Pennar Industries Limited (PENIND) AI Stock Analysis

• Market Cap: ₹37.28B
• Dividend Yield: N/A
• Average Volume (3M): 32.35K
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.65
• 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: 39,037
• 30 Day Avg. Volume: 32,350
• 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: 72 Outperform
• Price Target: ₹307.00 ▲(32.44% Upside)

Pennar Industries Limited demonstrates strong financial performance with robust revenue growth and profitability, supported by a stable balance sheet. The technical analysis indicates a positive market trend, enhancing the stock's attractiveness. However, the valuation suggests the stock is fairly priced, and the lack of dividend yield may deter income-focused investors. Continued focus on operational efficiencies and cash management will be crucial for sustaining growth.

Pennar Industries Limited Business Overview & Revenue Model

Company Description

Pennar Industries Limited (PENIND) is a leading manufacturer and provider of engineering products and solutions in India, primarily serving sectors such as automotive, infrastructure, and construction. The company operates through various divisions, including Steel, Precision Tubes, and Value-Added Products, offering a diverse range of products such as cold-rolled steel, pre-engineered buildings, and customized engineering solutions. With a focus on innovation and sustainability, Pennar Industries aims to deliver high-quality products that meet the evolving needs of its clients.

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

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: Positive
• Last Price: 231.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 231.8 is below the 20-day moving average (MA) of 250.14, below the 50-day MA of 245.92, and above the 200-day MA of 213.24, indicating a bullish trend. The MACD of 7.95 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 72.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹34.01B	23.13	―	1.19%	16.36%	21.58%
PENIND	72 Outperform	₹37.28B	29.87	―	―	7.18%	21.26%
PRECWIRE	72 Outperform	₹41.18B	43.06	―	0.51%	20.80%	20.82%
JASH	65 Neutral	₹29.88B	36.32	―	0.44%	32.20%	11.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JTEKTINDIA	62 Neutral	₹44.65B	58.77	―	0.43%	3.94%	-30.18%
HPL	61 Neutral	₹28.03B	29.45	―	0.24%	10.26%	77.36%