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Esab India Ltd. Stock Analysis

Small Cap
Evaluated by 742 users | BSE: 500133 | NSE: ESABINDIA |
Electrodes & Welding Equipment
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.ESAB India has a wide and comprehensive range of welding, cutting and allied products and services. The product range covers Welding...

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'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 32.39%23.91%17.2%13.38%12.61%10.08%9.37%10.3%17.69%23.44%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 500545504436441451474532672698
Y-o-Y Gr. Rt.-8.8%-7.5%-13.5%1.4%2.2%5.1%12.3%26.3%3.9%
Adjusted EPS (Rs.) 37.3130.8124.6721.618.0419.6419.8624.0236.9245.63
Y-o-Y Gr. Rt.--17.4%-19.9%-12.4%-16.5%8.9%1.1%21%53.7%23.6%
Book Value per Share (Rs.) 124.08137.49153.31173.66150.25205.03222.58245.78173.22219.46
Adjusted Net Profit 57.447.43833.327.830.230.63756.870.2
Net Op. Cash Flow (Rs. Cr.) 59.640.146.135.113.118.236.529.767.457.2
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
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.8%9.6%13.8%3.9%
Adjusted EPS 2.3%20.4%32%23.6%
Book Value per Share 6.57.9-0.526.7
Share Price 13.5% 20.5% 20.7% 16%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Dec'10Dec'11Dec'12Dec'13Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 32.0723.5616.9713.2212.48109.2910.2617.6323.25
Operating Profit Margin (%) 17.1814.7112.2912.039.310.369.49.7811.7713.98
Net Profit Margin (%) 11.488.717.547.636.296.76.456.958.4610.06
Debt to Equity 0000000000
Working Capital Days 5869778773101106120111104
Cash Conversion Cycle -372018142630282022
Entity Percentage Holding
Promoters 73.72%
Institutions 14.04%
Non-Institutions 11.93%
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.

The 5-year analysis of Esab India Ltd.'s performance infers:

Esab India Ltd. earnings have grown by 20.4%, whereas share price has appreciated 20.5% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Esab India Ltd. share prices over the last 10 years. Here is what we found out:

Esab India Ltd. share price has appreciated 10.6% annually over the past ten years.

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.

ESAB India 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

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.

ESAB India 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.

The company also markets the latest generation of Welding Consumables and equipment and cutting machines from other group companies located outside India and thereby acts as a one-point source for all the needs of the industry. ESAB India also manufactures and markets medical gas equipment.

ESAB India Limited started its operations in 1987 by acquiring the welding business of Peico Electronics & Electricals Limited (now Philips India Limited). The Company continued its expansion in the Indian market with the purchase of Indian Oxygen Limited's welding business in 1991 and Flotech Welding & Cutting Systems Limited in 1992, followed by the merger of Maharashtra Weldaids Limited in 1994.

ESAB India has established itself as one of the leading suppliers of welding and cutting products in the country. ESAB products are now an integral part of industries like Shipbuilding, Petrochemical, Construction, Transport, Offshore, Energy and Repair and Maintenance.

ESAB India Limited, directly exports 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 its group companies in Sweden, Singapore and Dubai.

ESAB India 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
  • Environment Products
  • Cutting Systems

Awards/Achievements

  • ESAB India's initiative on Total Quality Management has resulted in ISO 9000 and ISO 14000 certifications for four of its principal manufacturing facilities located at Kolkata, Chennai and Nagpur.
  • Defence Research Development Organisation, Ministry of Defence, GOI have honoured ESAB India Ltd with a commendation certificate and a memento in recognition of valuable contribution in productionisation of Welding Consumables for SMA and FCA Welding.

Recent developments

With the objective of establishing Esab India as the centre of excellence for the manufacture of industrial gas equipments, a separate R & D centre with state of the art testing facilities has been opened within the premises of Taratala Factory in Kolkata, India. The facility was inaugurated by G Hariharan, Managing Director on February 12, 2009.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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