Garg Furnace Ltd - Stock Valuation and Financial Performance

BSE: 530615 | NSE: | Steel & Iron Products | Small Cap

Garg Furnace Share Price

339 3.10 0.92%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Garg Furnace

Overall Rating
M-Cap below 500cr. High Risk from low Liquidity Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Garg Furnace stock performance -

mw4me loader
P/E Ratio (SA):
20.63
Market Cap:
135.8 Cr.
52-wk low:
37
52-wk high:
392.6

Is Garg Furnace Ltd an attractive stock to invest in?

1. Is Garg Furnace Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Garg Furnace Ltd is a average quality company.

2. Is Garg Furnace Ltd undervalued or overvalued?

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

3. Is Garg Furnace Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Garg Furnace 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 Garg Furnace:

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.
Garg Furnace Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 8.4%7.4%-8.8%-14.8%0.4%-3.8%-9%-11.5%31.4%25%-
Value Creation
Index
-0.4-0.5-1.6-2.1-1.0-1.3-1.6-1.81.30.8-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1481469053.565.711298.5119179238249
Sales YoY Gr.--1.1%-38.5%-40.6%22.7%70.3%-11.9%21.1%49.6%33.4%-
Adj EPS 2.21.3-32.6-33.5-0.3-7.1-9.9-6.215.815.416.4
YoY Gr.--38.3%-2535.8%NANANANANANA-2.1%-
BVPS (₹) 77.877.744.710.910.623.43321.236.851.658.4
Adj Net
Profit
0.90.5-13.1-13.4-0.1-2.8-4-2.56.36.27
Cash Flow from Ops. 10.66.2-18.5-1.22.830.922.83.10.38.5-
Debt/CF from Ops. 4.18.7-4.1-62.725.91.30.42.540.40.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 5.4%29.4%34.2%33.4%
Adj EPS 24.4%NANA-2.1%
BVPS-4.5%37.2%16.1%40.5%
Share Price 33.5% 91.4% 139.3% 771.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2.81.7-53.3-120.2-3-41.5-35-23.154.534.929.8
Op. Profit
Mgn %
6.45.3-5.2-21.2-6.7-5.4-6.50.14.23.23.3
Net Profit
Mgn %
0.60.4-14.5-25.1-0.2-2.5-4-2.13.52.62.6
Debt to
Equity
1.41.74.217.117.24.10.70.90.70.2-
Working Cap
Days
19523337746333515412386615527
Cash Conv.
Cycle
12412918521616587664335334

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 29.80%

Sales growth is growing at healthy rate in last 3 years 34.22%

Debt to equity has declined versus last 3 years average to 0.23

Sales growth is good in last 4 quarters at 12.84%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Garg Furnace Ltd.

Standalone Consolidated
TTM EPS (₹) 16.4 -
TTM Sales (₹ Cr.) 249 -
BVPS (₹.) 58.4 -
Reserves (₹ Cr.) 19 -
P/BV 5.79 -
PE 20.63 -
From the Market
52 Week Low / High (₹) 37.00 / 392.55
All Time Low / High (₹) 2.45 / 392.55
Market Cap (₹ Cr.) 136
Equity (₹ Cr.) 4
Face Value (₹) 10
Industry PE 25.1

Management X-Ray of Garg Furnace:

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

Key Ratios of Garg Furnace

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
Sales14814690546611299119179238
Operating Expenses 139139956570118105119171231
Manufacturing Costs10131320182715162024
Material Costs1271238143498888100150205
Employee Cost 1111122112
Other Costs 1111211211
Operating Profit 98-5-11-4-6-7077
Operating Profit Margin (%) 6.3%5.3%-5.6%-21.4%-6.7%-5.5%-6.7%0.1%4.2%3.1%
Other Income 1110522000
Interest 8871111000
Depreciation 1111111111
Exceptional Items 000001111-300
Profit Before Tax 10-13-14-154-566
Tax 0000-100000
Profit After Tax 11-13-14054-566
PAT Margin (%) 0.6%0.4%-14.7%-25.3%-0.2%4.6%3.6%-3.9%3.5%2.5%
Adjusted EPS (₹)2.31.3-33.0-33.8-0.312.78.9-11.715.814.8
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

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

Equity and Liabilities

Shareholders Fund 3131184491381521
Share Capital 4444444444
Reserves 272714005941117
Minority Interest0000000000
Debt3949706665308794
Long Term Debt517115558794
Short Term Debt3532596160260000
Trade Payables3259159467779
Others Liabilities 9991291320221925
Total Liabilities 11114811292825848445059

Fixed Assets

Gross Block28403923232424202223
Accumulated Depreciation1315151345578
Net Fixed Assets15252322212019141515
CWIP 5000000000
Investments 2232200000
Inventories1313113111711111715
Trade Receivables5785423523119111018
Cash Equivalents 2420200223
Others Assets1819313022109657
Total Assets 11114811292825848445059

