Garware Hi-Tech Films Limited

Basic Materials — Specialty Chemicals · NSE

₹6,965.00−₹129.50 (−1.83%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Garware Hi-Tech Films Limited manufactures and sells polyester films in India, the United States, and internationally. The company offers paint protection and sun control films.

IndustrySpecialty Chemicals

SectorBasic Materials

Employees1,036

Annual revenue₹2,091 Cr

How does it make money?

Turns over ₹2,091 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,036 employees supports ₹2.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.02 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 16.5% 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?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +48% while net margin moved +37% 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+48%

Margin effect+37%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 41.7x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 34.9x
✗ P/B of 6.09x is a steep premium to book

Quality vs. Valuation

Company Quality

81/ 100

Excellent

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

Valuation

43/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

41.7x

3Y Median

34.9x

40 monthly readings · mean 34.7x · range 16.2x–57.2x

Sector Median

40.4x

median of 4 sector peers

⚠️Current valuation is approximately 20% above its 3y median of 34.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 40.4x.

vs. its own history

Fair

34.9x median over 40 months · +20%

vs. sector peers

Fair

40.4x median of 4 peers · +3%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

35.0x

PEG

1.56

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 17.7% to 21.9% over 3 years.
Debt is being paid down
Total debt is down 90% over 3 years.
Return on equity is rising
ROE has improved from 9.0% to 12.7%.
Return on capital is rising
ROCE has improved from 11.8% to 16.5%.
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

3 items require attention · 1 high · 2 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.
🟡Receivables growing faster than salesFinancial
Receivables up 77% against revenue up 48% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 96% against revenue up 48% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 17.7% to 21.9%. 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 90% 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?

Sales are being booked faster than collected
Receivables are up 77% against revenue up 48%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Small 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 10% a year✓ 14.0% CAGR
Latest reported year was 27.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹114 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹16,181 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

6.09x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹166.96

Profitable

Profitable on a per-share basis

ROE

12.7%

Moderate

Moderate capital efficiency

ROCE

16.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.59x

Low

Conservative leverage

Revenue Growth (YoY)

27.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

59.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.17%

Modest

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

Free Cash Flow

₹114 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

38.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

25.1%

Good

Healthy core-business profitability

Net Margin

17.2%

Good

Strong bottom-line conversion

Current Ratio

4.43

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.72

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6849.9 / 6958.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

59.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,412 Cr	₹1,652 Cr	₹2,077 Cr	₹2,091 Cr	+14.0%
EBITDA	₹249 Cr	₹297 Cr	₹457 Cr	₹459 Cr	+22.5%
EBITDA Margin	17.7%	18.0%	22.0%	21.9%	—
PAT (Net Profit)	₹166 Cr	₹203 Cr	₹331 Cr	₹338 Cr	+26.7%
EPS	₹71.51	₹87.5	₹142.57	₹145.59	+26.7%
ROE	9.0%	9.9%	14.0%	12.7%	—
ROCE	11.8%	13.2%	18.4%	16.5%	—
Total Debt	₹157 Cr	₹20 Cr	₹15 Cr	₹16 Cr	-53.6%
Free Cash Flow	₹148 Cr	₹155 Cr	₹271 Cr	₹114 Cr	-8.3%

🟢 Revenue has grown at 14.0% a year over 3 years.

🟢 EBITDA has grown at 22.5% a year over 3 years.

🟢 EBITDA Margin has risen from 17.7% to 21.9% over 3 years (+4.3 pts).

🟢 PAT (Net Profit) has grown at 26.7% a year over 3 years.

🟢 EPS has grown at 26.7% a year over 3 years.

🟢 ROE has risen from 9.0% to 12.7% over 3 years (+3.8 pts).

🟢 ROCE has risen from 11.8% to 16.5% over 3 years (+4.7 pts).

🟢 Total Debt has shrunk at 53.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 8.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,011 Cr

Total Liabilities

₹355 Cr

Cash & Equivalents

₹127 Cr

Operating Cash Flow

₹275 Cr

Capex

-₹161 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

62.5%

Corporate Actions

Dividend Rate

₹12

Ex-Dividend Date

16 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

2 mixed4 general

Garware Hi-Tech Films Share Price - Live NSE: GRWRHITECH Stock Price & Chart

Upstox, 16 Oct

Garware Hi-Tech Films Signs MoU With Lubrizol; Shares Rise 1.96%

HDFC Sky, 23 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.

Garware Hi-Tech Films to host analyst meet on October 22, 2026

scanx.trade, 17 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Injecto Polymers Ltd Share Price

Business Today, 15 Oct

Here's Why We Think Garware Hi-Tech Films (NSE:GRWRHITECH) Is Well Worth Watching

Simply Wall Street, 12 Aug

Compare GARWARE POLY with

Equitymaster, 17 Oct

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