Gala Precision Engi.
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Gala Precision Engi. share price

Gala Precision Engineering Ltd.

NSE: GALAPREC BSE: 544244 SECTOR: Engineering - Industrial Equipments  7943   5   1

1104.15
-20.20 (-1.80%)
NSE: 20 Dec 4:00 PM

Price Summary

Today's High

₹ 1232.45

Today's Low

₹ 1082.85

52 Week High

₹ 1342.55

52 Week Low

₹ 682

FinStar

Ownership Stable
Ownership strength is slightly missing the benchmark.
ValuationAttractive
The stock is considerably attractive based on intrinsic value.
EfficiencyOptimal
The company could improve upon its asset employment.
FinancialsWeak
Watch out! The company might not be able to sustain any adverse condition.
*It is just an analytical rating of the company and not an investment advice.

Company Essentials

Market Cap

₹ 1398.96 Cr.

Enterprise Value

₹ 1445.78 Cr.

No. of Shares

1.27 Cr.

P/E

81.28

P/B

0

Face Value

₹ 10

Div. Yield

0 %

Book Value (TTM)

₹  0

CASH

₹ 11.71 Cr.

DEBT

₹ 58.53 Cr.

Promoter Holding

55.44 %

EPS (TTM)

₹  13.58

Sales Growth

13.99%

ROE

22.69 %

ROCE

20.37%

Profit Growth

110.54 %

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* Total debt includes long term borrowing, short term borrowing plus current maturities of long-term borrowing
* Ratios are based on latest Audited Financial Result.

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Price Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

 

Volume Chart 1d 1w 1m 3m 6m 1Yr 3Yr 5Yr

* Prices are based on daily market changes.

PE Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

PB Chart 1w 1m 3m 6m 1Yr 3Yr 5Yr

* The chart is based on the standalone earnings of the company. * Negative values and values more than 1000x in PE chart is considered 0.

Peer Comparison

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* The Peers list includes companies operating in the same industry and having comparable market cap.

 Group Companies

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Ratios

Sales Growth

1 Year13.99%
3 YearNA
5 YearNA

Profit Growth

1 Year110.54%
3 YearNA
5 YearNA

ROE%

1 Year22.69%
3 Year12.91%

ROCE %

1 Year20.37%
3 Year13.53%

Debt/Equity

0.693

Price to Cash Flow

87.45

Interest Cover Ratio

4.9878

CFO/PAT (5 Yr. Avg.)

0

Shareholding Pattern

Promoter Pledging %

Date Promoter % Pledge %
Sep 2024 55.44 0.00
Investors List
* Figures given above are % of equity capital

 Strengths

  • Company’s PEG ratio is 0.735276353252379.
  • The company has a high promoter holding of 55.44%.

 Limitations

  • The company has shown a poor profit growth of 0% for the Past 3 years.
  • The company has shown a poor revenue growth of 0% for the Past 3 years.
  • The company has a low EBITDA margin of 0% over the past 5 years.
  • The company is trading at a high EV/EBITDA of 43.3245.

Quarterly Result (All Figures in Cr.)

PARTICULARS Jun 2024 Sep 2024
Net Sales 53.17 51.23
Total Expenditure 42.29 41.96
Operating Profit 10.88 9.27
Other Income 0.63 0.09
Interest 1.25 1.07
Depreciation 1.94 1.95
Exceptional Items 0 0
Profit Before Tax 8.32 6.33
Tax 1.97 1.11
Profit After Tax 6.35 5.22
Adjusted EPS (Rs) 6.28 4.12

Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)

PARTICULARS Mar 2021 Mar 2022 Mar 2023
Net Sales 102.97 143.68 163.79
Total Expenditure 90.97 123.11 134.81
Operating Profit 12.01 20.58 28.98
Other Income 1.39 2.38 1.77
Interest 5.99 5.15 5.45
Depreciation 5.83 6.25 5.95
Exceptional Items 0 0 2.4
Profit Before Tax 1.57 11.56 21.74
Tax -0.26 3.39 4.53
Net Profit 1.83 8.18 17.21
Adjusted EPS (Rs.) 1.81 8.09 17.02

Balance Sheet (All Figures are in Crores.)

Particulars Mar 2021 Mar 2022 Mar 2023
Equity and Liabilities
Share Capital 2.53 2.53 2.53
Total Reserves 56.54 64.72 81.93
Borrowings 30.11 23.77 20.5
Other N/C liabilities 6.8 7.06 8.36
Current liabilities 47.31 56.42 56.73
Total Liabilities 143.29 154.5 170.05
Assets
Net Block 58.09 56.27 59.05
Capital WIP 0.49 0.13 1.25
Intangible WIP 3.11 2.93 3.46
Investments 7.46 7.46 0.24
Loans & Advances 3.5 3.59 2.74
Other N/C Assets 0.3 0 0
Current Assets 70.34 84.11 103.32
Total Assets 143.29 154.5 170.05
* Other Non-current Liabilities include Net deferred Liabilities

Cash Flows (All Figures are in Crores.)

