Indo Farm Equipment IPO: The good and the bad

Published: 31st Dec 2024

By: Value Research

About Indo Farm Equipment

Indo Farm Equipment manufactures agricultural and industrial machinery, including tractors, cranes, and engines. It earned 93 per cent of its revenue from domestic sales and the remaining from exports as of June 2024. Its export markets include Afghanistan, Bangladesh, and Brazil.

IPO details

Post-IPO

Financial history

EBIT is earnings before interest and tax PAT is profit after tax

Key ratios

ROE is return on equity ROCE is return on capital employed

The good

Indo Farm Equipment’s in-house production of critical components reduces reliance on third parties, streamlines production, and improves operational efficiency, helping the company record the highest EBIT margins among listed peers during FY22-24.

The bad

The company faces intense competition from established players. It experienced low growth in revenue and profitability in recent years due to fewer retail financing partnerships with leading banks and NBFCs compared to competitors.

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