Check Before You Invest : Ganga Forging Ltd

Snapshot

Q.1 Which industry/sub-sector does Ganga Forging Ltd belong to?

Ganga Forging Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q.2 Is Ganga Forging Ltd a good quality company?

Ganga Forging Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Ganga Forging Ltd undervalued or overvalued?

Ganga Forging Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Ganga Forging Ltd a good buy now?

Ganga Forging Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ganga Forging Ltd?

Ganga Forging Ltd revenue growth is 16.2% for FY-2025, which is above its 5-year CAGR of 12.88%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Ganga Forging Ltd?

Ganga Forging Ltd Return on capital employed is 4.06% for FY-2025, which is below its 5-year historical median of 4.65%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Ganga Forging Ltd?

Ganga Forging Ltd Return on Asset is 1.17%, which is in line with its 5-year historical median of 1.17%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ganga Forging Ltd?

Ganga Forging Ltd Return on equity is 2.02% for FY-2025, which is below its 5-year historical median of 2.25%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Ganga Forging Ltd?

Ganga Forging Ltd Cash conversion cycle is 186 days, above its 5-year historical median of 122 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.82	0.92
ROE	2.02	2.25
ROCE	4.06	4.65
Cash Conversion Cycle	186 days	122 days

Q.6 Gross Profit margin of Ganga Forging Ltd?

Ganga Forging Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.5% for FY-2025, which is below its 5-year median of 4.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of Ganga Forging Ltd?

Ganga Forging Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.31% for FY-2025, which is below its 5-year median of 6.87% indicating decreasing margins.

Q.8 Net Profit Margin of Ganga Forging Ltd?

Ganga Forging Ltd Net Profit Margin is 1.42% for FY-2025, is in line with with its 5-year median of 1.42%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.5	4.6
Operating Profit Margin	5.31	6.87
Net Profit Margin	1.42	1.42

Q.9 Debt to Equity ratio of Ganga Forging Ltd?

Ganga Forging Ltd Debt-to-Equity ratio is 0.52, which is above with the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Ganga Forging Ltd?

Ganga Forging Ltd Debt to cash flow from operations is -4.03, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ganga Forging Ltd?

Promoters hold 35.51% of the Ganga Forging Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ganga Forging Ltd vs industry peers?

Ganga Forging Ltd revenue CAGR is 12.88%, compared to the industry median CAGR of 14.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	16.2	14.1
Gross Profit Growth	-12.6	25.5
Operating Profit Growth	-9.6	18.7
Net Profit Growth	38.6	27.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.82	0.92
ROE	2.02	15.17
ROCE	4.06	14.66
Cash Conversion Cycle (days)	185.81	112

Valuation & price assessment

Q.1 Stock return of Ganga Forging Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -45.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-45.8%	-10.4%	-44.7%

Q.3 Valuation ratios of Ganga Forging Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	85.53	33.04
Price to Book	1.27	3.90	3.77
Price to Sales	1.01	2.10	1.87
EV to EBITDA	-31.39	33.73	16.81

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