Is Garg Furnace a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Garg Furnace Ltd is a average quality company .

Is Garg Furnace undervalued or overvalued?

The key valuation ratios of Garg Furnace Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone .

What is Garg Furnace share price return in the past 10 years?

Garg Furnace Ltd share price has appreciated 35.4% annually (CAGR) over the past ten years.

Is Garg Furnace a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Garg Furnace Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

Garg Furnace Ltd - Stock Valuation and Financial Performance

Name: Garg Furnace
Brand: Garg Furnace

BSE: 530615 | NSE: | Steel & Iron Products | Small Cap

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Garg Furnace Share Price

₹309.85 13.05 4.40%
as on 14-Nov'24 16:59

10 Year X-Ray of Garg Furnace:

Analysis of Financial Track Record

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

Standalone Basis ^P Consolidated Basis

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

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	10.1%	-6.5%	-14.6%	-0.9%	9.2%	13.3%	-22%	31.8%	24.2%	15.2%	-
Value Creation Index ⓘ	-0.3	-1.5	-2.1	-1.1	-0.3	-0.1	-2.6	1.3	0.7	0.1	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	146	90	53.5	65.7	112	98.5	119	179	238	258	259
Sales YoY Gr.	-	-38.5%	-40.6%	22.7%	70.3%	-11.9%	21.1%	49.6%	33.4%	8.3%	-
Adj EPS ⓘ	1.3	-32.6	-33.5	-0.3	-7.1	-9.9	-6.2	15.8	15.4	12.1	12.2
YoY Gr.	-	-2535.8%	NA	NA	NA	NA	NA	NA	-2.1%	-21.9%	-
BVPS (₹) ⓘ	77.7	44.7	10.9	10.6	23.4	33	21.2	36.8	51.6	82.4	102
Adj Net Profit ⓘ	0.5	-13.1	-13.4	-0.1	-2.8	-4	-2.5	6.3	6.2	5.6	7
Cash Flow from Ops. ⓘ	6.2	-18.5	-1.2	2.8	30.9	22.8	3.1	0.3	8.5	-13.4	-
Debt/CF from Ops. ⓘ	8.7	-4.1	-62.7	25.9	1.3	0.4	2.5	40.4	0.6	-0.1	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	6.5%	18.2%	29.3%	8.3%
Adj EPS ⓘ	27.7%	NA	NA	-21.9%
BVPSⓘ	0.7%	28.7%	57.4%	59.6%
Share Price	35.4%	90.1%	145.3%	113.9%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	1.7	-53.3	-120.2	-3	-41.5	-35	-23.1	54.5	34.9	16	13.3
Op. Profit Mgn % ⓘ	5.3	-5.2	-21.2	-6.7	-5.4	-6.5	0.1	4.2	3.2	2.3	2.7
Net Profit Mgn % ⓘ	0.4	-14.5	-25.1	-0.2	-2.5	-4	-2.1	3.5	2.6	2.2	2.6
Debt to Equity ⓘ	1.7	4.2	17.1	17.2	4.1	0.7	0.9	0.7	0.2	0	-
Working Cap Days ⓘ	233	377	463	335	154	123	86	61	55	55	26
Cash Conv. Cycle ⓘ	129	185	216	165	87	66	43	35	33	34	13

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 29.31%

Return on Equity has declined versus last 3 years average to 13.30%

Net Profit has been subdued in last 3 years 0.00%

Sales growth is not so good in last 4 quarters at 8.99%

Latest Financials - Garg Furnace Ltd.

	Standalone	Consolidated
TTM EPS (₹)	12.2	-
TTM Sales (₹ Cr.)	259	-
BVPS (₹.) ⓘ	102	-
Reserves (₹ Cr.) ⓘ	50	-
P/BV ⓘ	3.04	-
PE ⓘ	25.35	-

From the Market
52 Week Low / High (₹)	140.00 / 441.20
All Time Low / High (₹)	2.45 / 441.20
Market Cap (₹ Cr.)	168
Equity (₹ Cr.)	5.4
Face Value (₹)	10
Industry PE ⓘ	21.7

Management X-Ray of Garg Furnace:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

