Gujarat Inject (Kerala) Limited

Healthcare — Biotechnology · BSE

₹9.88+₹0.29 (+3.02%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujarat Inject (Kerala) Limited engages in the business of trading of goods. The company was incorporated in 1991 and is based in Vadodara, India.

IndustryBiotechnology

SectorHealthcare

Employees4

Annual revenue₹36 Cr

How does it make money?

Turns over ₹36 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹9.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹9.08 Cr

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?Some evidence

ROCE of 21.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +20802% while net margin moved -79% 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+20802%

Margin effect-79%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.55 — 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

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

49/ 100

Fair

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

47.0x

3Y Median

198.4x

40 monthly readings · mean 188.9x · range 28.6x–334.6x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 76% below its 3y median of 198.4x. 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 184% above the peer median of 16.5x.

vs. its own history

Cheap

198.4x median over 40 months · -76%

vs. sector peers

Expensive

16.5x median of 4 peers · +184%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

57.5x

PEG

0.19

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 766% over 3 years.
High return on capital employed
ROCE of 21.2% 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

🔴Significant margin compressionFinancial
EBITDA margin has fallen 25.9 points, from 32.8% to 6.9%.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 199% over 3 years — each existing share owns a smaller slice of the company.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.2% 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.
Priced below its own history
The stock trades 76% 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.
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 32.8% to 6.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 184% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 370% a year✓ 493.5% CAGR
Latest reported year was 414.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 6.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 18%✓ 21.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 198.4x✓ 47.0x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ 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

₹145 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

47.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.20x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹0.21

Profitable

Profitable on a per-share basis

ROE

15.3%

Strong

Strong capital efficiency

ROCE

21.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

414.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1620.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

13.6%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

0.47

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.55

Defensive

Steadier than the market

52W Range Position

64%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

9.4 / 10.5

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

57.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹6 Cr	₹19 Cr	₹36 Cr	+493.5%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹3 Cr	+252.9%
EBITDA Margin	32.8%	1.8%	6.6%	6.9%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	+253.6%
EPS	₹0.01	₹0.01	₹0.07	₹0.12	+191.6%
ROE	—	1.0%	10.2%	15.3%	—
ROCE	—	1.2%	12.5%	21.2%	—
Free Cash Flow	₹0 Cr	-₹6 Cr	-₹4 Cr	₹0 Cr	+105.4%

🟢 Revenue has grown at 493.5% a year over 3 years.

🟢 EBITDA has grown at 252.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 32.8% to 6.9% over 3 years (-25.9 pts).

🟢 PAT (Net Profit) has grown at 253.6% a year over 3 years.

🟢 EPS has grown at 191.6% a year over 3 years.

🟢 ROE has risen from 1.0% to 15.3% over 3 years (+14.4 pts).

🟢 ROCE has risen from 1.2% to 21.2% over 3 years (+19.9 pts).

🟢 Free Cash Flow has grown at 105.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹37 Cr

Total Liabilities

₹25 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹21 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.0%

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 Inject revises record date to July 8 for 10:1 stock split

scanx.trade, 27 JunCapital return

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

Gujarat Inject Kerala Wins ₹1.07 Crore Solar Module Order

HDFC Sky, 08 Jun

Gujarat Inject Kerala Secures ₹14.49 Crore Solar Order Validating Renewable Pivot Strategy

Sahi, 12 Jun

Gujarat Inject (Kerala) - These 9 penny stocks rallied up to 360% in 6 months; 4 turned multibaggers

The Economic Times, 19 Jul

Gujarat Inject (Kerala) announces strategic partnership with England-based Storenergy

Business Standard, 25 AugPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Gujarat Inject Kerala Eyes Growth Through Renewable Energy

SMEStreet, 15 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health · Profitability

MiddlingBusiness Quality · Growth

WeakValuation · Risk

Points for each in the Score ↑

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.

All 5 tripwires holding · see Key things to watch ↑