Electrotherm (India) Limited

Basic Materials — Steel · NSE

₹688.00+₹0.40 (+0.06%)

DalalBaazaar Score

21 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, the company is currently loss-making.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, though profits are falling even as sales grow. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Electrotherm (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

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.

IndustrySteel

SectorBasic Materials

Employees2,824

Annual revenue₹3,688 Cr

How does it make money?

Turns over ₹3,688 Cr a year. Of every ₹100 of sales, about ₹-0 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation. Each of its 2,824 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +20% while net margin moved +10% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+20%

Margin effect+10%

DalalBaazaar Score

21/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

21/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

32.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 46% over 3 years.
Cash generation is improving
Free cash flow is up 182% over 3 years.

🔴 What Needs Attention1

Margins are compressing
EBITDA margin has slipped from 3.4% to 1.6% over 3 years.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.0x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹16 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 10.3x to 0.0x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.53 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 46% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
Margins are being competed away
EBITDA margin has fallen from 3.4% to 1.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 18.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Growth barely outpaces inflation
Revenue compounding at 6.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 0%✓ 1.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 18.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹253 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

4 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹877 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-28.63

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

9.5%

Modest

Modest growth

Profit Growth (YoY)

-75.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹253 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

1.2%

Weak

Thin margins leave little room for error

Net Margin

-1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.53

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

775.3 / 908.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

22.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,064 Cr	₹4,272 Cr	₹4,110 Cr	₹3,688 Cr	+6.4%
EBITDA	₹104 Cr	₹425 Cr	₹443 Cr	₹59 Cr	-17.4%
EBITDA Margin	3.4%	9.9%	10.8%	1.6%	—
PAT (Net Profit)	-₹12 Cr	₹317 Cr	₹442 Cr	-₹16 Cr	—
EPS	₹-9.28	₹249.08	₹347.06	₹-12.29	—
Total Debt	₹1,986 Cr	₹1,770 Cr	₹1,287 Cr	₹1,064 Cr	-18.8%
Free Cash Flow	₹90 Cr	₹283 Cr	₹240 Cr	₹253 Cr	+41.3%

🟢 Revenue has grown at 6.4% a year over 3 years.

🔴 EBITDA has shrunk at 17.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 3.4% to 1.6% over 3 years (-1.8 pts).

🟢 Total Debt has shrunk at 18.8% a year over 3 years.

🟢 Free Cash Flow has grown at 41.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,013 Cr

Total Liabilities

₹2,167 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

₹351 Cr

Capex

-₹98 Cr

Shareholding (proxy)

Institutional Holding

1.3%

Insider Holding

69.7%

Corporate Actions

Ex-Dividend Date

16 Sept 2010

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 mixed4 general

Electrotherm (India) (ELECTHERM) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Electrotherm (India) Share Price Fall: Key Market Update

Univest, 28 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Why Is Electrotherm India Share Price Falling Key Reasons 2026

Univest, 22 JunPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

ED attaches ₹25.08 crore in Electrotherm bank accounts under PMLA

scanx.trade, 26 Sept

Electrotherm (India) Limited Responds to BSE Inquiry on Trading Volume Surge

scanx.trade, 06 Jan

Electrotherm (India) Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Electrotherm (India) Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