Pennar Industries Limited (PENIND) AI Stock Analysis

• Market Cap: ₹31.28B
• Dividend Yield: N/A
• Average Volume (3M): 36.99K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.67
• Revenue Growth: 7.18%
• EPS Growth: 21.26%
• Country: IN
• Employees: 2,679
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.40
• Shares Outstanding: 134,946,230
• 10 Day Avg. Volume: 27,639
• 30 Day Avg. Volume: 36,989
• 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: ₹251.00
• Price Target Upside: 8.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ₹251.00 ▲(8.28% Upside)

The overall stock score is primarily driven by strong financial performance, characterized by revenue growth and improving profitability. However, technical indicators suggest bearish momentum, and the valuation is moderate with no dividend yield. The absence of earnings call data and corporate events limits additional insights.

Pennar Industries Limited Business Overview & Revenue Model

Company Description

Pennar Industries Limited (PENIND) is a leading engineering organization in India, specializing in the production and supply of a diverse range of industrial products. The company operates across multiple sectors, including automotive, infrastructure, energy, and railways, offering core products such as precision-engineered components, pre-engineered building systems, and environmental and engineering services. Pennar Industries is renowned for its integrated manufacturing capabilities, which enable it to deliver high-quality solutions tailored to the specific needs of its clients.

How the Company Makes Money

Pennar Industries Limited generates revenue through a diversified business model that encompasses multiple key revenue streams. The primary sources include the sale of precision-engineered products to sectors such as automotive and railways, where it supplies components critical to vehicle and infrastructure manufacturing. The company also earns significant income from its pre-engineered building systems, which cater to the construction and infrastructure industries by providing cost-effective and durable building solutions. Additionally, Pennar Industries offers environmental and engineering services, further contributing to its revenue. Strategic partnerships with leading companies across various sectors enhance its market reach and drive sales, while continuous innovation and an emphasis on quality and customer satisfaction bolster its competitive position.

Pennar Industries Limited Financial Statement Overview

Summary

Pennar Industries Limited exhibits strong revenue growth and improving profitability, supported by a robust balance sheet with moderate leverage. While cash flow generation is improving, further strengthening is necessary to ensure long-term sustainability. The company is well-positioned in the industrial machinery sector, but must continue optimizing operational efficiencies and cash management.

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: 231.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 231.8 is below the 20-day moving average (MA) of 238.03, below the 50-day MA of 240.63, and above the 200-day MA of 208.72, indicating a neutral trend. The MACD of -2.47 indicates Positive momentum. The RSI at 43.02 is Neutral, neither overbought nor oversold. The STOCH value of 25.46 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	₹34.91B	23.74	―	1.13%	16.36%	21.58%
PRECWIRE	72 Outperform	₹36.02B	37.66	―	0.57%	20.80%	20.82%
JASH	71 Outperform	₹31.65B	38.48	―	0.40%	32.20%	11.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	63 Neutral	₹31.28B	25.06	―	―	7.18%	21.26%
HPL	60 Neutral	₹28.52B	29.97	―	0.23%	10.26%	77.36%
JTEKTINDIA	57 Neutral	₹41.10B	54.10	―	0.47%	3.94%	-30.18%