NSEI:ESABINDIA

Stock Analysis Report

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Executive Summary

ESAB India Limited manufactures and sells welding and cutting equipment in India. More Details


Snowflake Analysis

Flawless balance sheet with proven 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

-1.8%

ESABINDIA

0.3%

IN Machinery

-0.6%

IN Market


1 Year Return

4.8%

ESABINDIA

-6.0%

IN Machinery

2.2%

IN Market

Return vs Industry: ESABINDIA exceeded the Indian Machinery industry which returned -6% over the past year.

Return vs Market: ESABINDIA exceeded the Indian Market which returned 2.2% over the past year.


Shareholder returns

ESABINDIAIndustryMarket
7 Day-1.8%0.3%-0.6%
30 Day-3.5%-6.8%0.2%
90 Day-2.9%7.2%6.7%
1 Year9.6%4.8%-4.4%-6.0%3.9%2.2%
3 Year75.2%52.6%-21.6%-25.1%2.6%-2.4%
5 Year169.8%134.4%2.4%-4.2%41.3%30.8%

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?

32.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ESABINDIA (₹1324.1) is trading above our estimate of fair value (₹320.13)

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 (32.8x) compared to the IN Machinery industry average (19x).

PE vs Market: ESABINDIA is poor value based on its PE Ratio (32.8x) compared to the Indian market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ESABINDIA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ESABINDIA is overvalued based on its PB Ratio (6x) compared to the IN Machinery industry average (1.1x).


Next Steps

Future Growth

How is ESAB India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

23.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ESAB India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ESAB India performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ESABINDIA has high quality earnings.

Growing Profit Margin: ESABINDIA's current net profit margins (9.6%) are higher than last year (8.6%).


Past Earnings Growth Analysis

Earnings Trend: ESABINDIA's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: ESABINDIA's earnings growth over the past year (4.9%) is below its 5-year average (26.8% per year).

Earnings vs Industry: ESABINDIA earnings growth over the past year (4.9%) exceeded the Machinery industry -18.8%.


Return on Equity

High ROE: ESABINDIA's Return on Equity (18.3%) is considered low.


Next Steps

Financial Health

How is ESAB India's financial position?


Financial Position Analysis

Short Term Liabilities: ESABINDIA's short term assets (₹3.6B) exceed its short term liabilities (₹1.1B).

Long Term Liabilities: ESABINDIA's short term assets (₹3.6B) exceed its long term liabilities (₹71.0M).


Debt to Equity History and Analysis

Debt Level: ESABINDIA is debt free.

Reducing Debt: ESABINDIA had no debt 5 years ago.

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


Next Steps

Dividend

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

5.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ESABINDIA's dividend (5.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.57%).

High Dividend: ESABINDIA's dividend (5.3%) is in the top 25% of dividend payers in the Indian market (2.29%)


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: With its high payout ratio (174.2%), ESABINDIA's dividend payments are not well 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

How experienced are the management team and are they aligned to shareholders interests?

6.6yrs

Average board tenure


CEO

Rohit Gambhir (47 yo)

5.92yrs

Tenure

₹18,572,161

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 ($USD253.19K) is about average for companies of similar size in the Indian market ($USD321.09K).

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


Board Members

NamePositionTenureCompensationOwnership
Rohit Gambhir
MD & Executive Director5.92yrs₹18.57mno data
Sudhir Chand
Non-Executive Independent Director10.5yrs₹825.00kno data
Kalyanasundaram Vaidyanathan
Non Executive Independent Director5.75yrs₹859.00kno data
Vikram Tandon
Non-Executive Independent Director10.5yrs₹710.00kno data
Sabitha Rao
Non-Executive Independent Director6.25yrs₹772.00kno data
Scott Grisham
Chairman of the Board1.42yrsno datano data

6.6yrs

Average Tenure

68yo

Average Age

Experienced Board: ESABINDIA's board of directors are considered experienced (6.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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: ₹20.313b
  • 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 equipment in India. The company offers gas equipment; arc gouging and exothermic cutting; welding automation and robotics; ESAB digital solutio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 12:54
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.