Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

• Market Cap: ₹11.00B
• Dividend Yield: N/A
• Average Volume (3M): 5.77K
• Price to Earnings (P/E): 3.0
• Beta (1Y): 1.27
• Revenue Growth: -11.58%
• EPS Growth: -6.82%
• Country: IN
• Employees: 2,431
• Sector: Industrials
• Sector Strength: 79
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 21.78
• Shares Outstanding: 12,742,814
• 10 Day Avg. Volume: 3,717
• 30 Day Avg. Volume: 5,769
• 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: ₹887.00
• Price Target Upside: 1.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: ₹887.00 ▲(1.33% Upside)

Electrotherm's overall stock score is driven primarily by its strong valuation due to a low P/E ratio, despite weak technical indicators suggesting a bearish market sentiment. Financial performance presents a mixed picture with strong revenue growth and cash flow management but significant risks due to high leverage and negative equity.

Electrotherm (India) Limited Business Overview & Revenue Model

Company Description

Electrotherm (India) Limited (ELECTHERM) is a diversified engineering and manufacturing company based in India. The company operates in multiple sectors, including steel and engineering, electric vehicles, transmission line towers, and renewable energy. Electrotherm is known for its innovative solutions and comprehensive product offerings, ranging from induction melting furnaces and TMT bar manufacturing plants to battery-powered electric two-wheelers and other industrial equipment.

How the Company Makes Money

Electrotherm (India) Limited generates revenue through various streams. Its primary source of income comes from the sale of engineering and manufacturing solutions, particularly induction melting furnaces and TMT bar manufacturing plants, which are crucial in the steel production industry. Additionally, the company earns from its electric vehicle segment by producing and selling battery-powered two-wheelers. Electrotherm also capitalizes on its expertise in the renewable energy sector, providing engineering services and products for solar and wind energy projects. Significant contributions to its earnings come from its participation in infrastructure projects, such as the manufacturing of transmission line towers. The company may also have strategic partnerships and collaborations that enhance its market reach and revenue potential, although specific details on such partnerships are not available.

Electrotherm (India) Limited Financial Statement Overview

Summary

Electrotherm (India) Limited demonstrates strong revenue growth and efficient cash flow management, which are key strengths. However, the company's high leverage and negative equity position present significant risks. The profitability challenges and need for improved equity position also detract from the financial health.

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	Dec 2025	Dec 2023	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	41.15B	41.15B	42.72B	30.74B	25.09B	28.20B
Gross Profit	12.45B	13.08B	12.87B	7.79B	7.20B	6.02B
EBITDA	3.89B	3.72B	4.18B	399.50M	1.78B	515.20M
Net Income	4.42B	4.42B	3.17B	246.30M	494.90M	-402.60M
Balance Sheet
Total Assets	19.18B	19.18B	18.41B	17.52B	18.97B	17.45B
Cash, Cash Equivalents and Short-Term Investments	723.10M	723.10M	615.40M	744.50M	987.20M	731.70M
Total Debt	12.87B	12.87B	17.70B	19.86B	10.46B	20.87B
Total Liabilities	20.77B	20.77B	26.22B	28.48B	29.39B	28.27B
Stockholders Equity	-1.59B	-1.59B	-7.81B	-10.96B	-10.42B	-10.82B
Cash Flow
Free Cash Flow	0.00	2.40B	2.83B	895.90M	1.84B	1.39B
Operating Cash Flow	0.00	3.29B	3.51B	1.07B	2.25B	1.79B
Investing Cash Flow	0.00	-721.70M	-678.70M	-24.80M	-622.00M	-140.60M
Financing Cash Flow	0.00	-3.03B	-2.94B	-1.03B	-1.04B	-1.89B

Electrotherm (India) Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 875.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELECTHERM, the sentiment is Neutral. The current price of 875.35 is above the 20-day moving average (MA) of 826.28, below the 50-day MA of 1006.95, and below the 200-day MA of 1008.47, indicating a neutral trend. The MACD of -51.81 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 91.54 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:ELECTHERM.

Electrotherm (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STERTOOLS	73 Outperform	₹11.24B	22.93		0.65%	-5.67%	-19.59%
GNA	70 Outperform	₹13.02B	12.73		0.99%	-3.10%	8.21%
Sector *	64 Neutral	$10.96B	16.35	8.89%	1.96%	2.68%	-15.17%
HITECHGEAR	60 Neutral	₹11.95B	37.17		0.79%	-20.12%	-73.06%
ELECTHERM	58 Neutral	₹11.00B	3.05		―	-11.58%	-6.82%
KECL	50 Neutral	₹7.77B	348.42		―	-5.35%	-84.27%
RIIL	―	₹13.24B	108.89		0.40%	―	―

Electrotherm (India) Limited Corporate Events

Electrotherm (India) Limited Announces Financial Results and Key Board Decisions

Electrotherm (India) Limited announced the approval of its unaudited financial results for the quarter ending June 30, 2025, during a board meeting held on July 29, 2025. Significant decisions included the re-appointment of Mr. Shailesh Bhandari and Mr. Suraj Bhandari as Managing Directors, reclassification of the company’s authorized share capital, and amendments to the company’s Articles of Association. Additionally, the company addressed a fine imposed by NSE and BSE for non-compliance with board composition regulations, which has since been rectified.