GEE Limited

Industrials — Metal Fabrication · BSE

₹123.05+₹0.70 (+0.57%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

NEUTRAL

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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

GEE Limited engages in the manufacturing and marketing of welding consumables and related products in India.

IndustryMetal Fabrication

SectorIndustrials

Employees402

Annual revenue₹369 Cr

How does it make money?

Turns over ₹369 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 402 employees supports ₹91.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹91.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA 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?Little sign of one

Returns on capital of 11.2% 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.

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved +63% 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+63%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.0% is weak

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

45/ 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

28.7x

3Y Median

32.6x

40 monthly readings · mean 34.2x · range 21.6x–53.4x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 12% below its 3y median of 32.6x. 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 136% above the peer median of 12.2x.

vs. its own history

Fair

32.6x median over 40 months · -12%

vs. sector peers

Expensive

12.2x median of 4 peers · +136%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.4x

PEG

1.89

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.5% to 9.3% over 3 years.
Debt is being paid down
Total debt is down 30% over 3 years.
Return on capital is rising
ROCE has improved from 9.1% to 11.2%.
Very low debt
Debt/Equity of 0.30x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 100% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 6.5% to 9.3%. 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 30% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

A premium to the sector to defend
It trades 136% above the peer median. That premium needs a reason that persists, or it closes.
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 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 11.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

₹640 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

28.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.54x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.29

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

29.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

584.2%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

6.8%

Average

Average margins

Net Margin

4.8%

Average

Average bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.61

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

125.4 / 129.0

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹395 Cr	₹369 Cr	₹333 Cr	₹369 Cr	-2.2%
EBITDA	₹26 Cr	₹30 Cr	₹1 Cr	₹34 Cr	+9.9%
EBITDA Margin	6.5%	8.2%	0.2%	9.3%	—
PAT (Net Profit)	₹9 Cr	₹13 Cr	-₹9 Cr	₹13 Cr	+15.2%
EPS	₹1.64	₹2.48	₹-1.78	₹2.47	+14.7%
ROE	4.4%	6.3%	-4.8%	6.0%	—
ROCE	9.1%	11.9%	-1.9%	11.2%	—
Total Debt	₹87 Cr	₹82 Cr	₹75 Cr	₹61 Cr	-11.2%
Free Cash Flow	-₹0 Cr	₹11 Cr	₹12 Cr	-₹21 Cr	—

🔴 Revenue has shrunk at 2.2% a year over 3 years.

🟢 EBITDA has grown at 9.9% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 9.3% over 3 years (+2.7 pts).

🟢 PAT (Net Profit) has grown at 15.2% a year over 3 years.

🟢 EPS has grown at 14.7% a year over 3 years.

🟢 ROE has risen from 4.4% to 6.0% over 3 years (+1.6 pts).

🟢 ROCE has risen from 9.1% to 11.2% over 3 years (+2.1 pts).

🟢 Total Debt has shrunk at 11.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹315 Cr

Total Liabilities

₹100 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.6%

Corporate Actions

Ex-Dividend Date

19 Sept 2018

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 mixed1 negative3 general

Gelex Electric Joint Stock Company Actuals & Estimates (HOSE:GEE)

TradingView, 15 Oct

Already up 86% in 6 months, ICICI Direct still sees another 39% upside in this small-cap stock - Check target, rationale

Livemint, 16 Oct

Defence Supplier GEE Jumps 15% After Role In Triple Navy Warship Commissioning

https://defence.newsd.in/, 24 JunCapacity

🟡Mixed / dependsCapacity additions can raise revenue over two to three years, but the capital spend usually pressures free cash flow first. Worth checking whether the capex is funded from operations or from borrowing.

GEE Group’s Q3 net revenue falls 15.3%

Staffing Industry Analysts, 13 AugResults

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

GEE Ltd EBITDA rises 76% in Q1FY27 on operational gains

scanx.trade, 08 Aug

Multibagger Defence Supplier Stock Jumps 15% After Contributing To Triple Indian Navy Warship Commissioning

Dalal Street Investment Journal, 24 JunCapacity

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Valuation

WeakProfitability · Risk

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

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