DINESH

Pennar Industries

Industry: EMS
Latest CMP 152
Today's Change ▼ -3.73%
52-Week High / Low 276 | 131
Price Date: 14-Aug-2026
Recommendation Buy
Target Price 203
Expected Upside 15.5%
Forecast Horizon 2 Years
Historical CAGR 6.8%
1,000 Invested 15-Aug-2006
Today's Value 3,746
Investment Period 20 Years

Stock Snapshot

Post Results Return
-5.2%
Mild Negative Re-rating
1-Year Target Price
187
2-Year Target Price
203
52-Week High / Low
276 / 131
20-Day Return
-9.9%
Market Cap (Cr.)
2,057
Current PE
17.5
P/BV Ratio
1.8
Dividend Yield
Industry PE
78.0

Price Performance

Basis of our Recommendation

Pennar Industries is strategically pivoting towards high-margin business units, particularly in pre-engineered buildings and engineering services, which are expected to drive revenue growth and margin expansion. Management's focus on operational efficiency through automation and technology integration, alongside a robust order book, supports Vista's forecast of stable revenue growth and consistent margins. However, the company faces challenges related to elevated working capital and debt levels, which management is addressing through improved cash collection and disciplined capital expenditure. The EMS sector's steady growth and improving pricing power further bolster the outlook, although geopolitical factors and the need for successful scaling of new assets remain watchpoints. Overall, Vista's financial outlook anticipates a modest upside, with a 12-month target price of approximately ₹190.52, reflecting a fair valuation aligned with intrinsic value

👍 Why We Like This Stock

  • Management's strategic focus on high-margin business units is expected to enhance revenue growth and profitability
  • The integration of advanced technologies is likely to improve operational efficiency and reduce costs
  • A strong order book in key sectors supports a positive outlook for revenue stability

Things To Watch Out For

  • Elevated working capital and debt levels pose short-term financial challenges
  • Successful scaling of new assets is critical to maintaining efficiency gains
  • Geopolitical factors may introduce volatility in the operating environment

Key Parameters

Balance Sheet Strength
Stable Financial Structure
Market Share
Stable
Industry Outlook
Improving
Analyst View
Not Available
Dividend History
No Dividend History
FII Holdings
Stable

Financial Snapshot

Actuals Forecast
FY24 FY25 FY26 FY27 FY28
Revenue (Cr.) 3,131 3,227 3,620 3,612 3,972
Profit Before Tax (Cr.) 130 156 180 197 212
PBT Margin 4.1% 4.8% 497.2% 5.4% 5.3%
Net Profit (Cr.) 95 130 128 139 150
Earnings Per Share 7.0 9.6 9.5 10.3 11.1

Analyst Recommendations

No analyst recommendations available.

Consensus Recommendation ► None
Consensus Target
Coverage 0 Analysts
Analysts' Viewpoint

Company Overview

Show Company Profile

Pennar Industries Limited operates as an engineering company in India and internationally. It operates in two segments: Diversified Engineering, and Custom Designed Building Solutions & Auxiliaries. The company offers engineered components, including automotive and white goods components, hydraulic cylinders, and precision sub assembly parts; precision tubes comprising electric resistance welding, CWE/DOM/CEW, bicycle frame, steel, engineering, boiler, heat exchanger, propeller shaft, transformer, fuel and air, furniture, structural, telescopic front fork, and air pre-heater tubes, as well as automotive shock absorbers; and railway wagons, and passenger and metro coaches. It also provides steel products and profiles, such as cold rolled steel strips; electrostatic precipitator electrodes; building components, including purlins, roofing/cladding sheets, and decking profiles; metal crash barriers; sheet piles for infrastructure projects; and automobile products. In addition, the company offers solar module mounting structures to support the solar PV panels; aerospace machined components; industrial boilers and heaters; and water treatment chemicals, fuel additives, and specialty water treatment chemicals, as well as water and environment infrastructure turnkey solutions. Further, it designs, manufactures, supplies, services, and installs pre-engineered steel buildings and building components; and erects industries, warehouses, commercial centers, multi storied buildings, aircraft hangars, and defense installations, as well as engages in the design, manufacture, supply, erection, and maintenance of water and wastewater treatment plants. Additionally, the company provides structural engineering, building information modelling, plant and product engineering, industrial automation, and digital consultancy and value-added solutions; and solar structures. Pennar Industries Limited was incorporated in 1975 and is headquartered in Hyderabad, India.