1. At a Glance
India’s No.1 welding and cutting products manufacturer, Esab India, isn’t just sparking flames in factories — it’s firing up 70% ROCE and printing ₹175 Cr net profit on auto-mode. With global tech backing, zero debt, and a dividend payout policy that would make PSU banks blush, is this industrial OG the smallcap that acts like a largecap?
2. Introduction with Hook
If Warren Buffett was a welder, he’d probably invest in Esab India.
This isn’t your usual smokestack slowpoke. Esab is lean, debt-free, dividend-happy, and growing faster than you’d expect from a company that sells electrode sticks and robotic plasma cutters.
- ROCE: 70%
- FY25 Net Profit: ₹175 Cr
- Operating Margins: 18%
- Dividend Yield: 1.24%, Payout Ratio: 68.8%
This isn’t “growth at reasonable price.” This is “growth at industrial-grade precision.”
3. Business Model (WTF Do They Even Do?)
Esab is the Tata Steel of welding gear — a full-stack welding & cutting solutions company.
Core Offerings:
- Welding Consumables (sticks, wires, fluxes)
- Arc Welding Machines
- Plasma & Oxy-Fuel Cutting
- Welding Automation & Robotics
- Gas Equipment, PPE, and Software
Customer Base:
Steel, shipbuilding, oil & gas, railways, defense, infra — anyone who wants to permanently fuse metal and make it look sexy.
Moat:
- Backed by ESAB Global (now under Enovis/Colfax)
- Deep
