Esab India Limited (ESABINDIA) AI Stock Analysis

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Esab India Limited

(NSE:ESABINDIA)

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Rating:81.8Outperform

Price Target:INR 6,032.00▲(16.79% Upside)

Action:reiterated

Date:08/30/26

The overall score is driven primarily by Esab India’s very strong financial profile—consistent growth, high margins, excellent returns on equity, minimal leverage, and solid cash generation—with additional support from a clear price uptrend and healthy, non‑overbought momentum. The rich valuation and modest dividend yield temper the rating, preventing a top‑tier score but still leaving the stock in an attractive range for investors who are comfortable paying a premium for quality and stability.

Positive Factors

Improving profitabilityHigher net and operating margins indicate stronger earnings power and effective conversion of revenue into profit. If maintained, this profitability can support reinvestment, resilience against moderate cost pressure, and more durable returns across the next several quarters.

Negative Factors

Earnings per share declineDeclining earnings per share indicates that profit available per share has weakened despite the company’s broader profitability. If this persists, it could limit per-share compounding, reduce the benefit of revenue growth for investors, and signal pressure on earnings quality or capital efficiency.

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

Market Cap: INR 79.53B
Dividend Yield: 1.36%
Average Volume (3M): 249
Price to Earnings (P/E): 41.5
Beta (1Y): 0.61
Revenue Growth: 12.58%
EPS Growth: -7.85%
Country: India
Employees: 934
Sector: General
Sector Strength: 55
Industry: Electrical Equipment & Parts

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, an...

Esab India Limited Financial Statement Overview

Summary

Financials are a major strength: revenue and net income have grown steadily with healthy mid‑teen profit margins, very high returns on equity, minimal debt, and strong, aligned free cash flow, despite some recent moderation in growth and normal cash‑flow volatility.

Income Statement

88Very Positive

Balance Sheet

92Very Positive

Cash Flow

84Very Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	16.20B	15.08B	13.73B	12.39B	10.91B	8.96B
Gross Profit	5.35B	4.67B	4.23B	3.25B	4.19B	3.23B
EBITDA	2.76B	2.70B	2.52B	2.34B	1.95B	1.25B
Net Income	1.92B	2.07B	1.75B	1.63B	1.36B	843.10M
Balance Sheet
Total Assets	7.60B	6.99B	6.47B	5.51B	4.74B	4.36B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.16B	1.02B	473.40M	499.50M	671.70M
Total Debt	30.60M	33.50M	39.30M	45.70M	40.10M	26.80M
Total Liabilities	2.63B	2.69B	2.86B	2.45B	2.14B	1.92B
Stockholders Equity	4.97B	4.29B	3.61B	3.06B	2.60B	2.44B
Cash Flow
Free Cash Flow	0	1.50B	1.72B	1.13B	954.80M	733.30M
Operating Cash Flow	0	1.82B	2.00B	1.41B	1.29B	845.30M
Investing Cash Flow	0	-469.60M	-159.10M	-549.90M	51.70M	199.60M
Financing Cash Flow	0	-1.42B	-1.57B	-811.20M	-1.22B	-1.02B

Esab India Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price5164.90

Price Trends

50DMA5507.41Negative

100DMA5653.68Negative

200DMA5708.51Negative

Market Momentum

MACD-100.60Negative

RSI41.99Neutral

STOCH27.85Neutral

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 5164.90 is below the 20-day moving average (MA) of 5266.78, below the 50-day MA of 5507.41, and below the 200-day MA of 5708.51, indicating a bearish trend. The MACD of -100.60 indicates Negative momentum. The RSI at 41.99 is Neutral, neither overbought nor oversold. The STOCH value of 27.85 is Neutral, 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

IN:ESABINDIA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:TARIL	83Outperform	INR 94.69B	30.83	―	0.08%	27.23%	21.70%
IN:ESABINDIA	82Outperform	INR 80.11B	41.50	―	1.36%	12.58%	-7.85%
IN:VOLTAMP	76Outperform	INR 98.59B	30.82	―	1.01%	17.84%	-2.60%
IN:HEG	67Neutral	INR 92.54B	13.00	―	0.44%	14.72%	44.27%
IN:GRAPHITE	63Neutral	INR 155.90B	67.22	―	0.88%	22.18%	-3.73%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:HIRECT	53Neutral	INR 31.20B	91.43	―	0.16%	41.95%	-3.11%

* General Sector Average

Performance Comparison

IN:ESABINDIA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ESABINDIA	Esab India Limited	5164.90	-182.81	-3.42%
IN:GRAPHITE	Graphite India Limited	799.75	232.73	41.04%
IN:HEG	HEG Limited	278.05	93.37	50.56%
IN:HIRECT	Hind Rectifiers Limited	892.70	119.99	15.53%
IN:TARIL	Transformers and Rectifiers (India) Limited	315.45	-17.55	-5.27%
IN:VOLTAMP	Voltamp Transformers Limited	9848.55	1403.24	16.62%

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

Esab India Limited AI Stock Analysis