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Esab India Ltd Stock Analysis

Small Cap
Evaluated by 824 users | BSE: 500133 | NSE: ESABINDIA |
Electrodes & Welding Equipment

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 23.91%17.2%13.38%12.61%10.08%9.37%10.3%17.69%23.44%19.73%-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 545504436441451474532672698681738
Y-o-Y Gr. Rt.--7.5%-13.5%1.4%2.2%5.1%12.3%26.3%3.9%-2.4%-
Adjusted EPS (Rs.) 30.8124.6721.618.0419.6419.8624.0236.9245.6337.4747.08
Y-o-Y Gr. Rt.--19.9%-12.4%-16.5%8.9%1.1%21%53.7%23.6%-17.9%-
Book Value per Share (Rs.) 137.49153.31173.66150.25205.03222.58245.78173.22219.46168.43181.62
Adjusted Net Profit 47.43833.327.830.230.63756.870.257.772
Net Op. Cash Flow (Rs. Cr.) 40.146.135.113.118.236.529.767.457.272.4-
Debt to Cash Flow from Ops 0000000000-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Esab India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  10 yrs 5 yrs 3 yrs 1 yr
Net Sales 2.5%8.6%8.6%-2.4%
Adjusted EPS 2.2%13.8%16%-17.9%
Book Value per Share 2.3-3.9-11.8-23.3
Share Price 16.7% 32.9% 39.3% 81.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 23.5616.9713.2212.48109.2910.2617.6323.2519.3226.9
Operating Profit Margin (%) 14.7112.2912.039.310.369.49.7811.7713.9812.1613.51
Net Profit Margin (%) 8.717.547.636.296.76.456.958.4610.068.479.82
Debt to Equity 0000000000-
Working Capital Days 69778773101106120111104109-
Cash Conversion Cycle 7201814263028202231-
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Entity Percentage Holding
Promoters 73.72%
Institutions 14.02%
Non-Institutions 12.26%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

Esab India Ltd's earnings have grown by 13.8%, whereas share price has appreciated 32.9% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Esab India Ltd share price has appreciated 16.7% annually (CAGR) over the past ten years.

Data is not available for this company.

ESAB India Limited was established in 1987 as a part of ESAB Group owned by the Charter International Plc.Group UK, which is listed on the London Stock Exchange. The Company is engaged in the business of fabrication technology. The company caters to both domestic and international markets.

The company directly export welding consumables and welding and cutting equipment to Nepal, Bhutan, Bangladesh, Sri Lanka, Kenya

ESAB India Limited was established in 1987 as a part of ESAB Group owned by the Charter International Plc.Group UK, which is listed on the London Stock Exchange. The Company is engaged in the business of fabrication technology. The company caters to both domestic and international markets.

The company directly export welding consumables and welding and cutting equipment to Nepal, Bhutan, Bangladesh, Sri Lanka, Kenya and Uganda. The company also exports products to Middle East, Asia Pacific, Europe and the USA through their group companies in Sweden, Singapore and Dubai..The company also in the business segment of Equipment, Consumables. 

Business area of the company

The company has a wide and comprehensive range of welding, cutting and allied products and services. The product range covers Welding Consumables, Reclamation Consumables, Arc Equipment, Industrial Gas Equipment, Cutting Machines and Working Environment Products for the specialised welding, cutting and allied needs. These are manufactured to stringent quality control measures in the state-of-the-art manufacturing units.

