Federal-Mogul Goetze (India) Limited

Consumer Cyclical — Auto Parts · NSE

₹451.40+₹1.10 (+0.24%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Federal-Mogul Goetze (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Federal-Mogul Goetze (India) Limited manufactures, supplies, and distributes automotive components for automobiles in India and internationally.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,711

Annual revenue₹1,924 Cr

How does it make money?

Turns over ₹1,924 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 2,711 employees supports ₹71.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin18.4%

Net margin8.9%

Revenue / employee₹71.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 15.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.9%

ROE11.9%

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +20% while net margin moved +40% 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+20%

Margin effect+40%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 11.9% is moderate

Quality vs. Valuation

Company Quality

70/ 100

Good

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

Valuation

79/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.7x

3Y Median

17.5x

40 monthly readings · mean 18.0x · range 13.3x–25.2x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 16% below its 3y median of 17.5x. 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 68% below the peer median of 45.7x.

vs. its own history

Fair

17.5x median over 40 months · -16%

vs. sector peers

Cheap

45.7x median of 4 peers · -68%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.7x

P/B

1.75x

EV/EBITDA

5.1x

PEG

0.77

Dividend Yield

3.32%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 14.4% to 18.4% over 3 years.
Debt is being paid down
Total debt is down 88% over 3 years.
Cash generation is improving
Free cash flow is up 81% over 3 years.
Return on capital is rising
ROCE has improved from 13.3% to 15.9%.
Very low debt
Debt/Equity of 0.07x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 14.4% to 18.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 88% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹199 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Growth barely outpaces inflation
Revenue compounding at 6.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

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

1EBITDA margin holds above 16%✓ 18.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 8.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹199 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 15.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹2,511 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.7x

Cheap

Cheap against the generic band

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.71

Profitable

Profitable on a per-share basis

ROE

11.9%

Moderate

Moderate capital efficiency

ROCE

15.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.07x

Low

Conservative leverage

Revenue Growth (YoY)

8.8%

Modest

Modest growth

Profit Growth (YoY)

0.5%

Modest

Slow profit growth

Dividend Yield

3.32%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹199 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹451.4

Operating Margin

8.8%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

2.98

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

451.3 / 481.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,598 Cr	₹1,662 Cr	₹1,768 Cr	₹1,924 Cr	+6.4%
EBITDA	₹231 Cr	₹275 Cr	₹337 Cr	₹354 Cr	+15.4%
EBITDA Margin	14.4%	16.5%	19.1%	18.4%	—
PAT (Net Profit)	₹101 Cr	₹127 Cr	₹162 Cr	₹171 Cr	+19.2%
EPS	₹18.13	₹22.81	₹29.13	₹30.68	+19.2%
ROE	10.3%	11.4%	12.8%	11.9%	—
ROCE	13.3%	15.3%	17.6%	15.9%	—
Total Debt	₹8 Cr	₹8 Cr	₹3 Cr	₹1 Cr	-50.1%
Free Cash Flow	₹110 Cr	₹80 Cr	₹174 Cr	₹199 Cr	+21.8%

🟢 Revenue has grown at 6.4% a year over 3 years.

🟢 EBITDA has grown at 15.4% a year over 3 years.

🟢 EBITDA Margin has risen from 14.4% to 18.4% over 3 years (+4.0 pts).

🟢 PAT (Net Profit) has grown at 19.2% a year over 3 years.

🟢 EPS has grown at 19.2% a year over 3 years.

🟢 ROE has risen from 10.3% to 11.9% over 3 years (+1.6 pts).

🟢 ROCE has risen from 13.3% to 15.9% over 3 years (+2.7 pts).

🟢 Total Debt has shrunk at 50.1% a year over 3 years.

🟢 Free Cash Flow has grown at 21.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,012 Cr

Total Liabilities

₹495 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹706 Cr

Operating Cash Flow

₹321 Cr

Capex

-₹122 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

78.0%

Corporate Actions

Dividend Rate

₹15

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

3 positive3 general

Federal-Mogul Goetze surges 10% on ₹ 94 per share dividend bounty

Business Standard, 28 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Federal-Mogul Goetze (India) Share Price at 52-Week High

Univest, 28 Aug

Federal-Mogul Goetze (India) Limited (NSE: FMGOETZE) Falls 6.04% as Stock Movement Draws Market Attention

Kalkine India, 07 Sept

Volume Gainers, August 25, 2026 at 3:00 PM IST

HDFC Sky, 25 Aug

This piston-maker is up 6% post declaring dividend after 25 years, to pay shareholders ₹94 — Check record date

CNBC TV18, 28 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Federal-Mogul Goetze declares ₹7.50 interim and ₹86.50 special dividend

scanx.trade, 24 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong17.6/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive10.7/15

🟡RiskModerate6.2/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓EBITDA margin holds above 16%18.4%
✓Revenue growth stays above 5% a year6.4% CAGR
✓Free cash flow remains positive₹199 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 13%15.9%