Is ISGEC Heavy overvalued or undervalued?

As of February 11, 2025, ISGEC Heavy is considered overvalued with a PE ratio of 34.09 and a valuation grade of attractive, despite outperforming the Sensex recently, especially when compared to peers like Thermax and BEML Ltd, which have much higher PE ratios.

As of 11 February 2025, the valuation grade for ISGEC Heavy has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 34.09, while the EV to EBITDA ratio is 18.02, and the PEG ratio is 3.24, suggesting that the stock may be priced higher than its growth prospects justify.<BR><BR>In comparison to its peers, ISGEC Heavy's PE ratio is significantly lower than that of Thermax, which has a PE of 66.31, and BEML Ltd at 62.34, both of which are categorized as very expensive. Despite the recent stock performance showing a 5.11% return over the past week compared to a 1.42% return on the Sensex, the overall valuation metrics indicate that ISGEC Heavy is overvalued in the current market environment.

how big is ISGEC Heavy?

As of Jun 06, ISGEC Heavy Engineering Ltd has a market capitalization of 9,399.00 Cr, with recent net sales of 6,424.64 Cr and a net profit of 269.30 Cr over the last four quarters. Shareholder's funds are 2,522.56 Cr, and total assets amount to 7,803.00 Cr as of Mar'24.

Market Cap: As of Jun 06, ISGEC Heavy Engineering Ltd has a market capitalization of 9,399.00 Cr, categorizing it as a Mid Cap company.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters, which is consolidated data, amounts to 6,424.64 Cr. The sum of Net Profit for the same period is 269.30 Cr.<BR><BR>Balance Sheet Snapshot: This is consolidated data for the latest annual period ending in Mar'24. Shareholder's Funds are reported at 2,522.56 Cr, while Total Assets stand at 7,803.00 Cr.

What does ISGEC Heavy do?

ISGEC Heavy Engineering Ltd is a heavy engineering company specializing in manufacturing machinery and providing engineering, procurement, and construction services. As of March 2025, it reported net sales of ₹1,744 Cr and a net profit of ₹91 Cr, with a market cap of ₹9,158 Cr.

Overview:<BR>ISGEC Heavy Engineering Ltd is a heavy engineering company that operates in the construction industry, focusing on the manufacturing of machinery and equipment as well as engineering, procurement, and construction services.<BR><BR>History:<BR>Incorporated in 1933, ISGEC Heavy Engineering Ltd has established itself in the heavy engineering sector. The latest quarterly results reported net sales and profit for the period ending March 2025.<BR><BR>Financial Snapshot:<BR>Net Sales: 1,744 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 91 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: Rs 9,158 Cr (Mid Cap)<BR><BR>Key Metrics:<BR>P/E: 35.00 <BR>Industry P/E: 38 <BR>Dividend Yield: 0.32% <BR>Debt Equity: 0.17 <BR>Return on Equity: 10.99% <BR>Price to Book: 3.52 <BR><BR>Contact Details:<BR>Address: Radaur Road, Yamuna Nagar, Haryana: 135001 <BR>Tel: 91-1732-661061/62/307611 <BR>Email: roynr@isgec.com <BR>Website: http://www.isgec.com

Has ISGEC Heavy declared dividend?

ISGEC Heavy Engineering Ltd has declared a 400% dividend, amounting to ₹4 per share, with an ex-date of August 21, 2024. Despite a -15.19% total return over the last 6 months, the company has shown strong performance with total returns exceeding 100% over 2 to 5-year periods.

ISGEC Heavy Engineering Ltd has declared a 400% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 400%<BR>- Amount per share: 4 per share<BR>- Ex-date: 21 Aug 24<BR><BR>Dividend Yield: 0.32%.<BR><BR>Total Returns by Period:<BR>In the 6-month period, the price return was -15.19%, with a dividend return of 0%, resulting in a total return of -15.19%.<BR><BR>For the 1-year period, the price return was 13.19%, the dividend return was 0.35%, leading to a total return of 13.54%.<BR><BR>Over the 2-year period, the price return was 107.97%, with a dividend return of 1.10%, culminating in a total return of 109.07%.<BR><BR>In the 3-year period, the price return stood at 164.13%, the dividend return was 1.95%, giving a total return of 166.08%.<BR><BR>For the 4-year period, the price return was 116.97%, with a dividend return of 1.39%, resulting in a total return of 118.36%.<BR><BR>In the 5-year period, the price return was 417.88%, the dividend return was 5.22%, leading to a total return of 423.1%.<BR><BR>Overall, ISGEC Heavy has declared a significant dividend while also showing positive total returns over longer periods, particularly in the 2 to 5-year ranges, indicating strong performance despite some short-term fluctuations.

Who are the peers of the ISGEC Heavy?

ISGEC Heavy's peers include Larsen & Toubro, Rail Vikas, Altius Telecom, NBCC, and others, with varying management risks and growth rates. In terms of returns, NBCC leads at 24.15% over one year, while ISGEC Heavy has a return of 6.83%.

