On Wednesday, GMM Pfaudler Ltd shares were trading at Rs 1,500 per share,up 0.19 percent from the previous close price of Rs 1,500.50 per share. The company has a market capitalization of Rs 6,744 crore.
GMM Pfaudler manufactures corrosion-resistant glass-lined equipment and is a leading supplier of process equipment for the pharmaceuticals, chemicals, and petrochemical sectors.
GMM Pfaudler is a leading player in glass-line equipment manufacturing, with a market share of more than 50 percent in the industry and a 55 percent market share in worldwide glass-lined reactors.
According to a recent Market Watch research, the worldwide Glass Lined Reactor market is expected to reach USD 741.6 million by the end of 2026.
On the 9th of December, 2022, the company’s share reached its 52-week high at Rs 1,999 per share, which is trading at a discount of around 33 percent compared to the prevailing stock price levels.
The company is the world leader in corrosion-resistance technologies, systems, and services with 12 manufacturing facilities across 8 countries and 4 continents.
Marcellus Investment Manager believes the company’s profit outlook is buoyant as the world is pivoting away from China and towards India for the manufacture of pharma and specialty chemicals.
According to the company’s projections, GMM expects to grow sales by 15 percent and EBITDA by 25 percent by 2025, And management anticipates revenue growth of 13 percent to 15 percent and EBITDA growth of 18 percent to 20 percent.
GMM Pfaudler’s revenue from operations is expected to be Rs. 37,00 crore, with an EBITDA of Rs. 630 crore and a ROCE of 25% by FY25.
The company’s order backlog as of Q2FY24 is Rs 1,705 crore, while order intake is Rs 626 crore.
The company’s revenues have increased by 20 percent year on year from Rs 780 crore in Q2FY23 to Rs 937 crore in Q2FY24, while net profit has declined by 28 percent in the same period, from Rs 97 crore to Rs 70 crore.
In fiscal year 22-23, the business received 87 percent of its income from international clients and 13 percent from local clients.
In recent shareholding patterns, the company promoters hold a 25.18 percent stake in the company, Foreign institutional Investors hold a 26.49 percent stake and Domestic institutional investors hold a 12.58 percent stake.
GMM Pfaudler has diversified its product portfolio to include Mixing Systems, Filtration and drying Equipment, Engineered Systems, and Heavy Engineering equipment.
Written by Omkar Chitnis
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