BSE:533033

Stock Analysis Report

Isgec Heavy Engineering

Executive Summary

Isgec Heavy Engineering Limited manufactures and sells heavy engineering equipment to the power, oil and gas, fertilizer, steel, cement, automobiles, defense, sugar, and chemical sectors in India and internationally.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Share Price & News

How has Isgec Heavy Engineering's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.3%

533033

0.8%

IN Machinery

1.6%

IN Market


1 Year Return

-35.1%

533033

-14.3%

IN Machinery

0.8%

IN Market

Return vs Industry: 533033 underperformed the Indian Machinery industry which returned -14.3% over the past year.

Return vs Market: 533033 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

533033IndustryMarket
7 Day-7.3%0.8%1.6%
30 Day4.7%2.5%1.5%
90 Day-13.9%-8.4%-3.3%
1 Year-34.8%-35.1%-12.9%-14.3%2.7%0.8%
3 Year-21.6%-22.6%-1.4%-5.1%22.0%16.0%
5 Year29.8%27.2%39.7%31.9%42.3%29.3%

Price Volatility Vs. Market

How volatile is Isgec Heavy Engineering's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Isgec Heavy Engineering undervalued compared to its fair value and its price relative to the market?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: 533033 (₹366.75) is trading below our estimate of fair value (₹396.97)

Significantly Undervalued: 533033 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 533033 is poor value based on its PE Ratio (21.8x) compared to the Machinery industry average (12.4x).

PE vs Market: 533033 is poor value based on its PE Ratio (21.8x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: 533033 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 533033 is overvalued based on its PB Ratio (1.8x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is Isgec Heavy Engineering forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

35.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 533033's forecast earnings growth (35.7% per year) is above the savings rate (7.6%).

Earnings vs Market: 533033's earnings (35.7% per year) are forecast to grow faster than the Indian market (18.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 533033's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 533033's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 533033's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Isgec Heavy Engineering performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 533033's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: 533033's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 533033 had negative earnings growth (-19.6%) over the past year, making it difficult to compare to the Machinery industry average (13.7%).


Return on Equity

High ROE: 533033's Return on Equity (7.8%) is considered low.


Return on Assets

ROA vs Industry: 533033's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: 533033's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Isgec Heavy Engineering's financial position?


Financial Position Analysis

Short Term Liabilities: 533033's short term assets (₹42.8B) exceeds its short term liabilities (₹31.5B)

Long Term Liabilities: 533033's short term assets (42.8B) exceeds its long term liabilities (3.9B)


Debt to Equity History and Analysis

Debt Level: 533033's debt to equity ratio (19.1%) is considered satisfactory

Reducing Debt: 533033's debt to equity ratio has reduced from 65.4% to 19.1% over the past 5 years.

Debt Coverage: 533033's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: 533033's interest payments on its debt are well covered by EBIT (12.4x coverage).


Balance Sheet

Inventory Level: 533033 has a high level of physical assets or inventory.

Debt Coverage by Assets: 533033's debt is covered by short term assets (assets are 14.080800x debt).


Next Steps

Dividend

What is Isgec Heavy Engineering's current dividend yield, its reliability and sustainability?

0.82%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: 533033's dividend (0.82%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 533033's dividend (0.82%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: 533033's dividend payments have been volatile in the past 10 years.

Growing Dividend: 533033's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.9%), 533033's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Isgec Heavy Engineering's salary, the management and board of directors tenure and is there insider trading?

11.6yrs

Average management tenure


CEO

Aditya Puri (51yo)

12.7yrs

Tenure

₹129,400,000

Compensation

Mr. Aditya Puri has been Managing Director of ISGEC Heavy Engineering Ltd since February 16, 2007 and serves as its BR Head. Mr. Puri serves as a Managing Director of Saraswati Sugar Mills Limited. He serv ...


CEO Compensation Analysis

Compensation vs. Market: Insufficient data to establish whether Aditya's total compensation is reasonable compared to companies of similar size in the Indian market.

Compensation vs Earnings: Aditya's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

11.6yrs

Average Tenure

70yo

Average Age

Experienced Management: 533033's management team is seasoned and experienced (11.6 years average tenure).


Board Age and Tenure

11.7yrs

Average Tenure

71.5yo

Average Age

Experienced Board: 533033's board of directors are seasoned and experienced ( 11.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Lazar Pilli (57yo)

    Head of Corporate Human Resources

    • Tenure: 11.6yrs
    • Compensation: ₹2.60m
  • Aditya Puri (51yo)

    MD & Executive Director

    • Tenure: 12.7yrs
    • Compensation: ₹129.40m
  • Sudershan Khorana (72yo)

    Chief Investor Relations Officer

    • Tenure: 0yrs
  • Ravi Jaidka (72yo)

    Executive Director of ISGEC Works & Unit Head of ISGEC

    • Tenure: 0yrs
  • D. Satyanarayana (68yo)

    President

    • Tenure: 0yrs
    • Compensation: ₹784.14k
  • Nina Puri (76yo)

    Whole Time Director

    • Tenure: 12.7yrs
    • Compensation: ₹129.40m
  • Kishore Chatnani (52yo)

    CFO and Head of Corporate Accounts & Treasury

    • Tenure: 12.5yrs
  • R. Madan (74yo)

    President and Head of Machine Bulilding Division

    • Tenure: 0yrs
    • Compensation: ₹3.02m
  • V. Verma (77yo)

    Head of Corporate Legal

    • Tenure: 4.8yrs
    • Compensation: ₹1.63m
  • Yogesh Marwaha (54yo)

    Head of Export Marketing

    • Tenure: 0yrs

Board Members

  • Vishal Kirti Marwaha (56yo)

    Non-Executive Independent Director

    • Tenure: 2.6yrs
    • Compensation: ₹275.00k
  • Tahir Hasan (73yo)

    Non-Executive Independent Director

    • Tenure: 14.8yrs
    • Compensation: ₹275.00k
  • Aditya Puri (51yo)

    MD & Executive Director

    • Tenure: 12.7yrs
    • Compensation: ₹129.40m
  • Vinod Nagpal (71yo)

    Non-Executive Independent Director

    • Tenure: 23.6yrs
    • Compensation: ₹325.00k
  • Sudershan Khorana (72yo)

    Chief Investor Relations Officer

    • Tenure: 0yrs
  • Nina Puri (76yo)

    Whole Time Director

    • Tenure: 12.7yrs
    • Compensation: ₹129.40m
  • Ranjit Puri (79yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: ₹295.00k
  • Arun Kathpalia (56yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹165.00k
  • Vinod Sachdeva (77yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹305.00k
  • Sidharth Prasad (56yo)

    Non-Executive Independent Director

    • Tenure: 4yrs
    • Compensation: ₹250.00k

Company Information

Isgec Heavy Engineering Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Isgec Heavy Engineering Limited
  • Ticker: 533033
  • Exchange: BSE
  • Founded: 1933
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹27.507b
  • Shares outstanding: 73.53m
  • Website: https://www.isgec.com

Location

  • Isgec Heavy Engineering Limited
  • A-4, Sector-24
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
533033BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2009

Biography

Isgec Heavy Engineering Limited manufactures and sells heavy engineering equipment to the power, oil and gas, fertilizer, steel, cement, automobiles, defense, sugar, and chemical sectors in India and inter ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:32
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.