Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

• Market Cap: ₹7.49B
• Dividend Yield: N/A
• Average Volume (3M): 2.70K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• 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: 52 Neutral
• Price Target: ₹634.00 ▼(-31.13% Downside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by significant balance sheet risk (high leverage and negative equity) and weak technical trend signals (below major moving averages with negative MACD). Offsetting factors include strong cash flow generation and revenue growth, while valuation is hard to support given the negative P/E and lack of dividend yield data.

Positive Factors

Strong operating & free cash flow

Sustained operating and free cash flow gives the company durable liquidity to fund capex, service debt, and support project execution without dilutive financing. Over 2-6 months this underpins operational stability and enables reinvestment in products and after-sales services.

Product diversification into EV and industrial systems

A diversified engineering portfolio spanning traditional steel/foundry systems and growing EV components/charging positions the company to capture secular EV demand while retaining legacy industrial revenues. This mix reduces dependence on one cyclical end market and supports medium-term revenue resilience.

Healthy gross profit and EBITDA margins

Robust gross and EBITDA margins signal structural cost efficiency and pricing power in engineered products. Margin durability supports continued cash generation and capacity to fund R&D, service networks, and EV product development, helping sustain profitability through cycles.

Negative Factors

High leverage and negative equity

Significant leverage and negative shareholders' equity materially weaken financial flexibility and increase solvency risk. Over months this constrains capital allocation, raises refinancing costs, and can limit ability to pursue projects or absorb demand shocks without corrective equity or deleveraging actions.

Uneven profitability / net margin pressure

Volatile net income and margin pressure point to inconsistent conversion of revenue into earnings, exposing the business to operational or cost-side volatility. Persistent variability undermines cash flow predictability and complicates long-term planning and reinvestment decisions.

Negative recent revenue and EPS growth metrics

Material negative revenue and EPS growth metrics highlight recent top-line and earnings deterioration. Unless reversed, these trends signal weakening demand or margin compression that can carry into the medium term, making it harder to deleverage and sustain investments in growth areas like EVs.

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

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Electrotherm (India) Limited Financial Statement Overview

Summary

Strong operating and free cash flow generation and solid revenue growth support the score, but it is materially offset by balance sheet risk (high leverage and negative equity) and uneven profitability.

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	38.91B	41.15B	42.72B	30.74B	28.20B	25.09B
Gross Profit	9.97B	13.08B	12.87B	7.79B	6.02B	7.20B
EBITDA	2.16B	5.00B	3.65B	399.50M	515.20M	1.78B
Net Income	2.80B	4.42B	3.17B	-118.20M	-402.60M	494.90M
Balance Sheet
Total Assets	19.74B	19.18B	18.41B	17.52B	17.45B	18.97B
Cash, Cash Equivalents and Short-Term Investments	788.70M	723.10M	615.40M	744.50M	713.10M	987.20M
Total Debt	11.70B	12.87B	17.70B	19.86B	20.87B	22.34B
Total Liabilities	21.28B	20.77B	26.22B	28.48B	28.27B	29.39B
Stockholders Equity	-1.54B	-1.59B	-7.81B	-10.96B	-10.82B	-10.42B
Cash Flow
Free Cash Flow	1.39B	2.40B	2.83B	895.90M	1.39B	1.84B
Operating Cash Flow	1.67B	3.29B	3.51B	1.07B	1.79B	2.25B
Investing Cash Flow	-205.90M	-721.70M	-678.70M	-24.80M	-140.60M	-622.00M
Financing Cash Flow	-1.36B	-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: Negative
• 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 920.55 is above the 20-day moving average (MA) of 655.95, above the 50-day MA of 744.24, and above the 200-day MA of 918.69, indicating a bearish trend. The MACD of -38.46 indicates Negative momentum. The RSI at 37.17 is Neutral, neither overbought nor oversold. The STOCH value of 51.74 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	72 Outperform	₹15.22B	10.02	―	0.95%	-4.65%	9.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HITECHGEAR	60 Neutral	₹10.91B	378.45	―	0.74%	-17.86%	-49.46%
STERTOOLS	60 Neutral	₹6.08B	157.48	―	0.87%	-19.33%	-26.30%
ELECTHERM	52 Neutral	₹7.49B	-7.85	―	―	-7.98%	-26.21%
RIIL	51 Neutral	₹9.87B	101.05	―	0.42%	―	―
KECL	49 Neutral	₹5.51B	41.93	―	―	-11.25%	-48.96%