Incap operates in the industrial sector. The company supplies equipment and services for industrial players, where the range includes PCB assembly, system integration, box building integration, design validation, and inspection methods. The largest operations are found in the Nordic, Baltic and Asian regions. The company was originally established in 1985 and is headquartered in Helsinki.
Incap acquires Lacon which has production sites in Germany and in Romania. Lacon has customers in defence, railway and medical technology sectors which could be hard to get on organic basis. Acquisition price is EUR 50m indicating EV/EBIT of ~12x in ...
We visited Incap’s factories in Tumkur, India and examined the operations and production of the three factory units. Antti Viljakainen interviews Murthy Munipalli, Director of Operations India and Sales APAC.
We visited Incap’s factories in Tumkur, India and examined the operations and production of the three manufacturing units. In Antti Viljakainen’s interview, Incap India’s director of production and testing, Venkatesh T. K.
We visited Incap’s factories in Tumkur, India, and explored the operations and production of the three local units. CEO Otto Pukk was interviewed by analyst Antti Viljakainen.
This week we visited Incap’s factories in Tumkur, India. Yesterday and today, we familiarized ourselves with the production of all three factory units in Tumkur.
Overall, Incap's Q3 report was disappointing, especially due to a steeper earnings decline in Q3 than we expected. However, we raise our recommendation for Incap to Buy (was Accumulate) and cut the company's target price to EUR 11.00 in line with the revised estimates (was EUR 12.0). We believe the upside of the EV-based valuation, which has fallen to a low level, the approaching earnings growth turnaround we expect despite uncertainties, and the possibility of corporate acquisitions make the expected return on the stock very attractive in both the short and longer term.
A trade war between the US and India created headwind for Incap's operations in Q3. Net sales in Q3 were 8% below LSEG Data & Analytics consensus, while the adjusted EBIT margin was 11.1%, compared to consensus of 12.4% . The company anticipates an improvement...
Volumes were down and utilisation ratios weaker than year ago in Q3, like the company had anticipated. Market hesitation has continued and some customers have postponed their projects. We forecast that product prices were also down in Q3 y/y. End demand...
The trade war has both directly and indirectly negatively affected Incap. The US has imposed a 50% tariff on most exports from India, and Incap has customers that export to the US. The company's biggest site is in India, but another round of trade negotiations...
We lowered the company's near-term estimates, reflecting the negative profit warning issued by the company earlier this week, though the profit warning risk, which had pressured the risk/reward ratio after the Q1 report, is now off the table. Earnings are expected to decline significantly in H2, primarily due to FX effects, but we believe the upside potential from a low EV-based valuation, the M&A option, and good medium-term earnings growth potential still create an attractive return potential for the share.
