Ganon Products Limited

Financial Services — Capital Markets · BSE

₹8.95−₹0.02 (−0.22%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Ganon Products Limited engages in trading and wholesale of various commodities in India and internationally. The company engages in the trading of agro commodities, metal and steel products, thermal coal, and garnet, as well as cotton and fabrics.

IndustryCapital Markets

SectorFinancial Services

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -47% while net margin moved +6603% 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-47%

Margin effect+6603%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.30 — 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

66/ 100

Good

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

Valuation

80/ 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

22.4x

3Y Median

266.5x

40 monthly readings · mean 275.2x · range 12.0x–797.0x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 92% below its 3y median of 266.5x. 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 62% below the peer median of 58.4x.

vs. its own history

Cheap

266.5x median over 40 months · -92%

vs. sector peers

Cheap

58.4x median of 3 peers · -62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

9.3x

PEG

0.10

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 4.0% to 30.8% over 3 years.
Return on equity is rising
ROE has improved from 0.1% to 4.5%.
Return on capital is rising
ROCE has improved from 3.9% to 9.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 2592% against revenue growth of -47% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.39 — near-term obligations exceed near-term assets.

Red Flags

1 item require attention · 1 high

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.0% to 30.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 92% 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 62% 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?

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.

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

1EBITDA margin holds above 29%✓ 30.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 4.5%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Valuation vs its own median of 266.5x✓ 22.4x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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 · 5 neutral · 2 weak

Market Cap

₹8 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.73x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.4

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

9.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.95x

Moderate

Moderate leverage

Revenue Growth (YoY)

733.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

150.0%

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

-₹8 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.3%

Average

Average margins

Net Margin

6.9%

Average

Average bottom-line conversion

Current Ratio

0.39

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

7.5 / 7.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

72.1

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹13 Cr	₹28 Cr	₹17 Cr	₹7 Cr	-19.2%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+59.1%
EBITDA Margin	4.0%	2.5%	5.6%	30.8%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹1 Cr	+228.3%
EPS	₹0.02	₹0.14	₹0.05	₹0.56	+203.7%
ROE	0.1%	1.2%	0.4%	4.5%	—
ROCE	3.9%	3.9%	7.6%	9.2%	—
Free Cash Flow	₹6 Cr	₹6 Cr	-₹3 Cr	-₹8 Cr	—

🔴 Revenue has shrunk at 19.2% a year over 3 years.

🟢 EBITDA has grown at 59.1% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 30.8% over 3 years (+26.7 pts).

🟢 PAT (Net Profit) has grown at 228.3% a year over 3 years.

🟢 EPS has grown at 203.7% a year over 3 years.

🟢 ROE has risen from 0.1% to 4.5% over 3 years (+4.4 pts).

🟢 ROCE has risen from 3.9% to 9.2% over 3 years (+5.3 pts).

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹27 Cr

Total Debt

₹11 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹8 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

48.0%

Corporate Actions

Ex-Dividend Date

12 Sept 2018

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 mixed4 general

Ganon Products promoter Kamla Business Ventures sells 0.93% stake

scanx.trade, 15 Oct

Ganon Products Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Ganon Products receives request for promoter reclassification

scanx.trade, 06 Oct

Ganon Products discloses 41st AGM voting results; all resolutions pass

scanx.trade, 03 OctResults

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

Q1 results 2026: Bharti Airtel to LIC among companies to declare Q1 results next week; check full list here

Livemint, 02 AugResults

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

Kedma exits Ace owner Multi Retail at triple its money, NIS 240M valuation

Dealroom, 12 Aug

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingGrowth · Profitability

WeakRisk

Points for each in the Score ↑

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 4 tripwires tripped — Return on equity stays above 8%; Interest cover stays above 3x · see Key things to watch ↑