Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of Esab India Ltd
Stock Name
Market Cap
Current Price
High / Low
Stock P/E
Book Value
Dividend Yield
ROCE
ROE
Face Value
Industry Average
0 Cr
0
0
0
0%
0%
0%
0
Quarterly Result
Month
Sep 2020
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Sales
166
184
207
181
221
227
265
243
277
267
302
298
303
Expenses
143
164
178
153
189
199
234
208
233
219
245
240
249
Operating Profit
23
20
29
28
32
27
30
36
45
48
57
58
54
OPM %
14%
11%
14%
16%
15%
12%
11%
15%
16%
18%
19%
19%
18%
Other Income
4
3
1
2
3
1
1
2
1
3
3
3
1
Interest
0
0
0
0
0
0
0
0
0
0
0
0
0
Depreciation
3
3
3
3
3
3
3
3
3
3
3
3
3
Profit before tax
24
20
27
27
32
26
29
34
43
49
56
57
52
Tax %
26%
26%
28%
25%
26%
26%
26%
25%
26%
25%
26%
25%
26%
Net Profit
18
15
20
20
24
19
21
26
32
36
42
42
38
EPS in Rs
11.49
9.56
12.81
13.22
15.37
12.32
13.86
16.63
20.73
23.59
27.19
27.53
24.95
Last Updated: Unknown
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: Unknown
Month
Dec 2011
Dec 2012
Dec 2013
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
TTM
Sales
541
504
434
552
451
466
543
672
698
681
896
1,091
1,170
Expenses
461
442
383
507
406
422
491
593
601
598
775
904
953
Operating Profit
80
62
51
45
45
44
52
79
97
83
121
187
217
OPM %
15%
12%
12%
8%
10%
9%
10%
12%
14%
12%
13%
17%
19%
Other Income
3
5
8
-0
6
4
11
16
14
11
5
8
10
Interest
1
1
1
0
0
0
0
0
1
2
1
0
0
Depreciation
12
12
11
14
10
10
10
11
13
12
11
12
13
Profit before tax
71
54
47
31
41
38
53
84
97
81
114
182
214
Tax %
33%
30%
30%
23%
31%
29%
29%
32%
27%
26%
26%
26%
Net Profit
47
38
33
24
28
27
37
58
71
59
84
136
159
EPS in Rs
30.82
24.54
21.52
15.36
18.41
17.45
24.13
37.41
46.39
38.52
54.77
88.14
103.26
Dividend Payout %
49%
31%
5%
7%
5%
6%
4%
241%
151%
114%
110%
88%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
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%
Growth
Compounded Sales Growth
10 Years:
11%
5 Years:
13%
3 Years:
22%
TTM:
11%
Compounded Profit Growth
10 Years:
17%
5 Years:
23%
3 Years:
40%
TTM:
8%
Stock Price CAGR
10 Years:
25%
5 Years:
44%
3 Years:
41%
1 Year:
16%
Return on Equity
10 Years:
23%
5 Years:
37%
3 Years:
48%
Last Year:
57%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Dec 2012
Dec 2013
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
15
15
15
15
15
15
15
15
15
15
15
15
Reserves
221
252
274
300
327
363
251
322
244
229
245
291
Borrowings
0
0
0
0
1
0
0
5
3
3
4
5
Other Liabilities
95
83
80
70
85
102
112
116
126
189
210
240
Total Liabilities
331
350
369
386
428
480
379
458
388
436
474
551
Fixed Assets
99
96
83
78
76
80
83
86
90
90
95
125
CWIP
1
3
1
5
7
8
3
7
3
3
20
4
Investments
78
105
122
120
147
125
30
70
41
31
0
0
Other Assets
154
147
163
183
198
269
262
295
255
312
359
421
Total Assets
331
350
369
386
428
480
379
458
388
436
474
551
Reserves and Borrowings Chart
Cash Flow
Month
Dec 2012
Dec 2013
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
46
35
16
18
36
30
67
57
72
85
129
141
Cash from Investing Activity
-46
-27
-12
-9
-23
9
102
-120
66
20
5
-55
Cash from Financing Activity
-0
-14
-2
-2
-2
-41
-163
39
-139
-102
-122
-81
Net Cash Flow
-0
-6
3
7
12
-2
6
-24
-0
3
12
5
Free Cash Flow
Month
Dec 2011
Dec 2012
Dec 2013
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
80.00
62.00
51.00
45.00
45.00
43.00
52.00
79.00
92.00
80.00
118.00
183.00
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.
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: 7.01% compared to the current price ₹6,169.00
Intrinsic Value: 7,746.93
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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 25.58% compared to the current price ₹6,169.00
Last 5 Year EPS CAGR: 17.35%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 31.42%, which is a positive sign.
The company has higher reserves (276.58 cr) compared to borrowings (1.75 cr), indicating strong financial stability.
The company has shown consistent growth in sales (495.38 cr) and profit (85.15 cr) over the years.
The stock has a high average Working Capital Days of 34.42, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 37.17, which may not be favorable.
Stock Analysis
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 Esab India Ltd:
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.
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.
ROE%: 53.25% (Industry Average ROE: 0%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 57.5 (Industry average Stock P/E: 0)
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.
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.
INDUSTRY
ADDRESS
CONTACT
Welding Equipments
Plot No.13, 3rd Main Road, Chennai (Madras) Tamil Nadu 600058
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
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