Triggers for INOX India shares
On factors fueling the INOX India share price rally, Atul Parakh, CEO of Bigul, said, “INOX India Limited has a strong track record of innovation in cryogenic storage and transportation. It was the largest supplier and exporter of cryogenic equipment in/from India by revenue in FY23. Its offering includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment, solutions, and large turnkey projects. Various sectors rely on cryogenic fluids, including food processing, industrial gases, liquefied natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction. Between CY23 and CY28E, the demand for cryogenic equipment in India is projected to grow at a CAGR of 7.2%.”
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“The growth is expected to be driven by an increase in industrial output, investments in the electronics and space sectors, and a shift towards cleaner fuel sources such as LNG and hydrogen in the industrial and transport sectors. Hence, based on these factors, the company’s outlook appears positive,” the Bigul expert said.
Partnership with Adani Gas
Pointing towards the recent triggers that fueled INOX India shares, Sugandha Sachdeva, Founder of SS WealthStreet said, “The stock has been in an uptrend since January end following a brief period of consolidation post its IPO and has tested a a new high of Rs.1473 this week. The stock has been propelled by various factors, including its partnership with Adani Total Gas, announced in February. This collaboration aims to bolster the LNG ecosystem in India.”
On fundamentals that may continue to support INOX India share price rally, Rajesh Sinha, Senior Research Analyst at Bonanza Portfolio, said, “Inox India is well placed to capitalize on global opportunities in cryogenic equipment and systems as it follows international norms in design and manufacture its equipment and it is the largest exporter of cryogenic tanks from India. The global cryogenic equipment market was valued at $11.5bn in CY22, and it is projected to grow at a 6.9% CAGR to reach $16.6bn during CY23-28.”
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“Inox India is targeting market leadership positions across the entire value chain of its product lines and intends to expand offerings in each segment to provide its customers with end-to-end solutions. We believe Inox India is well-placed to capture growing demand as well as it has a strong focus on product development and engineering, which will help Inox India position itself as a market leader across the entire value chain of its product lines,” Rajesh Sinha added.
INOX India share price target
Expecting further upside in INOX India shares, Sumeet Bagadia, Executive Director at Choice Broking, said, “INOX India share price has made a strong base at ₹1350 apiece level. So, those with INOX India shares in their stock portfolio are advised to maintain a trailing stop loss of ₹1350 as the stock looks positive on the chart pattern. It may touch ₹1460 to ₹1500 levels in the short term.”
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On the suggestion to the fresh investors, Bagadia said, “Fresh investors can buy INOX India shares at current market price and maintain buy-on-dips strategy till the stock is above its base. Fresh investors can buy INOX India shares for the short-term target of ₹1500, maintaining a strict stop loss at ₹1350 per share.”
On the suggestion to the long-term investors, Sugandha Sachdeva of SS WealthStreet said, “Inox India shares currently appear to be overbought, as indicated by the RSI reading. This suggests a potential cool-off in prices, with a retreat towards the ₹1250 to ₹1150 zone being a likely scenario in the near-term. Nonetheless, any dip in prices is anticipated to attract renewed buying interest.”
“While the near-term volatility may lead to temporary corrections, the underlying fundamentals and thematic relevance of Inox India’s business model support a bullish outlook for the stock over the medium to long term,” Sugandha concluded.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 04 May 2024, 09:37 AM IST
