GOCL Corporation Limited

Basic Materials — Specialty Chemicals · NSE

₹364.80+₹2.60 (+0.72%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. 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 GOCL Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GOCL Corporation Limited, together with its subsidiaries, engages in the electronics manufacturing services and the realty businesses in India and internationally.

IndustrySpecialty Chemicals

SectorBasic Materials

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹48119 reaches shareholders as profit, with ₹6607 left at the operating level before interest, tax and depreciation.

EBITDA margin6607.1%

Net margin48118.7%

Who are its competitors?

The closest listed comparisons in its industry are ASIAN PAINTS LIMITED, PIDILITE INDUSTRIES LTD, SRF LTD, UPL LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

PIDILITE INDUSTRIES LTDP/E 57.8x · ROE 24.4%

SRF LTDP/E 33.8x · ROE 15.4%

UPL LIMITEDP/E 21.5x · ROE 6.1%

What is its competitive advantage?Little sign of one

Returns on capital of 12.2% 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.

ROCE12.2%

ROE48.4%

Peer median ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -100% while net margin moved +207700% 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-100%

Margin effect+207700%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.80 — moves roughly with the market
✗ 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

69/ 100

Good

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

Valuation

83/ 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

6.7x

3Y Median

11.2x

40 monthly readings · mean 17.6x · range 1.2x–49.7x

Sector Median

40.4x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 3y median of 11.2x. 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 83% below the peer median of 40.4x.

vs. its own history

Cheap

11.2x median over 40 months · -40%

vs. sector peers

Cheap

40.4x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

6.7x

P/B

0.58x

EV/EBITDA

8.6x

PEG

0.07

Dividend Yield

8.22%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 19.1% to 6607.1% over 3 years.
Debt is being paid down
Total debt is down 100% over 3 years.
Return on equity is rising
ROE has improved from 15.0% to 48.4%.
Valuation below its historical average
At 6.7x the stock trades 40% below its own median of 11.2x.
Very low debt
Debt/Equity of 0.02x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 16.8% to 12.2% — often a sign of competition or overexpansion.

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 -₹54 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 19.1% to 6607.1%. 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 100% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 40% 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 83% 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

1EBITDA margin holds above 6605%✓ 6607.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹54 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 9%✓ 12.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 11.2x✓ 6.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹1,808 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

6.7x

Cheap

Cheap against the generic band

P/B Ratio

0.58x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹54.41

Profitable

Profitable on a per-share basis

ROE

48.4%

Strong

Strong capital efficiency

ROCE

12.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.02x

Low

Conservative leverage

Revenue Growth (YoY)

26.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-96.7%

Falling

Profits are shrinking

Dividend Yield

8.22%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹54 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹364.8

Operating Margin

-142.7%

Weak

Thin margins leave little room for error

Net Margin

3188.7%

Good

Strong bottom-line conversion

Current Ratio

10.72

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.80

Market-like

Moves roughly in line with the market

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

376.3 / 399.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

41.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹912 Cr	₹601 Cr	₹12 Cr	₹3 Cr	-84.9%
EBITDA	₹174 Cr	₹212 Cr	₹207 Cr	₹209 Cr	+6.3%
EBITDA Margin	19.1%	35.2%	1792.9%	6607.1%	—
PAT (Net Profit)	₹211 Cr	₹48 Cr	₹157 Cr	₹1,522 Cr	+93.2%
EPS	₹42.59	₹9.73	₹31.68	₹307.01	+93.2%
ROE	15.0%	3.4%	10.0%	48.4%	—
ROCE	16.8%	7.8%	9.2%	12.2%	—
Total Debt	₹1,767 Cr	₹1,188 Cr	₹1,092 Cr	₹1 Cr	-93.0%
Free Cash Flow	-₹96 Cr	₹24 Cr	₹1 Cr	-₹54 Cr	—

🔴 Revenue has shrunk at 84.9% a year over 3 years.

🟢 EBITDA has grown at 6.3% a year over 3 years.

🟢 EBITDA Margin has risen from 19.1% to 6607.1% over 3 years (+6588.0 pts).

🟢 PAT (Net Profit) has grown at 93.2% a year over 3 years.

🟢 EPS has grown at 93.2% a year over 3 years.

🟢 ROE has risen from 15.0% to 48.4% over 3 years (+33.4 pts).

🔴 ROCE has fallen from 16.8% to 12.2% over 3 years (-4.6 pts).

🟢 Total Debt has shrunk at 93.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,555 Cr

Total Liabilities

₹412 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹34 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

1.2%

Insider Holding

73.6%

Corporate Actions

Dividend Rate

₹30

Ex-Dividend Date

22 Sept 2026

Peer Comparison

Company	P/E	ROE
ASIAN PAINTS LIMITED	46.9x	22.3%
PIDILITE INDUSTRIES LTD	57.8x	24.4%
SRF LTD	33.8x	15.4%
UPL LIMITED	21.5x	6.1%

Recent News

1 positive3 mixed2 general

GOCL Corporation Ltd. Share Price and Sector Comparison

Univest, 21 Sept

Insufficient Growth At GOCL Corporation Limited (NSE:GOCLCORP) Hampers Share Price

Simply Wall Street, 22 Jan

GOCL Corporation stock on fire; 15% up- What's fuelling the Gulf Oil share price rally?

Livemint, 03 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

GOCL Corporation stock on fire; 15% up- What's fuelling the Gulf Oil share price rally?

TradingView, 03 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

GOCL Corporation Soars 17% After ₹2,261 Crore Bengaluru Land Monetisation Deal

Alice Blue, 24 MarOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

GOCL Corp jumps 9% as board approves merger of Hinduja National Power

Business Standard, 16 DecM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟢Financial HealthStrong15/20

🟡GrowthModest10.5/20

🟢ProfitabilityStrong13.5/15

🟢ValuationAttractive12.8/15

🔴RiskHigh3.5/10

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

✓EBITDA margin holds above 6605%6607.1%
✗Free cash flow remains positive-₹54 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 9%12.2%
✓Valuation vs its own median of 11.2x6.7x today