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

Valuation of Garg Furnace

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Garg Furnace

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	146	90	54	66	112	99	119	179	238	258
Operating Expenses ⓘ	139	95	65	70	118	105	119	171	231	252
Manufacturing Costs	13	13	20	18	27	15	16	20	24	25
Material Costs	123	81	43	49	88	88	100	150	205	224
Employee Cost	1	1	1	1	2	2	1	1	2	2
Other Costs ⓘ	1	1	1	2	1	1	2	1	1	1
Operating Profit ⓘ	8	-5	-11	-4	-6	-7	0	7	7	6
Operating Profit Margin (%)	5.3%	-5.6%	-21.4%	-6.7%	-5.5%	-6.7%	0.1%	4.2%	3.1%	2.3%
Other Income ⓘ	1	1	0	5	2	2	0	0	0	1
Interest ⓘ	8	7	1	1	1	1	0	0	0	0
Depreciation ⓘ	1	1	1	1	1	1	1	1	1	2
Exceptional Items ⓘ	0	0	0	0	11	11	-3	0	0	0
Profit Before Tax ⓘ	0	-13	-14	-1	5	4	-5	6	6	6
Tax ⓘ	0	0	0	-1	0	0	0	0	0	0
Profit After Tax	1	-13	-14	0	5	4	-5	6	6	6
PAT Margin (%)	0.4%	-14.7%	-25.3%	-0.2%	4.6%	3.6%	-3.9%	3.5%	2.5%	2.2%
Adjusted EPS (₹)	1.3	-33.0	-33.8	-0.3	12.7	8.9	-11.7	15.8	14.8	12.1
Dividend Payout Ratio (%)	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	31	18	4	4	9	13	8	15	21	38
Share Capital ⓘ	4	4	4	4	4	4	4	4	4	5
Reserves ⓘ	27	14	0	0	5	9	4	11	17	33
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	49	70	66	65	30	8	7	9	4	1
Long Term Debt	17	11	5	5	5	8	7	9	4	1
Short Term Debt	32	59	61	60	26	0	0	0	0	0
Trade Payables	59	15	9	4	6	7	7	7	9	6
Others Liabilities ⓘ	9	9	12	9	13	20	22	19	25	15
Total Liabilities ⓘ	148	112	92	82	58	48	44	50	59	61
Fixed Assets
Gross Block	40	39	23	23	24	24	20	22	23	24
Accumulated Depreciation	15	15	1	3	4	5	5	7	8	9
Net Fixed Assetsⓘ	25	23	22	21	20	19	14	15	15	14
CWIP ⓘ	0	0	0	0	0	0	0	0	0	0
Investmentsⓘ	2	3	2	2	0	0	0	0	0	0
Inventories	13	11	3	11	17	11	11	17	15	8
Trade Receivables	85	42	35	23	11	9	11	10	18	23
Cash Equivalents	4	2	0	2	0	0	2	2	3	9
Others Assetsⓘ	19	31	30	22	10	9	6	5	7	8
Total Assets ⓘ	148	112	92	82	58	48	44	50	59	61

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	6	-18	-1	3	31	23	3	0	8	-13
PBT ⓘ	0	-13	-14	-1	5	4	-5	6	6	6
Adjustment ⓘ	8	8	2	2	1	3	7	1	2	1
Changes in Working Capital ⓘ	-2	-13	10	2	24	17	1	-7	1	-20
Tax Paid ⓘ	0	0	0	0	0	0	0	0	0	0
Cash Flow From Investing Activity ⓘ	-7	2	0	0	3	0	0	-2	-4	0
Capex	-7	0	0	0	2	0	0	-2	-2	-1
Net Investments	0	0	0	0	0	0	0	0	-2	0
Others ⓘ	1	2	0	0	1	0	0	0	0	0
Cash Flow From Financing Activityⓘ	3	15	-1	-1	-35	-23	-2	2	-6	19
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	0	0	0	0
Net Proceeds from Borrowing ⓘ	13	-6	0	0	0	-22	-1	2	-5	-3
Interest Paid ⓘ	-7	-6	-1	-1	-1	-1	0	0	0	0
Dividend Paid ⓘ	0	0	0	0	0	0	0	0	0	0
Others ⓘ	-3	27	0	0	-35	0	0	0	-1	22
Net Cash Flow ⓘ	2	-2	-2	2	-2	0	1	1	-1	5

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	1.72	-53.89	-121.48	-3.01	74.95	31.74	-43.37	54.48	33.53	18.94
ROCE (%)	10.05	-6.49	-14.64	-0.92	9.24	13.33	-21.98	31.76	24.17	15.16
Asset Turnover Ratio	1.23	0.75	0.59	0.78	1.59	1.86	2.6	3.81	4.39	4.31
PAT to CFO Conversion(x)	6	N/A	N/A	N/A	6.2	5.75	N/A	0	1.33	-2.17
Working Capital Days
Receivable Days	162	238	236	158	56	38	31	21	21	28
Inventory Days	30	45	42	37	46	51	33	29	25	16
Payable Days	71	117	90	45	20	27	25	17	14	12

Garg Furnace Ltd Stock News

Garg Furnace Ltd FAQs

What is the share price of Garg Furnace?

Company share prices are keep on changing according to the market conditions. The closing price of Garg Furnace on 14-Nov-2024 16:59 is ₹309.9.

What is the market cap of Garg Furnace?

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 14-Nov-2024 16:59 the market cap of Garg Furnace stood at ₹167.6.

What is the P/E ratio of Garg Furnace?

The latest P/E ratio of Garg Furnace as of 14-Nov-2024 16:59 is 25.35.

What is the P/B ratio of Garg Furnace?

The latest P/B ratio of Garg Furnace as of 14-Nov-2024 16:59 is 3.04.

What is the 52-week high and low of Garg Furnace?

The 52-week high of Garg Furnace is ₹441.2 and the 52-week low is ₹140.0.

What is the TTM revenue of Garg Furnace?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Garg Furnace is ₹258.6 ( Cr.) .

About Garg Furnace Ltd

Garg Furnace (GFL) was set up in 1973 by Dharam Pal Garg and Jagdish Chand Garg. The company has emerged as one of northern India's leading alloy and non alloy steel manufacturer.

The company is the part of Garg Group of companies. Its other group companies are Garg Acrylic Limited and Sudhir Forgings Limited.

The GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology. At present the company is manufacturing Alloy and non Alloy steel ingots.

Garg Furnace's has 50,000 sq. yards manufacturing plant with power-efficient induction furnaces, the GFL Induction Melting Furnaces are a class apart. For power-efficiency, product quality and yield GFL has different capacity of induction furnaces -each embodying the latest in design and technology.

The company has fully automatic wire rod mill and rolling mill manufacturing; TMT bars for the construction industry as well as wire rods, ms rounds and ms square. The company follows modern production processes and superior on-line quality control measures.

The company has its own casting facilities which represents a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry, etc.

The company has its own forging facilities having drop hammers, presses and machining facilities supplying forgings of different components viz. Auto components like all types of Bevel gears-Pinions, Levers. Crank- Cam Shafts, Crosses, Crown wheels etc. and forgings used in construction like Scaffoldings, Thread bars (Dywidag thread) and Fitments like Wing nuts of similar type. In Addition to that we manufacture Nuts, Bolts, Stouts, Long thread bars upto 20ft length and different types of washers.

At Garg Furnace Limited quality control is a credo. This commitment starts with the raw material input. For instance, imported steel scrap is preferred as raw material. Then, there's a special quality control lab, which constantly monitors quality at each and every stage of manufacture. All the critical manufacturing processes occur In-house, all under one roof, quality products are manufactured.

A testimony Garg Furnace Limited's success is its impressive list of clients- representing a cross-section of industry - Railways, Defense, Thermal and Hydel Power Plants, Sugar Mills, Cement and Fertilizer Plants, Mines, Light Engineering Industry etc. etc. - most of whom have been steadfastly loyal to GFL products for over twenty years.

GFL has now stepped into the export market, exporting steel casting to the Middle East Countries. In the future, exports will be a major thrust area for GFL.

At present the Company is manufacturing Alloy and non Alloy steel ingots that includes:

Cross for LCVs, trucks and tractors.
Bevel-pinions for all tractors, cars, and Light Commercial Vehicles
All sorts of gears Viz. first, second, third, fourth, reverse and other high speed gears.
Steering arm for all the automobiles
TMT Rods: in the sizes of M.S. Round in 25mm to 100mm and M.S. Strip in all sizes.
Wire Rod: in the size of 6mm to 16mm.

Different divisions of the company include:

Casting Division: Since its inception the company has been serving the nation by meeting the requirements of casting components for strategic industries like Indian Railways, Thermal and Hydel Power plants, Fertilizer, Sugar and Cement plants & Mines etc. GFL in its casting division, manufacture various types of Steel and Alloy Steel Casting in different IS/BS/AISI specifications in the weight range of 20 Kgs. to 3000 Kgs. (single piece).
Rolling Division: Ludhiana is the home of small scale units, engaged in the manufacture of Bicycles, Sewing Machines and Hosiery Machinery parts. M.S. round and strips are the basic raw-material for these units. To provide better quality materials to this sector, GFL has installed its own rolling mill, where Carbon Steel round/strip of different sizes is manufactured. Due to superior quality, competitive prices and a wide range, the company's products have an edge in the market.
Forging Division: The company provides products in finished as well as forged condition. It produces Bevel-pinions for all tractors, cars, and Light Commercial Vehicles. The company is supplying them in forged and spheriodised condition as well as machined.