Grindwell Norton Ltd - Stock Valuation and Financial Performance

BSE: 506076 | NSE: GRINDWELL | Abrasives | Small Cap

Grindwell Norton Share Price

2,064.15 -1.80 -0.09%
as on 12-Apr'24 16:59

DeciZen - make an informed investing decision on Grindwell Norton

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

Grindwell Norton stock performance -

mw4me loader
P/E Ratio (SA):
59.19
Market Cap:
22,854.3 Cr.
52-wk low:
1,822.8
52-wk high:
2,494.6

Is Grindwell Norton Ltd an attractive stock to invest in?

1. Is Grindwell Norton Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Grindwell Norton Ltd is a good quality company.

2. Is Grindwell Norton Ltd undervalued or overvalued?

The key valuation ratios of Grindwell Norton Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Grindwell Norton Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Grindwell Norton Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Grindwell Norton:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Grindwell Norton Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 15.2%16.8%14.3%14.1%15.8%15.6%15.8%19.5%20%21.5%-
Value Creation
Index
0.10.20.00.00.20.20.20.40.50.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 9421,1101,1261,2361,4051,5671,5521,6332,0062,3692,568
Sales YoY Gr.-17.9%1.4%9.8%13.7%11.5%-0.9%5.2%22.8%18.1%-
Adj EPS 7.48.98.910.513.314.515.922.126.132.234.9
YoY Gr.-20.4%-0.5%18.3%27.1%8.9%9.5%38.9%18.1%23.3%-
BVPS (₹) 50.455.468.379.788.197.4105.3121.5139.9160.2174.1
Adj Net
Profit
81.998.698.3116148161176244289356386
Cash Flow from Ops. 96.198.113116112481.9307331186341-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.8%11%15.1%18.1%
Adj EPS 17.7%19.3%26.5%23.3%
BVPS13.7%12.7%15%14.5%
Share Price 28.8% 28% 32.9% 6.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
15.116.714.314.115.815.515.619.319.821.220.9
Op. Profit
Mgn %
1414.81514.616.916.616.219.82020.520.1
Net Profit
Mgn %
8.78.98.79.410.510.311.31514.41515
Debt to
Equity
0000000000-
Working Cap
Days
11311212912112213314113120526499
Cash Conv.
Cycle
6060735442575932324262

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 20.90%

Sales growth is growing at healthy rate in last 3 years 15.13%

Net Profit is growing at healthy rate in last 3 years 26.45%

Sales growth is not so good in last 4 quarters at 6.86%

Latest Financials - Grindwell Norton Ltd.

Standalone Consolidated
TTM EPS (₹) 34.9 35.3
TTM Sales (₹ Cr.) 2,568 2,642
BVPS (₹.) 174.1 174.5
Reserves (₹ Cr.) 1,873 1,877
P/BV 11.85 11.83
PE 59.19 58.56
From the Market
52 Week Low / High (₹) 1822.75 / 2494.55
All Time Low / High (₹) 2.50 / 2494.55
Market Cap (₹ Cr.) 22,854
Equity (₹ Cr.) 55.4
Face Value (₹) 5
Industry PE 61.7

Management X-Ray of Grindwell Norton:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Grindwell Norton

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales9421,1101,1261,2361,4051,5671,5521,6332,0062,369
Operating Expenses 8119469581,0561,1691,3081,3001,3181,6061,891
Manufacturing Costs168195191202234265255252305350
Material Costs4345055175756447287307328981,086
Employee Cost 112131146168174190202205248274
Other Costs 96115103110117126113128156181
Operating Profit 131164168181236259252315399478
Operating Profit Margin (%) 13.9%14.8%14.9%14.6%16.8%16.5%16.2%19.3%19.9%20.2%
Other Income 15212533293846605653
Interest 0111114347
Depreciation 26353740424255525155
Exceptional Items 0000000000
Profit Before Tax 120149155173222253239320400469
Tax 3848535775895678102118
Profit After Tax 82101102116147164183242298351
PAT Margin (%) 8.7%9.1%9.1%9.4%10.5%10.5%11.8%14.8%14.9%14.8%
Adjusted EPS (₹)7.49.19.210.513.314.816.521.926.931.7
Dividend Payout Ratio (%)44%36%35%38%38%41%45%43%45%46%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 5616177608859791,0811,1701,3481,5531,777
Share Capital 28282855555555555555
Reserves 5345897328309241,0261,1141,2931,4971,722
Minority Interest0000000000
Debt0233000004
Long Term Debt0000000004
Short Term Debt0233000000
Trade Payables728684164191181228312321265
Others Liabilities 1752062161371481611711821,0611,237
Total Liabilities 8089101,0631,1891,3181,4231,5681,8432,9343,283

