Esab India Limited (ESABINDIA) AI Stock Analysis

• Market Cap: ₹82.29B
• Dividend Yield: 1.66%
• Average Volume (3M): 319.00
• Price to Earnings (P/E): 47.9
• Beta (1Y): 0.65
• Revenue Growth: 9.47%
• EPS Growth: 4.15%
• Country: IN
• Employees: 771
• Sector: Industrials
• Sector Strength: 76
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 26.60
• Shares Outstanding: 15,393,020
• 10 Day Avg. Volume: 346
• 30 Day Avg. Volume: 319
• 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: ₹5,645.00
• Price Target Upside: 5.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ₹5,645.00 ▲(5.59% Upside)

Esab India Limited's strong financial performance is the primary driver of its stock score, supported by robust revenue and profit growth and effective cash flow management. However, the technical analysis indicates neutral to bearish momentum, and the high P/E ratio suggests the stock may be overvalued, which tempers the overall score.

Esab India Limited Business Overview & Revenue Model

Company Description

Esab India Limited (ESABINDIA) is a leading player in the welding and cutting industry in India. It specializes in providing high-quality welding and cutting equipment, including welding consumables, welding automation systems, and cutting machines. The company serves a diverse range of sectors such as automotive, construction, shipbuilding, and energy, offering solutions that cater to both industrial and commercial applications.

How the Company Makes Money

Esab India Limited generates revenue primarily through the sale of its welding and cutting equipment and consumables. The company offers a wide array of products including electrodes, wires, and fluxes for welding, as well as machines for cutting and automated welding solutions. Revenue streams are bolstered by a strong distribution network and partnerships with various industrial players that facilitate product reach and service provision. Additionally, Esab India benefits from offering after-sales services, maintenance, and technical support, contributing to its overall earnings. The company's focus on innovation and customer-centric solutions helps maintain its competitive edge and sustain revenue growth.

Esab India Limited Financial Statement Overview

Summary

Esab India Limited displays 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.

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	13.47B	13.73B	12.39B	10.91B	8.87B	6.78B
Gross Profit	4.82B	4.23B	3.25B	4.19B	3.19B	2.35B
EBITDA	2.48B	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	597.80M	1.02B	473.40M	578.10M	523.60M	598.10M
Total Debt	0.00	39.30M	45.70M	40.10M	26.80M	33.90M
Total Liabilities	-3.47B	2.86B	2.45B	2.14B	1.92B	1.29B
Stockholders Equity	3.47B	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: 5346.10
• 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 5346.1 is above the 20-day moving average (MA) of 5238.01, above the 50-day MA of 5245.94, and above the 200-day MA of 5167.82, indicating a bullish trend. The MACD of 27.76 indicates Negative momentum. The RSI at 54.06 is Neutral, neither overbought nor oversold. The STOCH value of 76.30 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	75 Outperform	₹79.80B	25.12		1.27%	12.05%	-3.13%
ESABINDIA	66 Neutral	₹82.29B	47.87		1.66%	9.47%	4.15%
Sector *	64 Neutral	$10.95B	16.37	8.81%	1.96%	2.68%	-15.33%
ADORWELD	―	₹15.78B	41.97		2.17%	―	―
GREAVESCOT	60 Neutral	₹47.10B	57.97		0.99%	11.83%	―
ISGEC	60 Neutral	₹72.74B	30.82		0.40%	-2.31%	-8.69%
PARAS	58 Neutral	₹52.51B	82.07		0.08%	29.62%	51.41%