G.S. Auto International Limited

Consumer Cyclical — Auto Parts · BSE

₹18.00−₹0.59 (−3.17%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 G.S. Auto International Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

G.S. Auto International Limited engages in the manufacture and sale of auto components such as ferrous & non-ferrous casting components, machined components, forged parts and assembly of heavy borrowing costs, duty trailer axles for commercial vehicles and agricultural equipment.

IndustryAuto Parts

SectorConsumer Cyclical

Employees614

Annual revenue₹150 Cr

How does it make money?

Turns over ₹150 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 614 employees supports ₹24.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin6.9%

Net margin2.3%

Revenue / employee₹24.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Little sign of one

Returns on capital of 14.8% 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.

ROCE14.8%

ROE12.6%

Peer median ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +16% while net margin moved -205% 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+16%

Margin effect-205%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 5.1% — barely ahead of inflation
✗ Latest-year revenue growth of -5.7% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

77/ 100

Cheap

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

9.8x

2Y Median

64.7x

28 monthly readings · mean 88.5x · range 14.0x–184.3x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 85% below its 2y median of 64.7x. 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 78% below the peer median of 45.7x.

vs. its own history

Cheap

64.7x median over 28 months · -85%

vs. sector peers

Cheap

45.7x median of 4 peers · -78%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

9.8x

P/B

0.97x

EV/EBITDA

15.0x

PEG

1.39

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 2.0% to 6.9% over 3 years.
Debt is being paid down
Total debt is down 33% over 3 years.
Cash generation is improving
Free cash flow is up 42% over 3 years.
Return on equity is rising
ROE has improved from -13.2% to 12.6%.
Return on capital is rising
ROCE has improved from -2.3% to 14.8%.
Valuation below its historical average
At 9.8x the stock trades 85% below its own median of 64.7x.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 2.0% to 6.9%. 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 33% 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 85% 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 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 5.1% 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.
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 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 5.1% CAGR
Latest reported year was -5.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.

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

4 good · 6 neutral · 1 weak

Market Cap

₹131 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.8x

Cheap

Cheap against the generic band

P/B Ratio

0.97x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.83

Profitable

Profitable on a per-share basis

ROE

12.6%

Moderate

Moderate capital efficiency

ROCE

14.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.92x

Moderate

Moderate leverage

Revenue Growth (YoY)

-5.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

7.1%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹18

Operating Margin

6.4%

Average

Average margins

Net Margin

2.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.01

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.22

Defensive

Steadier than the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

18.0 / 17.9

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹130 Cr	₹151 Cr	₹145 Cr	₹150 Cr	+5.1%
EBITDA	₹3 Cr	₹9 Cr	₹9 Cr	₹10 Cr	+57.7%
EBITDA Margin	2.0%	5.7%	6.4%	6.9%	—
PAT (Net Profit)	-₹3 Cr	₹1 Cr	₹1 Cr	₹3 Cr	—
EPS	₹-1.06	₹0.26	₹0.54	₹1.28	—
ROE	-13.2%	3.2%	6.1%	12.6%	—
ROCE	-2.3%	10.2%	12.0%	14.8%	—
Total Debt	₹37 Cr	₹34 Cr	₹28 Cr	₹25 Cr	-12.3%
Free Cash Flow	₹5 Cr	₹7 Cr	₹10 Cr	₹7 Cr	+12.4%

🟢 Revenue has grown at 5.1% a year over 3 years.

🟢 EBITDA has grown at 57.7% a year over 3 years.

🟢 EBITDA Margin has risen from 2.0% to 6.9% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-1.06 to ₹1.28.

🟢 ROE has risen from -13.2% to 12.6% over 3 years (+25.8 pts).

🟢 ROCE has risen from -2.3% to 14.8% over 3 years (+17.1 pts).

🟢 Total Debt has shrunk at 12.3% a year over 3 years.

🟢 Free Cash Flow has grown at 12.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹95 Cr

Total Liabilities

₹68 Cr

Total Debt

₹25 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

18.7%

Corporate Actions

Ex-Dividend Date

22 Sept 2011

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive4 general

G S Auto International Ltd Partly Paidup Share Price

Business Today, 17 Jun

GS Auto International shareholders approve all resolutions at 52nd AGM

scanx.trade, 30 Sept

G S Auto International Ltd Upgraded to Hold on Technical and Financial Improvements

MarketsMojo, 06 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

GS Auto International net profit surges 109% in Q1FY27 despite revenue dip

scanx.trade, 13 AugResults

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

G S Auto International finalizes rights issue allotment

scanx.trade, 10 Jun

GS Auto completes rights issue offer letter dispatch

scanx.trade, 22 May

Watch Items

Revenue growth is negative (-5.7%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate12.7/20

🔴GrowthWeak7.6/20

🟡ProfitabilityModerate8.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4.4/10

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

✓EBITDA margin holds above 5%6.9%
✗Debt / EBITDA stays below 2x2.4x
✗Interest cover stays above 3x2.5x
✓Revenue growth stays above 4% a year5.1% CAGR
✓Free cash flow remains positive₹7 Cr