Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

• Market Cap: ₹8.89B
• Dividend Yield: N/A
• Average Volume (3M): 2.70K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.88
• Revenue Growth: -7.98%
• EPS Growth: -26.21%
• Country: IN
• Employees: 2,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -27.80
• Shares Outstanding: 12,742,814
• 10 Day Avg. Volume: 1,572
• 30 Day Avg. Volume: 2,704
• PEG Ratio: 0.06
• Price to Book (P/B): -6.89
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 4.57
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹777.00 ▼(-15.59% Downside)
• Action: Reiterated Date: 01/06/26
• Date: Action: Reiterated 01/06/26

The score is anchored by strong cash generation and revenue growth, supported by a low P/E valuation. These positives are partially offset by significant balance-sheet risk (high leverage and negative equity) and a mixed technical backdrop with the stock still below its 200-day moving average.

Positive Factors

Strong operating and free cash flow

Consistent operating and free cash flow provides durable liquidity to fund capital expenditure, working capital and project execution without relying solely on external financing. Strong cash conversion supports after‑sales service and reinvestment, helping sustain operations despite balance sheet stress.

Revenue growth with healthy gross and EBITDA margins

A multi‑year revenue uptrend combined with resilient gross and EBITDA margins points to scalable engineering operations and effective cost control. Durable or improving core margins enable the firm to reinvest in product development and service capabilities, supporting mid‑term profit recovery.

Product diversification into EV components and charging

Having an EV products and charging business creates a structural growth avenue beyond cyclic metal fabrication. This diversification can provide higher demand elasticity and aftermarket revenue, reducing reliance on steel capex cycles and improving long‑term revenue mix stability.

Negative Factors

High leverage and negative shareholders' equity

Negative equity and high debt materially constrain financial flexibility, raising refinancing and covenant risk. Interest and principal obligations can divert cash from growth and capex, and leverage magnifies stress during demand shocks, making the capital structure a persistent strategic vulnerability.

Volatile profitability and material EPS decline

A sharp decline in EPS and fluctuating net margins signal inconsistent bottom‑line performance and earnings volatility. This undermines the firm's ability to build retained earnings, service debt sustainably, and fund strategic initiatives, increasing execution risk over the medium term.

Exposure to cyclical metal fabrication end markets

Core exposure to steelmaking, foundry and industrial infrastructure ties revenue to cyclical capex and commodity cycles. Demand swings can compress utilization, delay projects and strain margins; while EV diversification helps, the legacy business remains sensitive to macro industrial cycles.

Electrotherm (India) Limited Business Overview & Revenue Model

Company Description

Electrotherm (India) Limited manufactures and markets induction furnace, casting machines, transformers, sponge and pig iron, ferrous and non-ferrous billets/bars/ingots, duct iron pipes, transmission line towers, battery operated vehicles, and services related to steel melting and other capital equipment in India and internationally. It operates through four segments: Engineering & Project, Special Steel, Electric Vehicle, and Others. The company offers induction melting furnaces, metal refining converters, refining furnaces, continuous casting machines, and induction heating and hardening equipment for heat treatment. It also provides cut and bend TMT bars, epoxy coated TMT bars, refined steel, and other steel products; structures for transmission line towers, power sub-stations, solar power plants; and converter, furnace, and special duty transformers. In addition, the company offers electric bikes and scooters under the Yo Bykes brand name. Further, it provides solar PV rooftop and ground-mounted solutions to the industrial and commercial sectors. Electrotherm (India) Limited was founded in 1983 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Electrotherm generates revenue primarily through the sale of its core products, which include electric induction furnaces, steel melting plants, and other related machinery. The company also offers value-added services such as installation, maintenance, and technical support, contributing to recurring revenue streams. Additionally, ELECTHERM has established strategic partnerships and collaborations with various stakeholders in the steel and foundry sectors, enhancing its market reach and operational capabilities. The company is also involved in the development of renewable energy solutions, which may provide additional income through green technology initiatives. Overall, ELECTHERM’s revenue model is driven by a combination of product sales and service offerings in the industrial equipment sector.

