Gala Precision Engineering Ltd - Stock Valuation and Financial Performance

BSE: 544244 | NSE: GALAPREC | Engineering - Industrial Equipments | Small Cap

Gala Precision Engi. Share Price

1,103.50 -21.75 -1.93%
as on 20-Dec'24 16:59

DeciZen - make an informed investing decision on Gala Precision Engi.

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Gala Precision Engineering stock performance -

mw4me loader
P/E Ratio (SA):
81.23
Market Cap:
1,398.1 Cr.
52-wk low:
685.6
52-wk high:
1,342.6

Is Gala Precision Engineering Ltd an attractive stock to invest in?

1. Is Gala Precision Engineering Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Gala Precision Engineering Ltd is a below average quality company.

2. Is Gala Precision Engineering Ltd undervalued or overvalued?

The key valuation ratios of Gala Precision Engineering Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Gala Precision Engineering Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Gala Precision Engineering Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of Gala Precision Engi.:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Gala Precision Engineering Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'21Mar'22Mar'23TTM
ROCE % 6.4%13.8%20.4%-
Value Creation
Index
-0.50.00.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 103144164164
Sales YoY Gr.-39.5%14%-
Adj EPS 2.27.615.513.6
YoY Gr.-252.1%102.6%-
BVPS (₹) 58.466.583.50
Adj Net
Profit
2.27.715.717
Cash Flow from Ops. 14.911.316-
Debt/CF from Ops. 453.7-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales NANANA14%
Adj EPS NANANA102.6%
BVPSNANANA25.6%
Share Price - - - -

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'21Mar'22Mar'23TTM
Return on
Equity %
3.712.220.632.5
Op. Profit
Mgn %
12.214.617.819.8
Net Profit
Mgn %
2.15.49.610.5
Debt to
Equity
10.90.70
Working Cap
Days
019720090
Cash Conv.
Cycle
014315774

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 32.50%

Debt to equity has declined versus last 3 years average to 0.69

Sales growth has been subdued in last 3 years 0.00%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 7.03%

Latest Financials - Gala Precision Engineering Ltd.

Standalone Consolidated
TTM EPS (₹) 13.6 17.6
TTM Sales (₹ Cr.) 164 203
BVPS (₹.) 0 192.6
Reserves (₹ Cr.) 231 231
P/BV 0.00 5.73
PE 81.23 62.61
From the Market
52 Week Low / High (₹) 685.60 / 1342.55
All Time Low / High (₹) 685.60 / 1342.55
Market Cap (₹ Cr.) 1,398
Equity (₹ Cr.) 12.7
Face Value (₹) 10
Industry PE 59.3

Management X-Ray of Gala Precision Engi.:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Gala Precision Engi.

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23
Sales103144164
Operating Expenses 91123135
Manufacturing Costs253136
Material Costs395866
Employee Cost 192122
Other Costs 91311
Operating Profit 122129
Operating Profit Margin (%) 11.7%14.3%17.7%
Other Income 122
Interest 655
Depreciation 666
Exceptional Items 002
Profit Before Tax 21222
Tax 035
Profit After Tax 2817
PAT Margin (%) 1.8%5.7%10.5%
Adjusted EPS (₹)1.88.117.0
Dividend Payout Ratio (%)0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 596784
Share Capital 333
Reserves 576582
Minority Interest000
Debt555355
Long Term Debt302420
Short Term Debt252934
Trade Payables12148
Others Liabilities 182023
Total Liabilities 143154170

Fixed Assets

Gross Block938996
Accumulated Depreciation353337
Net Fixed Assets585659
CWIP 435
Investments 770
Inventories344450
Trade Receivables273137
Cash Equivalents 4212
Others Assets9108
Total Assets 143154170

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'21Mar'22Mar'23
Cash Flow From Operating Activity 151116
PBT 21222
Adjustment 131513
Changes in Working Capital 1-13-14
Tax Paid 0-2-4
Cash Flow From Investing Activity -5-6-13
Capex -5-6-4
Net Investments 00-9
Others 000
Cash Flow From Financing Activity -8-7-3
Net Proceeds from Shares 000
Net Proceeds from Borrowing 6-7-3
Interest Paid -6-5-5
Dividend Paid 000
Others -855
Net Cash Flow 2-20
PARTICULARSMar'21Mar'22Mar'23
Ratios
ROE (%)3.112.9422.69
ROCE (%)6.4113.8120.37
Asset Turnover Ratio0.720.961.01
PAT to CFO Conversion(x)7.51.380.94
Working Capital Days
Receivable Days967375
Inventory Days121100105
Payable Days906148

Gala Precision Engineering Ltd Stock News

Gala Precision Engineering Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Gala Precision Engi. on 20-Dec-2024 16:59 is ₹1,103.5.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 20-Dec-2024 16:59 the market cap of Gala Precision Engi. stood at ₹1,398.1.
The latest P/E ratio of Gala Precision Engi. as of 20-Dec-2024 16:59 is 81.23.
The latest P/B ratio of Gala Precision Engi. as of 20-Dec-2024 16:59 is 0.00.
The 52-week high of Gala Precision Engi. is ₹1,342.6 and the 52-week low is ₹685.6.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Gala Precision Engi. is ₹163.8 ( Cr.) .

