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Electrosteel Share Price - Is it worth to Buy

Nitesh

electrosteel share price

Electrosteel Castings Ltd (ELECTCAST), listed on BSE (500128) and NSE (ELECTCAST), is a big name in India’s infrastructure sector, specializing in ductile iron pipes and fittings used for water supply and sewerage systems. If you’ve been searching for Electrosteel share, you might have noticed its impressive stock chart and financial growth, making it a hot topic for investors in 2025. With my experience studying Indian stocks and using data from reliable sources like BSE, NSE, and Screener, I’ll walk you through why Electrosteel share is gaining attention. This guide covers its stock performance, financials, key growth drivers, and whether it’s a good investment for you, all updated with the latest data as of May 2025.

What is Electrosteel Castings Ltd? A Quick Overview

Electrosteel Castings Ltd, founded in 1955, is India’s leading manufacturer of ductile iron pipes and fittings, which are crucial for water supply, sewerage, and industrial projects. The company also produces cast iron pipes and has a strong presence in both domestic and international markets, exporting to over 70 countries. Its manufacturing facilities are in Khardah and Haldia, West Bengal, with a production capacity of over 750,000 metric tonnes per annum as of 2025. Electrosteel benefits from India’s growing infrastructure push, especially under schemes like Jal Jeevan Mission, which aims to provide piped water to every rural household.

Source: Electrosteel Castings Official Website

Electrosteel Share: Stock Chart Analysis

electrosteel share price


Let’s start with the stock chart of Electrosteel share, which tells a fascinating story of its journey from 1994 to 2025. The chart shows monthly candlesticks, tracking the share price over decades.

  • Long Consolidation Phase (1994–2023): For nearly 30 years, Electrosteel share traded in a tight range, mostly between ₹3.10 (low in 1996) and ₹45.00 (support level). This long consolidation means the stock didn’t see big price jumps, reflecting a stable but slow growth phase.
  • Breakout in 2023: In 2023, Electrosteel share broke out of this consolidation, soaring past the ₹45 resistance level. This breakout wasn’t at a support level but after a long buildup, signaling strong buying interest.
  • Price Surge (2023–2025): Post-breakout, the share price skyrocketed, reaching a high of ₹236.60 by May 2025. As of the latest data, it’s trading at ₹106.54, a 10.26% drop on the day, but still significantly higher than its pre-breakout levels.
  • Key Levels: The chart shows a 52-week high of ₹237.80 and a low of ₹80.00, indicating volatility but also strong upward momentum over the past two years.

What This Means: The breakout in 2023 suggests that investors started seeing big potential in Electrosteel share, likely due to its financial growth and market opportunities. However, the recent dip to ₹106.54 shows some profit-taking or market correction, which we’ll explore further.

Source: TradingView Chart

Financial Deep Dive: Profit & Loss Analysis

The profit and loss statement of Electrosteel Castings reveals why Electrosteel share has been on an upward trajectory. Let’s look at the key numbers:

Sales Growth

  • 2020: Sales were ₹2,711 crore.
  • 2025: Sales jumped to ₹7,320 crore, a massive increase of 170% over five years.
  • What Happened Post-2020? After 2020, Electrosteel saw a steady rise in sales, accelerating sharply from 2022 onwards (₹5,281 crore). This jump aligns with India’s infrastructure boom, especially the demand for water supply projects under government schemes like Jal Jeevan Mission.

Net Profit Growth

  • 2020: Net profit was ₹39 crore.
  • 2025: Net profit soared to ₹710 crore, an incredible 1720% growth in five years.
  • Key Trend: The net profit took a hit in 2021 (₹-91 crore) due to pandemic-related disruptions but rebounded strongly from 2022 (₹348 crore) onwards. The 2025 profit of ₹710 crore reflects improved margins and higher sales volumes.

Operating Profit Margin (OPM)

  • 2020: OPM was 14%.
  • 2025: OPM improved to 14.2%, showing better efficiency despite rising costs.

Why the Jump? The sales and profit surge post-2020 is linked to:

  • Increased government spending on water infrastructure.
  • Electrosteel’s expanded production capacity and export growth.
  • Better cost management, boosting profitability.

Source: Screener Financials

Balance Sheet Insights: Growth in Fixed Assets

The balance sheet of Electrosteel Castings shows a clear focus on scaling up operations, especially in plant and machinery.

Fixed Assets (Plant & Machinery)

  • 2020: Plant and machinery assets were ₹1,614.13 crore.
  • 2025: This grew to ₹1,983.33 crore, a 23% increase over five years.
  • Trend: There’s a consistent rise in plant and machinery investments, especially post-2021, with a big jump in 2022 (₹1,228.02 crore) as the company ramped up capacity.

