Share Market Analysis of Non Electrical Equipment Companies

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Capital Goods (Non-Electrical) refers to companies that manufacture and supply machinery, tools, equipment, and other physical assets used in industries like construction, engineering, manufacturing, mining, and infrastructure development. These companies do not primarily deal in electrical equipment, focusing instead on non-electrical products.

Examples of Non-Electrical Capital Goods Companies :

Cummins India: Specializes in engines, generators, and related industrial products.
Thermax: Provides energy and environment solutions, including boilers and cooling systems.
Carborundum Universal: Produces abrasives, ceramics, and industrial materials.
Grindwell Norton: Known for abrasives and industrial grinding solutions.
Elgi Equipments: Manufactures air compressors and industrial equipment.
Kirloskar Brothers: Focuses on fluid management systems, including pumps.
Action Construction Equipment: Engaged in the manufacturing of construction and material handling equipment.
KSB: Specializes in pumps and valves for various industries.
Ingersoll-Rand: Produces industrial tools, compressors, and material handling equipment.
Elecon Engineering: Known for material handling equipment and industrial gears.

Key Characteristics of Non-Electrical Capital Goods Companies:

Products: Includes machinery like pumps, compressors, boilers, gears, and construction equipment.
Customers: Typically serve industries like infrastructure, oil & gas, manufacturing, and construction.
Market Drivers: Growth in industrial output, infrastructure spending, and government initiatives like “Make in India” or global manufacturing expansions.
Key Metrics to Watch:
- ROCE: Measures operational efficiency.
- Order Book Growth: Indicates demand for their products.
- Debt-to-Equity Ratio: Highlights financial health since capital goods are asset-heavy businesses.

Here’s a table for Capital Goods-Non Electrical Equipment companies data ROE, ROA, EPS, Debt/Equity, and ROCE for easier reference :

S.No.	Name	ROE (%)	ROA (%)	EPS (₹)	Debt/Equity	ROCE (%)
1	Cummins India	28.11	20.25	68.07	0.00	35.23
2	Thermax	14.15	6.20	62.23	0.32	16.93
3	Jyoti CNC Automobiles	20.83	8.16	12.39	0.17	21.22
4	Carborundum Universal	15.56	12.00	24.97	0.05	20.13
5	Grindwell Norton	19.01	14.20	33.79	0.04	24.59
6	Jupiter Wagons	27.36	15.00	8.80	0.16	31.67
7	Elgi Equipments	20.62	11.63	10.34	0.30	22.28
8	Kirloskar Brothers	21.68	10.73	49.73	0.09	27.30
9	Action Construction	30.58	17.44	30.71	0.08	42.30
10	Shakti Pumps	24.15	13.03	27.70	0.17	31.40
11	Titagarh Rail	18.13	11.00	22.39	0.21	24.97
12	Praj Industries	23.34	9.96	16.34	0.13	29.29
13	Kirloskar Oil Engines	17.70	5.88	36.22	1.86	14.97
14	Elecon Engineering	24.47	18.31	15.83	0.07	31.32
15	KSB	17.06	10.72	13.18	0.00	23.29
16	Ingersoll-Rand	38.40	25.99	76.39	0.01	51.35
17	Graphite India	0.95	0.75	23.85	0.04	1.44
18	Lloyds Engineering	26.23	16.89	0.85	0.15	28.33
19	Kirloskar Pneumatic	16.10	11.01	29.26	0.00	21.72
20	HEG	7.14	5.45	9.42	0.13	8.54
21	Esab India	56.94	31.46	110.32	0.01	75.86
22	Texmaco Rail	5.71	2.96	5.25	0.35	10.59
23	Greaves Cotton	1.62	2.58	3.19	0.06	3.72
24	GMM Pfaudler	19.65	5.35	22.80	0.91	19.08
25	Dynamatic Tech.	10.19	3.80	144.72	0.79	10.46

Observations:

Highest ROE: Esab India (56.94%) and Ingersoll-Rand (38.40%) show outstanding returns on equity.
Lowest Debt/Equity: Companies like Cummins India, Kirloskar Pneumatic, and KSB have zero or negligible debt.
Top ROCE: Esab India (75.86%) and Ingersoll-Rand (51.35%) lead in capital efficiency.
Low Profitability: Graphite India (ROE 0.95%) and Greaves Cotton (ROE 1.62%) have poor profitability metrics.