Electrotherm (India) Limited Financial Statement Overview

Summary

Income statement and cash flow are solid (revenue growth and strong operating/free cash flow), but the balance sheet is a major drag due to high leverage and negative equity, which elevates financial risk despite improving profitability metrics.

Income Statement

Electrotherm (India) Limited has shown a positive revenue growth trajectory over the years, with a significant increase in total revenue from 2024 to 2025. The company maintains a relatively healthy gross profit margin, indicating efficient cost management. However, the net profit margin indicates some profitability challenges, given the fluctuations in net income across the years. The EBITDA margin is healthy, but there's room for improvement in EBIT margins, which suggest that operating expenses are impacting profitability.

Balance Sheet

The company is heavily leveraged, as evidenced by a high debt-to-equity ratio, which poses a significant financial risk. The negative stockholders' equity is a concern, indicating that liabilities exceed assets, which can affect financial stability. Despite this, the equity ratio shows some improvement in recent years, suggesting efforts to strengthen the balance sheet. However, the current financial structure remains a key risk factor.

Cash Flow

Electrotherm's cash flow from operations indicates strong cash generation capability, which is crucial for maintaining liquidity and supporting capital expenditures. The free cash flow growth rate is positive, reflecting efficient capital management. The ratios of operating and free cash flow to net income suggest the company is generating cash at a healthy rate relative to its earnings, which is a positive indicator of financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	38.90B	41.15B	42.72B	30.74B	28.20B	25.09B
Gross Profit	11.37B	13.08B	12.87B	7.79B	6.02B	7.20B
EBITDA	3.09B	5.00B	3.65B	399.50M	515.20M	1.78B
Net Income	3.61B	4.42B	3.17B	-118.20M	-402.60M	494.90M
Balance Sheet
Total Assets	0.00	19.18B	18.41B	17.52B	17.45B	18.97B
Cash, Cash Equivalents and Short-Term Investments	723.10M	723.10M	615.40M	744.50M	713.10M	987.20M
Total Debt	0.00	12.87B	17.70B	19.86B	20.87B	22.34B
Total Liabilities	1.59B	20.77B	26.22B	28.48B	28.27B	29.39B
Stockholders Equity	-1.59B	-1.59B	-7.81B	-10.96B	-10.82B	-10.42B
Cash Flow
Free Cash Flow	0.00	2.40B	2.83B	895.90M	1.39B	1.84B
Operating Cash Flow	0.00	3.29B	3.51B	1.07B	1.79B	2.25B
Investing Cash Flow	0.00	-721.70M	-678.70M	-24.80M	-140.60M	-622.00M
Financing Cash Flow	0.00	-3.03B	-2.94B	-1.03B	-1.89B	-1.04B

Electrotherm (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 920.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELECTHERM, the sentiment is Negative. The current price of 920.55 is above the 20-day moving average (MA) of 749.78, above the 50-day MA of 813.41, and below the 200-day MA of 951.97, indicating a bearish trend. The MACD of -29.13 indicates Positive momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 19.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ELECTHERM.

Electrotherm (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	72 Outperform	₹18.45B	16.15	―	0.95%	-4.65%	9.95%
STERTOOLS	70 Outperform	₹7.82B	22.00	―	0.87%	-19.33%	-26.30%
ELECTHERM	68 Neutral	₹8.89B	5.69	―	―	-7.98%	-26.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HITECHGEAR	60 Neutral	₹11.71B	53.93	―	0.74%	-17.86%	-49.46%
RIIL	52 Neutral	₹10.33B	85.93	―	0.42%	―	―
KECL	49 Neutral	₹5.67B	53.25	―	―	-11.25%	-48.96%

Electrotherm (India) Limited Corporate Events

Electrotherm Says Surge in Share Trading Volumes Is Market-Driven, Reaffirms Disclosure Compliance

Electrotherm (India) Limited has told the National Stock Exchange of India that it has no specific knowledge of any corporate developments that would explain the recent significant increase in trading volumes in its shares across exchanges, describing the move as purely market-driven. The company reiterated its commitment to ongoing compliance with disclosure requirements, stating it has been and will continue to be transparent about all events and information, including any price-sensitive developments, that could affect its operations or performance, in an effort to reassure investors and regulators about the integrity of its market communications.