Target: ₹2,268
CMP: ₹1,611.80
Established in 1974, IFB Industries Ltd. (IFB) specialises in home appliances and engineering solutions and is known for its focus on innovation and quality across its business segments. Primarily, IFB operates in four segments: Home Appliances Division, Engineering Division, Motor Division and Steel Division.
With a vast distribution network comprising 850+ Multi-Brand Outlets (MBOs) counters and 465 exclusive IFB points as of FY24. The company commands a dominant position in the front-load washing machine with a market share of 35 per cent in the domestic market.
The company has built a strong brand presence in the Indian market, recognised for its superior product quality, high performance, and innovative technology.
We initiate our coverage on IFB Industries Ltd. with a BUY rating and a target price of ₹2,268 using the SOTP valuation method. We believe that IFB is set to grow its revenue by 15 per cent and improve its PAT margins from 1.1 per cent in FY24 to 4 per cent in FY26E. This is attributed to the Company’s strategic initiatives, including a cost-reduction program, a revamp in the sales team, improved channel distribution, improved capacity utilization, and a decline in interest expense resulting from reduced debt.