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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
▲(36.35% 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 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
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 2020
Income Statement
Total Revenue65.48B64.22B61.67B63.49B54.99B52.46B
Gross Profit18.46B13.59B8.04B8.34B6.25B11.03B
EBITDA5.56B6.19B5.20B4.63B3.25B5.01B
Net Income2.49B2.49B2.44B1.96B1.09B2.48B
Balance Sheet
Total Assets0.0080.41B78.35B70.75B67.60B64.60B
Cash, Cash Equivalents and Short-Term Investments2.75B2.30B1.76B1.99B2.30B1.98B
Total Debt0.008.61B8.14B12.35B12.33B9.83B
Total Liabilities-27.47B51.93B52.17B46.83B45.58B43.61B
Stockholders Equity27.47B27.39B25.15B23.04B21.21B20.22B
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 Price896.95
Price Trends
50DMA
1033.92
Negative
100DMA
1114.28
Negative
200DMA
1139.48
Negative
Market Momentum
MACD
-29.10
Positive
RSI
22.84
Positive
STOCH
4.35
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 896.95 is below the 20-day moving average (MA) of 983.39, below the 50-day MA of 1033.92, and below the 200-day MA of 1139.48, indicating a bearish trend. The MACD of -29.10 indicates Positive momentum. The RSI at 22.84 is Positive, neither overbought nor oversold. The STOCH value of 4.35 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
624.29B61.6617.60%0.70%13.90%11.56%
66
Neutral
208.13B38.1514.15%0.73%4.14%1.81%
65
Neutral
380.95B53.6712.85%0.44%8.14%-4.46%
62
Neutral
87.08B70.7515.92%0.42%43.43%19.88%
60
Neutral
₹65.95B27.950.56%-2.31%-8.69%
58
Neutral
804.01B277.422.16%0.22%16.28%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ISGEC
ISGEC Heavy Engineering Ltd.
896.95
-477.01
-34.72%
IN:BHEL
Bharat Heavy Electricals Limited
230.90
-48.11
-17.24%
IN:LLOYDSENGG
Lloyds Engineering Works Ltd
59.08
-12.33
-17.27%
IN:SCHAEFFLER
Schaeffler India Ltd
3,994.10
118.35
3.05%
IN:SUNDRMFAST
Sundram Fasteners Limited
990.50
-374.90
-27.46%
IN:THERMAX
Thermax Limited.
3,197.05
-1,880.91
-37.04%
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