Global Surfaces Limited

Basic Materials — Building Materials · NSE

₹25.50−₹0.06 (−0.23%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:57 pm

Understanding the Business

Company site ↗

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

What does this company do?

Global Surfaces Limited engages in the mining, production, and export of natural stones and engineered quartz in the United States, the United Arab Emirates, and India.

IndustryBuilding Materials

SectorBasic Materials

Employees174

Annual revenue₹228 Cr

How does it make money?

Turns over ₹228 Cr a year. Of every ₹100 of sales, about ₹-13 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 174 employees supports ₹1.31 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.31 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT 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?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.

Peer median ROE7.4%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved -198% 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+29%

Margin effect-198%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 20.5 points over the period

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

30/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

39.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 9.3% to -11.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.5% to -2.7% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -0.8x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹30 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 17.4 points, from 21.0% to 3.5%.
🔴Receivables growing faster than salesFinancial
Receivables up 119% against revenue up 29% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 99% against revenue up 29% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -1.0x to -0.8x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 21.0% to 3.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 26.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 119% against revenue up 29%. 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 9.3% to -11.2%. 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

1EBITDA margin holds above 2%✓ 3.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 26.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ -0.8x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was -12.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹18 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹108 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-7.04

Loss-making

Negative earnings per share — the business is losing money

ROE

-11.2%

Weak

Weak capital efficiency

ROCE

-2.7%

Weak

Low return on total capital employed

Debt/Equity

0.79x

Moderate

Moderate leverage

Revenue Growth (YoY)

-12.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

-6.6%

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

₹18 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.9%

Average

Average margins

Net Margin

-13.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

28.9 / 29.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

19.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹177 Cr	₹223 Cr	₹205 Cr	₹228 Cr	+8.8%
EBITDA	₹37 Cr	₹38 Cr	₹6 Cr	₹8 Cr	-40.0%
EBITDA Margin	21.0%	17.1%	2.8%	3.5%	—
PAT (Net Profit)	₹24 Cr	₹19 Cr	-₹29 Cr	-₹30 Cr	—
EPS	₹7.1	₹4.41	₹-6.73	₹-7.18	—
ROE	9.3%	5.7%	-9.4%	-11.2%	—
ROCE	8.5%	6.7%	-3.1%	-2.7%	—
Total Debt	₹167 Cr	₹146 Cr	₹201 Cr	₹216 Cr	+9.0%
Free Cash Flow	-₹87 Cr	-₹141 Cr	-₹36 Cr	₹18 Cr	—

🟢 Revenue has grown at 8.8% a year over 3 years.

🔴 EBITDA has shrunk at 40.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.0% to 3.5% over 3 years (-17.4 pts).

🔴 PAT (Net Profit) has turned negative, from ₹24 Cr to -₹30 Cr.

🔴 EPS has turned negative, from ₹7.1 to ₹-7.18.

🔴 ROE has fallen from 9.3% to -11.2% over 3 years (-20.5 pts).

🔴 ROCE has fallen from 8.5% to -2.7% over 3 years (-11.2 pts).

🔴 Total Debt has grown at 9.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹87 Cr to ₹18 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹541 Cr

Total Liabilities

₹270 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹27 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.1%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 mixed5 general

Why Is Global Surfaces Share Price Falling Key Reasons 2026

Univest, 06 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Global Surfaces Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

Global Surfaces Ltd receives Rs 1.74 Cr penalty for AY 2019-20

scanx.trade, 30 Jun

Global Surfaces Lower Circuit Streak: Day 2 Price and Data

Univest, 09 Oct

Global Surfaces Stock Falls 5% Amid Deep Oversold Conditions

Kalkine India, 24 Mar

Global Surfaces Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Watch Items

Revenue growth is negative (-12.2%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