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Check Before You Invest : Gorani Industries Ltd

BSE: 531608 NSE: ISIN: INE792J01015
  |   Sector:  Consumer Durables   |   Industry:  Consumer Durables - Domestic Appliances

Snapshot

Q.1 Which industry/sub-sector does Gorani Industries Ltd belong to?
Gorani Industries Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Domestic Appliances segment.
Q.2 Is Gorani Industries Ltd a good quality company?
Gorani Industries Ltd is a quality company, based on a 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 Gorani Industries Ltd undervalued or overvalued?
Gorani Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are lower 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 27.91 41.06
Price to Book 1.87 4.52
Price to Sales 0.71 1.32
EV to EBITDA 13.9 20.41
Q.4 Is Gorani Industries Ltd a good buy now?
Gorani Industries 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

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 Gorani Industries Ltd?
Gorani Industries Ltd revenue growth is 1.6% for FY-2025, which is below its 5-year CAGR of 14.94%, indicating slower growth.

Q.2 Gross Profit margin of Gorani Industries Ltd?
Gorani Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025, which is below its 5-year median of 5.8%, indicating decreasing margins.

Q.3 Operating Profit Margin of Gorani Industries Ltd?
Gorani Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 5.66% for FY-2025, which is below its 5-year median of 6.72% indicating decreasing margins.

Q.4 Net Profit Margin of Gorani Industries Ltd?
Gorani Industries Ltd Net Profit Margin is 1.99% for FY-2025, is below its 5-year median of 3.56%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 3.6 5.8
Operating Profit Margin (%) 5.66 6.72
Net Profit Margin (%) 1.99 3.56

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gorani Industries Ltd?
Gorani Industries Ltd Return on Asset is 2.91%, which is below its 5-year historical median of 5.33%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gorani Industries Ltd?
Gorani Industries Ltd Return on capital employed is 9.66% for FY-2025, which is below its 5-year historical median of 12.24%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Gorani Industries Ltd?
Gorani Industries Ltd Return on equity is 6.66% for FY-2025, which is below its 5-year historical median of 12.14%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Gorani Industries Ltd?
Gorani Industries Ltd Cash conversion cycle is 169 days, above its 5-year historical median of 134 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 (x) 1.49 1.5
ROE (%) 6.66 12.14
ROCE (%) 9.66 12.24
Cash Conversion Cycle 169 days 134 days

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

Q.9 Debt to Equity ratio of Gorani Industries Ltd?
Gorani Industries Ltd Debt-to-Equity ratio is 0.83, which is above the industry average of 0.15, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Gorani Industries Ltd?
Gorani Industries Ltd Debt to cash flow from operations is 40.12, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gorani Industries Ltd?

Q.1 Promoter shareholding and pledge status of Gorani Industries Ltd?
Promoters hold 62.26% of the Gorani Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gorani Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gorani Industries Ltd vs industry peers?
Gorani Industries Ltd revenue CAGR is 14.94%, compared to the industry median CAGR of 10.02%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 1.6 10
Gross Profit Growth (%) -26.6 9.9
Operating Profit Growth (%) -14.7 8.3
Net Profit Growth (%) -36.8 5.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.49 1.4
ROE (%) 6.66 9.35
ROCE (%) 9.66 12.68
Cash Conversion Cycle (days) 169.43 51

Valuation & price assessment

Q.1 Stock return of Gorani Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
16.1% 19.7% -34.3% -43.1%
Q.2 Valuation ratios of Gorani Industries Ltd vs historical?
The current P/E ratio of 27.91 is lower than its historical median of 41.06, indicating that the stock is trading below 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 27.91 41.06 51.67
Price to Book 1.87 4.52 5.85
Price to Sales 0.71 1.32 2.78
EV to EBITDA 13.9 20.41 24.89

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