This recently listed stock soared 76% in 50 days; up 116% from issue price

In past three days Inox India has surged 19% after the company said it received new patent rights from Government of India.

Shares of INOX India (INOX) hit a record high of Rs 1,427.95, as they rallied 7 per cent on the BSE in Friday's intra-day trade on the back of two-fold jump in average trading volumes.

In past three trading days the stock of the largest domestic supplier of cryogenic equipment company has surged 19 per cent after the company said it received patent rights from Patents Office, Government of India titled: "A method for suspending inner vessels of DEW AR type container to store Cryogenic Fluid” bearing Patent No. 530403.

In past 10 trading days, the market price of INOX has soared 30 per cent. Since January 24, in the past 50 trading days, the stock has appreciated by 76 per cent. It has more-than-doubled or zoomed 116 per cent against its issue price of Rs 660. The company made its stock market debut on December 21, 2023.

INOX is one of the largest manufacturers of Cryogenic Storage, Regas and Distribution Systems for LNG, Industrial Gases and Cryo-Scientific applications with operations in India, Brazil & Europe. The company is leading India’s efforts to use LNG for industrial and automotive use.

INOX's business divisions include Industrial Gas, LNG and Cryo Scientific Division and are working continuously towards Clean Energy initiatives in LNG, Liquid Hydrogen & Fusion Energy.

In the first nine months of financial year 2023-24 (9MFY24), the company recorded the highest ever total income of Rs 875 crore and earnings before interest, tax, depreciation, and amortisation (EBITDA) of Rs 217 crore. EBITDA margin improved to 24.81 per cent from 23.91 per cent in 9MFY23.

Supported by buoyant market situation worldwide for the company’s existing products used in Industrial Gases, LNG, Hydrogen and evolving new other applications, INOX have a robust order backlog of Rs 1,043 crore as on 9MFY24 with 50 per cent orders from Industrial Gas, 23 per cent orders from LNG and balance 27 per cent orders from Cryo Scientific Division. Export order comprised 47 per cent of the order backlog.

The management said the company is actively participated in various public sector tenders which are at different stages of awarding. In addition, the company is engaged in discussion with numerous private customers, for building LNG infrastructure.

INOX in an investor presentation said the company is capitalizing on opportunities in LNG and Hydrogen to establish presence across the entire value chain within product lines.

The LNG segment demand driver includes Asian countries like China, India, South Korea, Pakistan and Bangladesh which are increasingly transitioning from energy sources such as coal, crude oil to nuclear and gas. INOX is the first Indian company to manufacture trailer mounted Hydrogen transport tanks, designed jointly with ISRO. The company has produced & supplied liquid Hydrogen tanks to 2 customers in South Korea.