Gujarat Poly Electronics Limited

Technology — Electronic Components · BSE

₹60.00−₹1.48 (−2.41%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation 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 Gujarat Poly Electronics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Gujarat Poly Electronics Limited manufactures and trades ceramic capacitors in India and internationally. The company provides single layer and multilayer ceramic capacitors, and metal oxide varistors. It also sells diodes for diotec semiconductors.

IndustryElectronic Components

SectorTechnology

Employees34

Annual revenue₹17 Cr

How does it make money?

Turns over ₹17 Cr a year. Of every ₹100 of sales, about ₹166 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 34 employees supports ₹49.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹49.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 80.1%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 85.8% against a peer median of 32.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE32.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved +400% 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+6%

Margin effect+400%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.01 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ 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

77/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

2.0x

3Y Median

24.0x

40 monthly readings · mean 23.6x · range 1.7x–54.9x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 92% below its 3y median of 24.0x. 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 88% below the peer median of 16.5x.

vs. its own history

Cheap

24.0x median over 40 months · -92%

vs. sector peers

Cheap

16.5x median of 4 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

78.4x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 16% over 3 years.
Return on capital is rising
ROCE has improved from 64.9% to 80.1%.
High return on capital employed
ROCE of 80.1% is the mark of a business that converts capital into profit efficiently.
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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 4.1 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 80.1% 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.
Deleveraging frees up earnings
Debt is down 16% 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 92% 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 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 7.9% to 3.8%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Growth barely outpaces inflation
Revenue compounding at 1.9% 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 2%✓ 3.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 4% a year✗ 1.9% CAGR
Latest reported year was 18.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 77%✓ 80.1%
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

₹51 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.0x

Cheap

Cheap against the generic band

P/B Ratio

1.31x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹30.3

Profitable

Profitable on a per-share basis

ROE

85.8%

Strong

Strong capital efficiency

ROCE

80.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

18.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-75.2%

Falling

Profits are shrinking

Dividend Yield

0.83%

Modest

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

10.7%

Average

Average margins

Net Margin

145.8%

Good

Strong bottom-line conversion

Current Ratio

6.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

60.0 / 63.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

51.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹16 Cr	₹17 Cr	₹18 Cr	₹17 Cr	+1.9%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-20.1%
EBITDA Margin	7.9%	8.8%	11.2%	3.8%	—
PAT (Net Profit)	₹5 Cr	₹2 Cr	₹2 Cr	₹28 Cr	+74.2%
EPS	₹6.2	₹2.53	₹2.51	₹32.77	+74.2%
ROE	74.2%	23.3%	19.0%	71.4%	—
ROCE	64.9%	18.4%	21.2%	80.1%	—
Total Debt	₹0 Cr	₹10 Cr	₹10 Cr	₹0 Cr	-5.5%
Free Cash Flow	-₹7 Cr	₹2 Cr	-₹0 Cr	-₹5 Cr	—

🟡 Revenue has been broadly flat over 3 years (1.9% a year).

🔴 EBITDA has shrunk at 20.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.9% to 3.8% over 3 years (-4.1 pts).

🟢 PAT (Net Profit) has grown at 74.2% a year over 3 years.

🟢 EPS has grown at 74.2% a year over 3 years.

🔴 ROE has fallen from 74.2% to 71.4% over 3 years (-2.8 pts).

🟢 ROCE has risen from 64.9% to 80.1% over 3 years (+15.2 pts).

🟢 Total Debt has shrunk at 5.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹41 Cr

Total Liabilities

₹2 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

59.3%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

17 Jul 2026

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive1 mixed4 general

Gujarat Poly Electronics Ltd Forms Death Cross, Signalling Bearish Trend Ahead

MarketsMojo, 16 OctAnalyst view

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

Gujarat Poly Electronics opens special window for physical share transfers

scanx.trade, 09 Jun

Gujarat Poly Electronics Ltd. Share Price Live Today

CNBC TV18, 06 Jan

Gujarat Poly Electronics Limited Clarifies No Undisclosed Information Behind Recent Share Price Movement

scanx.trade, 10 Apr

HEGAM Stock Price and Chart — NSE:HEGAM

TradingView, 22 Sept

Sanghvi Movers consolidated net profit rises 29.82% in the June 2026 quarter

Business Standard, 31 JulResults

🟢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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; Revenue growth stays above 4% a year · see Key things to watch ↑