Overall Fixed Assets

  • 2020: Total fixed assets were ₹1,703 crore.
  • 2025: This increased to ₹3,102 crore, an 82% rise, reflecting heavy investments in infrastructure to meet demand.

Debt Management

  • 2025 Debt: ₹2,125 crore, with a debt-to-equity ratio of 0.37, which is manageable for a capital-intensive business like Electrosteel.
  • Reserves: Reserves grew from ₹2,837 crore in 2020 to ₹5,720 crore in 2025, showing financial stability.

What This Means: Electrosteel is investing heavily in its manufacturing capabilities, especially plant and machinery, to handle higher production. This aligns with the sales growth we saw earlier and positions the company for future demand.

Source: Screener

Shareholding Pattern: Who Owns Electrosteel Share?

Understanding who owns Electrosteel share gives insight into its stability and investor confidence.

  • Promoters: As of March 2025, promoters hold 46.22%, up from 44.08% in 2022, showing strong promoter confidence.
  • FIIs (Foreign Institutional Investors): FIIs hold 20.06%, a significant increase from 15.23% in 2022, indicating growing international interest.
  • DIIs (Domestic Institutional Investors): DIIs hold 0.63%, a drop from 2.10% in 2022, suggesting domestic funds have reduced exposure.
  • Pledged Shares: 11.4% of promoter shares are pledged, a slight concern but manageable given the company’s financial health.

What This Means: The rise in FII holding reflects global trust in Electrosteel share, while stable promoter ownership adds confidence for long-term investors.

Source: Screener Shareholding

Key Financial Metrics: Is Electrosteel Share a Good Buy?

Let’s look at the key metrics to understand Electrosteel share better:

  • Market Cap: ₹6,586 crore, making it a midcap stock with growth potential.
  • Current Price: ₹106.54 (as of May 2025).
  • 52-Week Range: ₹80.00–₹237.80, showing volatility but also strong upside.
  • Stock P/E: 9.28, lower than the industry median (around 25), indicating the stock is undervalued.
  • Dividend Yield: 1.31%, decent for a growth stock in the infrastructure sector.
  • ROCE (Return on Capital Employed): 13.2%, reflecting good capital efficiency.
  • ROE (Return on Equity): 13.0%, showing solid returns for shareholders.
  • EPS (Earnings Per Share): ₹11.48, up significantly from ₹3.72 in 2020.

Analysis: The low P/E ratio and high EPS growth suggest Electrosteel share is undervalued compared to peers, offering a good entry point for investors. The dividend yield adds a bonus for income seekers.

Source: Screener Financials

Why Electrosteel Share is Growing: Key Drivers

Several factors are fueling the rise of Electrosteel share:

Infrastructure Boom

  • Government initiatives like Jal Jeevan Mission and Smart Cities Mission are driving demand for ductile iron pipes. Electrosteel, as a market leader, is a direct beneficiary.
  • India’s focus on water supply projects, especially in rural areas, has boosted Electrosteel’s sales.

Export Growth

  • Electrosteel exports to over 70 countries, with Europe, the Middle East, and Africa being key markets. Exports contribute significantly to its revenue, especially post-2020.

Capacity Expansion

  • Investments in plant and machinery (as seen in the balance sheet) have increased production capacity, allowing Electrosteel to meet rising demand.

Financial Stability

  • A manageable debt-to-equity ratio (0.37) and growing reserves (₹5,720 crore) provide a strong foundation for future growth.

Source: Electrosteel Annual Report 2025

How to Become Eligible for Electrosteel Share Dividend?

Electrosteel offers a dividend yield of 1.31%, which is a nice bonus for shareholders. Here’s how to get it:

1.     Buy Shares Before the Ex-Date: Purchase Electrosteel share on BSE (500128) or NSE (ELECTCAST) before the ex-dividend date. For example, the 2024 dividend of ₹1.40 per share had an ex-date of 26-Sep-2024.

2.     Hold Shares on the Record Date: Ensure your shares are in your demat account by the record date (27-Sep-2024 for the 2024 dividend).

3.     Get Paid on the Payout Date: The dividend is credited to your Aadhaar-linked bank account around the payout date (usually within a month).

Example

  • What You Do: Buy 500 shares on 24-Sep-2024 at ₹100 each.
  • Ex-Date: 26-Sep-2024 (you qualify).
  • Record Date: 27-Sep-2024 (you hold the shares).
  • Dividend: ₹1.40 per share.
  • Payout: You get ₹700 (500 × ₹1.40) in your bank by late October 2024.

