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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Esab India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:36 am

Market Cap 9,396 Cr.
Current Price 6,104
High / Low 6,999/4,619
Stock P/E55.3
Book Value 226
Dividend Yield1.82 %
ROCE75.9 %
ROE56.9 %
Face Value 10.0
PEG Ratio3.19

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GEE Ltd 373 Cr. 143 203/85.041.3 78.60.00 %9.30 %6.50 % 2.00
D&H India Ltd 133 Cr. 162 196/76.044.3 53.00.00 %9.89 %6.70 % 10.0
Esab India Ltd 9,396 Cr. 6,104 6,999/4,61955.3 2261.82 %75.9 %56.9 % 10.0
Ador Welding Ltd 1,982 Cr. 1,139 1,770/1,10726.5 3511.62 %24.2 %18.3 % 10.0
Industry Average2,971.00 Cr1,887.0041.85177.150.86%29.82%22.10%8.00

All Competitor Stocks of

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales166184207181221227265243277267302298303
Expenses143164178153189199234208233219245240249
Operating Profit23202928322730364548575854
OPM %14%11%14%16%15%12%11%15%16%18%19%19%18%
Other Income4312311213331
Interest0000000000000
Depreciation3333333333333
Profit before tax24202727322629344349565752
Tax %26%26%28%25%26%26%26%25%26%25%26%25%26%
Net Profit18152020241921263236424238
EPS in Rs11.499.5612.8113.2215.3712.3213.8616.6320.7323.5927.1927.5324.95

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5415044345524514665436726986818961,0911,170
Expenses461442383507406422491593601598775904953
Operating Profit80625145454452799783121187217
OPM %15%12%12%8%10%9%10%12%14%12%13%17%19%
Other Income358-064111614115810
Interest1110000012100
Depreciation12121114101010111312111213
Profit before tax71544731413853849781114182214
Tax %33%30%30%23%31%29%29%32%27%26%26%26%
Net Profit4738332428273758715984136159
EPS in Rs30.8224.5421.5215.3618.4117.4524.1337.4146.3938.5254.7788.14103.26
Dividend Payout %49%31%5%7%5%6%4%241%151%114%110%88%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)16.67%-3.57%37.04%56.76%22.41%-16.90%42.37%61.90%
Change in YoY Net Profit Growth (%)0.00%-20.24%40.61%19.72%-34.34%-39.32%59.27%19.53%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:13%
3 Years:22%
TTM:12%
Compounded Profit Growth
10 Years:17%
5 Years:23%
3 Years:40%
TTM:7%
Stock Price CAGR
10 Years:25%
5 Years:38%
3 Years:25%
1 Year:4%
Return on Equity
10 Years:23%
5 Years:37%
3 Years:48%
Last Year:57%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151515151515151515151515
Reserves221252274300327363251322244229245291332
Borrowings0000100533454
Other Liabilities9583807085102112116126189210240221
Total Liabilities331350369386428480379458388436474551573
Fixed Assets9996837876808386909095125131
CWIP13157837332043
Investments78105122120147125307041310022
Other Assets154147163183198269262295255312359421416
Total Assets331350369386428480379458388436474551573

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +46351618363067577285129141
Cash from Investing Activity +-46-27-12-9-239102-12066205-55
Cash from Financing Activity +-0-14-2-2-2-41-16339-139-102-122-81
Net Cash Flow-0-63712-26-24-03125

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow80.0062.0051.0045.0045.0043.0052.0079.0092.0080.00118.00183.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days172329373740354453555155
Inventory Days768255767776586661686755
Days Payable507056567178717480938265
Cash Conversion Cycle433528574338213634303645
Working Capital Days101822393467484047313126
ROCE %25%19%15%14%13%15%26%32%27%44%71%76%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%
FIIs0.15%0.21%0.64%0.63%0.73%0.82%0.95%1.08%1.14%1.26%1.54%1.66%
DIIs13.69%13.68%13.51%13.48%13.26%13.22%13.01%13.00%12.98%13.02%13.03%13.03%
Government0.42%0.42%0.42%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public12.01%11.97%11.70%12.15%12.27%12.22%12.32%12.19%12.15%11.99%11.69%11.59%
No. of Shareholders13,77814,84417,19917,95817,22718,04118,42218,37519,68518,39518,28819,674