PARTICULARS Mar 2021 Mar 2022 Mar 2023
Profit from operations 1.57 11.56 21.74
Adjustment 12.54 14.73 12.82
Changes in Assets & Liabilities 0.83 -13.09 -14.2
Tax Paid -0.03 -1.86 -4.37
Operating Cash Flow 14.9 11.34 16
Investing Cash Flow -5.27 -6.24 -12.61
Financing Cash Flow -7.77 -6.92 -3.39
Net Cash Flow 1.86 -1.82 0

Corporate Actions

Investors Details

PARTICULARS Sep 2024%
promoters 55.44
alpa kiran chheda 2.01
kirit v gala huf 1.06
kirit vishanji gala 22.03
madhu vrajlal ashar 0.66
manisha madhu ashar . 0.12
nayna gala 1.61
rajiv and anupa ashar fam... 0.85
rumie kirit gala 9.86
saloni kirit gala 1.13
smeet kirit gala 4.65
taramati vishanji gala 9.45
vaibhavi vishanji gala 2.01
PARTICULARS Sep 2024%
investors 44.56
ankit ulhas gala 2.60
jalan balkishan shyamsund... 1.90
mauryan first 2.00
mayank ulhas gala 2.60
negen undiscovered value ... 2.35
pooja unichem llp 5.21
satish dayaldas kotwani 1.79

Annual Reports

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Ratings & Research Reports

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Company Presentations

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Gala Precision Engi. Stock Price Analysis and Quick Research Report. Is Gala Precision Engi. an attractive stock to invest in?

Stock investing requires careful analysis of financial data to determine a company's true net worth. This is generally done by examining the company's profit and loss account, balance sheet and cash flow statement, which can be time-consuming and cumbersome.

Examining a company's financial ratios is an easier way to determine its performance, which can help to make sense of the overwhelming amount of information in its financial statements. 

Gala Precision Engi. stock price today is Rs 1104.15. Here are a few indispensable ratios that should be a part of every investor’s research process, or, in simpler words, how to analyse Gala Precision Engi. . 

  • PE ratio: Price to Earnings ratio, which indicates how much an investor is willing to pay for a share for every rupee of earnings. A general rule of thumb is that shares trading at a low P/E are undervalued (it depends on other factors too). Gala Precision Engi. has a PE ratio of 81.2777421990593 which is high and comparatively overvalued .

  • Share Price: - The current share price of Gala Precision Engi. is Rs 1104.15. One can use valuation calculators of ticker to know if Gala Precision Engi. share price is undervalued or overvalued.

  • Return on Assets (ROA): - Return on Assets measures how effectively a company can earn a return on its investment in assets. In other words, ROA shows how efficiently a company can convert the money used to purchase assets into net income or profits. Gala Precision Engi. has ROA of 10.6068 % which is a bad sign for future performance. (higher values are always desirable)

  • Current ratio: - The current ratio measures a company's ability to pay its short-term liabilities with its short-term assets. A higher current ratio is desirable so that the company could be stable to unexpected bumps in business and economy. Gala Precision Engi. has a Current ratio of 1.8211 .

  • Return on equity: - ROE measures the ability of a firm to generate profits from its shareholders' investments in the company. In other words, the return on equity ratio shows how much profit each rupee of common stockholders’ equity generates. Gala Precision Engi. has a ROE of 22.6925 % .(higher is better)

  • Debt to equity ratio: - It is a good metric to check out the capital structure along with its performance. Gala Precision Engi. has a Debt to Equity ratio of 0.693 which means that the company has low proportion of debt in its capital.

  • Sales growth: - Gala Precision Engi. has reported revenue growth of 13.9902 % which is poor in relation to its growth and performance. 

  • Operating Margin: - This will tell you about the operational efficiency of the company. The operating margin of Gala Precision Engi. for the current financial year is 17.6925486259806 %.

  • Dividend Yield: - It tells us how much dividend we will receive in relation to the price of the stock. The current year dividend for Gala Precision Engi. is Rs 0 and the yield is 0 %.

  • Earnings Per Share: - It tells us how much profit is allocated to to each outstanding share of a common stock. The latest EPS of Gala Precision Engi. is Rs 13.5849 . The higher the EPS, the better it is for investors. 

One can find all the Financial Ratios of Gala Precision Engi. in Ticker for free. Also, one can get the intrinsic value of Gala Precision Engi. by using Valuation Calculators, which are available with a Finology ONE subscription. 

Last Updated on:
Brief about Gala Precision Engi.