Here are a few more companies with ROE, ROA, EPS, Debt/Equity, ROCE stats :

S.No.	Name	ROE (%)	ROA (%)	EPS (₹)	Debt/Equity	ROCE (%)
26	Pitti Engg.	24.23	7.88	32.13	0.65	20.07
27	Shanthi Gears	24.99	19.74	11.78	0.00	33.47
28	Jash Engineering	22.64	12.68	12.69	0.29	25.07
29	Swaraj Engines	38.58	25.09	121.75	0.00	51.64
30	JNK	39.42	14.47	12.16	0.07	46.26
31	Wendt India	18.48	15.29	206.75	0.00	24.67
32	Standard Glass	20.74	11.85	–	0.39	23.61
33	HLE Glascoat	8.62	4.20	4.25	0.83	13.14
34	Disa India	19.14	11.42	313.57	0.01	25.81
35	Kilburn Engg.	22.73	11.48	11.07	0.26	26.79
36	Windsor Machines	-2.94	-1.37	-5.53	0.05	2.95
37	John Cockerill	10.73	3.60	12.98	0.02	14.03
38	TIL	–	-12.74	52.32	3.02	-49.43
39	Ador Welding	18.34	12.93	27.25	0.08	24.22
40	Roto Pumps	21.78	13.55	5.71	0.23	24.56
41	Kabra Extrusion	7.58	4.69	10.21	0.24	10.45
42	Bajaj Steel Inds	19.64	11.79	40.94	0.17	23.83
43	Concord Enviro	13.72	6.79	22.77	0.49	13.55
44	Walchan. Inds.	-15.38	-5.62	-7.01	0.77	0.30
45	Forbes Precision	43.08	29.29	–	0.05	55.86
46	Yuken India	7.81	4.08	19.83	0.33	10.43
47	Diffusion Eng.	17.62	11.64	10.94	0.18	19.74
48	Eimco Elecon(I)	10.75	9.44	87.08	0.00	13.53
49	Integra Engg.	20.89	12.53	4.41	0.35	24.26
50	Mazda	15.86	13.58	73.68	0.00	21.26

Here are few more Capital Goods-Non Electrical Equipment companies with ROCE, EPS, Debt/Equity and ROE etc related data :

S.No.	Name	ROCE %	ROE %	ROA 12M %	Debt/Equity	EPS 12M Rs.
51	Hercules Hoists	5.66	4.35	3.94	0.01	11.59
52	Stovec Inds.	20.47	5.77	4.50	0.00	73.95
53	DE Nora India	21.96	16.44	15.02	0.00	34.47
54	Lokesh Mach.	11.41	7.80	3.86	0.65	7.83
55	Josts Engg. Co.	52.60	20.58	9.02	0.20	15.60
56	Veljan Denison	9.37	10.65	9.09	0.02	47.62
57	Meson Valves Ind	58.68	22.54	13.92	0.07	—
58	United Drilling	49.86	3.68	2.88	0.02	6.85
59	Fluidomat	29.69	23.69	19.91	0.00	34.85
60	TRF	37.59	—	9.38	1.56	16.83
61	Batliboi	7.70	6.37	2.96	0.32	3.64
62	Guj Apollo Inds	3.32	2.53	2.34	0.07	9.64
63	Birla Precision	11.49	6.82	3.83	0.32	1.03
64	Guj. Toolroom	179.10	170.15	29.30	0.00	10.07
65	Aaron Industries	30.64	22.48	11.17	0.90	6.89
66	Energy-Mission	26.73	37.33	11.84	0.26	12.97
67	Chemtech Indust.	84.97	16.82	9.95	0.03	4.29
68	GEE	-15.04	6.50	4.02	0.40	3.47
69	Brady & Morris	47.02	43.29	18.57	0.27	42.44
70	Hind.Urban Infra	-10.59	-7.09	-4.03	0.87	41.65
71	Patels Airtemp	-3.94	10.80	4.02	0.63	29.94
72	KPT Industries	7.41	24.27	11.14	0.64	42.74
73	Bemco Hydraulics	21.72	15.16	7.20	0.37	33.29
74	Panasonic Carbon	0.68	12.34	11.92	0.00	42.56
75	Felix Industries	35.68	12.21	9.92	0.10	4.02

