Electrotherm (India) Limited (ELECTHERM) AI Stock Analysis

Electrotherm (India) Limited

(NSE:ELECTHERM)

Select Model

Rating:44Neutral

Price Target:INR 564.00▼(-6.29% Downside)

Action:reiterated

Date:09/29/26

The overall score is heavily pressured by extremely weak technicals and a lack of earnings-based valuation support. The stock is in a severe downtrend with deeply oversold momentum signals. While the company's strong cash generation and debt reduction efforts provide a financial foundation, they are overshadowed by recent operating losses and a negative net worth, creating a high-risk profile.

Positive Factors

Consistent cash generationPositive operating and free cash flow provide internal funding capacity even when reported earnings are weak. This supports ongoing operations and reduces immediate dependence on external financing, although the benefit is strongest if elevated cash generation can be sustained over multiple periods.

Negative Factors

Negative equity and high debtPersistent negative equity materially restricts financial flexibility and leaves the company reliant on lenders while balance-sheet repair remains necessary. Sizable debt against a negative capital base increases financial vulnerability and can constrain investment, restructuring, and future growth choices.

Electrotherm (India) Limited (ELECTHERM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 7.38B
Dividend Yield: ―
Average Volume (3M): 1,474
Price to Earnings (P/E): -20.2
Beta (1Y): 1.47
Revenue Growth: -3.05%
EPS Growth: -110.10%
Country: India
Employees: 2,824
Sector: General
Sector Strength: 55
Industry: Steel

Electrotherm (India) Limited Business Overview & Revenue Model

Company Description

Founded in 1983 and headquartered in Ahmedabad, India, Electrotherm (India) Limited is a company with both domestic and international reach, engaged in the production and sale of a wide array of industrial machinery, steel products, and renewable ene...

How the Company Makes Money

Electrotherm (India) Limited primarily makes money through the sale of manufactured products and related project/services revenue across its operating segments. Key revenue streams include: (1) Electric mobility: revenue from sales of electric two-wh...

Electrotherm (India) Limited Financial Statement Overview

Summary

Mixed financial profile: Strong, consistent operating cash flow (avg. INR 3.3B) and healthy free cash flow (INR 2.3B) provide a solid cushion, but recent profitability has weakened sharply with a net loss of INR 156.6M and contracting gross margins. Negative shareholders' equity (INR -1.54B) remains a key risk, though debt reduction is a positive trend.

Income Statement

45Neutral

Balance Sheet

35Negative

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	37.71B	36.92B	41.15B	42.72B	30.74B	28.20B
Gross Profit	7.10B	7.20B	13.08B	12.87B	7.79B	6.02B
EBITDA	77.80M	428.40M	5.00B	3.65B	399.50M	515.20M
Net Income	-364.80M	-156.60M	4.42B	3.17B	-118.20M	-402.60M
Balance Sheet
Total Assets	0	20.13B	19.18B	18.41B	17.52B	17.45B
Cash, Cash Equivalents and Short-Term Investments	914.50M	914.50M	723.10M	615.40M	744.50M	713.10M
Total Debt	0	10.64B	12.87B	17.70B	19.86B	20.87B
Total Liabilities	1.54B	21.67B	20.77B	26.22B	28.48B	28.27B
Stockholders Equity	-1.54B	-1.54B	-1.59B	-7.81B	-10.96B	-10.82B
Cash Flow
Free Cash Flow	1.39B	2.32B	2.40B	2.83B	895.90M	1.39B
Operating Cash Flow	1.67B	3.30B	3.29B	3.51B	1.07B	1.79B
Investing Cash Flow	-205.90M	-1.04B	-721.70M	-678.70M	-24.80M	-140.60M
Financing Cash Flow	-1.36B	-2.01B	-3.03B	-2.94B	-1.03B	-1.89B

Electrotherm (India) Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price601.85

Price Trends

50DMA838.91Negative

100DMA955.08Negative

200DMA853.87Negative

Market Momentum

MACD-68.35Negative

RSI24.32Positive

STOCH12.30Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ELECTHERM, the sentiment is Negative. The current price of 601.85 is below the 20-day moving average (MA) of 665.96, below the 50-day MA of 838.91, and below the 200-day MA of 853.87, indicating a bearish trend. The MACD of -68.35 indicates Negative momentum. The RSI at 24.32 is Positive, neither overbought nor oversold. The STOCH value of 12.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ELECTHERM.

Electrotherm (India) Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ELECTHERM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:MAITHANALL	66Neutral	INR 22.51B	7.75	―	2.20%	0.82%	-59.07%
IN:RATNAMANI	63Neutral	INR 162.60B	37.55	―	0.43%	-16.30%	-24.14%
IN:ELECTCAST	62Neutral	INR 39.27B	32.43	―	1.42%	-15.69%	-78.92%
IN:PRAKASH	62Neutral	INR 20.12B	6.42	―	1.60%	-10.58%	-12.16%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:MUKANDLTD	52Neutral	INR 20.41B	3.23	―	2.12%	7.62%	684.82%
IN:ELECTHERM	44Neutral	INR 7.41B	-20.24	―	―	-3.05%	-110.10%

* General Sector Average

Performance Comparison

IN:ELECTHERM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ELECTHERM	Electrotherm (India) Limited	581.50	-452.45	-43.76%
IN:ELECTCAST	Electrosteel Castings Ltd.	63.53	-24.88	-28.14%
IN:MAITHANALL	Maithan Alloys Ltd.	773.30	-307.38	-28.44%
IN:MUKANDLTD	Mukand Limited	141.25	7.70	5.77%
IN:PRAKASH	Prakash Industries Limited	112.35	-52.17	-31.71%
IN:RATNAMANI	Ratnamani Metals & Tubes Ltd.	2319.85	-110.09	-4.53%

Electrotherm (India) Limited Corporate Events

Electrotherm Publishes Q1 FY27 Unaudited Results in Financial Express

Aug 15, 2026

Electrotherm (India) Limited has notified stock exchanges that it has published its unaudited financial results for the quarter ended June 30, 2026 in the Financial Express, in both English and Gujarati editions. The communication, made under SEBI&#8...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 29, 2026

Electrotherm (India) Limited AI Stock Analysis