Grindwell Norton Ltd - Stock Valuation and Financial Performance

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

Grindwell Norton Share Price

1,756.15 -54.85 -3.03%
as on 11-Feb'25 13:27

DeciZen - make an informed investing decision on Grindwell Norton

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Grindwell Norton stock performance -

mw4me loader
P/E Ratio (SA):
53.97
Market Cap:
20,051.4 Cr.
52-wk low:
1,716.8
52-wk high:
2,959.5

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 Somewhat overvalued zone.

3. Is Grindwell Norton Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Grindwell Norton Ltd is likely to Fall 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'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 25.5%22.6%21.1%23.9%24.7%21.6%25.6%27.7%29.6%26.5%-
Value Creation
Index
0.80.60.50.80.80.60.91.11.61.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,1101,1261,2361,4051,5671,5521,6332,0062,5242,6522,683
Sales YoY Gr.-1.4%9.8%13.7%11.5%-0.9%5.2%22.8%25.8%5.1%-
Adj EPS 9.19.310.513.314.515.922.126.133.634.633.6
YoY Gr.-1.5%13%27.1%8.9%9.5%38.9%18.1%28.7%3.3%-
BVPS (₹) 55.468.379.788.197.4105.3121.5139.9161.6183.7184.8
Adj Net
Profit
101103116148161176244289371384372
Cash Flow from Ops. 98.113116112481.9307331186398364-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.2%11.1%17.5%5.1%
Adj EPS 16%19%16.2%3.3%
BVPS14.2%13.5%14.8%13.7%
Share Price 17.4% 22.3% 1.6% -20.9%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
17.214.914.115.815.515.619.319.822.119.918.2
Op. Profit
Mgn %
14.81514.616.916.616.219.82020.119.518.9
Net Profit
Mgn %
9.19.19.410.510.311.31514.414.714.513.9
Debt to
Equity
00000000000
Working Cap
Days
112129121120132139131205251234106
Cash Conv.
Cycle
6073544156583232434766

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.54%

Net Profit is growing at healthy rate in last 3 years 16.20%

Return on Equity has declined versus last 3 years average to 18.20%

Sales growth is not so good in last 4 quarters at 4.85%

Latest Financials - Grindwell Norton Ltd.

Standalone Consolidated
TTM EPS (₹) 33.6 33.8
TTM Sales (₹ Cr.) 2,683 2,737
BVPS (₹.) 184.8 185.5
Reserves (₹ Cr.) 1,991 1,999
P/BV 9.80 9.76
PE 53.97 53.59
From the Market
52 Week Low / High (₹) 1716.80 / 2959.45
All Time Low / High (₹) 2.50 / 2959.45
Market Cap (₹ Cr.) 20,051
Equity (₹ Cr.) 55.4
Face Value (₹) 5
Industry PE 55.3

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

Login/Register to view analysis.

Analyst's Notes

Grindwell Norton High quality player in niche industry - 25 Jul 2018

Grindwell Norton (GWN) is the second largest abrasive manufacturer in India with a comprehensive and wide range of product portfolio, deriving its demand for many sectors – automobile, auto ancillary fabrication, industrial machinery, building flooring & painting etc. commanding a market share of ~26%. The consumable nature of abrasives has provided a stable demand, with GWN not registering revenue decline in any year in the past 10 years and clocking 11% revenue CAGR in the same period. GWN belongs to France based Saint-Gobain group.

Split of the GWN Sales from following three sectors:

  • Industrial Machinery
  • Automobile/Auto Ancillary                    
  • Fabrication

GWN deals in bonded and coated abrasives which are primarily used for finishing and polishing applications .It caters to the market demand by direct sales to OEM’s and through dealers for SME. GWN has over 30,000 SKU’s for various applications and ~ 750 dealers across India. Superior distribution reach and comprehensive range of products gives GWN an edge over its competitors. Moreover GWN offers customization in bonded abrasives according to the application of the end user making its products better. GWN has been always aggressive on the R&D front and 15 % - 20 % of its product portfolio comprises new products. This gives it a power to take price hike of ~3 % y-o-y. Moreover, backward integration for silicon carbide raw material reduces its dependence on imports and keeps its margins stable.

With the advent of GST, it will be increasingly difficult for the unorganized players in this industry to be in business. This will benefit the organized players and contribute to the growth in the years to come. It’s ROCE has been impressive over long periods which makes us believe in the fact that GWN is prudent capital asset allocator and has an ability to control costs during the slowdowns/downturns leading to stable margins across the cycles.  It is cash rich and zero debt company which capable of expanding margins with higher scale of operations during cycle uptick. With a strong R&D support from its parent Saint Gobain, company will maintain its strong presence in the abrasives industry.