Here are more Capital Goods-Non Electrical Equipment companies with only P/E, ROCE, EPS, Debt/Equity, ROE, and ROA:

S.No.	Name	P/E	ROCE %	EPS 12M Rs.	Debt/Equity	ROE %	ROA 12M %
76	Intl. Combustion	20.18	26.39	46.81	0.34	17.95	10.15
77	Cenlub Industrie	24.71	22.47	19.13	0.05	17.39	12.78
78	Alphalogic Indu	69.70	23.61	3.01	0.16	20.09	13.57
79	Apex Ecotech	29.21	79.09	68.45	0.07	60.38	30.67
80	Latteys Industri	121.63	11.85	0.27	0.71	9.05	3.45
81	DHP India	96.63	2.31	5.93	0.00	1.96	1.84
82	Rappid Valves	41.49	38.23	79.73	0.35		17.76
83	D & H India	49.13	9.89	3.66	1.20	6.70	2.87
84	ITL Industries	14.74	16.35	30.30	0.29	13.12	7.89
85	G G Automotive	25.94	14.60	6.29	0.58	16.01	5.69
86	Rishi Laser	16.03	16.93	9.08	0.24	17.49	9.54
87	Shri Balaji	19.03	24.11	8.06	0.62	36.20	12.30
88	Rolcon Engg. Co.	25.91	14.80	57.41	0.05	7.76	4.70
89	Rasi Electrodes	27.43	12.84	1.16	0.06	10.16	8.76
90	Auro Impex	19.95	19.82	3.91	1.08	23.81	8.46
91	Welcast Steels	42.89	17.32	30.40	0.00	12.40	9.77
92	Cranex	44.04	10.10	3.13	2.44	14.81	2.82
93	Hawa Engineers	28.81	14.73	7.97	0.89	10.39	3.02
94	Meera Industries	24.24	6.37	3.04	0.21	5.87	4.07
95	Manugraph India		-16.85	-9.39	0.35	-22.44	-12.43
96	Envair Electrody		-12.45	-0.71	0.00	-9.98	-9.03
97	Rapicut Carbides		4.00	-0.09	0.50	1.94	1.24
98	Solitaire Mach.	25.26	13.18	4.32	0.22	9.93	7.06
99	Polymechplast Ma	38.13	5.50	1.86	0.09	3.12	1.86
100	Ranjeet Mechatr.		5.42	-0.62	0.48	0.77	0.39

Here are more the Capital Goods-Non Electrical Equipment companies stat like P/E, ROCE, EPS, Debt/Equity, ROE, and ROA:

S.No.	Name	P/E	ROCE %	EPS 12M Rs.	Debt/Equity	ROE %	ROA 12M %
101	Perfect Infraeng	40.54	0.92	0.50	0.24	3.04	2.12
102	Miven Mach. Tool			-0.10			-136.07
103	Lippi Systems		-5.09	-1.36	0.05	-3.90	-3.59
104	EMA India			-5.27			-333.33
105	Iykot Hitech		-58.58	-0.90	0.00	-87.02	-51.76
106	Premier			-2.71			-5.37
107	Hittco Tools		7.27	-0.81	1.80	5.66	2.26
108	Lexoraa Ind		-192.00	-1.17			-165.52
109	Incon Engineers		-72.73	-1.09		-162.07	-58.39
110	TMT (I)		-66.00	-0.65			-46.90

For some entries, data for P/E, ROCE, ROE, or ROA is missing or negative, making these stocks less favorable for investment.

Detailed Analysis About Some of the Non Electrical Equipment Companies

1. Apex Ecotech

P/E: 29.21 (indicating it’s priced relatively higher than earnings but not extremely expensive compared to some others).
ROCE: 79.09% (very strong, showing excellent efficiency in generating profits from its capital).
EPS: 0.07 Rs (relatively low, but considering the high ROCE, there could be high potential for growth).
Debt/Equity: 0.07 (minimal debt, indicating a conservative capital structure with low risk).
ROE: 68.45% (strong return on equity, reflecting high profitability for shareholders).
ROA: 60.38% (exceptionally high, showing the company is very efficient in utilizing its assets to generate profits).

