NSEI:ESABINDIA

Stock Analysis Report

Executive Summary

ESAB India Limited manufactures and sells welding and cutting products in India.


Snowflake Analysis

Flawless balance sheet with outstanding track record.

Share Price & News

How has ESAB India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ESABINDIA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

ESABINDIA

-1.3%

IN Machinery

-1.8%

IN Market


1 Year Return

52.8%

ESABINDIA

-12.9%

IN Machinery

6.3%

IN Market

Return vs Industry: ESABINDIA exceeded the Indian Machinery industry which returned -12.9% over the past year.

Return vs Market: ESABINDIA exceeded the Indian Market which returned 6.3% over the past year.


Shareholder returns

ESABINDIAIndustryMarket
7 Day0.2%-1.3%-1.8%
30 Day-2.9%-2.2%-0.4%
90 Day27.9%7.3%8.8%
1 Year52.8%52.8%-11.5%-12.9%8.3%6.3%
3 Year146.1%123.9%5.5%1.5%31.6%24.6%
5 Year110.6%91.0%22.8%15.9%39.0%26.5%

Price Volatility Vs. Market

How volatile is ESAB India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ESAB India undervalued compared to its fair value and its price relative to the market?

30.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESABINDIA (₹1270.35) is trading above our estimate of fair value (₹968.96)

Significantly Below Fair Value: ESABINDIA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ESABINDIA is poor value based on its PE Ratio (30.1x) compared to the Machinery industry average (13.1x).

PE vs Market: ESABINDIA is poor value based on its PE Ratio (30.1x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: ESABINDIA is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ESABINDIA is overvalued based on its PB Ratio (6.3x) compared to the IN Machinery industry average (1.2x).


Next Steps

Future Growth

How is ESAB India forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ESABINDIA's forecast earnings growth (17.1% per year) is above the savings rate (6.5%).

Earnings vs Market: ESABINDIA's earnings (17.1% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: ESABINDIA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ESABINDIA's revenue (9.8% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: ESABINDIA's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has ESAB India performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESABINDIA has high quality earnings.

Growing Profit Margin: ESABINDIA's current net profit margins (9.2%) are higher than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: ESABINDIA's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: ESABINDIA's earnings growth over the past year (31%) exceeds its 5-year average (24.1% per year).

Earnings vs Industry: ESABINDIA earnings growth over the past year (31%) exceeded the Machinery industry 2.8%.


Return on Equity

High ROE: ESABINDIA's Return on Equity (21%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ESAB India's financial position?


Financial Position Analysis

Short Term Liabilities: ESABINDIA's short term assets (₹3.3B) exceed its short term liabilities (₹1.3B).

Long Term Liabilities: ESABINDIA's short term assets (₹3.3B) exceed its long term liabilities (₹41.4M).


Debt to Equity History and Analysis

Debt Level: ESABINDIA is debt free.

Reducing Debt: ESABINDIA has not had any debt for past 5 years.

Debt Coverage: ESABINDIA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ESABINDIA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ESABINDIA's debt is covered by short term assets.


Next Steps

Dividend

What is ESAB India's current dividend yield, its reliability and sustainability?

7.24%

Current Dividend Yield


Dividend Yield vs Market

company7.2%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: ESABINDIA's dividend (7.24%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: ESABINDIA's dividend (7.24%) is in the top 25% of dividend payers in the Indian market (2.47%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as ESABINDIA has not reported any payouts.


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 ESAB India's salary, the management and board of directors tenure and is there insider trading?

5.8yrs

Average board tenure


CEO

Rohit Gambhir (46yo)

5.1yrs

Tenure

₹22,707,210

Compensation

Mr. Rohit Gambhir has been the Managing Director of ESAB India Limited since November 1, 2014. Mr. Gambhir served as the Chief Executive Officer at ESAB India Limited since November 1, 2013 until November  ...


CEO Compensation Analysis

Compensation vs Market: Rohit's total compensation ($USD317.63K) is about average for companies of similar size in the Indian market ($USD295.45K).

Compensation vs Earnings: Rohit's compensation has been consistent with company performance over the past year.


Board Age and Tenure

5.8yrs

Average Tenure

71yo

Average Age

Experienced Board: ESABINDIA's board of directors are considered experienced (5.8 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

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Amit Kumar De (62yo)

    Vice President of Sales

    • Tenure: 0yrs
  • B. Mohan (53yo)

    CFO & VP of Finance

    • Tenure: 0yrs
    • Compensation: ₹11.20m
  • S. Venkatakrishnan (54yo)

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
    • Compensation: ₹5.30m
  • Rohit Gambhir (46yo)

    MD & Executive Director

    • Tenure: 5.1yrs
    • Compensation: ₹22.71m
  • Jagannathan Venkata (54yo)

    Vice President of Operations

    • Tenure: 0yrs
  • Debobroto Banerjee (48yo)

    Vice President - M & A and Special Projects

    • Tenure: 0yrs
  • V. Parthasarathy (46yo)

    Head of Sourcing

    • Tenure: 0yrs
  • Vilas Tank (40yo)

    Deputy General Manager - ESD

    • Tenure: 0yrs
  • Narula Kumar (55yo)

    Deputy General Manager of Sales (Welding Consumables)

    • Tenure: 0yrs
  • Jaimon Antony

    General Manager Of Human Resource

    • Tenure: 0.9yrs

Board Members

  • Kalyanasundaram Vaidyanathan (72yo)

    Non Executive Independent Director

    • Tenure: 4.9yrs
    • Compensation: ₹760.50k
  • Sudhir Chand (72yo)

    Non-Executive Independent Director

    • Tenure: 9.7yrs
    • Compensation: ₹723.50k
  • Vikram Tandon (71yo)

    Non-Executive Independent Director

    • Tenure: 9.7yrs
    • Compensation: ₹652.50k
  • Rohit Gambhir (46yo)

    MD & Executive Director

    • Tenure: 5.1yrs
    • Compensation: ₹22.71m
  • Sabitha Rao (63yo)

    Non-Executive Independent Director

    • Tenure: 5.4yrs
    • Compensation: ₹661.00k
  • Scott Grisham

    Chairman of the Board

    • Tenure: 0.6yrs

Company Information

ESAB India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ESAB India Limited
  • Ticker: ESABINDIA
  • Exchange: NSEI
  • Founded: 1987
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹19.912b
  • Shares outstanding: 15.39m
  • Website: https://www.esabindia.com

Number of Employees


Location

  • ESAB India Limited
  • Plot No. 13, Industrial Estate
  • 3rd Main Road
  • Chennai
  • Tamil Nadu
  • 600058
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500133BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1995
ESABINDIANSEI (National Stock Exchange of India)YesEquity SharesININRNov 1995

Biography

ESAB India Limited manufactures and sells welding and cutting products in India. The company offers welding consumables, reclamation, arc equipment, industrial gas equipment, and cutting machines, as well  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 12:48
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.