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Garware Technical Fibres Ltd. Stock Analysis

Small Cap
Evaluated by 1013 users | BSE: 509557 | NSE: GARFIBRES |
Textile
Garware-Wall Ropes Limited was established in 1976 by the visionary philanthropist, late B D Garware in collaboration with Wall Industries Inc., USA.The company is engaged in the manufacturing of ropes, twines and cordage, nettings, multi-filament yarns, and geotechnical nets and...

Analysis of Financial Track Record

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.
Garware Technical Fibres Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.32%10.67%9.28%8.55%14.21%17.07%18.81%16.28%17.04%21.23%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4995785996857828258468851,018945
Y-o-Y Gr. Rt.-15.9%3.7%14.2%14.3%5.4%2.6%4.6%15.1%-7.2%
Adjusted EPS (Rs.) 10.2411.7910.759.9919.3126.8438.3841.6651.3775.51
Y-o-Y Gr. Rt.-15.1%-8.8%-7.1%93.3%39%43%8.6%23.3%47%
Book Value per Share (Rs.) 98.97105.59112.45125.08141.65166.68203.62244.93296.81353.22
Adjusted Net Profit 24.32825.52242.358.78491.2112165
Net Op. Cash Flow (Rs. Cr.) -0.451.533.979.174.514312028133144
Debt to Cash Flow from Ops -318.732.723.260.90.530.310.714.940.810.7
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Garware Technical Fibres Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.4%3.9%3.8%-7.2%
Adjusted EPS 24.9%31.4%25.3%47%
Book Value per Share 15.220.120.219
Share Price 53.6% 41.2% 33.8% 81.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 10.7411.529.868.1114.4517.420.7318.5818.9623.23
Operating Profit Margin (%) 10.3611.589.958.129.9811.915.9516.4417.9617.06
Net Profit Margin (%) 4.874.834.253.215.47.129.9310.3111.0417.49
Debt to Equity 0.50.560.410.260.130.120.190.260.170.13
Working Capital Days 246230227212215229203187180197
Cash Conversion Cycle 1351341231041028549465261
Entity Percentage Holding
Promoters 53.02%
Institutions 11.39%
Non-Institutions 35.58%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Garware Technical Fibres Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Garware Technical Fibres Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Garware Technical Fibres Ltd.'s performance infers:

Garware Technical Fibres Ltd. earnings have grown by 31.4%, whereas share price has appreciated 41.2% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Garware Technical Fibres Ltd. share prices over the last 10 years. Here is what we found out:

Garware Technical Fibres Ltd. share price has appreciated 40.4% annually over the past ten years.

Garware-Wall Ropes Limited was established in 1976 by the visionary philanthropist, late B D Garware in collaboration with Wall Industries Inc., USA.

The company is engaged in the manufacturing of ropes, twines and cordage, nettings, multi-filament yarns, and geotechnical nets and fabrics.

Specializing in providing total, customized solutions to the cordage and infrastructure Industry world-wide, Garware-Wall Ropes Ltd. is a market driven organization, with ‘Customer

Garware-Wall Ropes Limited was established in 1976 by the visionary philanthropist, late B D Garware in collaboration with Wall Industries Inc., USA.

The company is engaged in the manufacturing of ropes, twines and cordage, nettings, multi-filament yarns, and geotechnical nets and fabrics.

Specializing in providing total, customized solutions to the cordage and infrastructure Industry world-wide, Garware-Wall Ropes Ltd. is a market driven organization, with ‘Customer Delight’ at the core of all that it does.

GWRL owns three manufacturing facilities, all located in Maharashtra:

The company has its rope manufacturing facility in Pune, which conforms to ISO 9000 standards. It boasts state-of-the-art machinery with a capacity of 20,000 tonnes per annum.

Pune also houses the fibre manufacturing unit which also conforms to ISO 9000 standards. The unit caters to industrial stitching and yarn business and has a capacity of 3,000 tonnes per annum. The facility has a capacity to manufacture 6,000 tonnesof nettings with 1,000 tonnesof customized net fabrication.

The net manufacturing facility at Wai, 85 kms from Pune, is the largest unit in India which conforms to ISO 9000 standards. The Wai plant also has net assembly shop where customized fishing nets are assembled as per customer specifications.

GWRL is one of the largest producers of HDPE nets in the world. The impeccable fishing nets it manufactures at its modern, integrated manufacturing facility are sold in more than 40 countries in the world.

Net Assembly Shop, employs highly skilled and trained labor. In house production capacity of knotted and knotless netting ensures quality consistency. The company is making continuous effort to develop efficient products to benefit aqua culture industry. We ensure consistent quality supply base for floats, chains, mud rollers, sinkers etc. Its new 42 Meter DS Machine performs high quality processing on bigger nets. We also have facility to repair used nets.

Polypropylene Multi Filament Yarn  is produced for various Industrial Applications like Geo Fabrics, Industrial Fabrics, Sewing Thread for FIBC , HDPE & PP woven Sack Manufacturing , Fertilizers , Chemical Sugar, Flour Mills , Rice , Wheat and Other Industries for Bag Closing , Doll Hair in different colors , Ropes and Cordages, Shoe Stitching , PVC Hose Pipe Reinforcement. Two and multiple Plied Twines made out of Garlon PPMF yarn are also manufactured.

The R&D team is a mix of chemical, polymer, textile and mechanical engineers who work closely with the fishermen, shipping industry etc. at a global level understanding their need of individual as well as the industry. State of the art machines are available for experimentation and testing. The team focuses on applying the best R&D practices like DOE & statistical techniques.

Product range of the company includes: Fishing net- nylon, HYDE, Sapphire, Oliviene, Ropes- 3 and 8 strand ropes, Yarn- Polypropylene Multi Filament Yarn with a Tenacity range of 7 to 8 gpd from 210 D up to 6000 D, Sports net, Garfil Rope Article- Cargo Nets, Gangway Gets, Safety Nets, helipad nets, and Garfil Slings, Mooring ropes- Maxiflex, Maxigold, SPM ropes hawsers, Net assembly- Purse Seine Net, aquaculture net, fully assembled trawls, codends, traps, etc.

Taking advantage of the meteoric growth in the Indian infrastructure industry over the last 5 years, the company diversified into this field and established a separate division within the group, thus achieving a quantum growth to the company.

Garware Environmental Services Private Limited is the wholly owned subsidiary of the company since inception.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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