Garware Technical Fibres Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹769.95+₹4.30 (+0.56%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Garware Technical Fibres Limited manufactures and sells various technical textile products in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees1,097

Annual revenue₹1,522 Cr

How does it make money?

Turns over ₹1,522 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,097 employees supports ₹1.39 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.39 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS 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 19.3% 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 ROE25.9%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 13.0% and earnings to grow about 16.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.0%

Est. earnings growth+16.9%

Analysts2

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 +18% while net margin moved -2% 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+18%

Margin effect-2%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.6% — barely ahead of inflation
✗ Profit CAGR of only 4.9%

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

49/ 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

36.3x

3Y Median

38.5x

40 monthly readings · mean 37.3x · range 26.0x–45.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 38.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 48% below the peer median of 69.2x.

vs. its own history

Fair

38.5x median over 40 months · -6%

vs. sector peers

Cheap

69.2x median of 4 peers · -48%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

22.7x

PEG

7.44

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 17.8% to 21.6% over 3 years.
Debt is being paid down
Total debt is down 68% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 21.8% to 19.3% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.16x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 86% against revenue up 18% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.3% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 17.8% to 21.6%. 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 68% 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 48% 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 3.16x. Interest is payable whether or not the business has a good year.
Growth barely outpaces inflation
Revenue compounding at 5.6% 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.
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 20%✓ 21.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 5.6% CAGR
Latest reported year was 31.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹106 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹7,518 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

36.3x

Fair

Fairly valued against the generic band

P/B Ratio

5.64x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹21.21

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

19.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.16x

High

High leverage

Revenue Growth (YoY)

31.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

22.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.17%

Modest

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

Free Cash Flow

₹106 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

25.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

16.7%

Good

Healthy core-business profitability

Net Margin

12.8%

Good

Strong bottom-line conversion

Current Ratio

2.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

775.1 / 787.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,293 Cr	₹1,318 Cr	₹1,529 Cr	₹1,522 Cr	+5.6%
EBITDA	₹231 Cr	₹273 Cr	₹352 Cr	₹329 Cr	+12.6%
EBITDA Margin	17.8%	20.7%	23.1%	21.6%	—
PAT (Net Profit)	₹172 Cr	₹210 Cr	₹232 Cr	₹199 Cr	+4.9%
EPS	₹16.75	₹21.07	₹23.32	₹20.01	+6.1%
ROE	16.9%	17.0%	18.6%	14.7%	—
ROCE	21.8%	22.0%	24.8%	19.3%	—
Total Debt	₹134 Cr	₹123 Cr	₹65 Cr	₹43 Cr	-31.6%
Free Cash Flow	₹160 Cr	₹176 Cr	₹152 Cr	₹106 Cr	-13.0%

🟢 Revenue has grown at 5.6% a year over 3 years.

🟢 EBITDA has grown at 12.6% a year over 3 years.

🟢 EBITDA Margin has risen from 17.8% to 21.6% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 4.9% a year over 3 years.

🟢 EPS has grown at 6.1% a year over 3 years.

🔴 ROE has fallen from 16.9% to 14.7% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 21.8% to 19.3% over 3 years (-2.5 pts).

🟢 Total Debt has shrunk at 31.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 13.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,879 Cr

Total Liabilities

₹524 Cr

Cash & Equivalents

₹99 Cr

Operating Cash Flow

₹162 Cr

Capex

-₹56 Cr

Shareholding (proxy)

Institutional Holding

13.1%

Insider Holding

59.2%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

01 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹844.67

+9.7% vs CMP

Target Range

₹719 – ₹935

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive2 mixed2 general

Garware Technical Fibres (NSEI:GARFIBRES) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buyback alert! Garware Technical Fibres set to announce buyback on May 8. What to expect?

The Economic Times, 06 MayCapital return

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

Garware Technical Fibres Q1 Consolidated Net Profit At 645M Rupees Vs 530.9M YoY

Sahi, 05 AugResults

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

Garware Technical Fibres Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Garware Technical Fibres Stock Signals to Watch This Week

Univest, 24 Sept

Garware Technical Fibres Q1 Results: Net Profit Rises 21.5% YoY, EBITDA Margin at 18.68%

scanx.trade, 05 AugResults

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

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingRisk

WeakGrowth · Valuation

Points for each in the Score ↑

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. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