Products

  • Arc Welding Equipment
  • Cutting Automation
  • PPE & Accessories
  • Plasma
  • Welding Consumables
  • Gas Equipment
  • Welding Automation & Robotics
  • ESAB Digital Solutions (EDS)

History and milestones

  • 1904: A leader is born. Elektriska Svetsnings-Aktiebolaget (ESAB) founded in Göteborg by engineer Oscar Kjellberg. In the beginning, operations focused very clearly on the shipyards' repair requirements.
  • 1906: Innovation unfolds. The patent is granted for Kjellberg's unique invention - the world's first coated welding electrode.
  • 1912: The Anglo-Swedish Electric Welding Co Ltd, London, is founded.
  • 1914: The Belgian-Swedish Electric Welding Co Ltd (BSEW), Antwerp, is founded.
  • 1919: La Soudure Autogene Française uses Kjellberg's method to build the ship “SAF no. 4”. It is 20 metres long, 4 metres wide and 2.3 metres deep.
  • 1920: The all-welded workshop boat “ESAB IV”, 16 metres long and 4 metres wide, is launched.
  • 1920: Lloyd's Register of Shipping approves Kjellberg's welding method.
  • 1921: Kjellberg Elektroden & Maschinen GmbH, Berlin (later Kjellberg Elektroden & Maschinen GmbH, Finsterwalde) is set up.
  • 1932: ESAB-Iberica S.A., Madrid, Spain, is founded.
  • 1932: ESAB S.A., Brussels, Belgium, and PEAS in Prague in Czechoslovakia are established.
  • 1933: Welding Supplies Ltd., England, and ESAB-Denmark are set up.
  • 1935: ESAB-Elettrodi Rivestiti S.A., Milan, Italy is established.
  • 1936: The first issue of ESAB's publication Svetsaren is published.
  • 1937: Breakthrough development. The submerged arc welding method is invented, providing a versatile means of depositing large amounts of metal quickly, consistently, and safely.
  • 1938: Kjellberg-Eberle GmbH, Germany, is founded.
  • 1938: ESAB Norway is set up.
  • 1940: ESAB Welding Corporation in the USA is established.
  • 1942: The machine plant in Laxa is opened.
  • 1943: ESAB-Finland is founded.
  • 1944: Revolutionary technology. The new process of TIG welding (called Heliarc) is introduced, providing greater control over the weld for stronger, higher quality results.
  • 1950: Quantum leap. Gas metal arc welding (GMAW) or MIG/MAG welding is developed. Its versatility and speed help make it the most commonly used industrial welding process.
  • 1945: A new production plant for cutting machines is set up in Frankfurt.
  • 1950: ESAB-France is set up.
  • 1951: Electrode production begins in Perstorp, Sweden.
  • 1953: ESAB-Brazil is established.
  • 1955: Plasma cutting emerges. The Linde Division of Union Carbide invents the plasma arc for cutting metals. Linde later became L-Tec, which was eventually purchased by ESAB.
  • 1956: ESAB-Austria is founded.
  • 1958: ESAB Arc Rods Ltd. in Montreal is established.
  • 1958: Máquinas ESAB Lta in Rio de Janerio is set up.
  • 1962: A branch factory for cutting equipment is set up in Rodheim, Germany.
  • 1971: Leading KEBE employees part from the company and found HANCOCK GmbH in Dörnigheim, Germany.
  • 1972: ESAB Inc in the USA is founded.
  • 1972: A new electrode plant is built in Perstorp.
  • 1973: The black-and-yellow logotype is introduced.
  • 1974: ESAB-Ekman Welding pte in Singapore, ESAB-Iran Co, ESAB-Roman, Portugal, and ESAB Manufacturing Inc, USA, are set up.
  • 1975: The cutting division of ESAB moves to new production plant in Karben. ESAB Australia Pty ltd, Australia, is established.
  • 1977: ESAB acquires Sarazin Soudure in France.
  • 1977: New electrode plant in Milan opens.
  • 1977: KEBE-Ersatzteile is founded to guarantee delivery of spare parts for outdated flame cutting machinery.
  • 1981: ESAB takes over Varios Fabrieken B.V., The Netherlands.
  • 1981: ESAB acquires HANCOCK GmbH, one of British Oxygen's gas-cutting companies.