Gala Precision Share Price Analysis and Business Overview

Gala Precision Engineering Ltd is a renowned company specializing in the design and manufacturing of precision components, including High Tensile Fasteners, Disc & Strip Springs, Coil & Spiral Springs, and Wedge Lock Washers. With over three decades of experience, Gala has established itself as a trusted supplier to major OEMs, Tier-1 suppliers, and channel partners across industries such as Renewable Energy, Industrial, and Mobility.

Key Highlights:

  • Products comply with global standards like German DIN.

  • Customized solutions tailored to specific customer needs.

  • Serves over 175 customers in 25+ countries, including Germany, Denmark, China, Italy, Brazil, the USA, Sweden, and Switzerland.

  • Approximately 40% of sales come from exports.

  • Office in Frankfurt, Germany, to cater to European and UK clients.

Expansion Plans:

Gala is expanding its operations with a new facility in Vallam-Vadagal, SPICOT, Sriperumbudur, Tamil Nadu, dedicated to special fastening solutions.

Manufacturing Expertise:

Gala Precision has competencies in:

  • In-house tool design and development.

  • Material science and heat treatment.

  • Surface engineering and finishing.

  • Lean manufacturing with semi-automation and automation processes.

Business Model of Gala Precision Engineering

Gala Precision Engineering operates a manufacturing and distribution business model, focusing on designing, manufacturing, and distributing precision components to various industries.

Core Products:

  1. High Tensile Fasteners: Used in heavy-duty applications like wind turbines, construction machinery, and heavy vehicles.

  2. Disc & Strip Springs: Essential for automotive clutches and electrical switches.

  3. Coil & Spiral Springs: Traditional springs for applications ranging from pens to suspension systems.

  4. Wedge Lock Washers: Critical for preventing bolt and nut loosening in machinery and vehicles.

Diverse Customer Base:

  • OEMs (Original Equipment Manufacturers): Supply directly to final product manufacturers.

  • Tier-1 Suppliers: Serve as intermediate suppliers to OEMs.

  • Channel Partners: Distributors and retailers expanding Gala’s market reach.

Industry Insights

PLI Scheme Impact:

The Indian government’s Production Linked Incentive (PLI) scheme aims to boost domestic production through subsidies, export encouragement, and job creation. Over Rs 1.9 lakh crore has been allocated for its implementation.

Market Growth Projections:

  1. Coil & Spiral Springs (CSS):

    • Indian market valued at ~USD 459M in FY24.

    • Expected CAGR of 9.8% during FY24-FY27, driven by the automobile industry and urbanization.

  2. Special Fasteners Solutions (SFS):

    • Global market valued at ~USD 97,326M in CY23; CAGR of 6.7% (CY23-CY26).

    • Indian market expected to grow at a CAGR of 18.0% (FY24-FY27).

  3. Disc Springs & Wedge Lock Washers (DSS & WLW):

    • Market value projected at ~USD 1,065M in CY26, with a growth rate of 6.1% (CY23-CY26).

 

Strengths of Gala Precision Engineering

  1. Consistent Growth:

    • Total income grew at a CAGR of 17.53% (FY22-FY24), reaching Rs 2,043.77 million in FY24.

    • Stable gross profit margins (59.15% in FY24).

  2. Product Excellence:

    • High-performance standardized and customized components.

    • Disc springs meeting German DIN 2093 standards.

  3. Diverse Portfolio and Global Reach:

    • Serving 175+ customers in 25 countries.

    • Long-standing customer relationships built on quality and reliability.

  4. Comprehensive Manufacturing Process:

    • In-house capabilities from tool design to surface finishing.

    • Cost advantage due to Indian-based manufacturing compared to European competitors.

Risk Factors

  1. Patent Litigation:

    • Involvement in a patent infringement suit could affect financial health.

  2. Revenue Dependence:

    • Heavy reliance on the springs technology segment.

  3. Credit Risk:

    • High level of outstanding receivables (41.85% pending beyond normal periods as of March 31, 2024).

Opportunities for Gala Precision Engineering Ltd

  1. Renewable Energy:

    • G20 nations’ pledge to triple renewable energy capacity by CY30.

  2. Infrastructure Growth:

    • Annual infrastructure spending projected at ~USD 3T (CY15-CY40).

  3. Automobile Industry:

    • Rising demand for electric and high-end vehicles driving the need for DSS & WLW.

  4. Railway Expansion:

    • Global railroad industry growth projected at ~4% (CY22-CY30).

  5. Aging Infrastructure:

    • Increased demand for fasteners ensuring stability and safety in construction.

Gala Precision Engineering expertise in precision components, diverse product portfolio, and strong customer base position it as a key player in its industry. With expanding operations, a robust revenue model, and growth opportunities in renewable energy, infrastructure, and automotive industries, the company is poised for sustainable growth.

Investors closely monitoring Gala Precision Share Price should consider the company's strengths, industry prospects, and risk factors for informed decision-making.

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