Sml Isuzu Limited (SMLISUZU) AI Stock Analysis

• Market Cap: ₹50.07B
• Dividend Yield: 0.47%
• Average Volume (3M): 5.60K
• Price to Earnings (P/E): 31.6
• Beta (1Y): 1.84
• Revenue Growth: 6.04%
• EPS Growth: 14.86%
• Country: IN
• Employees: 3,209
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Manufacturers
• EPS (TTM): 12.12
• Shares Outstanding: 14,471,646
• 10 Day Avg. Volume: 4,391
• 30 Day Avg. Volume: 5,604
• PEG Ratio: 1.56
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 21.07
• 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: ₹4,891.00 ▲(19.73% Upside)

Sml Isuzu Limited's strong financial recovery and positive momentum are key strengths, positioning it well for future growth. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term volatility. Investors should weigh these factors when considering the stock.

Positive Factors

Free cash flow recovery

A sustained free cash flow turnaround to INR 1,155m restores internal funding for working capital, capex and debt paydown. Over 2–6 months stronger FCF supports deleveraging, predictable funding for after‑sales network expansion and cushions investment in product upgrades.

Improving margins and revenue growth

Margin and top‑line recovery indicate durable operational improvements and demand traction. Higher gross and improving net margins with near 10% revenue growth provide sustainable profit generation, enabling reinvestment into product quality and dealer support over the medium term.

Isuzu partnership and recurring after-sales revenue

The strategic tie‑up with Isuzu plus steady after‑sales, parts and financing streams create structural advantages: technology access, brand credibility, dealer financing support and recurring cashflows. These raise switching costs and stabilize revenues across cycles.

Negative Factors

Material leverage on balance sheet

A debt/equity ratio near 0.85, though manageable, leaves limited headroom for additional borrowing. If macro or interest conditions tighten, servicing obligations could constrain capex or force slower deleveraging, restricting strategic investments and flexibility over several quarters.

Relatively modest net profitability

A net margin around 5% provides a limited buffer against input cost inflation, warranty or recall expenses and competitive price pressure. With thin net margins, modest adverse shocks can quickly erode earnings and cash generation, stressing financing plans and returns.

Exposure to cyclical end markets

Heavy exposure to logistics, construction and public transport ties vehicle demand to economic cycles and infrastructure spending. Even with operational gains, cyclical downturns can materially reduce orders and aftermarket activity, amplifying revenue volatility over the medium term.

Sml Isuzu Limited Business Overview & Revenue Model

Company Description

SML Isuzu Limited manufactures and sells commercial vehicles and related parts primarily in India and internationally. Its products include trucks and buses. The company also provides special applications, cargo, and passenger vehicles. It offers its products through distributors and dealers. The company was formerly known as Swaraj Mazda Ltd. and changed its name to SML Isuzu Limited in 2011. SML Isuzu Limited was incorporated in 1983 and is based in Chandigarh, India.

How the Company Makes Money

SML Isuzu Limited generates revenue through multiple key streams, primarily from the sale of its manufactured commercial vehicles. The company benefits from its collaboration with Isuzu Motors, which allows it to access advanced technology and expand its product portfolio. Additionally, SMLISUZU earns income from after-sales services, including maintenance, repairs, and the sale of spare parts, creating a recurring revenue model. Strategic partnerships with local distributors and financial institutions also play a crucial role, enabling the company to offer financing solutions to customers, thereby increasing vehicle sales. Overall, SMLISUZU's focus on quality products and customer service, combined with its strategic alliances, significantly contribute to its financial performance.

Sml Isuzu Limited Financial Statement Overview

Summary

Sml Isuzu Limited demonstrates a commendable financial recovery, marked by strong revenue growth, improved profit margins, and efficient cash flow management. The balance sheet reflects a sound financial foundation with manageable leverage and improved equity returns. Despite historical challenges, the firm's financial health indicates a positive trajectory.

Income Statement

Sml Isuzu Limited has shown impressive recovery and growth in recent years. The gross profit margin for 2025 is 24.05%, and the net profit margin reached 5.07%, both significant improvements over previous years. The revenue growth rate from 2024 to 2025 is 9.89%, reflecting strong sales performance. EBIT and EBITDA margins are stable at 7.76% and 10.03%, respectively, indicating healthy operational efficiency. Despite past losses, the company's profitability trajectory is positive.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.85, reflecting manageable leverage. Return on equity (ROE) improved significantly to 31.80%, signaling efficient use of equity capital to generate profits. The equity ratio stands at 29.45%, indicating a balanced capital structure. Overall, the company maintains a strong equity base amid its growth phase.

Cash Flow

Sml Isuzu's cash flow position is robust, highlighted by a significant turnaround in free cash flow from negative figures in previous years to 1,155 million in 2025. The operating cash flow to net income ratio is 1.46, suggesting strong cash generation relative to net income. The company exhibits substantial improvement in cash management and capital allocation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.99B	23.99B	21.96B	18.22B	9.14B	5.88B
Gross Profit	6.78B	5.77B	2.31B	3.54B	1.53B	1.10B
EBITDA	2.66B	2.41B	1.83B	808.74M	-355.93M	-646.29M
Net Income	1.42B	1.22B	1.08B	198.35M	-997.61M	-1.33B
Balance Sheet
Total Assets	0.00	12.99B	12.13B	9.37B	8.16B	7.96B
Cash, Cash Equivalents and Short-Term Investments	198.30M	220.30M	364.35M	48.66M	120.52M	314.93M
Total Debt	0.00	3.27B	4.21B	2.65B	2.98B	2.61B
Total Liabilities	-3.83B	9.17B	9.27B	7.59B	6.54B	5.41B
Stockholders Equity	3.83B	3.83B	2.86B	1.78B	1.61B	2.56B
Cash Flow
Free Cash Flow	0.00	1.16B	-921.06M	487.56M	-376.37M	-661.43M
Operating Cash Flow	0.00	1.77B	-496.80M	900.63M	-186.13M	-466.58M
Investing Cash Flow	0.00	-609.40M	-458.00M	-420.87M	-69.64M	-282.13M
Financing Cash Flow	0.00	-1.48B	1.27B	-551.57M	174.25M	602.85M

Sml Isuzu Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4085.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SMLISUZU, the sentiment is Negative. The current price of 4085 is above the 20-day moving average (MA) of 3999.74, above the 50-day MA of 3697.48, and above the 200-day MA of 3039.19, indicating a neutral trend. The MACD of -75.87 indicates Positive momentum. The RSI at 37.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SMLISUZU.

Sml Isuzu Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEL	77 Outperform	₹3.28T	55.03	―	0.60%	16.58%	25.45%
SMLISUZU	72 Outperform	₹50.07B	31.59	―	0.47%	6.04%	14.86%
BHARATFORG	69 Neutral	₹688.81B	63.66	―	0.58%	-3.52%	11.27%
ASHOKLEY	66 Neutral	₹1.16T	35.44	―	1.76%	9.53%	24.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KEC	60 Neutral	₹177.58B	26.08	―	0.74%	12.21%	56.50%
CCCL	54 Neutral	₹7.16B	5.23	―	―	35.46%	-85.85%