This small-cap company from electrodes and welding equipment space delivered 160% returns in the last two years! 

This small-cap company from electrodes and welding equipment space delivered 160% returns in the last two years!

Stock Recommendations
by 5paisa Research Team Last Updated: 2022-10-31T15:12:49+05:30

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.6 lakh today.

Esab India Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last two years. During this period, the company’s share price jumped from Rs 1311.30 on 30 October 2020 to Rs 3409.40 on 28 October 2022, an increase of 160% in the two-year holding period. Meanwhile, the S&P BSE SmallCap index, of which the company is a part, surged by 92.6%, going from the level of 14,888.08 on 30 October 2020 to Rs 28,688.57 on 28 October 2022. 

An investment of Rs 1 lakh in the shares of this company two years ago would have turned to Rs 2.6 lakh today.

ESAB India Ltd has a wide and comprehensive range of welding, cutting and allied products and services. The product range covers Welding Consumables, Reclamation Consumables, Arc Equipment, Industrial Gas Equipment, Cutting Machines and Working Environment Products for specialised welding, cutting and allied needs. 

In the recent quarter Q1FY23, the company’s net revenue increased by 34.38% YoY to Rs 243.3 crore. Similarly, the bottom line increased by 25.80% YoY to Rs 25.60 crore.

The company is currently trading at a TTM PE of 58.60x against the industry PE of 16.03x. In FY22, the company delivered an ROE & ROCE of 33.4% and 45.3% respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 5,219 crore.

Today, the scrip opened at Rs 3330.50 and touched an intra-day high of Rs 3415.20. So far 149 shares have been traded on the bourses.  

At 12.29 pm, the shares of Esab India Ltd were trading at Rs 3381, a decrease of 0.83% from the previous closing price of Rs 3409.40 on BSE. The stock has a 52-week high & low of Rs 4,160.35 and Rs 2,269.65, respectively on BSE.

 

 

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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