Key Events This Week
Feb 9: Stock opens at Rs.5,639.45, down 1.07% amid broader Sensex gains
Feb 10: Price rebounds sharply by 2.10% to Rs.5,757.90 following positive market sentiment
Feb 11: Quarterly results reveal flat financial trend despite record profits; stock drops 2.36%
Feb 12: Minor decline of 0.08% as market digests mixed signals
Feb 13: Stock closes the week at Rs.5,529.30, down 1.57% on weak market conditions
Monday, 9 February 2026: Weak Start Amid Sensex Rally
Esab India Ltd opened the week at Rs.5,639.45, registering a decline of 1.07% despite the Sensex rising 1.04% to 37,113.23. The stock’s volume was relatively low at 113, indicating subdued investor interest. This initial weakness contrasted with the broader market optimism, setting a cautious tone for the week ahead.
Tuesday, 10 February 2026: Strong Recovery on Positive Market Sentiment
The stock rebounded sharply by 2.10% to close at Rs.5,757.90, supported by a Sensex gain of 0.25%. Volume more than doubled to 243, reflecting renewed buying interest. This recovery suggested that investors were optimistic about the company’s near-term prospects, possibly anticipating the upcoming quarterly results.
Wednesday, 11 February 2026: Quarterly Results Reveal Mixed Financial Signals
Esab India Ltd released its December 2025 quarterly results, reporting record highs in profitability but a flat overall financial trend. The company posted its highest ever PBDIT at ₹75.71 crores and a PAT increase of 31.5% to ₹53.09 crores. Operating profit margin expanded to 19.99%, and Profit Before Tax (excluding other income) reached ₹70.76 crores.
However, key efficiency metrics deteriorated. Return on Capital Employed (ROCE) dropped to 58.24%, the lowest in recent periods, while the Debtors Turnover Ratio fell to 5.55 times, signalling slower collections and potential working capital stress. These factors contributed to a downgrade in the company’s Mojo Grade to Hold with a score of 65.0.
Following the results, the stock declined 2.36% to Rs.5,622.10 on a volume of 231, underperforming the Sensex which gained 0.13%. The price action reflected investor caution amid the mixed financial outlook despite strong earnings growth.
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Thursday, 12 February 2026: Minor Decline as Market Digests Results
The stock edged down marginally by 0.08% to Rs.5,617.40 on increased volume of 256 shares. The Sensex declined 0.56% to 37,049.40, reflecting a broader market pullback. Esab India’s price movement was subdued, indicating investors were still assessing the implications of the quarterly results and the company’s operational challenges.
Friday, 13 February 2026: Week Ends on a Weak Note
Esab India closed the week at Rs.5,529.30, down 1.57% on low volume of 70 shares. The Sensex fell 1.40% to 36,532.48, pressured by broader market weakness. The stock’s weekly decline of 3.01% contrasted with the Sensex’s smaller 0.54% drop, highlighting relative underperformance amid mixed investor sentiment.
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Weekly Price Performance: Esab India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.5,639.45 | -1.07% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.5,757.90 | +2.10% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.5,622.10 | -2.36% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.5,617.40 | -0.08% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.5,529.30 | -1.57% | 36,532.48 | -1.40% |
Key Takeaways
Esab India Ltd’s week was characterised by a notable disconnect between strong profitability and emerging operational challenges. The company’s record quarterly earnings and margin expansion demonstrate robust core business performance and effective cost management. However, the decline in ROCE to 58.24% and slower debtor turnover ratio of 5.55 times raise concerns about capital utilisation and working capital efficiency.
The stock’s 3.01% weekly decline, in contrast to the Sensex’s 0.54% fall, reflects investor caution amid these mixed signals. The downgrade to a Hold rating and a Mojo Score of 65.0 further underline the market’s tempered outlook. While Esab India has delivered impressive long-term returns, recent underperformance and efficiency deterioration suggest a need for close monitoring of upcoming quarters.
Volume trends indicate fluctuating investor interest, with a peak midweek around the results release followed by subdued activity towards week-end. The stock remains below its 52-week high of Rs.6,423.95, indicating room for recovery if operational metrics improve.
Conclusion
Esab India Ltd’s week encapsulated a transitional phase where record profit milestones were tempered by signs of operational strain. The company’s ability to sustain margin leadership while improving capital efficiency and debtor management will be critical to restoring positive momentum. For now, the Hold rating and cautious market response suggest investors should remain vigilant and evaluate future quarterly updates carefully before adjusting exposure.
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