environment infrastructure turnkey solutions. The company was incorporated in 1975 and is headquartered in Hyderabad, India.

How the Company Makes Money

Pennar Industries generates revenue through multiple streams, primarily by manufacturing and selling a wide range of engineering products. Key revenue streams include the sale of steel products, precision tubes, and value-added solutions tailored for specific industries. Additionally, the company benefits from long-term contracts and partnerships with major players in the automotive and infrastructure sectors, which provide a stable income source. The company also engages in project-based work, where it collaborates with clients on customized engineering solutions, further enhancing its revenue potential. Moreover, Pennar Industries focuses on operational efficiency and cost management, enabling it to maintain competitive pricing and healthy profit margins.

Pennar Industries Limited Financial Statement Overview

Summary

Financial statements indicate solid performance: income statement strength (78) driven by revenue growth and improved net margin, a stable balance sheet (72) with manageable leverage and improving ROE, and improving but still pressured cash generation (65).

Income Statement

Pennar Industries Limited shows strong revenue growth with a 3.06% increase over the last year and consistent gross profit margins around 28%. The net profit margin improved to 3.7%, indicating better cost management. However, EBIT margin slightly decreased to 7.5%, suggesting some operational challenges. Overall, the company demonstrates good revenue growth and profitability.

Balance Sheet

The company's debt-to-equity ratio stands at 0.81, indicating a moderate level of leverage, which is manageable. The return on equity has improved to 11.9%, showing better utilization of equity. The equity ratio is stable at 33.8%, reflecting a solid capital structure. While leverage is moderate, the balance sheet is stable and supports growth.

Cash Flow

Free cash flow turned positive, growing significantly from the previous year's negative value, indicating improved cash management. However, the operating cash flow to net income ratio decreased, showing some pressure on operating cash generation. Overall, cash flow improvements are positive but still require careful management to sustain growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.39B	32.27B	31.31B	28.95B	22.66B	15.25B
Gross Profit	12.71B	9.05B	11.82B	10.93B	3.14B	1.55B
EBITDA	3.63B	3.47B	3.13B	2.55B	1.88B	1.31B
Net Income	1.25B	1.19B	983.40M	754.20M	418.30M	25.40M
Balance Sheet
Total Assets	0.00	29.54B	26.40B	23.18B	21.41B	18.93B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.91B	1.09B	1.70B	835.20M	729.30M
Total Debt	0.00	8.12B	7.85B	6.85B	6.45B	6.17B
Total Liabilities	-10.00B	19.55B	17.63B	15.39B	14.05B	11.96B
Stockholders Equity	10.00B	9.98B	8.77B	7.78B	7.35B	6.96B
Cash Flow
Free Cash Flow	0.00	218.90M	-218.90M	1.73B	1.37B	-960.40M
Operating Cash Flow	0.00	1.48B	2.25B	2.44B	1.95B	-427.60M
Investing Cash Flow	0.00	-1.10B	-2.57B	-279.70M	-984.60M	-61.00M
Financing Cash Flow	0.00	124.20M	-223.00M	-1.13B	-922.30M	433.70M

Pennar Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 198.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PENIND, the sentiment is Negative. The current price of 198.55 is above the 20-day moving average (MA) of 177.31, above the 50-day MA of 194.97, and below the 200-day MA of 221.87, indicating a bearish trend. The MACD of -9.68 indicates Negative momentum. The RSI at 40.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PENIND.

Pennar Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBL	73 Outperform	₹31.77B	21.60	―	1.27%	16.36%	21.58%
PRECWIRE	68 Neutral	₹44.77B	39.42	―	0.48%	19.03%	36.25%
JASH	65 Neutral	₹24.43B	31.51	―	0.47%	25.52%	-4.18%
JTEKTINDIA	65 Neutral	₹37.95B	51.26	―	0.49%	4.44%	-25.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	63 Neutral	₹23.10B	17.74	―	―	14.73%	21.44%
HPL	60 Neutral	₹21.33B	22.24	―	0.24%	6.08%	49.44%

Pennar Industries Limited Corporate Events

Pennar Industries Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY2025

Pennar Industries has submitted to the stock exchanges a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025, as issued by its registrar and share transfer agent Kfin Technologies. The filing confirms that details of securities dematerialised and rematerialised during the quarter have been duly furnished to all stock exchanges where the company’s shares are listed, underscoring ongoing adherence to regulatory requirements in share transfer and depository operations.

Exchange Seeks Clarification from Pennar Industries on Q2 FY2026 Results

The stock exchange has requested Pennar Industries Limited to provide clarifications regarding its financial results for the quarter ended 30 September 2025 under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company’s response is still pending, indicating that investors and regulators are awaiting additional information on its quarterly disclosures, which could influence market perception once provided.

Pennar Industries Announces Q2 2025 Financial Results

Pennar Industries Limited has announced the approval of its un-audited financial results for the quarter and half-year ending September 30, 2025. The board meeting, which took place on November 8, 2025, also saw the approval of the Limited Review Report by the statutory auditors. These developments are crucial for stakeholders as they reflect the company’s financial health and operational performance, impacting its market positioning and investor confidence.