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 116-18-133123308
PBT 10-13-14-154-566
Adjustment 6882213712
Changes in Working Capital 4-2-1310224171-71
Tax Paid 0000000000
Cash Flow From Investing Activity -5-7200300-2-4
Capex -6-7000200-2-2
Net Investments 100000000-2
Others 0120010000
Cash Flow From Financing Activity -6315-1-1-35-23-22-6
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -213-6000-22-12-5
Interest Paid -5-7-6-1-1-1-1000
Dividend Paid 0000000000
Others 1-32700-35000-1
Net Cash Flow -12-2-22-2011-1
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)3.051.72-53.89-121.48-3.0174.9531.74-43.3754.4833.53
ROCE (%)12.110.05-6.49-14.64-0.929.2413.33-21.9831.7624.17
Asset Turnover Ratio1.51.230.750.590.781.591.862.63.814.39
PAT to CFO Conversion(x)116N/AN/A-INF6.25.75N/A01.33
Working Capital Days
Receivable Days1291622382361585638312121
Inventory Days29304542374651332925
Payable Days397111790452027251714

Garg Furnace Ltd Stock News

Garg Furnace Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Garg Furnace on 28-Mar-2024 16:01 is ₹339.0.
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 28-Mar-2024 16:01 the market cap of Garg Furnace stood at ₹135.8.
The latest P/E ratio of Garg Furnace as of 28-Mar-2024 16:01 is 20.63.
The latest P/B ratio of Garg Furnace as of 28-Mar-2024 16:01 is 5.79.
The 52-week high of Garg Furnace is ₹392.6 and the 52-week low is ₹37.00.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Garg Furnace is ₹249.4 ( Cr.) .

About Garg Furnace Ltd

Garg Furnace (GFL) was set up in 1973 by Dharam Pal Garg and Jagdish Chand Garg. The company has emerged as one of northern India's leading alloy and non alloy steel manufacturer.

The company is the part of Garg Group of companies. Its other group companies are Garg Acrylic Limited and Sudhir Forgings Limited.

The GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology. At present the company is manufacturing Alloy and non Alloy steel ingots.

Garg Furnace's has 50,000 sq. yards manufacturing plant with power-efficient induction furnaces, the GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology.

The company has fully automatic wire rod mill and rolling mill manufacturing; TMT bars for the construction industry as well as wire rods, ms rounds and ms square. The company follows modern production processes and superior on-line quality control measures.

The company has its own casting facilities which  represents a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry, etc.

The company has its own forging facilities having drop hammers, presses and machining facilities supplying forgings of different components viz. Auto components like all types of Bevel gears-Pinions, Levers. Crank- Cam Shafts, Crosses, Crown wheels etc. and forgings used in construction like Scaffoldings, Thread bars (Dywidag thread) and Fitments like Wing nuts of similar type. In Addition to that we manufacture Nuts, Bolts, Stouts, Long thread bars upto 20ft length and different types of washers.

At Garg Furnace Limited quality control is a credo. This commitment starts with the raw material input. For instance, imported steel scrap is preferred as raw material. Then, there's a special quality control lab, which constantly monitors quality at each and every stage of manufacture. All the critical manufacturing processes occur In-house, all under one roof, quality products are manufactured.

A testimony Garg Furnace Limited's success is its impressive list of clients- representing a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry etc. etc. - most of whom have been steadfastly loyal to GFL products for over twenty years.

GFL has now stepped into the export market, exporting steel casting to the Middle East Countries. In the future, exports will be a major thrust area for GFL.

At present the Company is manufacturing Alloy and non Alloy steel ingots that includes:

  • Cross for LCVs, trucks and tractors.
  • Bevel-pinions for all tractors, cars, and Light Commercial Vehicles
  • All sorts of gears Viz. first, second, third, fourth, reverse and other high speed gears.
  • Steering arm for all the automobiles
  • TMT Rods: in the sizes of  M.S. Round in 25mm to 100mm and M.S. Strip in all sizes.
  • Wire Rod: in the size of 6mm to 16mm.

Different divisions of the company include:

  • Casting Division:   Since its inception the company has been serving the nation by meeting the requirements of casting components for strategic industries like Indian Railways, Thermal and Hydel Power plants, Fertilizer, Sugar and Cement plants & Mines etc. GFL in its casting division, manufacture various types of Steel and Alloy Steel Casting in different IS/BS/AISI specifications in the weight range of 20 Kgs. to 3000 Kgs. (single piece).
  • Rolling Division:  Ludhiana is the home of small scale units, engaged in the manufacture of Bicycles, Sewing Machines and Hosiery Machinery parts. M.S. round and strips are the basic raw-material for these units. To provide better quality materials to this sector, GFL has installed its own rolling mill, where Carbon Steel round/strip of different sizes is manufactured. Due to superior quality, competitive prices and a wide range, the company's products have an edge in the market.
  • Forging Division: The company provides products in finished as well as forged condition. It produces Bevel-pinions for all tractors, cars, and Light Commercial Vehicles. The company is supplying them in forged and spheriodised condition as well as machined.
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
© 2024 The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me ® is a registered trademark of The Alchemists Ark Pvt.Ltd.