Grindwell Norton Ltd - Stock Valuation and Financial Performance

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

Grindwell Norton Share Price

2,690 -41.30 -1.51%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Grindwell Norton

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Grindwell Norton stock performance -

mw4me loader
P/E Ratio (SA):
78.02
Market Cap:
29,703.4 Cr.
52-wk low:
1,850.1
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 Overvalued zone.

3. Is Grindwell Norton Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Grindwell Norton Ltd is likely to Rise 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 % 16.8%14.3%14.1%15.8%15.6%15.8%19.5%20%22.3%20%-
Value Creation
Index
0.20.00.00.20.20.20.40.51.00.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,1101,1261,2361,4051,5671,5521,6332,0062,5242,6522,652
Sales YoY Gr.-1.4%9.8%13.7%11.5%-0.9%5.2%22.8%25.8%5.1%-
Adj EPS 8.98.910.513.314.515.922.126.133.634.634.4
YoY Gr.--0.5%18.3%27.1%8.9%9.5%38.9%18.1%28.7%3.3%-
BVPS (₹) 55.468.379.788.197.4105.3121.5139.9161.6183.7183.7
Adj Net
Profit
98.698.3116148161176244289371384381
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 16.3%19%16.2%3.3%
BVPS14.2%13.5%14.8%13.7%
Share Price 29.5% 35.5% 27.6% 23.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
16.714.314.115.815.515.619.319.822.119.918.7
Op. Profit
Mgn %
14.81514.616.916.616.219.82020.119.519.6
Net Profit
Mgn %
8.98.79.410.510.311.31514.414.714.514.4
Debt to
Equity
00000000000
Working Cap
Days
112129121122133141131205251234102
Cash Conv.
Cycle
6073544257593232434764

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 18.70%

Sales growth is not so good in last 4 quarters at 5.11%

Latest Financials - Grindwell Norton Ltd.

Standalone Consolidated
TTM EPS (₹) 34.4 34.7
TTM Sales (₹ Cr.) 2,652 2,687
BVPS (₹.) 183.7 184.1
Reserves (₹ Cr.) 1,979 1,983
P/BV 14.60 14.57
PE 78.02 77.43
From the Market
52 Week Low / High (₹) 1850.05 / 2959.45
All Time Low / High (₹) 2.50 / 2959.45
Market Cap (₹ Cr.) 29,703
Equity (₹ Cr.) 55.4
Face Value (₹) 5
Industry PE 84.5

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'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 0000000002
Interest Paid -1-1-1-1-1-4-3-4-8-7
Dividend Paid -36-720-44-55-66-83-105-133-161
Others -3-199-12-11-22-8-41-9
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 Ratio1.391.231.191.141.141.040.970.860.820.8
PAT to CFO Conversion(x)0.971.281.390.840.51.681.370.621.090.96
Working Capital Days
Receivable Days32383438444744393642
Inventory Days60696664687267676362
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 12-Jul-2024 16:01 is ₹2,690.
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-Jul-2024 16:01 the market cap of Grindwell Norton stood at ₹29,703.4.
The latest P/E ratio of Grindwell Norton as of 12-Jul-2024 16:01 is 78.02.
The latest P/B ratio of Grindwell Norton as of 12-Jul-2024 16:01 is 14.60.
The 52-week high of Grindwell Norton is ₹2,959.5 and the 52-week low is ₹1,850.1.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Grindwell Norton is ₹2,652 ( 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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