  • 1982: The merger of ESAB GmbH and HANCOCK GmbH, as ESAB-HANCOCK GmbH, Karben, takes place.
  • 1984: ESAB Canada Inc. is founded.
  • 1986: Filarc Welding Industries B.V., The Netherlands, is acquired.
  • 1987: ESAB India is formally incorporated.
  • 1987: Siderotermica s.p.a. in Italy is acquired.
  • 1989: The production of electrodes in Göteborg is transferred to Perstorp.
  • 1989: The new corporate symbol for The ESAB Group is introduced.
  • 1991: Takeover of Indian Oxygen Limited's (IOL) welding operation.
  • 1991: AB Ph Nederman & Co is acquired and the Working Environment Equipment business area is set up.
  • 1992: Flo-tech Welding & Cutting Systems Limited
  • 1992: The Friction Stir Welding process is invented by The Welding Institute (TWI) where ESAB participates as the only welding equipment manufacturer.
  • 1993: ESAB Vamberk in the Czech Republic is set up following the acquisition of the leading producer of consumables.
  • 1993: A welding consumables pioneer. Marathon Pac, a unique bulk pack for solid or flux-cored welding wire, is introduced.
  • 1994: Takeover of Maharashtra Weldaids Limited
  • 1994: ESAB is purchased by Charter plc of the U.K.
  • 1994: Nederman leaves the ESAB Group but is still a member of the Charter group of companies
  • 1996: First of its kind. ESAB's first friction-stir welding machine, SuperStir ™ , is supplied to Marine Aluminum of Norway.
  • 1998: ESAB acquires a majority holding in the Polish company Ozas, which manufactures welding machines and spares.
  • 1998: A majority holding in Fersab, the leading manufacturer of agglomerated flux in Poland, is acquired.
  • 1998: ESAB acquires AlcoTec Wire Company in U.S.A., the world's largest producer of aluminium wire.
  • 1998: ESAB receives a large order from Boeing and supplies FSW equipment for welding fuel tanks for space rockets.
  • 1999: ZAO ESAB-SVEL is set up in St Petersburg, Russia.
  • 1999: SIB S.p.a in Italy, is acquired. SIB is a production unit for non-alloyed MAG wires.
  • 1999: The ESAB Group identity is replaced with the black-and-yellow ESAB brand identity.
  • 1999: ESAB acquires the majority of the shares in Elektrody Baildon, Poland.
  • 2001: ESAB sets up a subsidiary in Moscow, Russia.
  • 2001: ESAB starts producing solid stainless steel wires in Vamberk in the Czech Republic.
  • 2002: ESAB establishes its headquarters in London, UK.
  • 2006: Greenfield plant at Irungattukottai, Sriperumpudur.
  • 2007: Global R&D centre formed for Consumables and Equipments at Chennai, Ambattur & Irungattukottai. This is now known as ESD (Engineering Services Division).
  • 2007: Charter plc increased its shareholding stake from 37% to 55% through Open Market offer.
  • 2008: ESAB Welding & Cutting Systems (100% subsidiary) merged with ESAB India Limited.
  • 2010: High-speed solution. High-speed submerged arc welding is developed, generating high quality welds at high productivity.
  • 2012: Next generation technology. ICE, the next generation in submerged arc welding technology, is advanced based on ESAB's leading Twin subarc process.
  • 2012: Colfax made an Open Offer in the market and increased the stake of the promoters from 55% to 73.72%.
  • 2015: Expanded Ambattur and Nagpur plant by moving all production facilities from Khardah to Ambattur in Chennai and Kamleshwar in Nagpur.
  • 2017: Expanded the Irungattukottai, Chennai plant by moving the equipment facilities from Taratala, Kolkata.
  • 2017: ESAB acquires TBi Industries GmbH, Germany.
  • 2018: ESAB acquires Sandvik(now renamed as Exaton) welding operations including production units in Scranton, Pennsylvania, and Sandviken, Sweden.
  • 2018: ESAB acquires European gas equipment leader Gas Control Equipment (GCE).
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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