ISGEC Heavy Engineering Ltd. (ISGEC) AI Stock Analysis

ISGEC Heavy Engineering Ltd.

(NSE:ISGEC)

Select Model

Rating:70Outperform

Price Target:INR 938.00▲(0.99% Upside)

Action:upgraded

Date:09/22/26

The stock’s overall score of 70 is driven mainly by a solid financial foundation with moderate leverage and recently strong cash generation, tempered by weaker current profitability and reduced returns on equity. Technical indicators add a positive but measured contribution, reflecting near‑term upward bias without clear long‑term strength, while a relatively rich valuation, with a high P/E and low dividend yield, modestly constrains the upside.

Positive Factors

Revenue GrowthRevenue growth improved into 2026 after an uneven period, indicating stronger business activity across ISGEC’s engineered equipment and project operations. Continued top-line expansion can support order execution, scale benefits, and reinvestment in the company’s industrial capabilities over coming quarters.

Negative Factors

Margin CompressionThe sharp decline in net margin indicates that revenue growth is currently converting into substantially less profit, pointing to weaker cost control or an unfavorable price and project mix. Persistently thin margins would reduce earnings resilience and leave less room to absorb execution or input-cost pressure.

ISGEC Heavy Engineering Ltd. (ISGEC) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 65.42B
Dividend Yield: 0.64%
Average Volume (3M): 6,228
Price to Earnings (P/E): 34.9
Beta (1Y): 1.12
Revenue Growth: 19.79%
EPS Growth: -16.99%
Country: India
Employees: 3,443
Sector: General
Sector Strength: 55
Industry: Engineering & Construction

ISGEC Heavy Engineering Ltd. Business Overview & Revenue Model

Company Description

Isgec Heavy Engineering Limited provides engineering solutions worldwide. It operates in two segments, Manufacturing of Machinery & Equipment; and Industrial Projects. The company provides process plant equipment, including reactors, high pressure ve...

How the Company Makes Money

ISGEC primarily makes money by selling engineered-to-order industrial equipment and by executing projects for industrial customers, with revenue generally recognized against contracts as equipment is delivered and/or project milestones are achieved (...

ISGEC Heavy Engineering Ltd. Financial Statement Overview

Summary

Financials show resumed revenue growth, a conservatively leveraged balance sheet, and much stronger recent operating and free cash flow, but margins and ROE have weakened in the latest year, keeping overall financial quality in the moderate range.

Income Statement

68Positive

Balance Sheet

74Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	74.58B	67.89B	64.22B	61.67B	63.49B	54.99B
Gross Profit	21.37B	14.55B	13.59B	8.04B	8.34B	14.81B
EBITDA	7.19B	6.71B	6.19B	5.20B	4.63B	3.25B
Net Income	1.96B	1.09B	2.49B	2.44B	1.96B	1.09B
Balance Sheet
Total Assets	0	80.77B	80.41B	78.35B	70.75B	67.60B
Cash, Cash Equivalents and Short-Term Investments	4.42B	4.42B	2.30B	1.76B	1.99B	2.30B
Total Debt	0	9.51B	8.61B	8.14B	12.35B	12.33B
Total Liabilities	-28.88B	51.89B	51.93B	52.17B	46.83B	45.58B
Stockholders Equity	28.88B	27.37B	27.39B	25.15B	23.04B	21.21B
Cash Flow
Free Cash Flow	3.77B	5.97B	-2.21B	4.90B	498.49M	-1.36B
Operating Cash Flow	4.50B	7.65B	193.30M	7.35B	2.08B	-702.99M
Investing Cash Flow	-815.90M	-1.31B	-3.09B	-2.32B	-584.42M	-1.41B
Financing Cash Flow	-3.29B	-3.41B	2.10B	-4.87B	-977.64M	1.76B

ISGEC Heavy Engineering Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price928.85

Price Trends

50DMA844.29Positive

100DMA854.43Positive

200DMA884.74Positive

Market Momentum

MACD16.96Positive

RSI62.87Neutral

STOCH89.71Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ISGEC, the sentiment is Positive. The current price of 928.85 is above the 20-day moving average (MA) of 905.53, above the 50-day MA of 844.29, and above the 200-day MA of 884.74, indicating a bullish trend. The MACD of 16.96 indicates Positive momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 89.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ISGEC.

ISGEC Heavy Engineering Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ISGEC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KIRLOSBROS	76Outperform	INR 127.28B	37.85	―	0.39%	10.85%	-4.06%
IN:BHEL	71Outperform	INR 1.35T	47.76	―	0.48%	29.08%	415.38%
IN:ISGEC	70Outperform	INR 67.61B	34.85	―	0.64%	19.79%	-16.99%
IN:TRITURBINE	60Neutral	INR 149.45B	46.74	―	0.86%	17.70%	-1.58%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SIEMENS	53Neutral	INR 1.17T	37.01	―	0.53%	-12.45%	12.44%
IN:THERMAX	52Neutral	INR 370.83B	59.87	―	0.64%	4.68%	-11.57%

* General Sector Average

Performance Comparison

IN:ISGEC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ISGEC	ISGEC Heavy Engineering Ltd.	932.45	57.69	6.59%
IN:BHEL	Bharat Heavy Electricals Limited	394.50	128.16	48.12%
IN:KIRLOSBROS	Kirloskar Brothers Ltd.	1787.50	-66.44	-3.58%
IN:SIEMENS	Siemens Limited	3394.00	291.54	9.40%
IN:THERMAX	Thermax Limited.	3135.25	-110.88	-3.42%
IN:TRITURBINE	Triveni Turbine Limited	492.45	-38.46	-7.24%

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 22, 2026

ISGEC Heavy Engineering Ltd. AI Stock Analysis