Ganga Forging (GANGAFORGE)
CyclicalScore breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2.62 |
| Market Cap | ₹44.46 Cr |
| P/E Ratio | 0 |
| ROCE | 3.13% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 464.77% |
| Debt/Equity | 0.79 |
| Sales Growth | -5.61% |
| Promoter Holding | 35.51% |
| 52-Week Range | ₹1.53 — ₹4.15 |
| Sector | Industrial Products |
| Book Value | ₹1.85 |
Strengths
- Book value of ₹2.17 per share provides some asset cushion; price at ₹2.89 is not extremely stretched versus book.
- Latest quarter broke even on ₹9 crore sales, showing it is not burning cash at an alarming rate.
- Debt/equity of 0.79, while not ideal, is far from a distressed debt pile.
- Castings and forgings have a base demand in engineering industries if the industrial cycle turns.
Concerns
- Profit growth of -85.19% and sales growth of -23.91% show severe business deterioration.
- ROCE of 3.13% is far below any acceptable return on invested capital.
- Piotroski F-Score of 3/9 suggests weak financial health and possible stress.
- Promoter holding of only 35.51% is low for a microcap, reducing ownership alignment.
AI Analysis
At ₹2.89, Ganga Forging has a market cap of ₹41 crore. In the castings and forgings business, I start with a simple question: does this company earn more than the cost of capital? The numbers say no. ROCE is 3.13%, debt-to-equity is 0.79, and Piotroski score is 3/9. Sales fell 23.91% and profits fell 85.19%. The latest quarter had ₹9 crore sales and ₹0 crore profit. That is no earnings engine; it is a treadmill. Graham would call this a speculative asset, not an investment. Book value is ₹2.17 per share, so at ₹2.89 I am paying 1.33 times book for a business that earns nothing. A premium to book is justified only when the business can compound capital. With ROCE just above 3%, it cannot. Promoter holding of 35.51% is also not a strong reason for comfort; in small caps I want owners heavily invested and aligned. Could it be cyclical? Maybe. Forgings are tied to auto, infrastructure, and industrial capex, and a revival could improve volumes. But buying purely on hope is not value investing. I need evidence: a halt to sales decline, improving margins, and positive net profit. Until then, Ganga Forging fails my three tests: durable moat, financial strength, and margin of safety. It belongs on the watchlist, not in the portfolio.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer