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Check Before You Invest : Esab India Ltd

BSE: 500133 NSE: ESABINDIA ISIN: INE284A01012
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electrodes & Welding Equipment

Snapshot

Q.1 Which industry/sub-sector does Esab India Ltd belong to?
Esab India Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electrodes & Welding Equipment segment.
Q.2 Is Esab India Ltd a good quality company?
Esab India Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Esab India Ltd undervalued or overvalued?
Esab India Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Esab India Ltd a good buy now?
Esab India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Esab India Ltd?
Esab India Ltd revenue growth is 10.4% for FY-2025 , which is below its 5 year CAGR of 14.8% , indicating slower growth.
Q.2 Gross Profit margin of Esab India Ltd?
Esab India Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025 , which is above its 5 year median of 17.5% , indicating increasing margins.
Q.3 Operating Profit Margin of Esab India Ltd?
Esab India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.63% for FY-2025 , which is above its 5 year median of 17% indicating increasing margins.
Q.4 Net Profit Margin of Esab India Ltd?
Esab India Ltd Net Profit Margin is 12.62% for FY-2025 , is above with its 5 year median of 12.29%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 17.8 17.5
Operating Profit Margin 17.63 17
Net Profit Margin 12.62 12.29
Q.5 Return on Asset of Esab India Ltd?
Esab India Ltd Return on Asset is 29.62%, which is in line with its 5 year historical median of 29.62%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Esab India Ltd?
Esab India Ltd Return on equity is 52.58% for FY-2025 , which is in line with its historical median of 52.58%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Esab India Ltd?
Esab India Ltd Return on capital employed is 71.26% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Esab India Ltd?
Esab India Ltd Cash conversion cycle is 28 days, below its historical median of 28 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.37 2.37
ROE 52.58 52.58
ROCE 71.26 71.26
Cash Conversion Cycle 28 days 28 days
Q.9 Debt to Equity ratio of Esab India Ltd?
Esab India Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.11 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Esab India Ltd?
Esab India Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Esab India Ltd?
Promoters hold 73.72% of the Esab India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Esab India Ltd vs industry peers?
Esab India Ltd revenue CAGR is 14.77% , compared to the industry median CAGR of 7.29% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,389.8 236.2
Gross Profit 247.4 24.7
Operating Profit 245 23.5
Net Profit 175 17
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.37 1.3
ROE 52.58 11.68
ROCE 71.26 14.6
Cash Conversion Cycle (days) 28.05 92

Valuation & price assessment

Q.1 Stock return of Esab India Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 26% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 26% 25.3% 19.4% 23.8%
Q.3 Valuation ratios of Esab India Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 40.59 34.33 32.47
Price to Book 18.6 6.15 1.95
Price to Sales 5.77 3.31 1.73
EV to EBITDA 30.42 21.48 10.27

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