Gallantt Ispat Limited

Basic Materials — Steel · NSE

₹609.00−₹19.15 (−3.05%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Gallantt Ispat Limited engages in the manufacturing and sale of steel and steel products in India. The company offers pellets, sponge iron, MS billets, and TMT bars; and MIS roll bars, iron ore pellets, and other products.

IndustrySteel

SectorBasic Materials

Employees4,242

Annual revenue₹4,304 Cr

How does it make money?

Turns over ₹4,304 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 4,242 employees supports ₹1.01 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin17.9%

Net margin11.3%

Revenue / employee₹1.01 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.9%

ROE14.6%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +7% while net margin moved +222% 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+7%

Margin effect+222%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 1.11 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

52/ 100

Fair

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

33.8x

3Y Median

35.5x

40 monthly readings · mean 37.4x · range 14.5x–82.0x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 35.5x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 86% above the peer median of 18.2x.

vs. its own history

Fair

35.5x median over 40 months · -5%

vs. sector peers

Expensive

18.2x median of 4 peers · +86%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

33.8x

P/B

4.43x

EV/EBITDA

19.6x

PEG

0.66

Dividend Yield

0.33%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 9.0% to 17.9% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 6.3% to 14.6%.
Return on capital is rising
ROCE has improved from 11.0% to 17.9%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Receivables growing faster than sales
Receivables are up 29% against revenue growth of 7% — customers are taking longer to pay.

Red Flags

1 item require attention · 1 watch

🟡Receivables growing faster than salesFinancial
Receivables up 29% against revenue up 7% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 9.0% to 17.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹254 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?

Sales are being booked faster than collected
Receivables are up 29% against revenue up 7%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 86% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 2.2% 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
Small 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%✓ 17.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 2.2% CAGR
Latest reported year was 1.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹254 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 6 neutral · 1 weak

Market Cap

₹14,694 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

4.43x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹18

Profitable

Profitable on a per-share basis

ROE

14.6%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

1.6%

Modest

Modest growth

Profit Growth (YoY)

-28.8%

Falling

Profits are shrinking

Dividend Yield

0.33%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹254 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹609

Operating Margin

13.5%

Average

Average margins

Net Margin

9.8%

Average

Average bottom-line conversion

Current Ratio

2.95

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.11

Market-like

Moves roughly in line with the market

52W Range Position

25%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

549.7 / 563.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,035 Cr	₹4,148 Cr	₹4,097 Cr	₹4,304 Cr	+2.2%
EBITDA	₹365 Cr	₹451 Cr	₹707 Cr	₹771 Cr	+28.3%
EBITDA Margin	9.0%	10.9%	17.3%	17.9%	—
PAT (Net Profit)	₹141 Cr	₹225 Cr	₹401 Cr	₹484 Cr	+50.9%
EPS	₹5.84	₹9.34	₹16.61	₹20.07	+50.9%
ROE	6.3%	9.2%	14.1%	14.6%	—
ROCE	11.0%	12.6%	18.8%	17.9%	—
Total Debt	₹538 Cr	₹462 Cr	₹378 Cr	₹548 Cr	+0.6%
Free Cash Flow	-₹132 Cr	₹145 Cr	₹337 Cr	₹254 Cr	—

🟢 Revenue has grown at 2.2% a year over 3 years.

🟢 EBITDA has grown at 28.3% a year over 3 years.

🟢 EBITDA Margin has risen from 9.0% to 17.9% over 3 years (+8.9 pts).

🟢 PAT (Net Profit) has grown at 50.9% a year over 3 years.

🟢 EPS has grown at 50.9% a year over 3 years.

🟢 ROE has risen from 6.3% to 14.6% over 3 years (+8.3 pts).

🟢 ROCE has risen from 11.0% to 17.9% over 3 years (+6.9 pts).

🟡 Total Debt has been broadly flat over 3 years (0.6% a year).

🟢 Free Cash Flow has turned positive, from -₹132 Cr to ₹254 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,270 Cr

Total Liabilities

₹953 Cr

Total Debt

₹548 Cr

Cash & Equivalents

₹102 Cr

Operating Cash Flow

₹602 Cr

Capex

-₹348 Cr

Shareholding (proxy)

Institutional Holding

0.1%

Insider Holding

94.7%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

23 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

4 mixed2 general

Gallantt Ispat share price jumps 15% | What’s driving the rally? Key levels to watch

Livemint, 12 OctPrice 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.

Gallantt Ispat Shares Rally 14%: Buy, Sell or Hold?

Univest, 15 OctPrice 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.

Gallantt Trust Completes Major Acquisition of 60.051% Stake in Gallantt Ispat Limited

scanx.trade, 15 OctM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Gallantt Ispat Ltd. Exhibits Mixed Technical Signals Amid Strong Price Momentum

MarketsMojo, 15 Oct

Gallantt Ispat shares rally 14% today: What's fuelling surge? Buy, sell or hold? Check target price, support, resistance

Livemint, 15 OctPrice 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.

Gallantt Ispat - UPL among 3 stocks closed that closed crossing above VWAP

The Economic Times, 13 Oct

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong14.5/20

🟢Financial HealthStrong17.8/20

🟢GrowthStrong13.1/20

🟡ProfitabilityModerate9.6/15

🟡ValuationFair8.1/15

🟡RiskModerate4.9/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

This thesis breaks if

✓EBITDA margin holds above 16%17.9%
✗Revenue growth stays above 4% a year2.2% CAGR
✓Free cash flow remains positive₹254 Cr
✓Debt / EBITDA stays below 2x0.7x
✓ROCE stays above 15%17.9%