Pennar Industries Limited (PENIND) AI Stock Analysis

• Market Cap: ₹30.99B
• Dividend Yield: N/A
• Average Volume (3M): 57.61K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.52
• 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): 1,217.66
• Revenue Forecast (FY): ₹3.31T

• Rating: 63 Neutral
• Price Target: ₹247.00 ▲(7.79% Upside)

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 growth indicates expanding market reach and product adoption, enhancing the company's competitive position in the industrial machinery sector.

Profitability

Improved profitability through better cost management strengthens financial health, allowing for reinvestment in growth opportunities and enhancing shareholder value.

Cash Flow Improvement

Positive free cash flow indicates improved cash management, providing the company with greater flexibility to invest in growth initiatives and manage debt levels.

Negative Factors

Operating Cash Flow Pressure

Pressure on operating cash flow generation could limit the company's ability to fund operations and growth without relying on external financing, posing a risk to financial stability.

EBIT Margin Decline

A decline in EBIT margin indicates potential operational inefficiencies, which could impact profitability and require strategic adjustments to maintain competitive advantage.

Moderate Leverage

While leverage is manageable, moderate debt levels can constrain financial flexibility, necessitating careful management to avoid potential liquidity issues in adverse conditions.

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: Neutral
• Last Price: 229.15
• 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 Neutral. The current price of 229.15 is below the 20-day moving average (MA) of 239.57, below the 50-day MA of 240.44, and above the 200-day MA of 217.01, indicating a neutral trend. The MACD of -6.65 indicates Positive momentum. The RSI at 46.41 is Neutral, neither overbought nor oversold. The STOCH value of 52.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	1.21%	16.36%	21.58%
PRECWIRE	68 Neutral	₹41.18B	43.06	―	0.45%	19.03%	36.25%
HPL	65 Neutral	₹28.03B	29.45	―	0.24%	6.08%	49.44%
JASH	65 Neutral	₹29.88B	36.32	―	0.43%	25.52%	-4.18%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	63 Neutral	₹30.99B	23.79	―	―	14.73%	21.44%
JTEKTINDIA	62 Neutral	₹41.56B	56.13	―	0.45%	4.44%	-25.67%

Pennar Industries Limited Corporate Events

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.