About Gala Precision Engineering Ltd

Gala Precision Engineering Limited was incorporated as ‘Gala Precision Engineering Private Limited’ under the Companies Act, 1956, as a private  limited  company  pursuant  to  the  certificate  of  incorporation  issued  by  the  RoC  on  February  23,  2009.The Company entered into a Business Transfer Agreement dated May 26, 2009 to transfer the business operations from Gala Precision  Technology  Private  Limited. The  name  of  the  company  was  subsequently  changed  to  ‘Gala  Precision Engineering Limited’, upon conversion into a public company, pursuant to a board resolution dated September 5, 2023 and a shareholder’s resolution dated October 3, 2023, and a fresh certificate of change of name was issued on October 25, 2023 by the RoC.

The company is a precision component manufacturer of technical springs like disc & strip springs (DSS) including wedge lock washers; coil & spiral springs (CSS) and special fastening solution (SFS) supplying to original equipment manufacturers (OEMs), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipments, infrastructure and general engineering, mobility segments such as automotive and railways. The company’s listed competitors include Harsha Engineers International Limited, SKF India Limited, Sundram Fasteners Limited, Rolex Rings Limited, Sterling Tools Limited and Ratnaveer Precision Engineering Limited. Its technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, the company is a key link in the global supply chain for OEMs.

The company’s business primarily comprises of (i) springs technology division, under which it manufactures DSS including wedge lock washers (WLW), CSS and (ii) SFS in which it manufactures anchor bolts, studs and nuts. The company’s DSS products find applications in renewable energy, railways, automobiles, off highway vehicles, heavy machinery, electrical and power equipments. The company’s disc springs confirm to German DIN 2093 standards, bearing series, and customized specifications featuring variety of raw materials and surface coating options. It manufactures strip springs customised for high fatigue applications. It is mainly competing with Muhr und Bender KG, Schnorr GmbH, Christian Bauer GmbH + Co. KG in the global disc springs market and with International Industrial Springs in disc springs in India. The company’s CSS products are used in commercial vehicles, passenger vehicles, railways and industrial infrastructure. It has positioned itself as a key import substitution for European springs suppliers and multinationals looking at PLI Schemes and other incentives offered by the Government. 

Business area of the company

The company is a precision component manufacturer of technical springs like DSS including wedge lock washers; CSS and SFS supplying to OEMs, Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipment, infrastructure and general engineering, mobility segments such as automotive and railways.

Awards, accreditations and recognition

  • 2015: Supplier of the year from ABB, Germany in DSS product group.
  • 2017: Star Performer 2015-2016 Metal Fasteners, Springs and Miscellaneous Articles made from Metal Wire Large Enterprise by EEPC India at 34thExport Awards (Western Region).
  • 2017: Gala Precision Engineering Private Limited has undergone Business Excellence Site Assessment at 1st Business Excellence Competition. 
  • 2018: Gold Category Award from Endurance Technologies Limited, India. 
  • 2018: Certificate  of  Appreciation  from  Rane  TRW  (ZF)  for  Positive  Accomplishments  and  Progress towards Supplier Development Program.
  • 2019: Certificate  of  Merit  awarded  to  Gala  Precision  Engineering  Private  Limited  at  IMTMA-ACE Micromatic Productivity Championship Awards 2019 at National Productivity Summit.
  • 2020: Silver Award at CCQC-20, Mumbai.
  • 2021: Award Par Excellence awarded at National Convention on Quality Concepts, Coimbatore.
  • 2022: Winner (SME Sector) under Best Energy Efficient Case Study Category in the 6thEdition of CII National Energy Efficiency Circle Competition. 
  • 2023: Award  for  High  Quality  and reliability  of  Supply  of  the  Year  2022 by  Wuerth  Industrie  Service GmbH & Co KG, Germany. 
  • 2023: Great Place to Work certified by the Great Place to Work Institute, India. 
  • 2023: Category-Mid-Size Organizations.
  • 2024 India’s Best Workplace in Manufacturing (Top 26-50) by the Great Place to Work Institute, India.

History and milestones

  • 2013: Started offering complete range of Parts washing and cleaning systems including Ultrasonic cleaning.
  • 2014: Expanded products range of Disc springs by adding Bearing series Disc springs and serrated washers
  • 2015: Development of spring assemblies for Power sector. Development of Spiral springs and Brush springs.
  • 2016: New Plant commissioned for coilsprings. Award from ABB, Germany for disc springs as one of their top 10 suppliers.
  • 2017: Best Supplier award for Quality & Delivery Performance from leading Automotive Transmission manufacturer Endurance Technologies for Strip springs.
  • 2017: Springs Plant audited by Global Automotive Tier 1 companies like Hitachi, Continental, Schaeffler, Wabco, ZF-TRW, Knorr Bremse.
  • 2018: Gallock Supplies started to Indian Railways.
  • 2018: SFS plant audited & approved by leading global wind turbine manufacturer for High Tensile studs & Foundation anchor studs.
  • 2020: Started supplying Compression springs for Metro Rail for a European customer, on approval in their German Lab.
  • 2022: Export started of fastener to USA and Europe markets.
  • 2022: Purchased land in Vallam-Vadagal, SIPCOT, Sriperumbuddur, Tamil Nadufor future expansion of fastener business.
  • 2022: Sold manufacturing of and activities relating to Surface Engineering Solutions (SES), including goodwill  and  technical  knowhow  in  relation  to  supplies,  intangible  assets  of  mass  finishing equipments and parts cleaning equipments, except for supplies to Public Sector Undertakings and Government Organizations.
  • 2023: Sold manufacturing of and activities relating to Surface Engineering Solutions (SES), including technical  knowhow  in  relation  to  supplies  to  Public  Sector  Undertakings  and  Government Organizations, and intangible assets of mass finishing equipments and parts cleaning equipments.

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