ISGEC Heavy Engineering Ltd. (ISGEC) AI Stock Analysis

• Market Cap: ₹76.86B
• Dividend Yield: 0.38%
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.78
• Revenue Growth: 3.30%
• EPS Growth: 2.27%
• Country: IN
• Employees: 2,979
• Sector: Industrials
• Sector Strength: 84
• Industry: Industrial - Machinery
• EPS (TTM): N/A
• Shares Outstanding: 73,529,510
• 10 Day Avg. Volume: 1,284
• 30 Day Avg. Volume: 1,539
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹1,223.00
• Price Target Upside: 17.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹1,223.00 ▲(17.01% 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. Business Overview & Revenue Model

Company Description

ISGEC Heavy Engineering Ltd. (ISGEC) is a prominent Indian company engaged in a wide range of engineering and manufacturing activities. Established in 1933, ISGEC operates across several sectors including sugar plants and machinery, boiler manufacturing, power plants, process equipment, and steel castings. The company delivers industrial solutions and has established itself as a leader in providing engineering services and solutions in both domestic and international markets.

How the Company Makes Money

ISGEC Heavy Engineering Ltd. generates revenue through its diverse portfolio of engineering and manufacturing services. The company earns money primarily by designing, manufacturing, and supplying equipment for various industrial sectors. Key revenue streams include the sale of capital goods such as boilers, sugar machinery, and process equipment. Additionally, ISGEC derives income from executing turnkey projects for power plants and manufacturing steel castings. The company also benefits from long-term partnerships and contracts with industries such as energy, sugar, and chemicals, contributing to its consistent earnings. Its ability to deliver customized engineering solutions and maintain a strong order book further enhances its revenue generation.

ISGEC Heavy Engineering Ltd. Financial Statement Overview

Summary

ISGEC Heavy Engineering Ltd. shows strong revenue growth and improved operational efficiency. While the balance sheet is stable with manageable leverage, cash flow challenges, particularly in free cash flow, need addressing to ensure financial health.

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	Mar 2025	Mar 2024	Mar 2022	Mar 2023	Mar 2021
Income Statement
Total Revenue	64.22B	61.67B	54.99B	63.49B	52.46B
Gross Profit	13.59B	8.04B	6.25B	8.34B	11.03B
EBITDA	6.19B	5.20B	3.25B	4.63B	5.01B
Net Income	2.49B	2.44B	1.09B	1.96B	2.48B
Balance Sheet
Total Assets	80.41B	78.35B	67.60B	70.75B	64.60B
Cash, Cash Equivalents and Short-Term Investments	2.30B	1.76B	2.30B	1.99B	1.98B
Total Debt	8.61B	8.14B	12.33B	12.35B	9.83B
Total Liabilities	51.93B	52.17B	45.58B	46.83B	43.61B
Stockholders Equity	27.39B	25.15B	21.21B	23.04B	20.22B
Cash Flow
Free Cash Flow	-2.21B	4.90B	-1.36B	498.49M	-154.36M
Operating Cash Flow	193.30M	7.35B	-702.99M	2.08B	2.28B
Investing Cash Flow	-3.09B	-2.32B	-1.41B	-584.42M	-1.86B
Financing Cash Flow	2.10B	-4.87B	1.76B	-977.64M	-891.56M

ISGEC Heavy Engineering Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1045.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 1045.25 is below the 20-day moving average (MA) of 1123.75, below the 50-day MA of 1179.18, and below the 200-day MA of 1203.02, indicating a bearish trend. The MACD of -33.93 indicates Positive momentum. The RSI at 27.59 is Positive, neither overbought nor oversold. The STOCH value of 8.33 is Positive, 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
THERMAX	73 Outperform	₹392.71B	55.33		0.43%	8.14%	-4.46%
SCHAEFFLER	70 Outperform	₹604.41B	59.70		0.72%	13.90%	11.56%
SUNDRMFAST	66 Neutral	₹198.63B	36.41		0.77%	4.14%	1.81%
Sector *	63 Neutral	$10.83B	16.63	7.96%	2.06%	2.20%	-16.67%
LLOYDSENGG	61 Neutral	₹100.12B	81.34		0.35%	43.43%	19.88%
ISGEC	60 Neutral	₹76.86B	30.84		0.38%	3.30%	2.27%
BHEL	57 Neutral	₹775.63B	267.63		0.22%	16.28%	―