Peers: The peers of ISGEC Heavy are Larsen & Toubro, Rail Vikas, Altius Telecom, NBCC, IRB Infra.Devl., Powergrid Infra, PNC Infratech, Dilip Buildcon, Welspun Enterp, and H.G. Infra Engg.<BR><BR>Quality Snapshot: Excellent management risk is observed at NBCC, H.G. Infra Engg., and ISGEC Heavy, while Good management risk is found at Larsen & Toubro, PNC Infratech, and the rest. Average management risk is noted for Rail Vikas, IRB Infra.Devl., Powergrid Infra, Dilip Buildcon, Welspun Enterp, and the rest. Growth is Excellent at Altius Telecom and H.G. Infra Engg., Good at NBCC and ISGEC Heavy, Average at Larsen & Toubro and Powergrid Infra, and Below Average at Rail Vikas, IRB Infra.Devl., PNC Infratech, Dilip Buildcon, Welspun Enterp, and the rest. Capital Structure is Excellent at NBCC, Good at ISGEC Heavy and H.G. Infra Engg., Below Average at Altius Telecom, IRB Infra.Devl., PNC Infratech, Dilip Buildcon, Welspun Enterp, and Average at Rail Vikas, Larsen & Toubro, and Powergrid Infra.<BR><BR>Return Snapshot: The peer with the highest 1-year return is NBCC at 24.15%, while the peer with the lowest is PNC Infratech at -48.00%. ISGEC Heavy's 1-year return of 6.83% is higher than that of PNC Infratech but lower than NBCC. Additionally, the peers with negative six-month returns include IRB Infra.Devl., PNC Infratech, and H.G. Infra Engg.

Who are in the management team of ISGEC Heavy?

As of March 2023, the management team of ISGEC Heavy includes Aditya Puri (Managing Director), Ranjit Puri (Chairman), and several non-executive and independent directors, along with whole-time directors and a company secretary, overseeing the company's operations and strategy.

As of March 2023, the management team of ISGEC Heavy includes the following members:<BR><BR>1. Aditya Puri - Managing Director (Remuneration: INR 6.79 crore)<BR>2. Ranjit Puri - Chairman (Non-Executive) (Remuneration: INR 4.55 lakhs)<BR>3. Sidharth Prasad - Non-Executive & Independent Director (Remuneration: INR 4.95 lakhs)<BR>4. Vishal Kirti Keshav Marwaha - Non-Executive & Independent Director (Remuneration: INR 2.65 lakhs)<BR>5. Arvind Sagar - Non-Executive & Independent Director (Remuneration: INR 4.75 lakhs)<BR>6. Kishore Chatnani - Whole Time Director & CFO (Remuneration: INR 1.44 crore)<BR>7. Sanjay Gulati - Whole-time Director (Remuneration: INR 1.02 crore)<BR>8. Rashi Sikka - Independent Director (Remuneration: INR 3.31 lakhs)<BR>9. Sachin Saluja - Company Secretary & Compliance Officer (Remuneration: INR 0)<BR><BR>This team is responsible for overseeing the operations and strategic direction of the company.

Who are the top shareholders of the ISGEC Heavy?

The top shareholders of ISGEC Heavy include The Yamuna Syndicate Ltd with 45.0%, promoters, mutual funds with 9.31%, Foreign Institutional Investors at 3.47%, and Nippon Life India Trustee Ltd holding 5.96%. Individual investors collectively own 16.34% of the company.

The top shareholders of ISGEC Heavy include a mix of promoters and institutional investors. The largest shareholder is The Yamuna Syndicate Ltd, holding 45.0% of the shares. Promoters collectively hold a significant portion, while mutual funds are represented by 13 schemes with a combined holding of 9.31%. Foreign Institutional Investors (FIIs) hold 3.47% through 96 different entities. The highest public shareholder is Nippon Life India Trustee Ltd, which manages the Nippon India Small Cap Fund, holding 5.96%. Additionally, individual investors collectively own 16.34% of the company.

When is the next results date for ISGEC Heavy?

The next results date for ISGEC Heavy is 13 August 2025.

The next results date for ISGEC Heavy is scheduled for 13 August 2025.

Are ISGEC Heavy latest results good or bad?

ISGEC Heavy Engineering's latest results are disappointing, with net sales declining by 12.90% to Rs 1,340.99 crore and a drop in Profit After Tax by 12.1%. Overall, the company's financial health has worsened, indicating ongoing challenges in revenue and profitability.

ISGEC Heavy Engineering's latest financial results for the quarter ending June 2025 are disappointing. The company reported net sales of Rs 1,340.99 crore, which is a significant decline of 12.90% compared to the same quarter last year. This marks the lowest sales figure in the past five quarters, indicating ongoing challenges in revenue generation.<BR><BR>Profit Before Tax (PBT) also fell to Rs 77.93 crore, down 11.05% year-on-year, while Profit After Tax (PAT) decreased to Rs 57.56 crore, reflecting a 12.1% decline. Overall, the company's financial health has deteriorated, as evidenced by a drop in its financial score from 4 to -7 over the last three months.<BR><BR>These results suggest that ISGEC Heavy Engineering is facing significant challenges, with trends pointing towards continued declines in both sales and profitability in the near term.

