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ESAB India Limited (ESABINDIA) Fair Value & Analysis

Industrials · IN · Market cap ₹88.8B

EI ESAB India Limited ESABINDIA · NSE
Price₹6,023
Fair Value₹2,166
Upside-64.0%
Quality73/100
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Healthy Growth
Solidly profitable · 13.7% net margin
Low debt · generates free cash flow
1.30% dividend yield
Mixed vs. peers (8/14)
Wide moat 80/100
Evidence: High Range ₹1,288 – ₹2,895 Share as image

Fair value as of: Aug 2, 2026

From 26 valuation models · updated 11 days ago

Fair value updated Aug 2, 2026, revised from ₹2,325 to ₹2,166 (−6.8%) since Jun 29, 2026. Share price +5.9% over the past month.

A solid business, but screening 64% overvalued on our models.

What matters now

  • A high-quality business (quality 73/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (₹2,895). The favourable scenario is already priced in.
  • A fairly wide model range (₹1,288 to ₹2,895) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

₹7,151 ₹1,621 Fair Value ₹2,166 Apr 2021 Aug 2026

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 ₹1,621 – ₹7,151 · fair‑value band ₹1,288 – ₹2,895 · the ₹6,023 price screens above the ₹2,166 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

ESAB India Limited (ESABINDIA) currently trades at ₹6,023, while our model-based Fair Value estimate is ₹2,166, implying the stock looks roughly 64.0% overvalued today. The Quality Score stands at 73/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, ESAB India Limited generated revenue of ₹15.1B at a net margin of 13.7%. Revenue grew 7.6% year over year. It earns a return on equity of 52.3%. The balance sheet holds a net cash position of ₹714M. Fundamentals as of Aug 2, 2026

Our scenario range runs from ₹1,288 (bear case) to ₹2,895 (bull case); at ₹6,023, the current price sits above 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 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -37% fair-value upside, at -64%, ESABINDIA screens richer 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.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF ₹1,263 ₹2,114 ₹3,522 80
Residual Income ₹852.91 ₹1,064 ₹6,498 76
Rev-Margin DCF ₹1,259 ₹2,132 ₹3,228 74
All 26 models by family
DCF Models
FCF DCF ₹1,265 ₹2,170 ₹3,695 38
Owner Earnings ₹1,608 ₹2,768 ₹4,723 31
5Y Revenue Exit ₹1,259 ₹2,151 ₹3,347 39
5Y EBITDA Exit ₹1,497 ₹2,629 ₹4,030 41
5Y P/E Exit ₹1,746 ₹3,132 ₹4,692 38
10Y Revenue Exit ₹1,209 ₹2,050 ₹3,304 36
10Y EBITDA Exit ₹1,407 ₹2,396 ₹3,862 37
10Y P/E Exit ₹1,570 ₹2,759 ₹4,404 35
Earnings-Based
Graham-Dodd ₹913.07 ₹3,889 ₹5,311 54
Lynch FV ₹992.56 ₹1,418 ₹1,843 50
PEG = 1.0 ₹992.56 ₹1,418 ₹1,843 46
EPV ₹1,195 ₹1,387 ₹1,554 59
Dividend Discount
Gordon GGM ₹844.75 ₹1,756 ₹2,786 70
DDM Multi-Stage ₹844.75 ₹1,481 ₹1,843 61
Multiples
P/E Multiple ₹2,115 ₹2,820 ₹3,525 63
P/S Multiple ₹1,470 ₹1,960 ₹2,449 58
P/B Multiple ₹941.44 ₹1,255 ₹1,569 55
EV/EBIT ₹2,142 ₹2,840 ₹3,537 53
EV/EBITDA ₹1,757 ₹2,327 ₹2,896 54
EV/Revenue ₹1,282 ₹1,811 ₹2,340 43
Asset-Based
NCAV (Graham) ₹139.47 ₹186.89 ₹278.94 50
Growth DCF
Growth DCF ₹1,263 ₹2,114 ₹3,522 80
Rev-Margin DCF ₹1,259 ₹2,132 ₹3,228 74
Economic Profit
Residual Income ₹852.91 ₹1,064 ₹6,498 76
ROIC Compounder ₹1,286 ₹1,605 ₹1,967 72
Growth Earnings
Growth-Adj P/E ₹1,671 ₹2,387 ₹3,103 68

Widest divergence: DCF Models (₹2,396) versus Asset-Based (₹186.89). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) ₹15.1B
Revenue growth (YoY) +7.6%
Net margin 13.7%
Return on equity 52.3%
Free cash flow ₹1.5B FY2026
P/E ratio 43.0
More key figures
Operating margin 14.7%
EPS (TTM) ₹134.21
Dividend yield 1.3%
EPS growth (YoY) -8.2%
Net cash ₹714M FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 73/100

Of which business quality 71 · Market factors (momentum, volatility) 56

Profitability 92
Margins and returns on capital today
Quality Growth 58
Are margins and returns improving?
Cashflow 51
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 47
Disciplined investing over empire-building
Low Volatility 83
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

