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Everest Kanto Cylinder Limited (IN:EKC)
:EKC
India Market
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Everest Kanto Cylinder Limited (EKC) AI Stock Analysis

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IN:EKC

Everest Kanto Cylinder Limited

(EKC)

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Neutral 68 (OpenAI - 5.2)
Rating:68Neutral
Price Target:
₹99.00
▼(-14.77% Downside)
Action:ReiteratedDate:01/24/26
The score is driven primarily by solid financial fundamentals (strong margins and low leverage), partially offset by weak free cash flow. Technicals are mixed-to-weak with the stock below key medium/long-term moving averages and a negative MACD, while valuation is supportive with a reasonable P/E but only a modest dividend yield.
Positive Factors
High gross and improving net margins
Sustained high gross margin (~40%) and improving net margin indicate durable pricing power and efficient manufacturing. Over the next 2-6 months this supports margin resilience against input cost volatility and underpins sustainable profitability from core cylinder sales and value-added products.
Negative Factors
Negative free cash flow from high capex
Persistent negative free cash flow driven by heavy capex reduces internal funding capacity for dividends, debt reduction, or opportunistic investments. Over a multi-month horizon this may force higher external financing or constrain capital allocation flexibility despite decent operating cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross and improving net margins
Sustained high gross margin (~40%) and improving net margin indicate durable pricing power and efficient manufacturing. Over the next 2-6 months this supports margin resilience against input cost volatility and underpins sustainable profitability from core cylinder sales and value-added products.
Read all positive factors

Everest Kanto Cylinder Limited (EKC) vs. iShares MSCI India ETF (INDA)

Everest Kanto Cylinder Limited Business Overview & Revenue Model

Company Description
Everest Kanto Cylinder Limited, together with its subsidiaries, manufactures and sells cylinders primarily in India. The company offers compressed natural gas steel, industrial gas, fire extinguisher, fire suppression system, medical application, ...
How the Company Makes Money
EKC primarily makes money by manufacturing and selling high-pressure cylinders and related products to customers that package, store, transport, or consume gases. Key revenue streams typically include: (1) Sale of cylinders: revenue from supplying...

Everest Kanto Cylinder Limited Financial Statement Overview

Summary
Profitability is strong with improving gross and net margins (latest gross margin 40.35%, net margin 6.49%) and solid EBIT/EBITDA efficiency. Balance sheet leverage is low (debt-to-equity 0.14; equity ratio 74.74%), but return on equity has weakened. Cash flow is the main drag, with negative free cash flow driven by high capex, despite a decent operating cash flow to net income ratio (0.59).
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
65
Positive
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue15.39B15.09B12.23B12.74B16.99B9.49B
Gross Profit6.90B6.09B3.36B5.44B5.18B2.30B
EBITDA1.99B1.86B1.64B1.48B4.20B2.08B
Net Income966.90M979.30M992.28M761.43M2.65B900.41M
Balance Sheet
Total Assets17.11B16.14B14.13B13.73B12.91B10.46B
Cash, Cash Equivalents and Short-Term Investments1.35B1.40B1.06B347.02M482.38M575.60M
Total Debt1.97B1.70B654.54M1.19B1.27B2.20B
Total Liabilities4.23B4.08B3.13B3.73B3.88B4.18B
Stockholders Equity12.87B12.06B11.01B9.99B9.03B6.28B
Cash Flow
Free Cash Flow-247.80M-632.80M1.60B229.00M834.35M547.13M
Operating Cash Flow523.30M580.10M2.26B1.06B1.65B853.22M
Investing Cash Flow-1.12B-1.20B-1.21B-786.60M-603.62M744.52M
Financing Cash Flow69.90M767.00M-736.36M-426.00M-1.13B-1.18B

Everest Kanto Cylinder Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price116.15
Price Trends
50DMA
110.98
Positive
100DMA
113.65
Positive
200DMA
126.52
Negative
Market Momentum
MACD
1.00
Negative
RSI
63.14
Neutral
STOCH
92.31
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:EKC, the sentiment is Positive. The current price of 116.15 is above the 20-day moving average (MA) of 105.55, above the 50-day MA of 110.98, and below the 200-day MA of 126.52, indicating a neutral trend. The MACD of 1.00 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:EKC.

Everest Kanto Cylinder Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹13.27B9.140.59%12.52%-17.83%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
59
Neutral
₹6.57B95.100.45%-4.09%-32.35%
58
Neutral
₹17.88B18.471.57%22.67%24.50%
58
Neutral
₹29.10B49.830.13%35.05%99.65%
58
Neutral
₹11.14B24.440.36%21.51%-17.75%
52
Neutral
₹9.10B-7.85-7.98%-26.21%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:EKC
Everest Kanto Cylinder Limited
118.22
-4.87
-3.96%
IN:AGARIND
Agarwal Industrial Corporation Limited
439.05
-587.34
-57.22%
IN:ELECTHERM
Electrotherm (India) Limited
713.75
-290.95
-28.96%
IN:HIRECT
Hind Rectifiers Limited
846.85
351.32
70.90%
IN:INDNIPPON
India Nippon Electricals Limited
790.60
188.81
31.37%
IN:SALZERELEC
Salzer Electronics Limited
629.80
-446.56
-41.49%

Everest Kanto Cylinder Limited Corporate Events

Everest Kanto Cylinder Announces Resignation of Tarapur Plant Operations Head
Jan 21, 2026
Everest Kanto Cylinder Limited has announced a change in its senior management team, disclosing that Sanjay Patnaik, General Manager – Plant and Operations at the company’s Tarapur facility, has tendered his resignation. The departure,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jan 24, 2026