Butterfly Gandhimathi Appliances Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹604.00−₹13.30 (−2.15%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Butterfly Gandhimathi Appliances Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Butterfly Gandhimathi Appliances Limited manufactures and sells kitchen and small domestic appliances in India and internationally.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees1,053

Annual revenue₹931 Cr

How does it make money?

Turns over ₹931 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 1,053 employees supports ₹88.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹88.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.6% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -11% while net margin moved -1% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-11%

Margin effect-1%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.7% a year
✗ Profit has declined at 4.1% a year

Quality vs. Valuation

Company Quality

40/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

21.1x

3Y Median

37.6x

40 monthly readings · mean 78.1x · range 21.7x–237.6x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 44% below its 3y median of 37.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 69% below the peer median of 68.5x.

vs. its own history

Cheap

37.6x median over 40 months · -44%

vs. sector peers

Cheap

68.5x median of 3 peers · -69%

vs. generic bands

Fair

15x–35x

EV/EBITDA

12.9x

PEG

0.55

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.1% to 12.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.9% to 16.6% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 55% over 3 years, from ₹5 Cr to ₹8 Cr.
🔴High leverageFinancial
Debt/Equity of 2.05x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 44% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 2.05x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 18.1% to 12.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 7%✓ 9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹76 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 14%✓ 16.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 37.6x✓ 21.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹1,080 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.1x

Fair

Fairly valued against the generic band

P/B Ratio

2.90x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹28.68

Profitable

Profitable on a per-share basis

ROE

12.3%

Moderate

Moderate capital efficiency

ROCE

16.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

2.05x

High

High leverage

Revenue Growth (YoY)

14.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹76 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.2%

Weak

Thin margins leave little room for error

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

2.10

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

563.2 / 606.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,042 Cr	₹919 Cr	₹854 Cr	₹931 Cr	-3.7%
EBITDA	₹103 Cr	₹31 Cr	₹68 Cr	₹83 Cr	-6.7%
EBITDA Margin	9.9%	3.3%	8.0%	9.0%	—
PAT (Net Profit)	₹52 Cr	₹7 Cr	₹33 Cr	₹46 Cr	-4.1%
EPS	₹28.9	₹4.13	₹18.2	₹25.53	-4.0%
ROE	18.1%	2.5%	10.0%	12.3%	—
ROCE	28.9%	3.8%	14.4%	16.6%	—
Total Debt	₹5 Cr	₹4 Cr	₹12 Cr	₹8 Cr	+15.7%
Free Cash Flow	₹111 Cr	₹18 Cr	₹23 Cr	₹76 Cr	-11.9%

🔴 Revenue has shrunk at 3.7% a year over 3 years.

🔴 EBITDA has shrunk at 6.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 9.0% over 3 years.

🔴 PAT (Net Profit) has shrunk at 4.1% a year over 3 years.

🔴 EPS has shrunk at 4.0% a year over 3 years.

🔴 ROE has fallen from 18.1% to 12.3% over 3 years (-5.8 pts).

🔴 ROCE has fallen from 28.9% to 16.6% over 3 years (-12.2 pts).

🔴 Total Debt has grown at 15.7% a year over 3 years.

🔴 Free Cash Flow has shrunk at 11.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹559 Cr

Total Liabilities

₹187 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹88 Cr

Capex

-₹12 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

81.1%

Corporate Actions

Ex-Dividend Date

02 Nov 2021

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

2 positive2 mixed2 general

Butterfly Gandhimathi Appliances Ltd Sees Mixed Technical Signals Amid Price Momentum Shift

MarketsMojo, 16 Oct

Butterfly Gandhimathi shares rise 10% as Q2 profit jumps 19% to ₹20 crore

CNBC TV18, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Butterfly Gandhimathi Q2FY27 Results: Net profit up 18.7% YoY

scanx.trade, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Butterfly Gandhimathi Appliances Ltd. Shares Drop 8.91%

Univest, 04 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Household appliances stocks: Butterfly, TTK surge up to 18% on huge volumes

Business Standard, 12 May

Butterfly Gandhimathi Appliances, TTK Prestige Share Price Jump | Stock Market Today LNG Impact

Samco, 19 MarPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongValuation

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