Garware Marine Industries Limited

Industrials — Aerospace & Defense · BSE

₹17.75−₹0.46 (−2.53%)

DalalBaazaar Score

53 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

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 Garware Marine Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Garware Marine Industries Limited provides ship repair and maintenance services in India. The company's services comprise pump overhauls, engine overhaul/repairs, hydraulic and gear box repair, and pipeline and other marine fabrication jobs.

IndustryAerospace & Defense

SectorIndustrials

Employees4

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹33 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹27.1 lakh of revenue a year, the signature of a people-led business.

EBITDA margin33.3%

Net margin13.6%

Revenue / employee₹27.1 lakh

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 1.5% 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.

ROCE1.5%

ROE1.4%

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 -11% while net margin moved +44% 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-11%

Margin effect+44%

DalalBaazaar Score

53/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 4.0% a year
• Profit CAGR of 8.3%

Quality vs. Valuation

Company Quality

54/ 100

Average

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

Valuation

51/ 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

61.2x

3Y Median

58.6x

40 monthly readings · mean 83.2x · range 28.4x–233.0x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 58.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 31% below the peer median of 88.8x.

vs. its own history

Fair

58.6x median over 40 months · +4%

vs. sector peers

Cheap

88.8x median of 3 peers · -31%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

61.2x

P/B

1.04x

EV/EBITDA

28.3x

PEG

7.35

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from 22.4% to 33.3% over 3 years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

1 item require attention · 1 high

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.4% to 33.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 31% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 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 31%✓ 33.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 1.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 58.6x✓ 61.2x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 3 neutral · 4 weak

Market Cap

₹10 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

61.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.04x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.29

Profitable

Profitable on a per-share basis

ROE

1.4%

Weak

Weak capital efficiency

ROCE

1.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

20.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.0%

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

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹17.75

Operating Margin

23.6%

Good

Healthy core-business profitability

Net Margin

14.4%

Good

Strong bottom-line conversion

Current Ratio

19.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.51

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

18.1 / 19.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-4.0%
EBITDA	₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	+9.5%
EBITDA Margin	22.4%	-9.3%	41.4%	33.3%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹0 Cr	₹0 Cr	+8.3%
EPS	₹0.2	₹-0.12	₹0.75	₹0.26	+9.1%
ROE	1.5%	-0.6%	2.4%	1.4%	—
ROCE	1.5%	-0.6%	2.3%	1.5%	—
Free Cash Flow	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—

🔴 Revenue has shrunk at 4.0% a year over 3 years.

🟢 EBITDA has grown at 9.5% a year over 3 years.

🟢 EBITDA Margin has risen from 22.4% to 33.3% over 3 years (+10.9 pts).

🟢 PAT (Net Profit) has grown at 8.3% a year over 3 years.

🟢 EPS has grown at 9.1% a year over 3 years.

🟡 ROE has held roughly flat at 1.4% over 3 years.

🟡 ROCE has held roughly flat at 1.5% over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

54.6%

Corporate Actions

Ex-Dividend Date

20 Dec 2011

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 mixed1 negative4 general

Garware Marine Industries Ltd. Peer Comparison – Compare with Others

Value Research, 27 Aug

Garware Marine shareholders approve ₹50 crore RPT limit for GOSL

scanx.trade, 07 Oct

Garware Marine Industries Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Garware Marine Q1 Results FY27: PAT Rs 0.07 Cr, Revenue Rs 0.31 crore

Univest, 14 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 Marine Q4 Results: Net Profit Down, Audit Qualification

scanx.trade, 29 JulResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Garware Marine Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.2/20

🔴GrowthWeak7.8/20

🟡ProfitabilityModerate7.9/15

🟡ValuationFair8.3/15

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

This thesis breaks if

✓EBITDA margin holds above 31%33.3%
✗Free cash flow remains positive-₹0 Cr
✗ROCE stays above 8%1.5%
✓Valuation vs its own median of 58.6x61.2x today