Fixed Assets

Gross Block522544359418435480573608662768
Accumulated Depreciation1852183777118159213259296334
Net Fixed Assets338327322341317321360348366434
CWIP 471362342292467119
Investments 5555155166191203603734552786
Inventories178213247235263321294315437428
Trade Receivables86126126123173202201200236241
Cash Equivalents 841131242422702307122268132
Others Assets6370767581104751001,0081,143
Total Assets 8089101,0631,1891,3181,4231,5681,8432,9343,283

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 969813116112482307331186341
PBT 120149155173222253239320400469
Adjustment 24313032272832233026
Changes in Working Capital -16-32-612-53-10810465-145-33
Tax Paid -32-51-48-57-71-91-68-77-100-121
Cash Flow From Investing Activity -25-29-37-43-43-53-437-225-55-202
Capex -24-34-39-52-36-66-49-48-120-138
Net Investments -3418-912-393-1955842
Others 2111215177-106
Cash Flow From Financing Activity -43-40-927-57-68-93-95-114-139
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000000
Interest Paid 0-1-1-1-1-1-4-3-4-6
Dividend Paid -36-36-720-44-55-66-83-105-133
Others -6-3-199-12-11-22-8-41
Net Cash Flow 2929212525-39-22311170
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)15.3117.2514.9114.1615.8415.9616.319.2820.5921.1
ROCE (%)22.3825.5222.6321.0923.9124.6821.5925.5527.6928.35
Asset Turnover Ratio1.31.391.231.191.141.141.040.970.860.78
PAT to CFO Conversion(x)1.170.971.281.390.840.51.681.370.620.97
Working Capital Days
Receivable Days33323834384447443936
Inventory Days59606966646872676765
Payable Days565760791019310213512998

Grindwell Norton Ltd Stock News

Grindwell Norton Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Grindwell Norton on 12-Apr-2024 16:59 is ₹2,064.2.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Apr-2024 16:59 the market cap of Grindwell Norton stood at ₹22,854.3.
The latest P/E ratio of Grindwell Norton as of 12-Apr-2024 16:59 is 59.19.
The latest P/B ratio of Grindwell Norton as of 12-Apr-2024 16:59 is 11.85.
The 52-week high of Grindwell Norton is ₹2,494.6 and the 52-week low is ₹1,822.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Grindwell Norton is ₹2,568 ( Cr.) .

About Grindwell Norton Ltd

Grindwell Norton (GNO), a company listed on the Bombay and National Stock Exchanges, pioneered the manufacture of grinding wheels in India in 1941. In 1990, Saint-Gobain acquired Norton Company, USA, worldwide and thereby became a shareholder in GNO. In 1996, Saint-Gobain increased its equity stake, making GNO its first majority-owned subsidiary in India.

Presently, GNO’s businesses include: Abrasives, Ceramic Materials Businesses (Silicon Carbide and Performance Ceramics & Refractories), Performance Plastics and ADFORS. The Saint-Gobain Country Head office, INDEC (the captive India IT Development Centre for the Saint-Gobain Group globally) and CertainTeed are also part of GNO. GNO’s subsidiary, Saint-Gobain Ceramic Materials Bhutan Pvt. Ltd., manufactures Silicon Carbide. The Group currently holds 51.66% of the equity capital of GNO.

Business area of the company

Abrasives Business: GNO’s Abrasives Business, markets and manufactures a full range of Bonded Abrasives, Coated Abrasives (including Non-woven Abrasives), Thin Wheels and Superabrasives at its plants near Mumbai, Bangalore, Nagpur and Himachal Pradesh.

Ceramics Business: The Performance Ceramics & Refractories (PCR) business offers complete solutions with expertise in design, engineering and manufacturing refractory systems for high temperature, ballistic and wear applications. The HPR plants are located in Bangalore and Halol (Gujarat). The Silicon Carbide business manufactures Silicon Carbide crude and grains at Tirupati (Andhra Pradesh) and near Phuentsholing (Bhutan) and is a major supplier to all leading Refractory, Metallurgy and Abrasives manufacturers in India.

Other Businesses: GNO’s other businesses include: CertainTeed (subsidiary of Saint-Gobain) and INDEC (the captive India IT Development Centre for the Saint-Gobain Group globally).

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