Key Risks:

  • Abrasives Industry earlier was dominated by two players, but due high growth prospects in India, multiple players have entered the fray. This has increased the competitive scenario in the industry and any big player going for an expansion plan may hurt GWN.
  • Large chunk of the revenues of GWN is dependent on automobile sector. So, slowdown in automobile sector directly affects the company’s top line.

This is the new company in our coverage and we will be tracking quarterly and annual results of the company and await right price to enter the stock.

 

Key Ratios of Grindwell Norton

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales1,1101,1261,2361,4051,5671,5521,6332,0062,5242,652
Operating Expenses 9469581,0561,1691,3081,3001,3181,6062,0252,136
Manufacturing Costs195191202234265255252305364385
Material Costs5055175756447287307328981,1661,197
Employee Cost 131146168174190202205248294323
Other Costs 115103110117126113128156201231
Operating Profit 164168181236259252315399499515
Operating Profit Margin (%) 14.8%14.9%14.6%16.8%16.5%16.2%19.3%19.9%19.8%19.4%
Other Income 21253329384660565868
Interest 1111143487
Depreciation 35374042425552515869
Exceptional Items 000000000-3
Profit Before Tax 149155173222253239320400491505
Tax 48535775895678102125124
Profit After Tax 101102116147164183242298366381
PAT Margin (%) 9.1%9.1%9.4%10.5%10.5%11.8%14.8%14.9%14.5%14.4%
Adjusted EPS (₹)9.19.210.513.314.816.521.926.933.134.4
Dividend Payout Ratio (%)36%35%38%38%41%45%43%45%44%49%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 6177608859791,0811,1701,3481,5531,7932,038
Share Capital 28285555555555555555
Reserves 5897328309241,0261,1141,2931,4971,7371,982
Minority Interest0000000000
Debt2330000046
Long Term Debt0000000046
Short Term Debt2330000000
Trade Payables8684164191181228312321274362
Others Liabilities 2062161371481611711821,0611,2701,001
Total Liabilities 9101,0631,1891,3181,4231,5681,8432,9343,3403,407

Fixed Assets

Gross Block5443594184354805736086629071,120
Accumulated Depreciation2183777118159213259296337389
Net Fixed Assets327322341317321360348366570731
CWIP 71362342292467119128
Investments 55155166191203603734552665710
Inventories213247235263321294315437451474
Trade Receivables126126123173202201200236277353
Cash Equivalents 1131242422702307122268133212
Others Assets70767581104751001,0081,125799
Total Assets 9101,0631,1891,3181,4231,5681,8432,9343,3403,407

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 9813116112482307331186398364
PBT 149155173222253239320400491505
Adjustment 31303227283223303229
Changes in Working Capital -32-612-53-10810465-145-1-32
Tax Paid -51-48-57-71-91-68-77-100-123-137
Cash Flow From Investing Activity -29-37-43-43-53-437-225-55-258-176
Capex -34-39-52-36-66-49-48-120-314-163
Net Investments 418-912-393-1955842-34
Others 1112151771521
Cash Flow From Financing Activity -40-927-57-68-93-95-114-140-174
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 0000000272
Interest Paid -1-1-1-1-1-4-3-4-8-7
Dividend Paid -36-720-44-55-66-83-105-133-161
Others -3-199-12-11-22-8-7-6-9
Net Cash Flow 29212525-39-2231117114
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)17.2514.9114.1615.8415.9616.319.2820.5921.9219.91
ROCE (%)25.5222.6321.0923.9124.6821.5925.5527.6929.5626.45
Asset Turnover Ratio1.391.231.191.151.151.050.970.860.820.8
PAT to CFO Conversion(x)0.971.281.390.840.51.681.370.621.090.96
Working Capital Days
Receivable Days32383438434744393642
Inventory Days60696663677267676362
Payable Days576079101931021351299397

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 11-Feb-2025 13:27 is ₹1,756.2.
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 11-Feb-2025 13:27 the market cap of Grindwell Norton stood at ₹20,051.4.
The latest P/E ratio of Grindwell Norton as of 11-Feb-2025 13:27 is 53.97.
The latest P/B ratio of Grindwell Norton as of 11-Feb-2025 13:27 is 9.80.
The 52-week high of Grindwell Norton is ₹2,959.5 and the 52-week low is ₹1,716.8.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Grindwell Norton is ₹2,683 ( 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).

Read More Read Less
You have 2 views remaining as a Guest User. To get DeciZen Rating of 3,500+ Stocks based on their Quality, Valuation and Price Trend Login Now
© 2025 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt. Ltd.
Loading...
Hold on