G V Electricals Ltd

Utilities — Utilities - Regulated Electric · BSE

₹119.05−₹1.25 (−1.04%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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, 6:09 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 G V Electricals Ltd — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

G V Electricals Ltd provides power distribution infrastructure services in India.

IndustryUtilities - Regulated Electric

SectorUtilities

Employees4,332

Annual revenue₹156 Cr

How does it make money?

Turns over ₹156 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 4,332 employees supports ₹3.6 lakh of revenue a year, the signature of a people-led business.

EBITDA margin11.4%

Net margin6.7%

Revenue / employee₹3.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

NTPC LTDP/E 11.0x · ROE 13.7%

POWER GRID CORP. LTD.P/E 14.6x · ROE 15.8%

TATA POWER CO LTDP/E 29.3x · ROE 9.8%

ADANI POWER LTDP/E 26.5x · ROE 21.9%

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

ROCE has stayed above 15% in every year available and stands at 39.4%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 36.8% against a peer median of 15.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE39.4%

ROE36.8%

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +50% while net margin moved +265% 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+50%

Margin effect+265%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

71/ 100

Good

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

Valuation

79/ 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

12.8x

Sector Median

20.6x

median of 4 sector peers

🟢Against its sector it trades 38% below the peer median of 20.6x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

20.6x median of 4 peers · -38%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.8x

P/B

2.93x

EV/EBITDA

8.3x

PEG

0.17

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 5.0% to 11.4% over 3 years.
Return on equity is rising
ROE has improved from 13.4% to 31.1%.
Return on capital is rising
ROCE has improved from 24.3% to 39.4%.
High return on capital employed
ROCE of 39.4% 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 Attention4

Debt is rising
Total debt is up 266% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 131% against revenue growth of 50% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 2207% against revenue growth of 50% — stock may not be moving.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 266% over 3 years, from ₹5 Cr to ₹16 Cr.
🔴Free cash flow negative for 3 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.
🔴Receivables growing faster than salesFinancial
Receivables up 131% against revenue up 50% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 2207% against revenue up 50% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 39.4% 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 5.0% to 11.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 38% 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?

Sales are being booked faster than collected
Receivables are up 131% against revenue up 50%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
5 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

1Revenue growth stays above 11% a year✓ 14.5% CAGR
Latest reported year was 19.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹6 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 36%✓ 39.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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
✓ 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

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹134 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.8x

Cheap

Cheap against the generic band

P/B Ratio

2.93x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.28

Profitable

Profitable on a per-share basis

ROE

36.8%

Strong

Strong capital efficiency

ROCE

39.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

124.5%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹119.05

ROA

15.5%

Good

Assets are working hard

Operating Margin

10.6%

Average

Average margins

Net Margin

6.7%

Average

Average bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

21.5

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹104 Cr	₹112 Cr	₹131 Cr	₹156 Cr	+14.5%
EBITDA	₹5 Cr	₹7 Cr	₹9 Cr	₹18 Cr	+50.9%
EBITDA Margin	5.0%	6.1%	6.6%	11.4%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹5 Cr	₹10 Cr	+76.3%
EPS	₹1.69	₹2.49	₹4.13	—	—
ROE	13.4%	16.4%	20.1%	31.1%	—
ROCE	24.3%	33.2%	28.3%	39.4%	—
Total Debt	₹5 Cr	₹5 Cr	₹8 Cr	₹16 Cr	+54.1%
Free Cash Flow	₹1 Cr	-₹1 Cr	-₹2 Cr	-₹6 Cr	—

🟢 Revenue has grown at 14.5% a year over 3 years.

🟢 EBITDA has grown at 50.9% a year over 3 years.

🟢 EBITDA Margin has risen from 5.0% to 11.4% over 3 years (+6.4 pts).

🟢 PAT (Net Profit) has grown at 76.3% a year over 3 years.

🟢 ROE has risen from 13.4% to 31.1% over 3 years (+17.7 pts).

🟢 ROCE has risen from 24.3% to 39.4% over 3 years (+15.1 pts).

🔴 Total Debt has grown at 54.1% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹78 Cr

Total Liabilities

₹45 Cr

Total Debt

₹16 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹3 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.2%

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

1 mixed5 general

G V Electricals Ltd. IPO Review - G V Electricals Ltd. IPO Dates, Issue Price, Subscription and Allotment Status

The Economic Times, 13 Oct

Compare with

Equitymaster, 16 Oct

G.V. Electricals Makes Strong Market Debut; Lists At 21% Percent Premium To Issue Price

NDTV Profit, 12 Aug

G.V. Electricals IPO Date, Price Band, GMP, Subscription & Allotment

IndiaIPO, 08 Aug

G V Electricals files investor presentation ahead of analyst call

scanx.trade, 23 SeptAnalyst view

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

BSE SME G V Electricals sparks a bright debut

Business Standard, 13 Aug

Watch Items

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.
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

🟡Business QualityAdequate12.4/20

🟢Financial HealthStrong13/20

🟢GrowthStrong16.1/20

🟢ProfitabilityStrong11.8/15

🟢ValuationAttractive11/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓Revenue growth stays above 11% a year14.5% CAGR
✓EBITDA margin holds above 9%11.4%
✗Free cash flow remains positive-₹6 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 36%39.4%