Classic Electrodes (India) Ltd. (CLASSICEIL)
SME CapIndustrials stocks · SME cap · NSE
Classic Electrodes (India) Limited manufactures welding electrodes and provides engineering solutions. The company operates two manufacturing units in Dhulagarh, West Bengal, and Jhajjar, Haryana, serving diversified customers in India and overseas with an expanding product portfolio.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Strong fundamentals, management trust is supportive, but price trend argues for patience. Suitable for staggered entry or watchlist confirmation rather than aggressive buying.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT 0% YoY · margin compression · Rev +21% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹121 Cr | +21.0% | -0.8% |
| EBITDA | ₹12 Cr | +9.1% | +9.1% |
| Operating margin | 10.0% | -100 bps | +100 bps |
| PAT | ₹6 Cr | +0.0% | +0.0% |
| PAT margin | 5.0% | -4 bps | +4 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
FY26 revenue from operations grew 18.06% YoY, but EBITDA margin compressed to 9.78% from 10.81% in FY25. PAT margin also declined to 5.18% from 5.64% YoY. Return ratios (RONW, RoCE) saw significant declines, while debt-equity improved substantially.
While the company achieved strong revenue growth and significantly reduced its debt-equity ratio in FY26, the notable compression in EBITDA and PAT margins, coupled with a sharp decline in return on net worth and capital employed, indicates operational stress. The commercialization of new high-margin products and railway components offers future potential, but current profitability trends are concerning.
Flux-Cored Wires Commercialization
Successfully commercialized high-margin Flux-Cored wires with ₹25–30 Cr annual revenue potential and 20–25% EBITDA margins.
ERC Mk-V Railway Components
Expanded strategically into railway infrastructure components with the ERC Mk-V product line, opening new long-term growth avenues and ₹50 Cr+ initial annual potential.
Capacity Utilization Improvement
Overall capacity utilization is improving toward 75–77% after automation and debottlenecking initiatives.
Product Mix Expansion
Focus on product mix expansion aims for higher manufacturing contribution and reduced dependence on trading revenues.
MIG Wire Capacity Increase (West Bengal)
Installed capacity for MIG Wire at the West Bengal unit increased from 5,000 MT in FY25 to 7,000 MT in FY26.
Flux Core Wire Capacity Installation (West Bengal)
Installed capacity for Flux Core Wire at the West Bengal unit is 2,500 MT in FY26, with 350 MT utilized.
Improving Demand Conditions
Management notes improving demand conditions across the welding consumables business.
Infrastructure Development & Urbanization
Increased urbanization and government initiatives like PM Gati Shakti, Smart Cities Mission, and Housing for All drive demand for welding consumables.
Automotive Industry Expansion
India's position as a large automotive manufacturing hub, driven by economic expansion and rising population, supports demand.
Railways, Transportation, Shipbuilding and Defense
Modernization and expansion of these sectors, along with focus on domestic defense production, are key growth drivers.
Dependency on Raw Materials
The company identifies dependency on raw materials as a weakness.
Competition
The company faces competition in the market, identified as a weakness and a threat.
Market Volatility
Market volatility is listed as a weakness in the company's SWOT analysis.
Global Supply Chain Risks
Global supply chain risks are identified as a weakness for the company.
Raw Material Price Volatility
The company is exposed to raw material price volatility, which can impact cost of materials consumed and margins.
Intense Competition
The welding consumables market is competitive, posing a threat to market share and pricing power.
Market Volatility and Economic Downturns
General market volatility and potential economic downturns could impact demand and financial performance.
Global Supply Chain Disruptions
Dependency on global supply chains for raw materials exposes the company to risks of disruption.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides half-yearly (H2 FY26 vs H2 FY25) and full-yearly (FY26 vs FY25 vs FY24) financial results, making year-over-year comparisons most relevant to assess long-term trends and account for potential seasonality in the industrials sector.
Revenue from Operations Growth
FY26 Revenue from Operations grew 18.06% YoY to ₹24,296.52 Lakhs.
EBITDA Margin
EBITDA Margin declined to 9.78% in FY26 from 10.81% in FY25 and 11.85% in FY24.
PAT Margin
PAT Margin was 5.18% in FY26, down from 5.64% in FY25 but up from 4.88% in FY24.
Return on Net Worth (RONW)
RONW significantly decreased to 14.32% in FY26 from 25.70% in FY25 and 28.45% in FY24.
Sustaining Healthy Growth Momentum
Management is confident of sustaining healthy growth momentum in the coming years.
Focus on Higher-Margin Products
Management emphasizes continued focus on higher-margin products to improve profitability.
Operational Efficiencies and Automation
The company initiated automation and debottlenecking initiatives to strengthen manufacturing capabilities and improve throughput.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | 9.78% (FY26) | Stabilization or improvement, especially with new high-margin products. |
| Return on Net Worth (RONW) | 14.32% (FY26) | Reversal of the declining trend, indicating improved capital efficiency. |
| Flux-Cored Wires & ERC Mk-V Revenue Contribution | Flux-Cored Wires: 13.98% utilization (FY26); ERC Mk-V: new vertical. | Ramp-up in utilization and revenue contribution from these new high-potential product lines. |
| Debt-Equity Ratio | 0.36 (FY26) | Maintenance of low debt levels, supporting financial stability. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
44NeutralSMA20 -11.9% / mo · MACD +
Technical chart
CLASSICEILdaily · 1Y · AUTO+22.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 54.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~13.6% over last month) — short-term momentum negative.
- RSI(14) at 54 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 52% off 52W high · 58% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 82 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 82 · DEEP VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
DEEP VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.0%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 80.3%.
Main drags
- Penalty bucket subtracts 8 points.
- Quality is weaker at 12/20; verify the latest quarterly trend.
- Cash flow is weaker at 7/10; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 89th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter holding is 72%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 89th pctile, median 68 · SME: 98th pctile, median 64
3 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 72%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 53%.
- ▸FCF yield is positive at 4.1%.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 7.79
- P/B
- 1.04
- EV/EBITDA
- 4.57
- Market Cap
- 98.70Cr
Profitability
- ROE
- 18.10%
- ROCE
- 19.30%
- ROA
- 9.70%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 59.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 83.00%
Balance Sheet
- Debt/Equity
- 0.21
- Interest Coverage
- 5.75×
- Altman Z
- 4.96
- Book Value
- 53.00
Cash Flow
- FCF Yield
- 4.05%
- FCF Positive Y
- 4/5
- OCF
- 19.00 Cr
- EPS TTM
- 7.04
Shareholding
- Promoter Hold
- 72.02%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 26%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
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