Galaxy Agrico Exports Limited

Industrials — Tools & Accessories · BSE

₹98.00−₹0.01 (−0.01%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Galaxy Agrico Exports Limited manufactures and trades in automotive and industrial bearings and forged rings in India.

IndustryTools & Accessories

SectorIndustrials

Employees2

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹146 reaches shareholders as profit, with ₹-39 left at the operating level before interest, tax and depreciation. Each of its 2 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin-38.8%

Net margin145.6%

Revenue / employee₹1.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 7.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE7.6%

ROE6.9%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -25% while net margin moved +252% 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-25%

Margin effect+252%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.10 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

85/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

8.1x

3Y Median

14.0x

40 monthly readings · mean 86.6x · range 5.2x–298.4x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 14.0x. 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 91% below the peer median of 88.8x.

vs. its own history

Cheap

14.0x median over 40 months · -42%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.1x

P/B

2.82x

EV/EBITDA

—

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 99% over 3 years.
Valuation below its historical average
At 8.1x the stock trades 42% below its own median of 14.0x.
Very low debt
Debt/Equity of 0.02x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 45.8% to -38.8% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 22.3% to 6.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.2% to 7.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 84.6 points, from 45.8% to -38.8%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 335% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 99% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 42% 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 91% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 45.8% to -38.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 22.3% to 6.9%. 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
3 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 -41%✓ -38.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹46 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 7.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 14.0x✓ 8.1x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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

5 good · 3 neutral · 3 weak

Market Cap

₹156 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.1x

Cheap

Cheap against the generic band

P/B Ratio

2.82x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.13

Profitable

Profitable on a per-share basis

ROE

6.9%

Weak

Weak capital efficiency

ROCE

7.6%

Weak

Low return on total capital employed

Debt/Equity

0.02x

Low

Conservative leverage

Revenue Growth (YoY)

296.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4574.3%

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

-₹46 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹98

Operating Margin

8.2%

Average

Average margins

Net Margin

84.5%

Good

Strong bottom-line conversion

Current Ratio

65.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.10

Defensive

Steadier than the market

52W Range Position

86%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

93.3 / 85.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹6 Cr	₹4 Cr	₹3 Cr	-9.2%
EBITDA	₹2 Cr	-₹0 Cr	₹0 Cr	-₹1 Cr	—
EBITDA Margin	45.8%	-2.8%	5.3%	-38.8%	—
PAT (Net Profit)	₹1 Cr	-₹1 Cr	₹0 Cr	₹4 Cr	+38.1%
EPS	₹3.96	₹-1.53	₹0.22	₹1.03	-36.2%
ROE	22.3%	-13.5%	2.0%	6.9%	—
ROCE	26.2%	-12.1%	1.4%	7.6%	—
Total Debt	₹1 Cr	₹2 Cr	₹2 Cr	₹0 Cr	-78.8%
Free Cash Flow	₹1 Cr	-₹1 Cr	-₹0 Cr	-₹46 Cr	—

🔴 Revenue has shrunk at 9.2% a year over 3 years.

🔴 EBITDA has turned negative, from ₹2 Cr to -₹1 Cr.

🔴 EBITDA Margin has fallen from 45.8% to -38.8% over 3 years (-84.6 pts).

🟢 PAT (Net Profit) has grown at 38.1% a year over 3 years.

🔴 EPS has shrunk at 36.2% a year over 3 years.

🔴 ROE has fallen from 22.3% to 6.9% over 3 years (-15.4 pts).

🔴 ROCE has fallen from 26.2% to 7.6% over 3 years (-18.6 pts).

🟢 Total Debt has shrunk at 78.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹46 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹56 Cr

Total Liabilities

₹1 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹46 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.0%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed2 negative3 general

Galaxy Agrico Exports Upper Circuit Today: Price, Data and Peers

Univest, 14 Oct

Galaxy Agrico Exports: कंपनी में बड़े बदलाव की तैयारी, MD पद से इस्तीफे और नई नियुक्ति पर होगा फैसला

Whalesbook, 16 Oct

Galaxy Agrico Exports board to consider MD resignation, new appointment

scanx.trade, 16 OctManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Galaxy Agrico Exports Board to Consider MD Resignation and Appointment

Whalesbook, 16 OctManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Galaxy Agrico Exports Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Galaxy Agrico Exports reports standalone net profit of Rs 0.50 crore in the June 2026 quarter

Business Standard, 15 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.7/20

🟢Financial HealthStrong15/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above -41%-38.8%
✗Free cash flow remains positive-₹46 Cr
✗ROCE stays above 8%7.6%
✓Valuation vs its own median of 14.0x8.1x today