Electrotherm (India) Limited (ELECTHERM) Fair Value & Analysis

Basic Materials · IN · Market cap ₹14.4B

Below-average quality, screening 58% undervalued on our models.

What matters now

• The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
• A fairly wide model range (₹893.30 to ₹2,313) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range ₹52.45 – ₹1,435 · fair‑value band ₹893.30 – ₹2,313 · the ₹1,012 price screens below the ₹1,603 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Electrotherm (India) Limited (ELECTHERM) currently trades at ₹1,012, while our model-based Fair Value estimate is ₹1,603, implying the stock looks roughly 58.4% undervalued today. The Quality Score stands at 40/100 (below-average quality), in the Basic Materials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Electrotherm (India) Limited generated revenue of ₹36.9B at a net margin of -0.4%. Revenue declined 1.8% year over year. Net debt stands at ₹9.7B. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹893.30 (bear case) to ₹2,313 (bull case); at ₹1,012, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 84% above its 52-week low, currently above its 200-day average. For context, the median of 10 Basic Materials peers we cover trades at -25% fair-value upside, at 58%, ELECTHERM screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (₹3,060) versus Multiples (₹508.77). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Electrotherm (India) Limited, an engineering and steel company, provides steel melting solutions worldwide. It operates through Engineering & Technologies, Special Steel, Electric Vehicle, and Others segments. The company designs and manufactures steel plants equipment, foundries, induction heating, and hardening equipment for heat treatment.

Full company description

Electrotherm (India) Limited, an engineering and steel company, provides steel melting solutions worldwide. It operates through Engineering & Technologies, Special Steel, Electric Vehicle, and Others segments. The company designs and manufactures steel plants equipment, foundries, induction heating, and hardening equipment for heat treatment. It also engages in the manufacture of TMT bars and ductile iron pipes, including blast furnaces, sponge iron kilns, induction furnaces, rolling mills, ladle refining furnace, and pipe making facilities. In addition, the company provides solar photovoltaic rooftop and ground-mounted solutions to industrial and commercial sectors. Further, it offers induction furnace, casting machines, transformers, sponge and pig iron, ferrous and non-ferrous billets/bars/ingots, duct iron pipes, transmission line towers, and battery operated vehicles; and services related to steel melting and other capital equipment. The company was founded in 1983 and is headquartered in Ahmedabad, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Electrotherm (India) Limited reported revenue of ₹36.9B in FY2026 versus ₹28.2B in FY2022, a compound +7.0%/yr. Reported net income was −₹157M in FY2026.

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Peer Group

Steel · 381 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Steel median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.