Conclusion: Apex Ecotech shows solid financial performance across the board, especially in ROCE, ROE, and ROA. While the EPS is modest, its P/E and minimal debt/equity make it an appealing option for growth with low financial risk.

2. Perfect Infraeng

P/E: 40.54 (relatively high, indicating the market expects strong future growth).
ROCE: 0.92% (very low, indicating poor efficiency in generating returns from its capital).
EPS: 0.50 Rs (modest earnings per share, indicating the company is making some profit).
Debt/Equity: 0.24 (relatively low, suggesting a conservative capital structure).
ROE: 3.04% (weak return on equity).
ROA: 2.12% (low, indicating the company isn’t utilizing its assets effectively to generate profits).

Conclusion: Perfect Infraeng has a high P/E, which suggests that the market is pricing it based on future growth expectations. However, its ROCE, ROE, and ROA are significantly low, suggesting inefficiencies in utilizing capital and assets. This could be a red flag unless future growth is strong.

3. Iykot Hitech

P/E: Not available (could indicate that the company is either in a loss-making phase or hasn’t been evaluated sufficiently by the market).
ROCE: -58.58% (negative, suggesting poor efficiency and losses on capital).
EPS: -0.90 Rs (negative, indicating losses over the last year).
Debt/Equity: 0.00 (no debt, which is positive for reducing financial risk).
ROE: -87.02% (extremely poor return on equity, suggesting losses for shareholders).
ROA: -51.76% (negative, reflecting a poor ability to generate profit from assets).

Conclusion: Iykot Hitech seems to be struggling, with negative profitability indicators across the board. Its negative ROCE, ROE, ROA, and EPS make it a company to avoid unless there is significant restructuring or future recovery potential.

4. Hittco Tools

P/E: Not available (no earnings to support a price-to-earnings ratio).
ROCE: 7.27% (moderate, indicating some capital efficiency but there’s room for improvement).
EPS: -0.81 Rs (negative, indicating losses).
Debt/Equity: 1.80 (relatively high, meaning the company has taken on considerable debt, which could introduce financial risk).
ROE: 5.66% (moderate but low compared to industry benchmarks).
ROA: 2.26% (low, suggesting underperformance in asset utilization).

Conclusion: Hittco Tools has a relatively high debt/equity ratio and negative EPS, indicating financial risk and losses. While it does have a positive ROCE, its ROA, ROE, and P/E metrics indicate that it is not performing well in terms of profitability and capital efficiency. It may need restructuring or improved profitability to attract investors.

5. TMT (I)

P/E: Not available (could indicate financial instability or insufficient earnings).
ROCE: -66.00% (negative, which reflects poor capital efficiency and potential for losses).
EPS: -0.65 Rs (negative, indicating the company is in a loss-making phase).
Debt/Equity: Not available (unclear from the provided data).
ROE: Not available (missing data).
ROA: -46.90% (negative, indicating that the company is not effectively utilizing its assets).

Conclusion: TMT (I) shows negative ROCE and ROA, along with negative EPS, which signals underperformance and potential financial difficulties. This stock should likely be avoided unless there are major changes in its operations or financials.

Summary Insights:

Best performers: Apex Ecotech stands out due to its strong ROCE, ROA, ROE, and low debt/equity ratio, which suggests a high potential for growth with minimal financial risk.
Potential concerns: Iykot Hitech, TMT (I), and Perfect Infraeng show concerning indicators such as low ROCE, negative EPS, or inefficient use of assets, which could deter potential investors.
Moderate performers: Hittco Tools shows a mixture of positives (such as a moderate ROCE) but also negatives (like a high debt/equity ratio and negative EPS), which calls for caution.

