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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Esab India Ltd

About the Company - Esab India Ltd

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. Sudhir ChandIndependent Director
Mr. Vikram TandonIndependent Director
Ms. Cauvery DharmarajIndependent Director
Mr. K VaidyanathanIndependent Director

Basic Stock Data of Esab India Ltd

Last Updated: May 23, 2024, 2:04 pm

Market Cap 8,843 Cr.
Current Price 5,743
High / Low6,586/3,435
Stock P/E55.1
Book Value 202
Dividend Yield1.36 %
ROCE70.7 %
ROE53.2 %
Face Value 10.0
PEG Ratio3.17

Esab India Ltd Quarterly Results

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

Esab India Ltd Quarterly Chart

Esab India Ltd Profit & Loss

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%

Esab India Ltd Profit & Loss Yearly Chart

Esab India Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:15%
3 Years:16%
TTM:14%
Compounded Profit Growth
10 Years:14%
5 Years:28%
3 Years:24%
TTM:39%
Stock Price CAGR
10 Years:27%
5 Years:43%
3 Years:43%
1 Year:54%
Return on Equity
10 Years:19%
5 Years:28%
3 Years:34%
Last Year:53%

Last Updated: April 17, 2024, 1:25 pm

Esab India Ltd Balance Sheet

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital15151515151515151515151515
Reserves196221252274300327363251322244229245295
Borrowings0000010053344
Other Liabilities809583807085102112116126189210205
Total Liabilities292331350369386428480379458388436474519
Fixed Assets1049996837876808386909095117
CWIP21315783733205
Investments34781051221201471253070413109
Other Assets151154147163183198269262295255312359387
Total Assets292331350369386428480379458388436474519

Esab India Ltd Reserves and Borrowings Chart

Esab India Ltd Cash Flow

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 4046351618363067577285129
Cash from Investing Activity -5-46-27-12-9-239102-12066205
Cash from Financing Activity -45-0-14-2-2-2-41-16339-139-102-122
Net Cash Flow-9-0-63712-26-24-0312

Esab India Ltd Financial Efficiency Indicators

MonthDec 2011Dec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days141723293737403544535551
Inventory Days697682557677765866616867
Days Payable455070565671787174809382
Cash Conversion Cycle374335285743382136343035
Working Capital Days201018223934674840473131
ROCE %36%25%19%15%14%13%15%26%32%27%44%71%

Esab India Ltd Financial Efficiency Indicators Chart

Esab India Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%73.72%
FIIs3.84%3.79%0.09%0.15%0.21%0.64%0.63%0.73%0.82%0.95%1.08%1.14%
DIIs10.06%9.99%13.53%13.69%13.68%13.51%13.48%13.26%13.22%13.01%13.00%12.98%
Government0.40%0.40%0.40%0.42%0.42%0.42%0.00%0.00%0.00%0.00%0.00%0.00%
Public11.98%12.10%12.26%12.01%11.97%11.70%12.15%12.27%12.22%12.32%12.19%12.15%
No. of Shareholders14,52615,02114,45013,77814,84417,19917,95817,22718,04118,42218,37519,685

Esab India Ltd Shareholding Pattern Chart

No. of Esab India Ltd Shareholders

Esab India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
SBI Small Cap Fund9000002.47521.37
Nippon India Small Cap Fund3268820.51189.36
SBI Magnum Global Fund2500002.37144.82
SBI Contra Fund1500000.5286.89
SBI Infrastructure Fund783743.4745.4
SBI Retirement Benefit Fund - Aggressive Plan438501.4425.4
SBI Retirement Benefit Fund - Aggressive Hybrid Plan421002.1824.39
SBI Conservative Hybrid Fund411770.2723.85
SBI Conservative Hybrid Fund - Div (Annual)411770.2723.85
SBI Conservative Hybrid Fund - Div (Monthly)411770.2723.85

