Esab India (ESABINDIA)

FairStock Score: 42/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear Graham’s skeptical glasses and Buffett’s business-quality lens here. Esab India looks like a high-quality industrial compounder: ROE of 60.60% and ROCE of 70.03% are exceptional, and Debt/Equity of 0.01 means it earns those returns without leverage. Sales grew 19.60%, profit grew 37.10%, and the five-year revenue CAGR is 17.23%; the latest quarter showed ₹379 Cr sales and ₹43 Cr net profit. A Piotroski F-Score of 7/9 supports financial strength. Promoter holding of 73.72% aligns controlling owners, and a 1.88% dividend yield is modest but real. That is the kind of economic machine I like. But quality is not the same as price. At ₹6,232, the market cap is ₹9,593 Cr, while book value is only ₹278.94. The P/B of 22.34 means I am paying a huge multiple for net assets, and the P/E of 43.29 gives an earnings yield near 2.3%. PEG is 2.07, so even good growth is already priced in. The FairStock Score of 42/100 confirms a mixed picture. The 52-week range—₹4,710 to ₹7,319.50—shows the stock can swing widely. Graham would demand a larger margin of safety; Buffett might wait for a fair entry price rather than chase a wonderful business. I would watch whether profit growth continues, whether ROCE stays above 60%, whether the dividend yield improves, and whether valuation compresses to a more reasonable PEG. For now: excellent business, expensive stock.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer