GKW Limited

Industrials — Specialty Business Services · NSE

₹1,559.10+₹39.50 (+2.60%)

DalalBaazaar Score

48 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

GKW Limited provides warehousing and logistics solutions in India. It operates in two segments: Warehousing, and Investment and Treasury.

IndustrySpecialty Business Services

SectorIndustrials

Employees16

Annual revenue₹32 Cr

How does it make money?

Turns over ₹32 Cr a year. Of every ₹100 of sales, about ₹-7 reaches shareholders as profit, with ₹50 left at the operating level before interest, tax and depreciation. Each of its 16 employees supports ₹2.01 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.01 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 0.4% 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 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 +58% while net margin moved -117% 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+58%

Margin effect-117%

DalalBaazaar Score

48/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

30/ 100

Expensive

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

57.0x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.01x 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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 436% over 3 years, from ₹0 Cr to ₹0 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹2 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 19.8 points, from 70.3% to 50.5%.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹17 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 70.3% to 50.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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.
Several serious flags at once
4 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

1Revenue growth stays above 12% a year✓ 16.4% CAGR
Latest reported year was 2.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 48%✓ 50.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Interest cover stays above 3x✗ 1.5x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

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

3 good · 3 neutral · 5 weak

Market Cap

₹930 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-8.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-0.1%

Weak

Weak capital efficiency

ROCE

0.4%

Weak

Low return on total capital employed

Debt/Equity

0.01x

Low

Conservative leverage

Revenue Growth (YoY)

2.2%

Modest

Modest growth

Profit Growth (YoY)

-21.9%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

77.9%

Good

Healthy core-business profitability

Net Margin

-16.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

14.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.01

Defensive

Steadier than the market

52W Range Position

33%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1553.8 / 1580.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

50.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20 Cr	₹39 Cr	₹33 Cr	₹32 Cr	+16.4%
EBITDA	₹14 Cr	₹29 Cr	-₹6 Cr	₹16 Cr	+4.3%
EBITDA Margin	70.3%	74.1%	-18.8%	50.5%	—
PAT (Net Profit)	₹9 Cr	₹14 Cr	-₹18 Cr	-₹2 Cr	—
EPS	₹14.71	₹23.22	₹-30.95	₹-3.87	—
ROE	0.4%	0.6%	-0.7%	-0.1%	—
ROCE	0.5%	0.6%	-0.3%	0.4%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+75.0%
Free Cash Flow	-₹5 Cr	₹8 Cr	-₹215 Cr	₹17 Cr	—

🟢 Revenue has grown at 16.4% a year over 3 years.

🟢 EBITDA has grown at 4.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 70.3% to 50.5% over 3 years (-19.8 pts).

🔴 PAT (Net Profit) has turned negative, from ₹9 Cr to -₹2 Cr.

🔴 EPS has turned negative, from ₹14.71 to ₹-3.87.

🟡 ROE has held roughly flat at -0.1% over 3 years.

🟡 ROCE has held roughly flat at 0.4% over 3 years.

🔴 Total Debt has grown at 75.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹5 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,232 Cr

Total Liabilities

₹611 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

0.0%

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 mixed5 general

GKW Limited to hold 96th AGM on August 3, 2026

scanx.trade, 18 Oct

GKW vs Nifty 50: Share Price Performance Compared

Univest, 25 Sept

GKW Ltd Balance Sheets, Financial Statements

The Economic Times, 11 Jun

GKW Limited shares drop 53% after InvestingPro’s timely overvaluation alert By Investing.com

Investing.com India, 07 FebPrice 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.

GKW Standalone June 2026 Net Sales at Rs 14.88 crore, up 2.18% Y-o-Y

Moneycontrol.com, 10 Aug

GKW Limited's Registrar CB Management Services Amalgamates with MUFG Intime India, Effective 8 May 2026

scanx.trade, 08 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · 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. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