Esab India Limited (ESABINDIA) AI Stock Analysis

• Market Cap: ₹75.25B
• Dividend Yield: 1.59%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 43.8
• Beta (1Y): 0.80
• Revenue Growth: 9.78%
• EPS Growth: 22.46%
• Country: IN
• Employees: 771
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 51.45
• Shares Outstanding: 15,393,020
• 10 Day Avg. Volume: 5,915
• 30 Day Avg. Volume: 2,051
• PEG Ratio: 5.26
• Price to Book (P/B): 19.58
• Price to Sales (P/S): 5.15
• P/FCF Ratio: 41.19
• 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: 70 Outperform
• Price Target: ₹5,779.00 ▲(1.27% Upside)

Esab India Limited's strong financial performance is the primary driver of its overall score, supported by robust revenue growth, solid margins, and effective cash flow management. However, technical indicators suggest overbought conditions, and the high P/E ratio indicates the stock may be overvalued, which tempers the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple years indicates strong demand for products and effective market penetration, supporting long-term business expansion.

Cash Generation Ability

Strong cash generation provides financial flexibility for reinvestment, debt reduction, and shareholder returns, enhancing long-term financial stability.

Balance Sheet Health

Minimal debt levels reduce financial risk and interest obligations, allowing more resources for growth initiatives and strategic investments.

Negative Factors

Market Valuation Concerns

High valuation may limit upside potential and increase vulnerability to market corrections, impacting investor sentiment and long-term stock performance.

Technical Downtrend

Persistent technical downtrend could reflect broader market concerns or competitive pressures, potentially affecting future capital raising and investor confidence.

Limited Recent Corporate Developments

Lack of recent strategic initiatives or partnerships may suggest stagnation in innovation or market expansion, potentially impacting future growth prospects.

Esab India Limited Business Overview & Revenue Model

Company Description

ESAB India Limited manufactures and sells welding and cutting equipment in India. The company offers gas equipment; welding consumables; welding automation and robotics; ESAB digital solutions; arc welding equipment; plasma cutting equipment; and cutting automation products, as well as PPE products and accessories, including helmets and head protection, gloves, clothes, eye protection products, and accessories. It serves the shipbuilding, petrochemical, construction, transport, offshore, energy, and general engineering industries, as well as repair and maintenance of steel, mills, cement, sugar industries, etc. The company sells its products under the Arcair, Exaton, GASARC, Stoody, TBI Industries, Thermal Dynamics, Tweco, and Victor brand names. It exports its products and services to Bangladesh, Sri Lanka, Nepal, Singapore, Dubai, Indonesia, China, Malaysia, Uzbekistan, Hongkong, the Czech Republic, Taiwan, Korea, Ghana, South Africa, Thailand, Egypt, Vietnam, Germany, Australia, and the United States. The company was incorporated in 1987 and is headquartered in Chennai, India.

How the Company Makes Money

ESABINDIA generates revenue through the sale of its welding and cutting products, which include electrodes, wires, and gases, as well as welding machines and automation systems. The company's revenue model is based on both direct sales to end-users and distribution through a network of dealers and partners. Key revenue streams include the sale of consumables, which are recurring as they are used up in various projects, and capital equipment sales, which provide larger, one-time revenue inflows. Additionally, ESABINDIA may benefit from service contracts and maintenance agreements for their equipment, providing a steady income stream. Partnerships with industrial manufacturers and suppliers also contribute to its earnings by expanding market reach and enhancing product offerings.

Esab India Limited Financial Statement Overview

Summary

Esab India Limited demonstrates strong financial performance with robust revenue and profit growth, solid margins, and a strong balance sheet with minimal debt. Effective cash flow management further strengthens its financial health, positioning it well for future growth and stability.

Income Statement

Esab India Limited shows strong revenue growth with an impressive climb from 2020 to 2025, indicating robust demand for its products. The gross profit margin remains strong at 30.8% in 2025, showing efficient cost management. The net profit margin is also healthy at 12.8%, reflecting good bottom-line growth. Both EBIT and EBITDA margins showcase operational efficiency and effective management of operational costs.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.01, indicating minimal financial leverage and reduced risk from debt obligations. A healthy equity ratio of 55.8% shows a strong financial position with significant shareholder equity relative to assets. The return on equity shows positive shareholder value generation with a ROE of 48.6%, suggesting effective use of equity funding.

Cash Flow

Esab India Limited exhibits a strong free cash flow growth rate, with free cash flow increasing steadily over the years, highlighting strong cash generation ability. The operating cash flow to net income ratio of 1.14 reflects a solid conversion of income into cash, underscoring effective management of working capital. The free cash flow to net income ratio of 0.98 further demonstrates efficient cash utilization for growth and shareholder returns.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.96B	13.73B	12.39B	10.91B	8.96B	6.78B
Gross Profit	5.31B	4.23B	3.25B	4.19B	3.23B	2.35B
EBITDA	2.49B	2.52B	2.34B	1.95B	1.25B	939.90M
Net Income	1.72B	1.75B	1.63B	1.36B	843.10M	592.90M
Balance Sheet
Total Assets	0.00	6.47B	5.51B	4.74B	4.36B	3.88B
Cash, Cash Equivalents and Short-Term Investments	920.90M	1.02B	473.40M	499.50M	671.70M	598.10M
Total Debt	0.00	39.30M	45.70M	40.10M	26.80M	33.90M
Total Liabilities	-3.61B	2.86B	2.45B	2.14B	1.92B	1.29B
Stockholders Equity	3.61B	3.61B	3.06B	2.60B	2.44B	2.59B
Cash Flow
Free Cash Flow	0.00	1.72B	1.13B	954.80M	733.30M	619.40M
Operating Cash Flow	0.00	2.00B	1.41B	1.29B	845.30M	723.80M
Investing Cash Flow	0.00	-159.10M	-549.90M	51.70M	199.60M	835.60M
Financing Cash Flow	0.00	-1.57B	-811.20M	-1.22B	-1.02B	-1.56B

Esab India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5706.45
• 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:ESABINDIA, the sentiment is Positive. The current price of 5706.45 is above the 20-day moving average (MA) of 5305.16, above the 50-day MA of 5092.36, and above the 200-day MA of 4963.32, indicating a bullish trend. The MACD of 194.51 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 52.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ESABINDIA.

Esab India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹74.52B	22.89	―	1.26%	15.87%	-4.28%
ESABINDIA	70 Outperform	₹75.25B	43.77	―	1.59%	9.78%	22.46%
PARAS	68 Neutral	₹55.89B	87.36	―	0.07%	24.92%	50.07%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GREAVESCOT	58 Neutral	₹51.49B	63.37	―	1.02%	16.82%	39.89%
ISGEC	56 Neutral	₹64.82B	27.46	―	0.60%	-4.14%	-35.66%

Esab India Limited Corporate Events

Esab India Limited Approves Disposal of Khardah Land Asset

Esab India Limited has announced that its audit committee and board of directors have approved the disposal of the Khardah land asset, which was held for sale, during their meeting on November 10, 2025. This decision marks a change in the asset’s status to ‘disposed of’ for the quarter ending September 2025, potentially impacting the company’s financial position and strategic asset management.