Is ISGEC Heavy technically bullish or bearish?

As of 27 October 2025, ISGEC Heavy's technical trend has shifted to a bearish stance with moderate strength, indicated by bearish MACD, Bollinger Bands, and moving averages, alongside significant underperformance compared to the Sensex.

As of 27 October 2025, the technical trend for ISGEC Heavy has changed from mildly bearish to bearish. The current stance is bearish with moderate strength. Key indicators driving this include a bearish MACD on the weekly chart, bearish Bollinger Bands on both weekly and monthly time frames, and bearish moving averages on the daily chart. The KST is also bearish on the weekly chart, while Dow Theory indicates a mildly bearish stance on the weekly and monthly charts. The stock has underperformed significantly compared to the Sensex over various periods, further reinforcing the bearish outlook.

How has been the historical performance of ISGEC Heavy?

ISGEC Heavy has shown consistent growth in net sales and profitability, with net sales reaching 6,422.28 Cr in March 2025, up from 6,219.34 Cr in March 2024. Key financial metrics, including operating profit and profit after tax, have significantly improved, although cash flow from operating activities has fluctuated.

Answer:<BR>The historical performance of ISGEC Heavy shows a steady growth in net sales and profitability over the years, with net sales reaching 6,422.28 Cr in March 2025, up from 6,219.34 Cr in March 2024 and 6,399.04 Cr in March 2023. The total operating income also reflects this upward trend, increasing to 6,422.28 Cr in March 2025. Operating profit, excluding other income, improved to 579.40 Cr in March 2025, compared to 498.06 Cr in March 2024, indicating a stronger operational efficiency. Profit before tax rose significantly to 477.41 Cr in March 2025 from 354.04 Cr in the previous year, while profit after tax increased to 355.70 Cr, up from 254.75 Cr. The earnings per share also saw a notable rise, reaching 46.39 in March 2025, compared to 33.15 in March 2024.<BR><BR>Breakdown:<BR>ISGEC Heavy's financial performance has demonstrated consistent growth, particularly in net sales, which increased from 5,499.34 Cr in March 2022 to 6,422.28 Cr in March 2025. This growth is mirrored in total operating income, which also rose significantly during the same period. The company has managed to enhance its operating profit margin, which improved to 9.02% in March 2025, reflecting better cost management and operational efficiency. Profit before tax and profit after tax have both shown substantial increases, indicating a robust bottom line, with profit after tax reaching 355.70 Cr in March 2025. The company's balance sheet reflects a solid asset base of 7,996.21 Cr as of March 2025, with total liabilities at 7,996.21 Cr, suggesting a balanced financial position. However, cash flow from operating activities has seen fluctuations, with a cash flow of 116.00 Cr in March 2025, down from 735.00 Cr in March 2024, indicating potential challenges in cash generation despite the overall profitability.

Should I buy, sell or hold ISGEC Heavy?

Why is ISGEC Heavy falling/rising?

As of 13-Dec, ISGEC Heavy Engineering Ltd's stock price is currently at 813.20, showing a short-term gain of 3.54% over the past week despite a significant year-to-date decline of 43.65%. The stock's recent rise may attract investors due to its undervaluation, but falling investor participation and weak long-term growth prospects suggest caution.

As of 13-Dec, ISGEC Heavy Engineering Ltd's stock price is rising, currently at 813.20, reflecting an increase of 8.95 (1.11%). This upward movement follows a trend reversal after two consecutive days of decline. The stock's performance today is reported to be in line with the sector, indicating a potential recovery phase.<BR><BR>Despite a significant year-to-date decline of 43.65% and a one-year drop of 47.94%, the stock has shown a positive return of 3.54% over the past week, contrasting with a slight decline in the Sensex of 0.52%. This short-term gain may be attributed to the stock trading at a discount compared to its peers' average historical valuations, which could attract investors looking for undervalued opportunities.<BR><BR>However, it is important to note that the stock has been experiencing falling investor participation, with a delivery volume decrease of 63.88% against the 5-day average. Additionally, the stock's moving averages indicate that while it is higher than the 5-day moving average, it remains lower than the 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that the overall trend may still be weak.<BR><BR>The company's financial metrics, such as a low debt-to-equity ratio of 0.31 and a return on capital employed (ROCE) of 12.2, indicate a relatively stable financial position. However, the long-term growth prospects appear poor, with net sales growing at an annual rate of only 2.22% over the last five years and a significant decline in profits by 15% over the past year. These factors contribute to a complex picture of the stock's performance, where short-term gains may not necessarily reflect a sustainable upward trend.

Which are the latest news on ISGEC Heavy?