Why is Esab India Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 42.90%
- Healthy long term growth as Operating profit has grown by an annual rate 31.28%
- The company is Net-Debt Free
2
Majority shareholders : Promoters
3
Market Beating performance in long term as well as near term
- Along with generating 54.24% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you buy?
- Overall Portfolio exposure to Esab India should be less than 10%
- Overall Portfolio exposure to Other Industrial Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Industrial Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Esab India for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
Esab India
54.24%
1.80
30.11%
Sensex
-3.33%
-0.25
13.43%
Quality key factors
Factor
Value
Sales Growth (5y)
17.92%
EBIT Growth (5y)
31.28%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.17
Sales to Capital Employed (avg)
3.33
Tax Ratio
23.94%
Dividend Payout Ratio
81.21%
Pledged Shares
0
Institutional Holding
14.45%
ROCE (avg)
70.65%
ROE (avg)
42.90%
Valuation Key Factors 
Factor
Value
P/E Ratio
56
Industry P/E
38
Price to Book Value
26.60
EV to EBIT
42.97
EV to EBITDA
40.37
EV to Capital Employed
31.73
EV to Sales
7.44
PEG Ratio
4.02
Dividend Yield
1.28%
ROCE (Latest)
68.07%
ROE (Latest)
47.14%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
8What is working for the Company
PBDIT(Q)
Highest at Rs 75.71 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 19.99%
PBT LESS OI(Q)
Highest at Rs 70.76 cr.
PAT(Q)
At Rs 53.09 cr has Grown at 31.5%
-3What is not working for the Company
ROCE(HY)
Lowest at 58.24%
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.55 times
Loading Valuation Snapshot...
Here's what is working for Esab India
Operating Profit (PBDIT) - Quarterly
Highest at Rs 75.71 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 19.99%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 70.76 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 70.76 cr has Grown at 38.04%
Year on Year (YoY)MOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 53.09 cr has Grown at 31.5%
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for Esab India
Debtors Turnover Ratio- Half Yearly
Lowest at 5.55 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






