Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

• Market Cap: ₹13.18B
• Dividend Yield: N/A
• Average Volume (3M): 2.70K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 1.15
• Revenue Growth: -7.98%
• EPS Growth: -26.21%
• Country: IN
• Employees: 2,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -16.97
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹954.00 ▲(12.39% Upside)

Electrotherm (India) Limited's overall stock score is primarily influenced by its strong financial performance in terms of revenue growth and cash flow management. However, the high leverage and negative equity position pose significant risks. The technical analysis indicates a bearish trend, which further impacts the score. The stock appears undervalued based on its P/E ratio, providing some upside potential.

Positive Factors

Cash Flow Management

Strong cash flow management ensures liquidity and supports capital expenditures, enhancing long-term financial stability and operational flexibility.

Product and Service Diversification

Diversified revenue streams from core products and renewable energy initiatives reduce dependency on a single market, providing resilience against sector-specific downturns.

Strategic Partnerships

Collaborations with stakeholders in steel and foundry sectors expand market presence and drive innovation, supporting long-term competitive advantage.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flow and limiting financial flexibility, which can impact long-term stability and growth.

Negative Equity Position

A negative equity position suggests financial instability, posing a risk to creditors and investors, and may hinder future investment and growth opportunities.

Revenue Decline

Declining revenue growth indicates potential market challenges or operational inefficiencies, which could affect long-term profitability and market position.

Electrotherm (India) Limited Business Overview & Revenue Model

Company Description

Electrotherm (India) Limited (ELECTHERM) is a leading Indian company specializing in the manufacturing of industrial equipment and systems, primarily focusing on electric induction furnaces, steel melting solutions, and various related technologies. The company operates across sectors such as steel, foundry, and renewable energy, providing innovative solutions that enhance production efficiency and sustainability. With a commitment to quality and technological advancement, ELECTHERM serves a diverse clientele, including small and large-scale manufacturers in the metal processing industry.

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

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. While profitability has seen improvements, there are challenges associated with maintaining sustainable margins. The company needs to focus on reducing debt and improving its equity position to enhance financial stability and investor confidence.

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 2024	Dec 2023	Dec 2022	Dec 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: 848.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 848.85 is below the 20-day moving average (MA) of 898.77, below the 50-day MA of 991.94, and below the 200-day MA of 973.15, indicating a bearish trend. The MACD of -39.40 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 24.34 is Neutral, 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	76 Outperform	₹13.75B	13.10	―	0.96%	-4.65%	9.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STERTOOLS	62 Neutral	₹11.07B	22.59	―	0.88%	-19.33%	-26.30%
ELECTHERM	60 Neutral	₹13.18B	3.56	―	―	-7.98%	-26.21%
HITECHGEAR	60 Neutral	₹14.53B	45.18	―	0.74%	-17.86%	-49.46%
KECL	49 Neutral	₹7.08B	99.48	―	―	-11.25%	-48.96%