ESAB India Limited
ESAB India Limited Fundamental Analysis
ESAB India Limited (ESABINDIA.NS) shows moderate financial fundamentals with a PE ratio of 40.16, profit margin of 14.23%, and ROE of 56.66%. The company generates $14.8B in annual revenue with strong year-over-year growth of 10.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 71.5/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ESABINDIA.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentESABINDIA.NS demonstrates superior asset utilization.
Valuation Score
WeakESABINDIA.NS trades at a premium to fair value.
Growth Score
ModerateESABINDIA.NS shows steady but slowing expansion.
Financial Health Score
ExcellentESABINDIA.NS maintains a strong and stable balance sheet.
Profitability Score
WeakESABINDIA.NS struggles to sustain strong margins.
Key Financial Metrics
Is ESABINDIA.NS Expensive or Cheap?
P/E Ratio
ESABINDIA.NS trades at 40.16 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, ESABINDIA.NS's PEG of 31.92 indicates potential overvaluation.
Price to Book
The market values ESAB India Limited at 20.30 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.71 times EBITDA. This signals the market has high growth expectations.
How Well Does ESABINDIA.NS Make Money?
Net Profit Margin
For every $100 in sales, ESAB India Limited keeps $14.23 as profit after all expenses.
Operating Margin
Core operations generate 17.31 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $56.66 in profit for every $100 of shareholder equity.
ROA
ESAB India Limited generates $33.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ESAB India Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
ESAB India Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
ESABINDIA.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
40.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
31.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
20.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.57
vs 25 benchmark
ROA
Return on assets percentage
0.33
vs 25 benchmark
ROCE
Return on capital employed
0.60
vs 25 benchmark
How ESABINDIA.NS Stacks Against Its Sector Peers
| Metric | ESABINDIA.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 40.16 | 26.71 | Worse (Expensive) |
| ROE | 56.66% | 1311.00% | Weak |
| Net Margin | 14.23% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 10.53 | Strong Liquidity |
| ROA | 33.07% | -1537638.00% (disorted) | Strong |
ESABINDIA.NS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ESAB India Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
98.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
145.72%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
249.29%
Industry Style: Cyclical, Value, Infrastructure
High Growth