ISGEC Heavy Engineering Ltd. (ISGEC) AI Stock Analysis

• Market Cap: ₹55.49B
• Dividend Yield: 0.59%
• Average Volume (3M): 3.77K
• Price to Earnings (P/E): 29.6
• Beta (1Y): 1.84
• Revenue Growth: -4.14%
• EPS Growth: -35.66%
• Country: IN
• Employees: 2,979
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 5.98
• Shares Outstanding: 73,529,510
• 10 Day Avg. Volume: 7,100
• 30 Day Avg. Volume: 3,765
• PEG Ratio: 13.83
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 1.23
• P/FCF Ratio: -35.84
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹749.00 ▼(-13.50% Downside)

ISGEC Heavy Engineering Ltd. has strong revenue growth and operational efficiency, but faces challenges with cash flow management and high liabilities. The technical analysis indicates a bearish trend, and the stock is overvalued with a low dividend yield. Addressing cash flow issues and improving market sentiment could enhance the stock's attractiveness.

Positive Factors

Diversified engineered-to-order model

ISGEC’s engineered-to-order business across sugar, power/energy and industrial process sectors provides durable demand diversity. Project-based contracts and onsite services create high switching costs, recurring aftermarket opportunities and reduce single-market cyclicality over the medium term.

Improved margins and operational efficiency

Sustained improvement in gross and operating margins signals stronger cost control and pricing power on bespoke equipment. Higher margins support reinvestment in manufacturing capability and R&D, improving competitiveness and resilience in capital-intensive project cycles over coming months.

Manageable leverage and solid equity base

Low debt-to-equity and a meaningful equity ratio provide financial flexibility to fund working capital and selective capex without heavy refinancing. Improved ROE indicates better capital deployment, supporting capacity expansion and bidding for larger EPC projects sustainably.

Negative Factors

Declining free cash flow and cash conversion

Free cash flow turning negative and weaker cash conversion are structural concerns for a project-heavy business. Persistent negative FCF impairs ability to fund working capital, delays capex or increases reliance on external financing, raising execution and liquidity risk over months.

High total liabilities

Elevated total liabilities, despite moderate leverage ratios, create structural vulnerability in downturns or long project cycles. Heavy liabilities can constrain bidding flexibility, increase interest/service obligations and limit buffer for delays in receivables or cost overruns.

Weak revenue and earnings growth

Negative top-line growth and steep EPS decline point to either demand softness or execution and margin pressure. Persistent revenue and earnings deterioration undermines capacity to invest, weakens competitive position in bids, and may erode installed-base service revenues over time.

ISGEC Heavy Engineering Ltd. Business Overview & Revenue Model

Company Description

Isgec 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 Money

ISGEC 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

ISGEC Heavy Engineering Ltd. shows strong revenue growth and improved operational efficiency. The balance sheet is stable with manageable leverage, but high liabilities pose potential risks. Cash flow challenges, particularly in free cash flow, need addressing to enhance liquidity.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	62.26B	64.22B	61.67B	63.49B	54.99B	52.46B
Gross Profit	18.71B	13.59B	8.04B	8.34B	14.81B	11.03B
EBITDA	5.78B	6.19B	5.20B	4.63B	3.25B	5.01B
Net Income	2.36B	2.49B	2.44B	1.96B	1.09B	2.48B
Balance Sheet
Total Assets	0.00	80.41B	78.35B	70.75B	67.60B	64.60B
Cash, Cash Equivalents and Short-Term Investments	2.30B	2.30B	1.76B	1.99B	2.30B	1.98B
Total Debt	0.00	8.61B	8.14B	12.35B	12.33B	9.83B
Total Liabilities	-28.49B	51.93B	52.17B	46.83B	45.58B	43.61B
Stockholders Equity	28.49B	27.39B	25.15B	23.04B	21.21B	20.22B
Cash Flow
Free Cash Flow	0.00	-2.21B	4.90B	498.49M	-1.36B	-154.36M
Operating Cash Flow	0.00	193.30M	7.35B	2.08B	-702.99M	2.28B
Investing Cash Flow	0.00	-3.09B	-2.32B	-584.42M	-1.41B	-1.86B
Financing Cash Flow	0.00	2.10B	-4.87B	-977.64M	1.76B	-891.56M

ISGEC Heavy Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 865.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 865.9 is above the 20-day moving average (MA) of 777.01, above the 50-day MA of 813.94, and below the 200-day MA of 997.32, indicating a bearish trend. The MACD of -31.67 indicates Positive momentum. The RSI at 40.41 is Neutral, neither overbought nor oversold. The STOCH value of 66.99 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCHAEFFLER	69 Neutral	₹566.69B	53.20	―	0.73%	14.14%	16.91%
SUNDRMFAST	66 Neutral	₹201.70B	36.39	―	0.84%	3.59%	1.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ISGEC	58 Neutral	₹55.49B	29.61	―	0.59%	-4.14%	-35.66%
BHEL	58 Neutral	₹915.26B	112.41	―	0.18%	13.30%	137.07%
LLOYDSENGG	58 Neutral	₹65.77B	45.96	―	0.43%	40.02%	26.77%
THERMAX	58 Neutral	₹343.40B	54.68	―	0.48%	3.37%	-19.95%

ISGEC Heavy Engineering Ltd. Corporate Events

Isgec Faces Rs 1.71 Lakh GST Penalty, Plans to Appeal Tax Order

Isgec Heavy Engineering Limited has disclosed that the Assistant Commissioner of Central Tax, Bengaluru, has imposed a penalty of Rs. 1,71,116 on the company under the Goods and Services Tax regime, related to taxes that the company states were already paid without any associated interest or penalty. The company has clarified that the financial impact is limited to the penalty amount and has announced its intention to challenge the order by filing an appeal under the Goods and Services Tax Act, signaling that it does not expect any material operational disruption but is actively contesting the tax authority’s position.

Isgec Completes 26% Stake Acquisition in FPEL HR1 Energy

Isgec Heavy Engineering Ltd. has announced the completion of its acquisition of a 26% equity stake in FPEL HR1 Energy Private Limited, following the execution of a Solar Power Purchase Agreement and Shareholder Agreements earlier this year. This move signifies the company’s strategic initiative to diversify into renewable energy, strengthening its stance in the sustainable energy sector and enhancing its value proposition for stakeholders.

ISGEC Cancels Investor Meeting with Quantum Asset Management

ISGEC Heavy Engineering Ltd. announced the cancellation of an investor meeting with Quantum Asset Management Company, which was scheduled for December 15, 2025. The meeting was postponed due to unforeseen circumstances, and a new date will be announced later. This update was made in compliance with regulatory requirements and has been published on the company’s website.