Goldstar Power Limited

Sector n/a · NSE

₹12.35−₹0.80 (−6.08%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

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

How does it make money?

Turns over ₹838 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 10.4% 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.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +1581% while net margin moved -76% 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+1581%

Margin effect-76%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ 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

52/ 100

Average

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

Valuation

60/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

10.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 39% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.4% to 9.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.3% to 10.4% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.84x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 12.0 points, from 16.1% to 4.1%.
🔴Receivables growing faster than salesFinancial
Receivables up 3549% against revenue up 1581% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹108 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 39% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

Margins are being competed away
EBITDA margin has fallen from 16.1% to 4.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.84x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 3549% against revenue up 1581%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 15.4% to 9.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 117% a year✓ 156.2% CAGR
Latest reported year was 1633.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹108 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

2 good · 7 neutral · 2 weak

Market Cap

₹353 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.84x

High

High leverage

Revenue Growth (YoY)

1633.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

557.9%

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

-₹108 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

5.6%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.27

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

10.6 / 8.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

39.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹50 Cr	₹50 Cr	₹48 Cr	₹838 Cr	+156.2%
EBITDA	₹8 Cr	₹9 Cr	₹7 Cr	₹34 Cr	+61.8%
EBITDA Margin	16.1%	17.3%	13.6%	4.1%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹2 Cr	₹15 Cr	+59.1%
EPS	₹0.19	₹0.17	—	—	—
ROE	15.4%	14.4%	7.5%	9.0%	—
ROCE	20.3%	20.9%	13.9%	10.4%	—
Total Debt	₹13 Cr	₹18 Cr	₹11 Cr	₹8 Cr	-15.0%
Free Cash Flow	₹6 Cr	₹3 Cr	₹9 Cr	-₹108 Cr	—

🟢 Revenue has grown at 156.2% a year over 3 years.

🟢 EBITDA has grown at 61.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.1% to 4.1% over 3 years (-12.0 pts).

🟢 PAT (Net Profit) has grown at 59.1% a year over 3 years.

🔴 ROE has fallen from 15.4% to 9.0% over 3 years (-6.5 pts).

🔴 ROCE has fallen from 20.3% to 10.4% over 3 years (-9.9 pts).

🟢 Total Debt has shrunk at 15.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹6 Cr to -₹108 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹514 Cr

Total Liabilities

₹216 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹108 Cr

Capex

₹72 Cr

Recent News

1 positive5 general

Goldstar Power Lower Circuit Today: Price, Data and Peers

Univest, 15 Oct

Here's Why We Think Goldstar Power (NSE:GOLDSTAR) Is Well Worth Watching

Simply Wall Street, 20 Sept

Goldstar Power Ltd is Rated Hold by MarketsMOJO

MarketsMojo, 15 Oct

Goldstar Power consolidated net profit rises 1954.93% in the June 2026 quarter

Business Standard, 14 AugResults

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

Goldstar Power Lower Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

Goldstar Power Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

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

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