Garware Hi Tech (GRWRHITECH)
CyclicalFairStock Score: 33/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹7,088.5 |
| Market Cap | ₹16,468.28 Cr |
| P/E Ratio | 42.37 |
| ROCE | 20.57% |
| ROE | 14.22% |
| Dividend Yield | 0.17% |
| Profit Growth | 78.31% |
| Debt/Equity | 0.01 |
| Sales Growth | 35.62% |
| Promoter Holding | 60.72% |
| 52-Week Range | ₹2,690.7 — ₹7,987.2 |
| Sector | Industrial Products |
| Book Value | ₹1,143.37 |
Strengths
- Near-zero debt (D/E 0.01) provides strong financial stability
- ROCE of 20.57% indicates efficient capital deployment
- Promoter holding of 60.72% aligns management with shareholders
- Price has corrected sharply from the 52-week high of ₹7,987.20
Concerns
- P/E of 31.81 with negative sales and profit growth is expensive
- Piotroski F-Score of 3/9 signals deteriorating financial health
- Dividend yield of only 0.28% offers negligible downside support
- Trading at 4.57 times book value with no clear growth catalyst
AI Analysis
At ₹4,195.70, Garware Hi Tech is not a business I would call a bargain. The market cap is ₹9,791 Cr, but trailing earnings justify a P/E of 31.8. For a company whose sales fell 1.64% and profits fell 8.29%, I need exceptional moat and growth to pay such a premium. I see some positives: near-zero debt at D/E of 0.01, high promoter holding of 60.72%, and ROCE of 20.57% suggests decent capital allocation. But ROE is only 14.22%, and with book value of ₹917.68, I am paying 4.57 times book. That is not Graham-style margin of safety. The Piotroski score of 3/9 is a red flag: financial health is deteriorating, not improving. Dividend yield of 0.28% means shareholders get almost no cash while waiting. The latest quarter revenue of ₹459 Cr and net profit of ₹56 Cr, annualised roughly ₹224 Cr, makes the multiple even more demanding unless there is a sharp recovery. The 52-week range from ₹2,681 to ₹7,987 also tells me this is a volatile cyclical, not a stable consumer franchise. Buffett would say: a wonderful business can still be a bad investment at a high price. Here I don't even see clear evidence of a wonderful business, only a well-capitalised one facing slowing growth. I'd put it in the 'too hard' pile until earnings stabilise and valuation offers better margin of safety. If the company returns to growth with these balance-sheet strengths, it could become interesting; at today's price, I watch and wait.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer