Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

• Market Cap: ₹12.97B
• Dividend Yield: N/A
• Average Volume (3M): 5.12K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 1.30
• Revenue Growth: -11.58%
• EPS Growth: -6.82%
• Country: IN
• Employees: 2,431
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 21.78
• Shares Outstanding: 12,742,814
• 10 Day Avg. Volume: 6,393
• 30 Day Avg. Volume: 5,120
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹1,093.00
• Price Target Upside: 0.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ₹1,093.00 ▲(0.59% Upside)

Electrotherm (India) Limited's overall stock score is driven by strong financial performance, particularly in revenue growth and cash flow management, despite high leverage risks. Technical indicators suggest bullish momentum, though caution is advised due to potential overbought conditions. The stock's low P/E ratio indicates it may be undervalued, enhancing its attractiveness.

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

Electrotherm (India) Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1086.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1086.55 is above the 20-day moving average (MA) of 922.48, above the 50-day MA of 936.19, and above the 200-day MA of 1003.08, indicating a bullish trend. The MACD of 44.55 indicates Negative momentum. The RSI at 69.19 is Neutral, neither overbought nor oversold. The STOCH value of 78.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	70 Outperform	13.59B	13.45	11.90%	0.94%	-3.10%	8.21%
ELECTHERM	68 Neutral	₹12.97B	3.74		―	-11.58%	-6.82%
STERTOOLS	68 Neutral	12.34B	24.94	11.67%	1.46%	-5.67%	-19.62%
HITECHGEAR	63 Neutral	14.04B	43.31	8.35%	0.68%	-20.12%	-73.06%
KECL	50 Neutral	7.95B	356.46	3.26%	―	-5.35%	-84.27%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Electrotherm (India) Limited Corporate Events

Electrotherm (India) Limited to Hold 39th AGM via Video Conferencing

Electrotherm (India) Limited announced that its 39th Annual General Meeting will be conducted through video conferencing and other audio-visual means on September 10, 2025. This move aligns with the Ministry of Corporate Affairs’ guidelines and reflects the company’s adaptation to digital communication methods, potentially enhancing accessibility for stakeholders.

Electrotherm Executes Strategic Consultancy Agreement

Electrotherm (India) Limited has announced the execution of a consultancy agreement with Prandev Tech Limited and Mr. Mukesh Bhandari, marking a related party transaction under SEBI regulations. This agreement, following a recent board meeting, signifies a strategic move that could potentially impact the company’s operations and stakeholder relations.

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.