Ingersoll Rand India Sees Target Price of Rs 4934: Prabhudas Lilladher Research

Ingersoll Rand India Reports Muted Quarter Amidst Global Uncertainties

Ingersoll-Rand India (INGR) has released its latest research report, highlighting a decline in revenue and EBITDA margin for the quarter. The company's revenue decreased by 7% year-over-year (YoY) to Rs3.0 billion, while its EBITDA margin contracted by 285 basis points YoY to 23.0% due to higher other expenses.

The research report indicates that the underlying domestic demand for air compressors remains healthy across key industrial sectors. However, elongated customer decision-making cycles are continuing to delay order finalizations and revenue conversion. Furthermore, geopolitical uncertainties are posing near-term risks to export volumes to the parent, limiting visibility on external demand.

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Despite these challenges, the newly commissioned Sanand facility is expected to support future growth and improve manufacturing flexibility. The company is also focusing on expanding its oil-free portfolio, increasing localization, and strengthening OEM and rental channels. These efforts are expected to support competitiveness and margin resilience over the medium term.

The stock is currently trading at a price-to-earnings ratio (PE) of 44.1x on FY27 estimates and 37.0x on FY28 estimates. The research report has revised its FY27E/FY28E earnings per share (EPS) estimates by -3.6%/-1.3% and downgraded its rating from 'BUY' to 'Accumulate'. The revised target price is Rs4,934, valuing the stock at a PE of 42x Mar'28E.