Gujarat Toolroom Limited

Industrials — Conglomerates · BSE

₹0.39₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Low

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Gujarat Toolroom Limited operates as trading company in India. The company trades in construction materials, rough diamonds and gold, agricultural products, fabrics, shares trading, and pharma. The company was incorporated in 1983 and is based in Ahmedabad, India.

IndustryConglomerates

SectorIndustrials

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹34 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB 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 1.2% 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 ROE15.2%

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 +838% while net margin moved -41% 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+838%

Margin effect-41%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.89 — 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

62/ 100

Average

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

Valuation

68/ 100

Cheap

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

0.5x

3Y Median

0.1x

40 monthly readings · mean 39.0x · range 0.0x–213.4x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 403% above its 3y median of 0.1x. 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 99% below the peer median of 88.8x.

vs. its own history

Expensive

0.1x median over 40 months · +403%

vs. sector peers

Cheap

88.8x median of 3 peers · -99%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

13.9x

PEG

0.01

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.8% to 2.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.6% to 1.2% — often a sign of competition or overexpansion.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 6889% over 3 years, from ₹1 Cr to ₹66 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 34.7 points, from 70.1% to 35.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 18425% against revenue up 838% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 8452% against revenue up 838% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 205% over 3 years — each existing share owns a smaller slice of the company.
🟡Low reported insider holdingOwnership
Reported insider holding is 2.1%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹128 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 70.1% to 35.4%. 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 8.3x 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 18425% against revenue up 838%. 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 403% 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.
Returns on shareholder capital are falling
ROE has dropped from 21.8% to 2.4%. 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.

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

1Revenue growth stays above 83% a year✓ 110.9% CAGR
Latest reported year was -97.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 33%✓ 35.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.3x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹128 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

5 good · 2 neutral · 4 weak

Market Cap

₹54 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.5x

Cheap

Cheap against the generic band

P/B Ratio

0.02x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.72

Profitable

Profitable on a per-share basis

ROE

2.4%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

-97.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-85.8%

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

₹262 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-0.3%

Weak

Assets generate little profit

Operating Margin

-24.9%

Weak

Thin margins leave little room for error

Net Margin

34.2%

Good

Strong bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.89

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.4 / 0.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹550 Cr	₹890 Cr	₹23 Cr	+110.9%
EBITDA	₹2 Cr	₹78 Cr	₹59 Cr	₹8 Cr	+67.9%
EBITDA Margin	70.1%	14.2%	6.6%	35.4%	—
PAT (Net Profit)	₹1 Cr	₹73 Cr	₹54 Cr	₹8 Cr	+77.2%
EPS	₹0.03	₹13.19	₹9.81	—	—
ROE	21.8%	385.5%	24.8%	2.4%	—
ROCE	26.6%	19.0%	8.0%	1.2%	—
Total Debt	₹1 Cr	—	₹67 Cr	₹66 Cr	+311.9%
Free Cash Flow	-₹2 Cr	₹9 Cr	-₹327 Cr	₹128 Cr	—

🟢 Revenue has grown at 110.9% a year over 3 years.

🟢 EBITDA has grown at 67.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 70.1% to 35.4% over 3 years (-34.7 pts).

🟢 PAT (Net Profit) has grown at 77.2% a year over 3 years.

🔴 ROE has fallen from 21.8% to 2.4% over 3 years (-19.5 pts).

🔴 ROCE has fallen from 26.6% to 1.2% over 3 years (-25.3 pts).

🔴 Total Debt has grown at 311.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹128 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,082 Cr

Total Liabilities

₹754 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

₹128 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

2.1%

Corporate Actions

Ex-Dividend Date

19 Apr 2024

Peer Comparison

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

Recent News

1 positive3 mixed2 general

Gujarat Toolroom - 13 penny stocks plunge up to 90% in FY26. Are you affected?

The Economic Times, 29 Mar

Gujarat Toolroom Q4 FY26 Results: Net Profit Rs 7.72 Crore, Revenue and Key Financial Highlights

Univest, 04 JunResults

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

Gujarat Toolroom closes trading window from July 1 until Q1FY26 results

scanx.trade, 23 JunResults

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

Gujarat Toolroom Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Gujarat Toolroom consolidated net profit rises 238.19% in the March 2026 quarter

Business Standard, 30 MayResults

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

Gujarat Toolroom publishes FY26 results in Financial Express

scanx.trade, 30 MayResults

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

Watch Items

Revenue growth is negative (-97.5%) 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.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.
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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; ROCE stays above 8% · see Key things to watch ↑