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Small Cap Fund900,0002.47521.37326,8822024-12-20175.33%
Nippon India Small Cap Fund326,8820.51189.36326,8822024-12-200%
SBI Magnum Global Fund250,0002.37144.82326,8822024-12-20-23.52%
SBI Contra Fund150,0000.5286.89326,8822024-12-20-54.11%
SBI Infrastructure Fund78,3743.4745.4326,8822024-12-20-76.02%
SBI Retirement Benefit Fund - Aggressive Plan43,8501.4425.4326,8822024-12-20-86.59%
SBI Retirement Benefit Fund - Aggressive Hybrid Plan42,1002.1824.39326,8822024-12-20-87.12%
SBI Conservative Hybrid Fund41,1770.2723.85326,8822024-12-20-87.4%
SBI Conservative Hybrid Fund - Div (Annual)41,1770.2723.85326,8822024-12-20-87.4%
SBI Conservative Hybrid Fund - Div (Monthly)41,1770.2723.85326,8822024-12-20-87.4%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)105.9088.1654.7838.5246.40
Diluted EPS (Rs.)105.9088.1654.7838.5246.40
Cash EPS (Rs.)114.8695.8862.1446.1354.57
Book Value[Excl.RevalReserv]/Share (Rs.)198.87169.12158.69168.43219.46
Book Value[Incl.RevalReserv]/Share (Rs.)198.87169.12158.69168.43219.46
Dividend / Share (Rs.)86.0078.0060.0044.0070.00
Revenue From Operations / Share (Rs.)807.88708.77580.12444.84456.78
PBDIT / Share (Rs.)152.16126.3781.3460.2071.68
PBIT / Share (Rs.)143.20118.6573.9852.5963.51
PBT / Share (Rs.)142.92118.4573.7952.3363.18
Net Profit / Share (Rs.)105.9088.1654.7838.5246.40
PBDIT Margin (%)18.8317.8214.0213.5315.69
PBIT Margin (%)17.7216.7412.7511.8213.90
PBT Margin (%)17.6916.7112.7111.7613.83
Net Profit Margin (%)13.1012.439.448.6610.15
Return on Networth / Equity (%)53.2552.1334.5222.8721.14
Return on Capital Employeed (%)69.5567.5345.4230.4128.34
Return On Assets (%)29.5728.6219.3315.2715.54
Asset Turnover Ratio (%)2.432.402.171.621.68
Current Ratio (X)1.751.721.812.393.15
Quick Ratio (X)1.271.121.251.782.46
Inventory Turnover Ratio (X)4.854.594.954.094.78
Dividend Payout Ratio (NP) (%)71.7888.49118.66231.060.00
Dividend Payout Ratio (CP) (%)66.1881.37104.61192.950.00
Earning Retention Ratio (%)28.2211.51-18.66-131.060.00
Cash Earning Retention Ratio (%)33.8218.63-4.61-92.950.00
Interest Coverage Ratio (X)557.55627.35431.66225.98220.64
Interest Coverage Ratio (Post Tax) (X)389.05438.68291.72145.61143.82
Enterprise Value (Cr.)8003.205385.844620.732719.721553.82
EV / Net Operating Revenue (X)6.444.945.183.972.21
EV / EBITDA (X)34.1827.6936.9129.3514.08
MarketCap / Net Operating Revenue (X)6.514.995.234.032.35
Retention Ratios (%)28.2111.50-18.66-131.060.00
Price / BV (X)26.4420.9119.1010.654.90
Price / Net Operating Revenue (X)6.514.995.234.032.35
EarningsYield0.020.020.010.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 7,240.67

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 18.62% compared to the current share price 6,104.00

Intrinsic Value of as of December 22, 2024 is: 8,497.29

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 39.21% compared to the current share price 6,104.00

Last 5 Year EPS CAGR: 17.35%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 31.42%, which is a positive sign.
  2. The company has higher reserves (280.85 cr) compared to borrowings (1.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (495.38 cr) and profit (85.15 cr) over the years.
  1. The stock has a high average Working Capital Days of 34.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 37.17, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 13.1%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 69.55% (Industry Average ROCE: 29.82%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 53.25% (Industry Average ROE: 22.1%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 389.05
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.27
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 55.3 (Industry average Stock P/E: 41.85)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Esab India Ltd. is a Public Limited Listed company incorporated on 10/11/1987 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L29299TN1987PLC058738 and registration number is 058738. Currently Company is involved in the business activities of Metal and metal products. Company’s Total Operating Revenue is Rs. 892.80 Cr. and Equity Capital is Rs. 15.39 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Welding EquipmentsPlot No.13, 3rd Main Road, Chennai (Madras) Tamil Nadu 600058investor.relations@esab.co.in
http://www.esabindia.com
Management
NamePosition Held
Mr. Kevin J JohnsonChairman
Mr. Rohit GambhirManaging Director
Mr. B MohanDirector & CFO
Ms. Cauvery DharmarajIndependent Director
Mr. Vikram TandonIndependent Director
Mr. K VaidyanathanIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹7240.67, which is 18.62% higher than the current market price of ₹6,104.00. The stock has a market capitalization of 9,396 Cr. and recorded a high/low of 6,999/4,619 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹332 Cr and total liabilities of ₹573 Cr.

What is the Market Cap of ?

The Market Cap of is 9,396 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 6,104.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 6,999/4,619.

What is the Stock P/E of ?

The Stock P/E of is 55.3.

What is the Book Value of ?

The Book Value of is 226.

What is the Dividend Yield of ?

The Dividend Yield of is 1.82 %.

What is the ROCE of ?

The ROCE of is 75.9 %.

What is the ROE of ?

The ROE of is 56.9 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE