Stocks to buy: INOX India shares have been in an uptrend since they bottomed out at around ₹810 apiece at the beginning of the last week of January 2024. After that, INOX India share price has remained an idea ‘buy-on-dips’ stock for positional investors.
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In YTD time, INOX India share price has surged from nearly ₹880 to ₹1395 apiece on NSE, logging almost 60 percent rise in 2024. According to stock market experts, the company is in the business of cryogenic storage, which has demand in various sectors like chemical, healthcare, oil and gas, etc. They said that cryogenic equipment in India is projected to grow at a CAGR of 7.2 percent. Experts went on to add that INOx India shares may continue the bull trend and touch the ₹1500 mark in the short term.
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%.”
“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.
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.”
“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.”
