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ISGEC Heavy Engineering Ltd. (IN:ISGEC)
:ISGEC
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ISGEC Heavy Engineering Ltd. (ISGEC) AI Stock Analysis

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IN:ISGEC

ISGEC Heavy Engineering Ltd.

(ISGEC)

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Neutral 60 (OpenAI - 4o)
Rating:60Neutral
Price Target:
₹1,223.00
▲(37.45% Upside)
ISGEC Heavy Engineering Ltd. is showing robust revenue growth and operational efficiency but faces significant cash flow challenges, which are critical to address for long-term sustainability. The stock is currently under bearish technical conditions, and its high valuation metrics may deter potential investors seeking value.

ISGEC Heavy Engineering Ltd. (ISGEC) vs. iShares MSCI India ETF (INDA)

ISGEC Heavy Engineering Ltd. Business Overview & Revenue Model

Company DescriptionIsgec Heavy Engineering Limited operates as a heavy engineering company in India and internationally. It operates in two segments, Manufacturing of Machinery and Equipment; and Engineering, Procurement and Construction. The company offers process equipment, including reactors, pressure vessels, high-pressure shell and tube heat exchangers, and site fabricated columns; boilers, such as solid and biomass fuels, bagasse and biomass, oil and gas fired, blast furnace gas fired, waste to energy, and heat recovery boilers, as well as auxiliaries, such as air pollution control equipment, bag filters, SCR/SNCR, flue gas desulphurization systems, and deaerators; and field services comprising site construction and commissioning, operation and maintenance, supervision, retrofitting and modernization, residual life assessment studies, spares, and technical assistance. It also provides engineering, procurement, and construction services; sugar plants and machinery that include mills, diffusers, process house equipment, sugar refinery, turnkey distillery plants, and spares and retrofits; presses, which comprise mechanical and hydraulic straight sided presses, mechanical gap and ring frame presses, and servo presses; and steel castings, including steam/gas turbine, hydro turbine, valve, pump, mining and crushing, and general engineering castings. In addition, the company offers iron castings, air pollution control equipment, and liquefied gas containers, as well as provides contract manufacturing services. Further, it manufactures and sells sugar and its by-products. The company serves power, fertilizer, sugar and distillery, oil & gas, petrochemicals, automobile components, steel, defense, cement, chemicals, railways, space, and port industries. The company was formerly known as The Saraswati Industrial Syndicate Limited and changed its name to Isgec Heavy Engineering Limited in 2011. Isgec Heavy Engineering Limited was incorporated in 1933 and is headquartered in Noida, India.
How the Company Makes MoneyISGEC Heavy Engineering Ltd. generates revenue primarily through the sale of heavy engineering products, including boilers, pressure vessels, and other industrial equipment. The company's revenue model is built on long-term contracts and project-based engagements, allowing it to secure substantial orders from various industries such as power generation and petrochemicals. Key revenue streams include the manufacturing and supply of customized engineering solutions, maintenance services, and technology licensing. Additionally, ISGEC benefits from strategic partnerships with global firms, enhancing its market reach and capability to undertake large-scale projects, which contribute significantly to its earnings.

ISGEC Heavy Engineering Ltd. Financial Statement Overview

Summary
The company demonstrates strong revenue growth and operational efficiency with a stable balance sheet, but faces challenges in cash flow management. The net profit margin is relatively low, and the decline in free cash flow indicates a need for improved liquidity strategies.
Income Statement
75
Positive
ISGEC Heavy Engineering Ltd. showed consistent revenue growth with a notable increase from the previous year. The gross profit margin improved significantly to 21.16%, indicating efficient cost management. Net profit margin remained stable at 3.88%. EBIT and EBITDA margins of 7.43% and 9.63% respectively suggest healthy operational performance. Despite these strengths, the net profit margin is relatively low, indicating room for improvement in profitability.
Balance Sheet
70
Positive
The company's balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.31, indicating manageable leverage. The return on equity (ROE) improved to 9.10%, showcasing effective utilization of shareholders' equity. The equity ratio of 34.04% demonstrates a solid equity base, but the relatively high total liabilities highlight potential financial risks if not managed properly.
Cash Flow
60
Neutral
ISGEC experienced a significant decline in free cash flow compared to the previous year, shifting from positive to negative. The operating cash flow to net income ratio decreased substantially, suggesting challenges in converting profits into cash. The free cash flow to net income ratio also turned negative, indicating a need for improved cash management strategies to enhance liquidity.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue62.26B64.22B61.67B63.49B54.99B52.46B
Gross Profit18.71B13.59B8.04B8.34B14.81B11.03B
EBITDA5.78B6.19B5.20B4.63B3.25B5.01B
Net Income2.36B2.49B2.44B1.96B1.09B2.48B
Balance Sheet
Total Assets0.0080.41B78.35B70.75B67.60B64.60B
Cash, Cash Equivalents and Short-Term Investments2.30B2.30B1.76B1.99B2.30B1.98B
Total Debt0.008.61B8.14B12.35B12.33B9.83B
Total Liabilities-28.49B51.93B52.17B46.83B45.58B43.61B
Stockholders Equity28.49B27.39B25.15B23.04B21.21B20.22B
Cash Flow
Free Cash Flow0.00-2.21B4.90B498.49M-1.36B-154.36M
Operating Cash Flow0.00193.30M7.35B2.08B-702.99M2.28B
Investing Cash Flow0.00-3.09B-2.32B-584.42M-1.41B-1.86B
Financing Cash Flow0.002.10B-4.87B-977.64M1.76B-891.56M

ISGEC Heavy Engineering Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price889.80
Price Trends
50DMA
969.10
Negative
100DMA
1076.90
Negative
200DMA
1094.31
Negative
Market Momentum
MACD
-25.99
Negative
RSI
39.91
Neutral
STOCH
25.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ISGEC, the sentiment is Negative. The current price of 889.8 is below the 20-day moving average (MA) of 905.63, below the 50-day MA of 969.10, and below the 200-day MA of 1094.31, indicating a bearish trend. The MACD of -25.99 indicates Negative momentum. The RSI at 39.91 is Neutral, neither overbought nor oversold. The STOCH value of 25.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ISGEC.

ISGEC Heavy Engineering Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹605.38B59.800.72%13.90%11.56%
66
Neutral
₹206.80B37.900.75%4.14%1.81%
65
Neutral
₹374.47B52.760.45%8.14%-4.46%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
60
Neutral
₹65.43B27.720.56%-2.31%-8.69%
60
Neutral
₹86.59B70.350.42%43.43%19.88%
55
Neutral
₹810.28B279.590.21%16.28%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ISGEC
ISGEC Heavy Engineering Ltd.
889.80
-495.36
-35.76%
IN:BHEL
Bharat Heavy Electricals Limited
232.70
-14.43
-5.84%
IN:LLOYDSENGG
Lloyds Engineering Works Ltd
58.75
-11.07
-15.86%
IN:SCHAEFFLER
Schaeffler India Ltd
3,873.10
-35.62
-0.91%
IN:SUNDRMFAST
Sundram Fasteners Limited
984.15
-398.87
-28.84%
IN:THERMAX
Thermax Limited.
3,142.65
-1,993.78
-38.82%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025