ESAB India Limited manufactures and sells welding and cutting equipment and consumables in India and internationally. The company offers gas equipment, such as cutting machines, H/VAC and plumbing, outfits, regulators, safety accessories, torches, and wear parts; arc gouging and exothermic cutting; manual plasma cutting products; filler metals, including …

Full company description

ESAB India Limited manufactures and sells welding and cutting equipment and consumables in India and internationally. The company offers gas equipment, such as cutting machines, H/VAC and plumbing, outfits, regulators, safety accessories, torches, and wear parts; arc gouging and exothermic cutting; manual plasma cutting products; filler metals, including aluminum, copper, hard facing, low alloy, mild steel, nickel, stainless steel, and other; cutting automation products comprising controls, cutting machines, gas cutting torches, plasma systems, process tools, and software; general supplies; plasma and welding equipment accessories; PPE products and accessories consisting of helmets and head protection products, gloves, clothes, eye protection products, and accessories; cobots; robotic feeders, power sources, torch cleaning stations, and torches, as well as weld data monitoring and software; standard, and air and water cooled torches; welders and wire feeders; power supplies; welding tractors; and digital solutions. It also provides engineering, support, and consulting services. The company sells its products under the AlcoTec, AMI, Arcair, Cigweld, Conarco, Condor, Exaton, Ewac, Firepower, Gasarc, GCE, InduSuite, Losarc, Octopuz, Soldexa, Stoody, Swift-Cut, TBi Industries, Thermal Dynamics, Thermal Dynamics Automation, Turbotorch, Tweco, Victor, and Westarco brands. It serves nuclear welding, wind energy, petrochemical, pipeline, LNG, repair and maintenance, mobile machinery, and shipbuilding solutions industries. The company was incorporated in 1987 and is headquartered in Chennai, India.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

ESAB India Limited reported revenue of ₹15.1B in FY2026 versus ₹9.0B in FY2022, a compound +13.9%/yr. Reported net income was ₹2.1B in FY2026, compounding +25.1%/yr from FY2022.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹15.1B
Latest YoY
+9.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.4%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.3%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.5%
Revenue +13.9%/yr
FY22 ₹9.0B
FY23 ₹10.9B
FY24 ₹12.4B
FY25 ₹13.7B
FY26 ₹15.1B
Net income +25.1%/yr
FY22 ₹843M
FY23 ₹1.4B
FY24 ₹1.6B
FY25 ₹1.8B
FY26 ₹2.1B
Character of growth · EPS growth decomposed (2015-2026) +25.7 % p.a.
Revenue per share +13.1 pp

of which total revenue +13.1 pp · buybacks/dilution +0.0 pp

EBIT margin +9.2 pp
Tax rate +0.3 pp
Residual (interest, one-offs) +3.2 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

ESABINDIA screens 64% overvalued. Compare with Techtronic Industries Company →

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Cite: Fair Value Calculator (2026). "ESAB India Limited Fair Value". https://www.fairvalue-calculator.com/stock/ESABINDIA

Peer Group

Tools & Accessories · 123 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.

Quality Score 73 · Top 25%
Fair Value upside −64% · Bottom 25%
Return on equity (TTM) 52% · Top 25%
Return on assets 23% · Top 25%
Net margin (TTM) 14% · Top 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 8% · Above median
Dividend yield (TTM) 1.3% · Below median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Tools & Accessories median · lower = cheaper

P/E (TTM) 43.0× · Pricier than 75% of peers
P/B 20.69× · Pricier than 75% of peers
P/S (TTM) 5.89× · Pricier than 75% of peers
P/FCF 0.6× · Cheaper than median
EV/EBITDA 32.6× · Pricier than 75% of peers

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.

VALUE 0 · sector 3
FUTURE 38 · sector 14
PAST 100 · sector 29
HEALTH 100 · sector 97
DIVIDEND 26 · sector 35

VALUE 0: the price sits above our fair-value range.

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Tools & Accessories stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

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The Timken Company TKR $139.47 $66.33 -52%
The Toro Company TTC $94.42 $69.71 -26%
Hangzhou Greatstar Industrial Co 002444 ¥29.33 ¥35.72 +22%
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Frequently asked questions

Is ESAB India Limited (ESABINDIA) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of ₹2,166 versus a price of ₹6,023, about −64% (overvalued).
What is the fair value of ESABINDIA?
Our model-based fair value for ESAB India Limited is ₹2,166 (as of Aug 2, 2026), built from audited fundamentals. The current price is ₹6,023.
What is the quality score of ESABINDIA?
ESAB India Limited has a Quality Score of 73/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of ESAB India Limited (ESABINDIA)?
ESAB India Limited reported trailing-twelve-month revenue of about ₹15.1B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of ESABINDIA?
The net profit margin of ESAB India Limited is about 13.7%, meaning it keeps roughly 13.7% of revenue as net income. Based on the latest reported figures.
Does ESAB India Limited pay a dividend?
ESAB India Limited currently shows a dividend yield of about 1.30% relative to its recent price (as of Aug 2, 2026).

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.

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