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Buy Esab India; target of Rs 2230: ICICI Direct

ICICI Direct is bullish on Esab India recommended buy rating on the stock with a target price of Rs 2230 in its research report dated January 08, 2021.

January 14, 2021 / 09:03 PM IST
 
 
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ICICI Direct's research report on Esab India


Esab India (Esab) is a leading player in the Indian welding consumables and equipment industry with a market share of over 23% in the domestic structural welding consumable market and ~30% in domestic equipment market. It mainly operates in two segments viz. welding consumables (70%) and welding equipment (30%). Esab’s balance product portfolio, debt free status, strong global brand image and parentage (Colfax Corp) augur well in the long run. However, there could be short-term Covid-19 impact in FY21E.


Outlook


Further, Esab is currently trading at 26.8x P/E on FY23E (vs. forward median P/E band of 28x, up cycle and down cycle average TTM P/E of 35x and 12x, respectively). We value Esab at Rs 2230/share, implying multiple of 33x on FY23E EPS with a BUY rating on the stock.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 11, 2021 06:07 pm

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