Source: BSE Announcements

Is Electrosteel Share a Good Investment? (With Analysis)

Let’s break down whether Electrosteel share is worth your money:

Dividend Yield Comparison

  • At 1.31%, Electrosteel’s yield is modest compared to high-yield stocks like Coal India (5%) but competitive for a growth stock in the infrastructure sector.

Price-to-Earnings (P/E) Ratio

  • A P/E of 9.28 is lower than the industry average (around 25), suggesting Electrosteel share is undervalued and could have room to grow.

5-Year Sales and Profit Growth

  • Sales grew 170% from ₹2,711 crore (2020) to ₹7,320 crore (2025).
  • Net profit surged 1720% from ₹39 crore to ₹710 crore, showing strong earnings growth.

Price Stability and Returns

  • The stock’s breakout in 2023 led to a 52-week high of ₹237.80, but it’s now at ₹106.54, offering a potential buying opportunity.
  • The 3-year return is impressive, with the share price rising from around ₹45 to ₹106.54, a 137% gain.

Analyst Views

  • Analysts see Electrosteel as a strong midcap pick due to its low P/E, high EPS growth, and exposure to infrastructure growth. However, the recent price dip suggests short-term volatility, so timing your entry is key.

Verdict: Electrosteel share is a solid pick for long-term investors who believe in India’s infrastructure growth. Its undervaluation and dividend yield make it attractive, but be prepared for some price swings.

Source: Economic Times

How Much Tax Do You Pay on Electrosteel Share Dividends in India? (2025)

Dividends from Electrosteel share are taxable. Here’s how it works:

TDS Rules

  • If your dividends exceed ₹5,000 in a year, 10% TDS is deducted.
  • Example: You earn ₹7,000 in dividends (5,000 shares × ₹1.40). TDS of ₹700 is deducted, so you get ₹6,300.
  • Avoid TDS: Submit Form 15G (general) or Form 15H (senior citizens) if your income is below the taxable limit.

Filing ITR

  • Report dividends under “Income from Other Sources” in ITR-1 or ITR-2.
  • Claim TDS credit using Form 26AS.
  • Example: For ₹7,000 dividend, report ₹7,000 in ITR, claim ₹700 TDS, and pay extra tax if your slab rate is higher than 10%.

Senior Citizen Tips

  • If you’re 60+ and your income is below ₹3 lakh (old regime), use Form 15H to avoid TDS.
  • File ITR-1 (Sahaj) if your income is under ₹50 lakh.

Source: Income Tax Department

Where to Check Electrosteel Share Updates?

Stay updated on Electrosteel share with these sources:

Source: Electrosteel Investor Relations

How to Check Past Dividend Records for Electrosteel Share?

Check Electrosteel share dividend history here:

Source: BSE

Who Should Invest in Electrosteel Share?

Electrosteel share is ideal for:

  • Long-Term Investors: Those betting on India’s infrastructure growth.
  • Dividend Seekers: With a 1.31% yield, it’s a bonus for income-focused investors.
  • Value Investors: The low P/E ratio suggests undervaluation.

Not Ideal For:

  • Short-Term Traders: Recent volatility (₹237.80 high to ₹106.54) may not suit quick trades.
  • High-Risk Growth Seekers: Electrosteel’s steady growth may not match high-growth tech stocks.

Source: Economic Times

Frequently Asked Questions (FAQ)

1.     Does Electrosteel Share pay dividends regularly?
Yes, Electrosteel has been paying dividends consistently, with ₹1.40 per share in 2024.

2.     What’s the dividend yield for Electrosteel Share in 2025?
It’s 1.31% (₹1.40/₹106.54) as of May 2025.

3.     When was the last dividend record date?
The 2024 dividend record date was 27-Sep-2024.

4.     How do I claim dividends if I use Zerodha or Upstox?
Link your bank to your demat account. Dividends are credited automatically on the payout date if you hold shares on the record date.

5.     Are Electrosteel Share dividends taxable?
Yes, dividends above ₹5,000 face 10% TDS. Report them in your ITR under “Income from Other Sources.

Source: BSE, Income Tax Department

Disclaimer

This guide is for educational purposes only and not investment advice. Investing in Electrosteel share involves market risks. Always check company documents and consult a financial advisor before investing. Data is accurate as of May 2025, sourced from BSE, NSE, and other reliable platforms. Past performance doesn’t guarantee future results.

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