Esab India Limited (ESABINDIA) AI Stock Analysis

• Market Cap: ₹76.88B
• Dividend Yield: 1.83%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 44.5
• Beta (1Y): 0.69
• Revenue Growth: 9.47%
• EPS Growth: 4.15%
• Country: IN
• Employees: 771
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 26.60
• 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

• Rating: 66 Neutral
• Price Target: ₹5,306.00 ▲(8.00% Upside)

Esab India Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue growth and efficient cash management. However, technical indicators suggest bearish momentum, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Esab India Limited Business Overview & Revenue Model

Company Description

Esab India Limited (ESABINDIA) is a leading provider of welding and cutting solutions in India, operating primarily in the manufacturing and engineering sectors. The company specializes in a wide range of products, including welding consumables, equipment, and automation solutions. With a commitment to innovation and quality, ESABINDIA serves various industries such as shipbuilding, construction, automotive, and fabrication, positioning itself as a key player in the welding industry.

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 displays a commendable financial performance with strong revenue and profit growth, solid margins, and a robust balance sheet with minimal debt. The company's effective cash flow management further strengthens its financial health, making it well-positioned 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: Neutral
• Last Price: 4913.10
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 4913.1 is below the 20-day moving average (MA) of 4952.40, below the 50-day MA of 5064.63, and below the 200-day MA of 4958.51, indicating a neutral trend. The MACD of -13.24 indicates Negative momentum. The RSI at 49.23 is Neutral, neither overbought nor oversold. The STOCH value of 32.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	―	₹71.79B	22.05	―	1.35%	12.05%	-3.13%
PARAS	―	₹57.23B	88.89	―	0.07%	29.62%	51.41%
ESABINDIA	―	₹76.88B	44.55	―	1.83%	9.47%	4.15%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GREAVESCOT	―	₹47.77B	58.79	―	0.88%	11.83%	―
ISGEC	―	₹65.43B	27.72	―	0.57%	-2.31%	-8.69%