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Check Before You Invest : Gallantt Ispat Ltd

BSE: 532726 NSE: GALLANTT ISIN: INE297H01019
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Gallantt Ispat Ltd belong to?
Gallantt Ispat Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Gallantt Ispat Ltd a good quality company?
Gallantt Ispat Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Gallantt Ispat Ltd undervalued or overvalued?
Gallantt Ispat Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 33.14 15.09
Price to Book 4.84 1.14
Price to Sales 3.63 0.58
EV to EBITDA 20.74 7.53
Q.4 Is Gallantt Ispat Ltd a good buy now?
Gallantt Ispat Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Gallantt Ispat Ltd?
Gallantt Ispat Ltd revenue growth is 1.6% for FY-2025, which is below its 5-year CAGR of 37.76%, indicating slower growth.

Q.2 Gross Profit margin of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Gross profit margin which is the profit after deduction of direct costs, is 16% for FY-2025, which is above its 5-year median of 10.9%, indicating increasing margins.

Q.3 Operating Profit Margin of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.25% for FY-2025, which is above its 5-year median of 10.6% indicating increasing margins.

Q.4 Net Profit Margin of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Net Profit Margin is 9.34% for FY-2025, is above its 5-year median of 5.83%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 16 10.9
Operating Profit Margin (%) 16.25 10.6
Net Profit Margin (%) 9.34 5.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Return on Asset is 11.99%, which is above its 5-year historical median of 7.41%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Return on capital employed is 19.24% for FY-2025, which is above its 5-year historical median of 11.96%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Return on equity is 15.14% for FY-2025, which is above its 5-year historical median of 9.64%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Cash conversion cycle is 38 days, in line with its 5-year historical median of 37 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.28 1.36
ROE (%) 15.14 9.64
ROCE (%) 19.24 11.96
Cash Conversion Cycle 38 days 37 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.31, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gallantt Ispat Ltd?
Gallantt Ispat Ltd Debt to cash flow from operations is 0.65, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gallantt Ispat Ltd?

Q.1 Promoter shareholding and pledge status of Gallantt Ispat Ltd?
Promoters hold 70.00% of the Gallantt Ispat Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gallantt Ispat Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gallantt Ispat Ltd vs industry peers?
Gallantt Ispat Ltd revenue CAGR is 37.76%, compared to the industry median CAGR of 7.56%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.6 7.6
Gross Profit Growth (%) 61.1 19.3
Operating Profit Growth (%) 54.9 13.8
Net Profit Growth (%) 78.2 24.6
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.28 1.27
ROE (%) 15.14 8.04
ROCE (%) 19.24 11.28
Cash Conversion Cycle (days) 38.31 72

Valuation & price assessment

Q.1 Stock return of Gallantt Ispat Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 35.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
35.3% 61.6% 135% 44.7%
Q.2 Valuation ratios of Gallantt Ispat Ltd vs historical?
The current P/E ratio of 33.14 is higher than its historical median of 15.09, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 33.14 15.09 17.36
Price to Book 4.84 1.14 1.63
Price to Sales 3.63 0.58 0.74
EV to EBITDA 20.74 7.53 10.05

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