Conclusion :

Capital Goods – Non-Electrical Equipment companies can be excellent investment options for several reasons, depending on market conditions, economic cycles, and specific company performance. Here’s a breakdown of why they are considered strong investments:

1. Economic Growth and Infrastructure Development

Infrastructure and industrial growth drive the demand for non-electrical capital goods. In countries like India, with increasing investments in infrastructure (roads, bridges, factories), the demand for machinery, heavy equipment, and tools produced by these companies grows significantly.
Government spending on large-scale infrastructure projects—such as highways, ports, and urban development—boosts demand for non-electrical machinery and equipment.

2. Steady Demand Across Sectors

Diversified demand across several industries: Non-electrical equipment suppliers typically serve industries like construction, manufacturing, defense, and transportation. These industries are less prone to economic downturns compared to others, which means they often have steady demand.
These companies provide essential products such as earth-moving machinery, cranes, forklifts, pumps, valves, compressors, and precision tools, which are indispensable for sectors like construction, mining, agriculture, and transportation.

3. Long-Term Contracts and Recurring Revenue

Many companies in the non-electrical equipment sector thrive on long-term contracts, such as those related to government tenders or industrial equipment for large projects. These contracts provide a more stable revenue stream and reduce the impact of short-term economic fluctuations.
Recurring sales of spare parts, servicing, and maintenance contracts also contribute to stable cash flows.

4. Less Sensitivity to Fluctuations in Raw Material Prices

Non-electrical capital goods companies often produce durable goods like machinery and equipment that are less susceptible to fluctuations in raw material prices compared to other sectors like electronics or consumer goods. While raw material costs can still affect margins, they are generally less volatile.

5. Technological Advancements and Innovation

As industries evolve, non-electrical equipment manufacturers have opportunities for innovation. New technologies, such as automation, artificial intelligence, and robotics, are increasingly being integrated into machinery and equipment, making them more efficient and cost-effective.
Non-electrical equipment companies that lead in innovation can gain a competitive edge, which can drive higher margins, better performance, and stronger market share over time.

6. Global Expansion Opportunities

Many non-electrical equipment manufacturers in emerging markets are expanding their reach globally. With the rise of the globalization of supply chains, these companies often benefit from an increase in international demand.
As developing countries invest in infrastructure projects, these companies can explore export opportunities and tap into new markets for further growth.

7. Resilience to Market Cycles

Non-electrical capital goods are generally cyclic in nature—they perform well in times of economic growth when demand for industrial goods and infrastructure projects is strong. While the sector may experience slowdowns during economic recessions, it tends to rebound quickly when economic conditions improve.
Governments and large corporations often continue infrastructure projects even during slower economic cycles, making these companies somewhat more resilient than other sectors.

8. Government Policies and Initiatives

In many countries, government initiatives such as the Make in India program, Atmanirbhar Bharat, and similar programs aimed at promoting domestic manufacturing and infrastructure development significantly benefit capital goods companies.
Subsidies, tax incentives, and public-private partnerships also provide an extra boost to the growth prospects of these companies.

9. Strong Dividend Yields and Value Proposition

Non-electrical capital goods companies, particularly the mature, established ones, tend to have solid balance sheets, which enable them to pay attractive dividends to shareholders. This makes them appealing to income-focused investors.
These companies may also have the potential for capital appreciation, especially if their management focuses on operational efficiency, expanding their market share, or leveraging new technologies.

Risks to Consider :

While non-electrical capital goods companies are strong investment options, there are some risks:

Cyclicality: While the sector is less volatile than consumer goods, it still faces cyclical downturns tied to broader economic trends. During a recession, infrastructure and construction projects may slow down, affecting demand.
Raw material costs: For manufacturers, fluctuations in the price of key materials like steel, aluminum, and copper can impact profitability.
Regulatory changes: Government regulations related to labor laws, environmental standards, and safety regulations can impact operational costs.

Final Thoughts :

Capital Goods – Non-Electrical Equipment companies represent a promising investment opportunity due to the robust and diversified demand for their products, the growth of infrastructure and industrial sectors, and their relatively stable cash flows from long-term contracts and maintenance. These companies offer solid dividend yields, opportunities for technological innovation, and growth in global markets, making them ideal for long-term investors looking for stable returns and capital appreciation potential.

The Capital Goods-Non Electrical Equipment companies list is too long but I think I have given good sorted and clear investment analysis for sure.

Happy Investments