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Esab India Limited (IN:ESABINDIA)
:ESABINDIA
India Market
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Esab India Limited (ESABINDIA) AI Stock Analysis

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IN:ESABINDIA

Esab India Limited

(ESABINDIA)

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Outperform 79 (OpenAI - Gpt-5.6Sol)
Rating:79Outperform
Price Target:
₹7,085.00
▲(16.63% Upside)
Action:Reiterated
Date:08/30/26
The score is driven primarily by strong financial performance (high profitability, very low leverage, and strong ROE), supported by a positive technical setup (price above major moving averages with healthy momentum). Offsetting these positives, valuation is a key constraint due to the elevated P/E and only modest dividend yield.
Positive Factors
Improving profitability
Sustained margin expansion indicates stronger earnings quality and operating efficiency. If retained, the improved profitability can support reinvestment, resilience against cost pressure, and stronger earnings growth across industrial end markets.
Negative Factors
Gross-margin volatility
The uneven gross-margin history suggests exposure to input costs, product mix, or pricing discipline. A future inability to pass through cost inflation could pressure operating margins and reduce the durability of recent profitability gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Sustained margin expansion indicates stronger earnings quality and operating efficiency. If retained, the improved profitability can support reinvestment, resilience against cost pressure, and stronger earnings growth across industrial end markets.
Read all positive factors

Esab India Limited (ESABINDIA) vs. iShares MSCI India ETF (INDA)

Esab India Limited Business Overview & Revenue Model

Company Description
ESAB India Limited manufactures and sells welding and cutting equipment and consumables in India and internationally. The company offers gas equipment, such as cutting machines, H/VAC and plumbing, outfits, regulators, safety accessories, torches,...
How the Company Makes Money
Esab India Limited primarily makes money by selling welding and cutting products and related solutions to industrial and fabrication customers. Key revenue streams typically include: (1) Welding consumables sales: recurring revenue from high-volum...

Esab India Limited Financial Statement Overview

Summary
Strong overall fundamentals: solid revenue growth trend and improving profitability (net margin up to ~13.7% and EBIT margin ~16.8% in 2026). Balance sheet is a major strength with extremely low leverage (debt-to-equity ~0.8%) and very strong ROE (~48%). Main risks are gross-margin variability and cash conversion consistently below net income (OCF/NI ~0.74 in 2026), which can make cash flow more volatile year to year.
Income Statement
86
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
78
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue15.77B15.08B13.73B12.39B10.91B8.96B
Gross Profit5.32B4.67B4.23B3.25B4.19B3.23B
EBITDA3.12B2.70B2.52B2.34B1.95B1.25B
Net Income2.22B2.07B1.75B1.63B1.36B843.10M
Balance Sheet
Total Assets0.006.99B6.47B5.51B4.74B4.36B
Cash, Cash Equivalents and Short-Term Investments1.04B1.16B1.02B473.40M499.50M671.70M
Total Debt0.0033.50M39.30M45.70M40.10M26.80M
Total Liabilities-4.29B2.69B2.86B2.45B2.14B1.92B
Stockholders Equity4.29B4.29B3.61B3.06B2.60B2.44B
Cash Flow
Free Cash Flow328.10M1.50B1.72B1.13B954.80M733.30M
Operating Cash Flow492.20M1.82B2.00B1.41B1.29B845.30M
Investing Cash Flow-107.00M-469.60M-159.10M-549.90M51.70M199.60M
Financing Cash Flow-651.20M-1.42B-1.57B-811.20M-1.22B-1.02B

Esab India Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6074.60
Price Trends
50DMA
5870.81
Negative
100DMA
6037.12
Negative
200DMA
5821.72
Positive
Market Momentum
MACD
19.84
Positive
RSI
39.17
Neutral
STOCH
16.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESABINDIA, the sentiment is Negative. The current price of 6074.6 is below the 20-day moving average (MA) of 6115.46, above the 50-day MA of 5870.81, and above the 200-day MA of 5821.72, indicating a neutral trend. The MACD of 19.84 indicates Positive momentum. The RSI at 39.17 is Neutral, neither overbought nor oversold. The STOCH value of 16.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESABINDIA.

Esab India Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
₹89.77B40.821.27%12.99%29.07%
74
Outperform
₹110.55B35.790.89%17.84%-2.60%
68
Neutral
₹161.18B75.760.85%22.51%-40.67%
64
Neutral
₹48.27B12.760.52%19.70%82.32%
64
Neutral
₹87.06B33.240.07%14.60%-1.12%
56
Neutral
₹44.28B102.670.11%41.95%-3.11%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ESABINDIA
Esab India Limited
5,885.40
851.23
16.91%
IN:GRAPHITE
Graphite India Limited
824.20
296.55
56.20%
IN:HEG
HEG Limited
237.65
50.26
26.82%
IN:HIRECT
Hind Rectifiers Limited
1,244.60
409.87
49.10%
IN:TARIL
Transformers and Rectifiers (India) Limited
288.10
-210.15
-42.18%
IN:VOLTAMP
Voltamp Transformers Limited
11,220.20
4,001.53
55.43%
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: Aug 30, 2026