Esab India Ltd ROCE Trend

Esab India Ltd EPS Trend

Esab India Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)88.1654.7838.5246.4037.41
Diluted EPS (Rs.)88.1654.7838.5246.4037.41
Cash EPS (Rs.)95.8862.1446.1354.5744.37
Book Value[Excl.RevalReserv]/Share (Rs.)169.12158.69168.43219.46173.22
Book Value[Incl.RevalReserv]/Share (Rs.)169.12158.69168.43219.46173.22
Dividend / Share (Rs.)78.0060.0044.0070.0090.00
Revenue From Operations / Share (Rs.)708.77580.12444.84456.78440.10
PBDIT / Share (Rs.)126.3781.3460.2071.6862.07
PBIT / Share (Rs.)118.6573.9852.5963.5155.11
PBT / Share (Rs.)118.4573.7952.3363.1854.67
Net Profit / Share (Rs.)88.1654.7838.5246.4037.42
PBDIT Margin (%)17.8214.0213.5315.6914.10
PBIT Margin (%)16.7412.7511.8213.9012.52
PBT Margin (%)16.7112.7111.7613.8312.42
Net Profit Margin (%)12.439.448.6610.158.50
Return on Networth / Equity (%)52.1334.5222.8721.1421.60
Return on Capital Employeed (%)67.5345.4230.4128.3431.39
Return On Assets (%)28.6219.3315.2715.5415.20
Asset Turnover Ratio (%)2.402.171.621.681.58
Current Ratio (X)1.721.812.393.152.60
Quick Ratio (X)1.121.251.782.461.98
Inventory Turnover Ratio (X)4.594.954.094.785.10
Dividend Payout Ratio (NP) (%)88.49118.66231.060.00293.24
Dividend Payout Ratio (CP) (%)81.37104.61192.950.00247.29
Earning Retention Ratio (%)11.51-18.66-131.060.00-193.24
Cash Earning Retention Ratio (%)18.63-4.61-92.950.00-147.29
Interest Coverage Ratio (X)627.35431.66225.98220.640.00
Interest Coverage Ratio (Post Tax) (X)438.68291.72145.61143.820.00
Enterprise Value (Cr.)5385.844620.732719.721553.821349.96
EV / Net Operating Revenue (X)4.945.183.972.211.99
EV / EBITDA (X)27.6936.9129.3514.0814.13
MarketCap / Net Operating Revenue (X)4.995.234.032.352.08
Retention Ratios (%)11.50-18.66-131.060.00-193.24
Price / BV (X)20.9119.1010.654.905.27
Price / Net Operating Revenue (X)4.995.234.032.352.08
EarningsYield0.020.010.020.040.04

Esab India Ltd Profitability Ratios (%)

Esab India Ltd Liquidity Ratios

Esab India Ltd Liquidity Ratios (%)

Esab India Ltd Interest Coverage Ratios (%)

Esab India Ltd Valuation Ratios

Fair Value

Fair Value: ₹6,001.80

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.

Undervalued: 4.51% compared to the current price ₹5743

Intrinsic Value: ₹7,043.41

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 22.64% compared to the current price ₹5743

Last 5 Year EPS CAGR: 17.35%

*Investments are subject to market risks

Strength and Weakness of Esab India Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 28.08%, which is a positive sign.
  2. The company has higher reserves (270.69 cr) compared to borrowings (1.54 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 33.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 36.42, which may not be favorable.

FAQ

What is the latest fair value of Esab India Ltd?

The latest fair value of Esab India Ltd is ₹6001.80.

What is the Market Cap of Esab India Ltd?

The Market Cap of Esab India Ltd is 8,843 Cr..

What is the current Stock Price of Esab India Ltd as on 29 May 2024?

The current stock price of Esab India Ltd as on 29 May 2024 is ₹5,743.

What is the High / Low of Esab India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Esab India Ltd stocks is 6,586/3,435.

What is the Stock P/E of Esab India Ltd?

The Stock P/E of Esab India Ltd is 55.1.

What is the Book Value of Esab India Ltd?

The Book Value of Esab India Ltd is 202.

What is the Dividend Yield of Esab India Ltd?

The Dividend Yield of Esab India Ltd is 1.36 %.

What is the ROCE of Esab India Ltd?

The ROCE of Esab India Ltd is 70.7 %.

What is the ROE of Esab India Ltd?

The ROE of Esab India Ltd is 53.2 %.

What is the Face Value of Esab India Ltd?

The Face Value of Esab India Ltd 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 Esab India Ltd. 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