INOX India saw its stock soar 15% to Rs 1,044.70 during intra-day trade on Thursday, bucking the weak market trend and trading on heavy volumes. The surge followed the company’s announcement that it had achieved a significant milestone by becoming India’s first cryogenic equipment manufacturer to receive the prestigious IATF 16949 certification for cryogenic fuel tank manufacturing. This certification, issued by Bureau Veritas Certification, covers the design and manufacturing of vacuum-insulated cryogenic fuel tanks, a crucial component for liquefied natural gas (LNG)-powered vehicles.
At 11:34 am on Thursday, INOX India’s stock was up by 12% at Rs 1,010 on the BSE, while the broader market struggled. The BSE Sensex was down by 0.01%, and the BSE Smallcap index had slipped 1.9%. This strong performance by INOX India stood out amidst the overall market weakness.
The IATF 16949 certification is a mandatory requirement for suppliers to automotive original equipment manufacturers (OEMs), and its receipt positions INOX India as a qualified and competitive player in the rapidly growing market for LNG-powered vehicles. This certification not only strengthens INOX India’s reputation as a key supplier for the automotive sector but also opens up new opportunities, both domestically and internationally, in the growing LNG fuel tank market.
INOX India’s Growing Presence in the LNG Sector
INOX India is one of the largest manufacturers of cryogenic storage, regasification, and distribution systems for LNG, industrial gases, and cryo-scientific applications. The company operates in multiple regions, including India, Brazil, and Europe, and has become a significant player in India’s push for LNG adoption in industrial and automotive applications.
The certification also positions INOX India as a pioneer in bridging the gap between cryogenic technology and automotive applications, particularly for LNG fuel tanks in India and the broader global market for heavy-duty vehicle fuel tanks. As India looks toward cleaner, more sustainable fuel alternatives, INOX India’s role in the LNG sector becomes increasingly important.
Impressive Order Inflows and Strong Market Position
In terms of financial performance, INOX India reported strong order inflows, with the company securing Rs 493 crore worth of new orders in Q3FY25. This brings its total order book to an impressive Rs 1,341 crore, showcasing strong market confidence in its core areas of industrial gases and clean energy. The LNG segment, in particular, continues to show immense growth potential, particularly as LNG gains traction as a sustainable transit fuel for both marine and surface transportation.
The company’s Industrial Gases division remained the largest revenue contributor, accounting for 68% of total revenue. The sector is poised for further growth, highlighted by a significant contract from Highview Power, UK, for their Liquid Air Storage (LAES) facility. This marks the first instance of cryogenic tanks being used at an industrial scale for clean energy storage, further validating INOX India’s position as an innovator in this space.
Recent Stock Performance and Market Outlook
While INOX India has underperformed the broader market over the past six months, falling 15% compared to the BSE Sensex’s 9% decline, it has outperformed the BSE Smallcap index, which fell 21% during the same period. Notably, the stock had hit a 52-week low of Rs 848.65 on February 19, 2025, before this recent rally.
Looking ahead, INOX India’s growth prospects in the LNG and industrial gases sectors appear strong, especially with the increasing adoption of clean energy technologies and the company’s strategic expansion into international markets. The achievement of the IATF 16949 certification is a significant milestone that not only enhances its credibility with OEMs but also positions the company well to capitalize on the emerging demand for LNG-powered vehicles.
Overall, INOX India’s strong performance and growing market presence make it a stock to watch as it continues to expand its footprint in the LNG and clean energy domains.
Related topics: