GKB Ophthalmics Limited

Healthcare — Medical Instruments & Supplies · NSE

₹63.90−₹0.56 (−0.87%)

DalalBaazaar Score

56 / 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 modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

GKB Ophthalmics Limited engages in the manufacture and sale of unfinished ophthalmic lenses in India and internationally. It offers semifinished organic lenses, such as single vision, bifocal, and progressive. The company was incorporated in 1981 and is based in Mapusa, India.

IndustryMedical Instruments & Supplies

SectorHealthcare

Employees156

Annual revenue₹149 Cr

How does it make money?

Turns over ₹149 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 156 employees supports ₹95.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹95.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are SUN PHARMACEUTICAL IND L, CIPLA LTD, DR. REDDY S LABORATORIES, APOLLO HOSPITALS ENTER. L. 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 8.1% 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 ROE14.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +98% while net margin moved -468% 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+98%

Margin effect-468%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.3% is weak

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

87/ 100

Cheap

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

9.9x

Sector Median

33.3x

median of 4 sector peers

🟢Against its sector it trades 70% below the peer median of 33.3x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

33.3x median of 4 peers · -70%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 2.0% to 8.1%.
Very low debt
Debt/Equity of 0.21x 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

2 items require attention · 1 high · 1 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 -₹5 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 70% 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

1Revenue growth stays above 19% a year✓ 25.5% CAGR
Latest reported year was 2.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.7x
How much operating profit can fall before interest stops being comfortably covered.
5Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

6 / 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
✓ 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

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹32 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.9x

Cheap

Cheap against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.43

Profitable

Profitable on a per-share basis

ROE

2.3%

Weak

Weak capital efficiency

ROCE

8.1%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.21x

Low

Conservative leverage

Revenue Growth (YoY)

2.3%

Modest

Modest growth

Profit Growth (YoY)

117.3%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

5.8%

Average

Average margins

Net Margin

2.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

RSI (14)

36.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹75 Cr	₹88 Cr	₹109 Cr	₹149 Cr	+25.5%
EBITDA	₹4 Cr	₹1 Cr	-₹2 Cr	₹9 Cr	+29.3%
EBITDA Margin	5.6%	1.7%	-1.9%	6.1%	—
PAT (Net Profit)	-₹0 Cr	-₹3 Cr	-₹7 Cr	₹1 Cr	—
EPS	₹-0.33	₹-5.58	₹-13.98	₹2.42	—
ROE	-0.3%	-4.7%	-13.5%	2.3%	—
ROCE	2.0%	-2.0%	-8.2%	8.1%	—
Total Debt	₹11 Cr	₹11 Cr	₹14 Cr	₹12 Cr	+1.3%
Free Cash Flow	-₹4 Cr	₹2 Cr	-₹6 Cr	-₹5 Cr	—

🟢 Revenue has grown at 25.5% a year over 3 years.

🟢 EBITDA has grown at 29.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.1% over 3 years.

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹1 Cr.

🟢 EPS has turned positive, from ₹-0.33 to ₹2.42.

🟢 ROE has risen from -0.3% to 2.3% over 3 years (+2.6 pts).

🟢 ROCE has risen from 2.0% to 8.1% over 3 years (+6.1 pts).

🟡 Total Debt has been broadly flat over 3 years (1.3% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹132 Cr

Total Liabilities

₹77 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.1%

Corporate Actions

Ex-Dividend Date

21 Sept 2010

Peer Comparison

Company	P/E	ROE
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%
DR. REDDY S LABORATORIES	31.0x	8.8%
APOLLO HOSPITALS ENTER. L	54.3x	22.0%

Recent News

1 positive5 general

Gkb Ophthalmics | Stock Share Price Live

MarketSmith India, 16 Oct

GKB Stock Price and Chart — NSE:GKB

TradingView, 18 Aug

GKB Ophthalmics holds 44th AGM on Aug 25 with no dividend

scanx.trade, 31 JulCapital return

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

GKB Ophthalmics receives Rs 8.82 Cr demand notice from Labour Commissioner

scanx.trade, 14 Jul

'Ek chutki share ki keemat': Vijay Kedia has an advice for boards after viral investor outburst at AGM

The Economic Times, 24 Aug

GKB Ophthalmics (BSE:533212) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · 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.

2 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