Gujarat Apollo Industries Limited

Industrials — Specialty Industrial Machinery · NSE

₹342.20−₹8.35 (−2.38%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujarat Apollo Industries Limited, together with its subsidiaries, manufactures and sells crushing and screening equipment for road and building construction, mining, and general infrastructure development in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees107

Annual revenue₹53 Cr

How does it make money?

Turns over ₹53 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 107 employees supports ₹49.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹49.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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 1.9% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -26% while net margin moved -44% 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-26%

Margin effect-44%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 9.7% a year
✗ Profit has declined at 25.5% a year
✗ Profit fell 35.4% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

38/ 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.

Historical Valuation

Current P/E

76.0x

3Y Median

38.9x

40 monthly readings · mean 88.9x · range 22.0x–257.7x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 95% above its 3y median of 38.9x. 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 66.2x.

vs. its own history

Expensive

38.9x median over 40 months · +95%

vs. sector peers

Fair

66.2x median of 4 peers · +15%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

31.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 26.3% to 29.1% over 3 years.
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

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 60% over 3 years, from ₹26 Cr to ₹41 Cr.
🔴High leverageFinancial
Debt/Equity of 8.06x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🟡Profit is decliningFinancial
Net profit is down 59% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 26.3% to 29.1%. 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?

Leverage amplifies any setback
Debt/Equity of 8.06x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 95% 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.
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.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 27%✓ 29.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹50 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 1.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

2 / 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 · 2 neutral · 7 weak

Market Cap

₹444 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

76.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.88x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹4.5

Profitable

Profitable on a per-share basis

ROE

1.0%

Weak

Weak capital efficiency

ROCE

1.9%

Weak

Low return on total capital employed

Debt/Equity

8.06x

High

High leverage

Revenue Growth (YoY)

-10.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-35.4%

Falling

Profits are shrinking

Dividend Yield

0.58%

Modest

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

Free Cash Flow

-₹50 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-48.7%

Weak

Thin margins leave little room for error

Net Margin

9.3%

Average

Average bottom-line conversion

Current Ratio

4.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.10

Defensive

Steadier than the market

52W Range Position

22%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

337.0 / 343.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

56.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹72 Cr	₹57 Cr	₹42 Cr	₹53 Cr	-9.7%
EBITDA	₹19 Cr	₹21 Cr	₹12 Cr	₹15 Cr	-6.7%
EBITDA Margin	26.3%	37.4%	28.0%	29.1%	—
PAT (Net Profit)	₹12 Cr	₹11 Cr	₹1 Cr	₹5 Cr	-25.5%
EPS	₹9.68	₹9.38	₹1.98	₹4.8	-20.8%
ROE	2.6%	2.3%	0.3%	1.0%	—
ROCE	2.8%	3.2%	1.9%	1.9%	—
Total Debt	₹26 Cr	₹22 Cr	₹50 Cr	₹41 Cr	+17.0%
Free Cash Flow	-₹76 Cr	-₹1 Cr	-₹37 Cr	-₹50 Cr	—

🔴 Revenue has shrunk at 9.7% a year over 3 years.

🔴 EBITDA has shrunk at 6.7% a year over 3 years.

🟢 EBITDA Margin has risen from 26.3% to 29.1% over 3 years (+2.7 pts).

🔴 PAT (Net Profit) has shrunk at 25.5% a year over 3 years.

🔴 EPS has shrunk at 20.8% a year over 3 years.

🔴 ROE has fallen from 2.6% to 1.0% over 3 years (-1.6 pts).

🟡 ROCE has held roughly flat at 1.9% over 3 years.

🔴 Total Debt has grown at 17.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹564 Cr

Total Liabilities

₹57 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹39 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.0%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

21 Sept 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

2 mixed4 general

Gujarat Apollo Industries Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Gujarat Apollo Industries GUJAPOLLO Reg 74(5) Compliance Q2 FY27

Kalkine India, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gujarat Apollo Industries launches Pick and Carry Crane business

scanx.trade, 01 Aug

Gujarat Apollo Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Is Gujarat Apollo Industries a Good Buy After Its Q1 FY27 Results?

Univest, 11 SeptResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Gujarat Apollo Industries Presents Strategic Vision Targeting ₹300 Crores Revenue Through Dual-Engine Growth Strategy

scanx.trade, 12 Mar

Watch Items

Revenue growth is negative (-10.0%) 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

MiddlingBusiness Quality

WeakFinancial Health · Growth · Profitability · Valuation · 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. 4 high-severity red flags sit above this conclusion and should be read first.

4 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