Grauer & Weil (India) Limited

Basic Materials — Specialty Chemicals · NSE

₹78.20−₹0.84 (−1.06%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, 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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Grauer & Weil (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Grauer & Weil (India) Limited engages in the manufacturing and selling of surface finishing chemicals in India and internationally. The company operates through Surface Finishing, Engineering, and Shoppertainment segments.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees934

Annual revenue₹1,180 Cr

How does it make money?

Turns over ₹1,180 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 934 employees supports ₹1.26 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.26 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE22.3%

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 +26% while net margin moved +15% 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+26%

Margin effect+15%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 8.0% — barely ahead of inflation
• Profit CAGR of 13.2%
✗ Profit fell 8.3% in the latest year

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

63/ 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.

Historical Valuation

Current P/E

22.2x

1.1Y Median

22.4x

13 monthly readings · mean 32.1x · range 19.8x–54.4x

Sector Median

40.4x

median of 4 sector peers

🟡Currently trading close to its 1.1y median of 22.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 45% below the peer median of 40.4x.

vs. its own history

Fair

22.4x median over 13 months · -1%

vs. sector peers

Cheap

40.4x median of 4 peers · -45%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.9x

PEG

1.67

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 41% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.4% 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.
Deleveraging frees up earnings
Debt is down 41% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 45% 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?

Growth barely outpaces inflation
Revenue compounding at 8.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 18%✓ 20.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 17.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹98 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.4%
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

₹3,546 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.2x

Fair

Fairly valued against the generic band

P/B Ratio

3.28x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹3.53

Profitable

Profitable on a per-share basis

ROE

15.2%

Strong

Strong capital efficiency

ROCE

19.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.34x

Moderate

Moderate leverage

Revenue Growth (YoY)

17.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-8.3%

Falling

Profits are shrinking

Dividend Yield

0.64%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹98 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

14.0%

Average

Average margins

Net Margin

13.0%

Good

Strong bottom-line conversion

Current Ratio

2.71

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.40

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

82.5 / 75.1

Bullish alignment (short > long)

RSI (14)

32.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹937 Cr	₹1,027 Cr	₹1,088 Cr	₹1,180 Cr	+8.0%
EBITDA	₹176 Cr	₹224 Cr	₹229 Cr	₹236 Cr	+10.2%
EBITDA Margin	18.8%	21.9%	21.1%	20.0%	—
PAT (Net Profit)	₹113 Cr	₹146 Cr	₹157 Cr	₹164 Cr	+13.2%
EPS	₹2.49	₹3.23	₹3.47	₹3.62	+13.3%
ROE	16.6%	18.2%	16.7%	15.2%	—
ROCE	21.0%	23.2%	21.5%	19.4%	—
Total Debt	₹24 Cr	₹27 Cr	₹12 Cr	₹15 Cr	-15.9%
Free Cash Flow	₹94 Cr	₹128 Cr	₹100 Cr	₹98 Cr	+1.4%

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 10.2% a year over 3 years.

🟢 EBITDA Margin has risen from 18.8% to 20.0% over 3 years (+1.2 pts).

🟢 PAT (Net Profit) has grown at 13.2% a year over 3 years.

🟢 EPS has grown at 13.3% a year over 3 years.

🔴 ROE has fallen from 16.6% to 15.2% over 3 years (-1.5 pts).

🔴 ROCE has fallen from 21.0% to 19.4% over 3 years (-1.6 pts).

🟢 Total Debt has shrunk at 15.9% a year over 3 years.

🟡 Free Cash Flow has been broadly flat over 3 years (1.4% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,445 Cr

Total Liabilities

₹363 Cr

Cash & Equivalents

₹48 Cr

Operating Cash Flow

₹152 Cr

Capex

-₹54 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

72.6%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

10 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 mixed1 negative1 general

Grauer & Weil share price jumps 11% after key AGM decisions | Details here

TradingView, 18 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.

Grauer & Weil (India) Q1 FY27 Results Preview

Univest, 07 JulResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Be Sure To Check Out Grauer & Weil (India) Limited (NSE:GRAUWEIL) Before It Goes Ex-Dividend

Simply Wall Street, 06 SeptCapital return

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

Grauer & Weil (India) consolidated net profit declines 8.71% in the June 2026 quarter

Business Standard, 04 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Grauer & Weil Ind Share Price

Upstox, 05 May

Grauer & Weil share price jumps 11% after key AGM decisions | Details here

Livemint, 18 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.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