GTV Engineering Limited

Industrials — Metal Fabrication · BSE

₹18.67−₹0.69 (−3.56%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 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 GTV Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

GTV Engineering Limited engages in heavy and large fabrication, large machining activities in India. It operates through Hi-Tech Fabrication Engineering, Flour Division, and Agro Product Trading segments.

IndustryMetal Fabrication

SectorIndustrials

Employees27

Annual revenue₹95 Cr

How does it make money?

Turns over ₹95 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 27 employees supports ₹3.52 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin19.9%

Net margin15.0%

Revenue / employee₹3.52 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, HINDALCO INDUSTRIES LTD, VEDANTA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

HINDALCO INDUSTRIES LTDP/E 12.3x · ROE 12.0%

VEDANTA LIMITEDP/E 10.4x · ROE 18.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 31.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 23.3% against a peer median of 18.7% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE31.0%

ROE23.3%

Peer median ROE18.7%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +7% while net margin moved +224% 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+7%

Margin effect+224%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.26 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

75/ 100

Good

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

16.2x

3Y Median

10.2x

40 monthly readings · mean 11.2x · range 6.2x–26.3x

Sector Median

12.2x

median of 4 sector peers

⚠️Current valuation is approximately 59% above its 3y median of 10.2x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 34% above the peer median of 12.2x.

vs. its own history

Expensive

10.2x median over 40 months · +59%

vs. sector peers

Expensive

12.2x median of 4 peers · +34%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

16.2x

P/B

4.33x

EV/EBITDA

15.2x

PEG

0.32

Dividend Yield

0.37%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 6.5% to 19.9% over 3 years.
Return on equity is rising
ROE has improved from 13.2% to 23.3%.
Return on capital is rising
ROCE has improved from 15.1% to 31.0%.
High return on capital employed
ROCE of 31.0% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.12x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 58% against revenue growth of 7% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 66% against revenue growth of 7% — stock may not be moving.
Valuation above its historical average
At 16.2x the stock trades 59% above its own median of 10.2x.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 58% against revenue up 7% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹3 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 66% against revenue up 7% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 31.0% 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.
Margin expansion has further to run
EBITDA margin has risen from 6.5% to 19.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 58% against revenue up 7%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 59% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 2.3% 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%✓ 19.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹3 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 2.3% CAGR
Latest reported year was 104.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 28%✓ 31.0%
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

6 good · 4 neutral · 1 weak

Market Cap

₹285 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

16.2x

Fair

Fairly valued against the generic band

P/B Ratio

4.33x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.15

Profitable

Profitable on a per-share basis

ROE

23.3%

Strong

Strong capital efficiency

ROCE

31.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.12x

Low

Conservative leverage

Revenue Growth (YoY)

104.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

95.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.37%

Modest

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

Free Cash Flow

-₹3 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹18.67

Operating Margin

16.2%

Good

Healthy core-business profitability

Net Margin

13.9%

Good

Strong bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.26

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

21.0 / 21.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹89 Cr	₹113 Cr	₹92 Cr	₹95 Cr	+2.3%
EBITDA	₹6 Cr	₹8 Cr	₹18 Cr	₹19 Cr	+48.8%
EBITDA Margin	6.5%	7.0%	19.1%	19.9%	—
PAT (Net Profit)	₹4 Cr	₹5 Cr	₹11 Cr	₹14 Cr	+51.4%
EPS	₹0.87	₹1.13	₹2.36	₹3.03	+51.8%
ROE	13.2%	14.9%	23.4%	23.3%	—
ROCE	15.1%	19.0%	32.2%	31.0%	—
Total Debt	₹8 Cr	₹18 Cr	₹12 Cr	₹7 Cr	-1.2%
Free Cash Flow	-₹1 Cr	₹3 Cr	₹2 Cr	-₹3 Cr	—

🟢 Revenue has grown at 2.3% a year over 3 years.

🟢 EBITDA has grown at 48.8% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 19.9% over 3 years (+13.4 pts).

🟢 PAT (Net Profit) has grown at 51.4% a year over 3 years.

🟢 EPS has grown at 51.8% a year over 3 years.

🟢 ROE has risen from 13.2% to 23.3% over 3 years (+10.1 pts).

🟢 ROCE has risen from 15.1% to 31.0% over 3 years (+15.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.2% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹93 Cr

Total Liabilities

₹32 Cr

Total Debt

₹7 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

61.3%

Corporate Actions

Dividend Rate

₹0.07

Ex-Dividend Date

22 Sept 2025

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%

Recent News

2 positive1 mixed3 general

GTV Share Price Falls 9.90%: Price Action, Fundamentals

Univest, 09 OctPrice 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.

GTV Engineering Q1FY26 profit rises 91%; 2:1 bonus issue approved

scanx.trade, 14 AugCapital return

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

GTV Engineering Shares Slip Over 6% After Board Approves Bonus Share Allotment

NDTV Profit, 08 Oct

GTV Stock Price and Chart — BSE:GTV

TradingView, 28 Apr

GTV Engineering Share Price: 2:1 Bonus, Record Date 7 October

Univest, 01 Oct

GTV Engineering standalone net profit rises 91.83% in the June 2026 quarter

Business Standard, 14 AugResults

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

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.4/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong13.1/20

🟢ProfitabilityStrong12.9/15

🟡ValuationFair7.3/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 18%19.9%
✗Free cash flow remains positive-₹3 Cr
✗Revenue growth stays above 4% a year2.3% CAGR
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 28%31.0%