G. G. Automotive Gears Limited

Consumer Cyclical — Auto Parts · BSE

₹210.30−₹12.55 (−5.63%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. 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

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 G. G. Automotive Gears Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

G. G. Automotive Gears Limited engages in the manufacture and sale of traction gears and pinions in India. It offers railway gears and shafts; forged components and machined blanks; industrial gears and gearboxes; and mining and earth-moving equipment spares.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹116 Cr

How does it make money?

Turns over ₹116 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation.

EBITDA margin18.3%

Net margin9.6%

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 19.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE19.7%

ROE19.1%

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +51% while net margin moved +281% 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+51%

Margin effect+281%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

65/ 100

Good

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

Valuation

79/ 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

21.9x

3Y Median

31.9x

40 monthly readings · mean 32.8x · range 14.6x–65.3x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 3y median of 31.9x. 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 52% below the peer median of 45.7x.

vs. its own history

Cheap

31.9x median over 40 months · -31%

vs. sector peers

Cheap

45.7x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.9x

P/B

—

EV/EBITDA

10.8x

PEG

0.28

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 10.4% to 18.3% over 3 years.
Debt is being paid down
Total debt is down 15% over 3 years.
Return on equity is rising
ROE has improved from 8.7% to 19.1%.
Return on capital is rising
ROCE has improved from 10.3% to 19.7%.
Valuation below its historical average
At 21.9x the stock trades 31% below its own median of 31.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

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

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 -₹8 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 26% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.7% 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 10.4% to 18.3%. 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 31% 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 52% 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

1Revenue growth stays above 11% a year✓ 14.6% CAGR
Latest reported year was 1.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 17%✓ 19.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

5 good · 5 neutral · 1 weak

Market Cap

₹210 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.9x

Fair

Fairly valued against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹9.59

Profitable

Profitable on a per-share basis

ROE

19.1%

Strong

Strong capital efficiency

ROCE

19.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

1.8%

Modest

Modest growth

Profit Growth (YoY)

43.5%

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

CMP

₹210.3

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.05

Comfortable

Healthy short-term liquidity

52W Range Position

43%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

211.1 / 181.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

52.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹77 Cr	₹95 Cr	₹114 Cr	₹116 Cr	+14.6%
EBITDA	₹8 Cr	₹12 Cr	₹18 Cr	₹21 Cr	+38.5%
EBITDA Margin	10.4%	12.9%	15.5%	18.3%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹8 Cr	₹11 Cr	+78.9%
EPS	₹2.45	₹5.32	₹8.54	₹11.13	+65.6%
ROE	8.7%	14.0%	16.5%	19.1%	—
ROCE	10.3%	17.5%	19.6%	19.7%	—
Total Debt	₹34 Cr	₹27 Cr	₹25 Cr	₹29 Cr	-5.2%
Free Cash Flow	-₹5 Cr	₹5 Cr	-₹4 Cr	-₹8 Cr	—

🟢 Revenue has grown at 14.6% a year over 3 years.

🟢 EBITDA has grown at 38.5% a year over 3 years.

🟢 EBITDA Margin has risen from 10.4% to 18.3% over 3 years (+7.9 pts).

🟢 PAT (Net Profit) has grown at 78.9% a year over 3 years.

🟢 EPS has grown at 65.6% a year over 3 years.

🟢 ROE has risen from 8.7% to 19.1% over 3 years (+10.5 pts).

🟢 ROCE has risen from 10.3% to 19.7% over 3 years (+9.4 pts).

🟢 Total Debt has shrunk at 5.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹109 Cr

Total Liabilities

₹51 Cr

Total Debt

₹29 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹11 Cr

Capex

-₹19 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.7%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive1 mixed4 general

G.G.AUTOMOTIVE GEARS LTD. Share Price - Live GGAUTO Stock Price & Chart

Upstox, 09 Oct

GG Automotive Gears Share Price News: Price Action Check

Univest, 08 Oct

Compare with

Equitymaster, 14 Oct

GG Automotive Gears Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 27 Aug

GG Automotive Gears FY26 Net Profit Rises 44%

scanx.trade, 14 MayResults

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

GG Automotive Gears Share Price: Price Fall and Valuation

Univest, 01 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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 HealthStrong14/20

🟢GrowthStrong13.3/20

🟢ProfitabilityStrong9.8/15

🟢ValuationAttractive11.7/15

🔴RiskHigh2.5/10

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.

This thesis breaks if

✓Revenue growth stays above 11% a year14.6% CAGR
✓EBITDA margin holds above 16%18.3%
✗Free cash flow remains positive-₹8 Cr
✓Debt / EBITDA stays below 2x1.4x
✓ROCE stays above 17%19.7%