ESAB India Ltd. is a prominent player in India's welding and cutting solutions market, serving as a subsidiary of the global ESAB Group, ultimately owned by Colfax Corporation of the USA. Incorporated in 1988 and headquartered in Pune, Maharashtra, the company is a key supplier of fabrication technology. ESAB India has solidified its position as a dominant force, catering to diverse industries including shipbuilding, petrochemicals, construction, and transportation.
The company's core business involves the manufacturing and supply of a comprehensive range of welding and cutting solutions. This includes welding automation, welding consumables, welding equipment, welding safety products, cutting systems, and metal fabrication solutions, demonstrating a commitment to providing end-to-end support for fabrication technology needs.
ESAB India's extensive product range encompasses welding consumables, arc welding equipment, plasma cutting systems, cutting automation, gas equipment, welding automation and robotics, digital solutions, and Personal Protective Equipment (PPE) and accessories.
Within its arc welding equipment offerings, the company provides:
- Engine Driven Welders
- MIG Welders (GMAW)
- Multi-Process Welders
- Software solutions
- STICK Welders (SMAW)
- TIG Welders (GTAW)
- Weld Data Monitoring systems
- Wire Feeders
The PPE product line includes:
- Helmets and head protection
- Gloves
- Protective clothing
- Eye protection
- Various accessories
ESAB INDIA LIMITED is actively involved in the business of welding consumables, such as welding electrodes, copper-coated wires, flux-cored wires, and welding fluxes. Complementing this is its range of welding and cutting equipment, including welding machines and cutting equipment. This diversified portfolio ensures the company can effectively serve a wide spectrum of industrial segments.
- Market Capitalization: ₹7,955.88 Cr (As of recent trading sessions)
- Market Cap 1-Year Change: Down -12.6%
- Revenue (FY24): ₹1,373 Cr
- Profit (FY24): ₹175 Cr
- Annual Revenue Growth: 11% (Good)
- Pre-tax Margin: 17% (Great)
- ROE (FY24): 48% (Exceptional)
- Stock P/E: 46.9
- Book Value: ₹235
- Dividend Yield: 2.08%
- ROCE: 70.3%
- ROE: 52.6%
- Sales: ₹337.49 crore (up 11.96% YoY)
- Net Profit: ₹40.38 crore (up 6.40% YoY)
- Sales: ₹338.65 crore (up 11.88% YoY)
- Net Profit: ₹43.16 crore (up 12.37% YoY)
- Sales: ₹329.61 crore (up 10.51% YoY)
- Net Profit: ₹44.45 crore (up 4.88% YoY)
- Net Sales: ₹367.72 crore (up 7.86% YoY)
- Net Profit: ₹47.43 crore
- EBITDA: ₹67.80 crore
- EPS: ₹30.82
The company has demonstrated a strong track record of profit growth, achieving a Compound Annual Growth Rate (CAGR) of 19.8% over the last 5 years. Over the same period, ESAB INDIA's net profit has grown at an even more impressive CAGR of 22.9%. This consistent growth trajectory highlights its robust market position and operational efficiency.
In terms of revenue, ESAB India has outperformed its industry peers, with revenue growing at a yearly rate of 12.67% over the last 5 years, compared to the industry average of 11.18%.
A comprehensive analysis of the FY24 annual report reveals:
- Operating Income: Increased by 14.0% year-on-year (YoY).
- Operating Profit: Grew by 21.9% YoY.
- Net Profit: Increased by 20.1% YoY.
- Net Profit Margins: Improved from 12.3% in FY23 to 12.9% in FY24.
ESAB India operates with an almost debt-free capital structure. The Debt to Equity ratio for FY24 stood at 0.0, unchanged from FY23. This strong balance sheet positions the company well to report stable earnings growth across various business cycles.
- Promoter Holding: 73.72% (As of March 2025). Promoter holding has remained stable from June 2024 to March 2025, indicating consistent promoter confidence in the company's prospects.
The company has a history of rewarding its shareholders.
- The Board of Directors recommended a Second Interim dividend of ₹23 per equity Share on February 10, 2025.
- An Interim dividend of ₹25 per equity Share was recommended on November 8, 2024.
- ESAB India has been maintaining a healthy dividend payout ratio of 68.8%.
- 52-Week High: ₹6999
- 52-Week Low: ₹4133.05
- Last 6 Months Performance: Declined by 18.55% (Indicating recent market volatility)
- Last 1 Month Performance: Moved up by 8.74% on BSE.
- Last 3 Months Performance: Moved up by 19.19% on BSE (Showing recent recovery).
ESAB India presents a compelling investment case, underpinned by strong fundamentals, exceptional return ratios, and consistent growth patterns. The company boasts a strong 3-Year ROE of 54.2%. Its debt-free status and robust cash flow generation capabilities make it an attractive proposition for long-term investors.
As a market leader in the welding and cutting solutions sector, coupled with a diversified product portfolio and solid financial metrics, ESAB India is well-positioned for sustained growth within the expanding Indian industrial landscape.
