Gretex Industries Limited

Sector n/a · NSE

₹131.00₹0.00 (0.00%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

The 60-second version of Gretex Industries 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 ₹56 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation.

EBITDA margin5.3%

Net margin2.7%

What is its competitive advantage?Little sign of one

Returns on capital of 2.7% 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.

ROCE2.7%

ROE2.9%

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 +145% while net margin moved -5% 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+145%

Margin effect-5%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

60/ 100

Average

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

Valuation

18/ 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

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

68.9x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 83% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Return on equity is falling
ROE has dropped from 13.8% to 2.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.4% to 2.7% — often a sign of competition or overexpansion.
Inventory building faster than sales
Inventory is up 337% against revenue growth of 145% — stock may not be moving.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Inventory building faster than salesFinancial
Inventory up 337% against revenue up 145% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 268% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 83% 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?

Returns on shareholder capital are falling
ROE has dropped from 13.8% to 2.9%. 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.
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 26% a year✓ 34.9% CAGR
Latest reported year was 51.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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 · 6 neutral · 3 weak

Market Cap

₹203 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

2.9%

Weak

Weak capital efficiency

ROCE

2.7%

Weak

Low return on total capital employed

Debt/Equity

1.42x

Moderate

Moderate leverage

Revenue Growth (YoY)

51.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-49.3%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹131

Gross Margin

10.4%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.96

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

216.8 / 248.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹35 Cr	₹37 Cr	₹56 Cr	+34.9%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹3 Cr	+44.3%
EBITDA Margin	4.3%	4.3%	5.2%	5.3%	—
PAT (Net Profit)	₹1 Cr	₹10 Cr	₹3 Cr	₹2 Cr	+32.7%
EPS	₹1.53	₹23.62	₹2.44	—	—
ROE	13.8%	42.3%	11.2%	2.9%	—
ROCE	18.4%	54.4%	11.1%	2.7%	—
Total Debt	₹4 Cr	₹1 Cr	₹9 Cr	₹1 Cr	-44.9%
Free Cash Flow	-₹0 Cr	-₹8 Cr	-₹16 Cr	₹2 Cr	—

🟢 Revenue has grown at 34.9% a year over 3 years.

🟢 EBITDA has grown at 44.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 5.3% over 3 years.

🟢 PAT (Net Profit) has grown at 32.7% a year over 3 years.

🔴 ROE has fallen from 13.8% to 2.9% over 3 years (-10.9 pts).

🔴 ROCE has fallen from 18.4% to 2.7% over 3 years (-15.6 pts).

🟢 Total Debt has shrunk at 44.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹67 Cr

Total Liabilities

₹11 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹1 Cr

Recent News

1 mixed5 general

GRETEX INDUSTRIES LTD. (GRETEX-SM.NS) valuation measures and financial statistics

Yahoo Finance UK, 16 Oct

GRETEX INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 14 Oct

GRETEX INDUSTRIES LTD. (GRETEX-SM.NS) latest stock news and headlines

Yahoo Finance UK, 16 Oct

Gretex Industries Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 02 Sept

Compare TOHEAL PHARM with

Equitymaster, 17 Oct

RBI approves management change for Gretex NBFC acquisition

scanx.trade, 27 JunM&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.
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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak5.9/20

🟢Financial HealthStrong15.5/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak4.6/15

🟡ValuationFair7.5/15

🔴RiskHigh2.3/10

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.

This thesis breaks if

✓Revenue growth stays above 26% a year34.9% CAGR
✓EBITDA margin holds above 3%5.3%
✓Free cash flow remains positive₹2 Cr
✓Debt / EBITDA stays below 2x0.3x
✗ROCE stays above 8%2.7%