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Pennar Industries Limited (IN:PENIND)
:PENIND
India Market
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Pennar Industries Limited (PENIND) AI Stock Analysis

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IN:PENIND

Pennar Industries Limited

(PENIND)

Rating:66Neutral
Price Target:
₹276.00
▲(12.47% Upside)
Pennar Industries Limited shows strong financial performance with robust revenue growth and improving profitability, which is the most significant factor in its score. Technical analysis indicates a positive trend, though momentum indicators suggest caution. The valuation is relatively high, which could limit upside potential. Overall, the company is well-positioned but must manage operational efficiencies and cash flow to sustain growth.

Pennar Industries Limited (PENIND) vs. iShares MSCI India ETF (INDA)

Pennar Industries Limited Business Overview & Revenue Model

Company DescriptionPennar 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 MoneyPennar 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
78
Positive
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
72
Positive
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
65
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue31.44B32.27B31.31B28.95B22.16B14.77B
Gross Profit10.43B9.05B8.16B10.93B6.43B3.96B
EBITDA3.30B3.47B2.62B2.55B1.88B1.31B
Net Income1.12B1.19B983.40M754.20M418.30M25.40M
Balance Sheet
Total Assets0.0029.54B26.40B23.18B21.41B18.93B
Cash, Cash Equivalents and Short-Term Investments1.84B1.91B1.28B2.54B835.20M686.60M
Total Debt0.008.12B7.85B6.85B6.45B6.17B
Total Liabilities-9.32B19.55B17.63B15.39B14.05B11.96B
Stockholders Equity9.32B9.98B8.77B7.78B7.35B6.96B
Cash Flow
Free Cash Flow0.00218.90M-218.90M1.73B1.37B-960.40M
Operating Cash Flow0.001.48B2.25B2.44B1.95B-427.60M
Investing Cash Flow0.00-1.10B-2.57B-279.70M-984.60M-61.00M
Financing Cash Flow0.00124.20M-223.00M-1.13B-922.30M433.70M

Pennar Industries Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price245.40
Price Trends
50DMA
238.38
Positive
100DMA
223.79
Positive
200DMA
203.12
Positive
Market Momentum
MACD
3.41
Negative
RSI
51.69
Neutral
STOCH
39.02
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 245.4 is above the 20-day moving average (MA) of 240.49, above the 50-day MA of 238.38, and above the 200-day MA of 203.12, indicating a bullish trend. The MACD of 3.41 indicates Negative momentum. The RSI at 51.69 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
₹32.63B39.66
0.15%32.20%11.82%
70
Outperform
₹33.91B24.85
1.16%10.30%5.81%
69
Neutral
₹31.47B33.51
0.66%20.80%20.82%
66
Neutral
₹33.12B26.52
7.18%21.31%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
62
Neutral
₹38.08B50.12
0.49%3.94%-30.18%
60
Neutral
₹30.45B31.98
0.21%10.26%77.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:PENIND
Pennar Industries Limited
245.40
76.80
45.55%
IN:BBL
Bharat Bijlee Limited
3,000.05
-2,068.68
-40.81%
IN:HPL
HPL Electric & Power Limited
469.40
-135.05
-22.34%
IN:JASH
Jash Engineering Ltd.
514.25
101.48
24.59%
IN:JTEKTINDIA
JTEKT India Limited
143.50
-21.61
-13.09%
IN:PRECWIRE
Precision Wires India Limited
176.15
-9.02
-4.87%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025