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INVESTMENT INSIGHTS

Check Before You Invest : Garg Furnace Ltd

BSE: 530615 NSE: ISIN: INE194E01015
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Garg Furnace Ltd belong to?
Garg Furnace Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Garg Furnace Ltd a good quality company?
Garg Furnace Ltd is a average quality company, based on a somewhat consistent 10 year financial track record.
Q.3 Is Garg Furnace Ltd undervalued or overvalued?
Garg Furnace Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Garg Furnace Ltd a good buy now?
Garg Furnace 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 Garg Furnace Ltd?
Garg Furnace Ltd revenue growth is 1.4% for FY-2025 , which is below its 5 year CAGR of 21.6% , indicating slower growth.
Q.2 Gross Profit margin of Garg Furnace Ltd?
Garg Furnace Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025 , which is above its 5 year median of 3.1% , indicating increasing margins.
Q.3 Operating Profit Margin of Garg Furnace Ltd?
Garg Furnace Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.94% for FY-2025 , which is in line with its 5 year median of 2.94% indicating stable margins.
Q.4 Net Profit Margin of Garg Furnace Ltd?
Garg Furnace Ltd Net Profit Margin is 2.92% for FY-2025 , is above with its 5 year median of 2.49%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 3.6 3.1
Operating Profit Margin 2.94 2.94
Net Profit Margin 2.92 2.49
Q.5 Return on Asset of Garg Furnace Ltd?
Garg Furnace Ltd Return on Asset is 11%, which is above its 5 year historical median of 10.94%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Garg Furnace Ltd?
Garg Furnace Ltd Return on equity is 16.7% for FY-2025 , which is below its historical median of 18.94%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Garg Furnace Ltd?
Garg Furnace Ltd Return on capital employed is 13.61% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Garg Furnace Ltd?
Garg Furnace Ltd Cash conversion cycle is 38 days, above its historical median of 35 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 3.77 3.81
ROE 16.7 18.94
ROCE 13.61 15.16
Cash Conversion Cycle 38 days 35 days
Q.9 Debt to Equity ratio of Garg Furnace Ltd?
Garg Furnace Ltd Debt-to-Equity ratio is 0.03 , which is lower with the industry average of 0.32 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Garg Furnace Ltd?
Garg Furnace Ltd Debt to cash flow from operations is 0.37 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Garg Furnace Ltd?
Promoters hold 53.41% of the Garg Furnace Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Garg Furnace Ltd vs industry peers?
Garg Furnace Ltd revenue CAGR is 21.57% , compared to the industry median CAGR of 7.41% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 261.6 364.5
Gross Profit 9.4 11.6
Operating Profit 8 15
Net Profit 8 6
Operating Efficiency
Current Level Industry Median
Asset Turnover 3.77 1.27
ROE 16.7 8.12
ROCE 13.61 11.38
Cash Conversion Cycle (days) 37.55 72

Valuation & price assessment

Q.1 Stock return of Garg Furnace Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 29.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 29.5% 49.7% 41.8% -30.9%
Q.3 Valuation ratios of Garg Furnace Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 9.38 3.19 23.93
Price to Book 1.07 1.24 1.46
Price to Sales 0.36 0.09 0.74
EV to EBITDA 7.88 3.59 9.89

Check more companies

1. Welspun Corp
2. Shyam Metalics&Ener
3. Sarda Energy&Min.
4. Godawari Power & Isp
5. Gallantt Ispat
6. Ratnamani Metals
7. Jindal Saw
8. Usha Martin
9. NMDC Steel
10. Jayaswal Neco Inds
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