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5060

Grindwell NortonBSE:506076 Stock Report

Market Cap

₹168.8b

7D

-3.2%

1Y

175.0%

Updated

25 Oct, 2021

Data

Company Financials +
506076 fundamental analysis
Snowflake Score
Valuation0/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

506076 Overview

Grindwell Norton Limited manufactures and sells abrasives, ceramics, and plastic products in India.

Price History & Performance

Summary of all time highs, changes and price drops for Grindwell Norton
Historical stock prices
Current Share Price₹1,524.95
52 Week High₹521.00
52 Week Low₹1,629.20
Beta0.47
1 Month Change7.22%
3 Month Change23.07%
1 Year Change175.01%
3 Year Change214.98%
5 Year Change358.77%
Change since IPO13,088.76%

Recent News & Updates

Shareholder Returns

506076IN MachineryIN Market
7D-3.2%-5.3%-4.6%
1Y175.0%80.6%61.7%

Return vs Industry: 506076 exceeded the Indian Machinery industry which returned 80.2% over the past year.

Return vs Market: 506076 exceeded the Indian Market which returned 61% over the past year.

Price Volatility

Is 506076's price volatile compared to industry and market?
506076 volatility
506076 Beta0.47
Industry Beta0.78
Market Beta1

Stable Share Price: 506076 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 506076's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19412,006B. Santhanamhttps://www.grindwellnorton.co.in

Grindwell Norton Limited manufactures and sells abrasives, ceramics, and plastic products in India. The company offers bonded abrasives in the form of wheels and other shapes, such as segments, sticks, etc. for various applications, including lapping, honing, super-finishing, race grinding, thread grinding, fluting, OD grinding, ID grinding, surface grinding, etc., as well as for rough applications comprising snagging, cutting-off, burr removal, weld preparation, etc. It also provides coated abrasives products in various shapes, such as discs, belts, rolls, etc. for material removal and surface preparation; non-woven abrasives; super abrasives for precision applications, including diamond and cubic born nitride; and cutting-edge abrasive products. In addition, the company offers silicon carbide grains primarily for use as raw material in the manufacture of abrasives and refractories, as well as for stone polishing; and performance ceramics and refractories for use in sanitary-ware, table-ware, ballistic armor protection, wear resistance systems, etc. Further, it produces and markets performance plastics comprising bearings, seals, tubing and hoses, films, fabrics, and foams for use in the automotive, oil and gas, life sciences, construction, energy, and general industrial applications.

Grindwell Norton Fundamentals Summary

How do Grindwell Norton's earnings and revenue compare to its market cap?
506076 fundamental statistics
Market Cap₹168.84b
Earnings (TTM)₹2.75b
Revenue (TTM)₹18.45b

61.4x

P/E Ratio

9.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
506076 income statement (TTM)
Revenue₹18.45b
Cost of Revenue₹8.25b
Gross Profit₹10.20b
Expenses₹7.45b
Earnings₹2.75b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)24.84
Gross Margin55.31%
Net Profit Margin14.91%
Debt/Equity Ratio0.9%

How did 506076 perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

38%

Payout Ratio

Valuation

Is Grindwell Norton undervalued compared to its fair value and its price relative to the market?

61.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 506076 (₹1524.95) is trading above our estimate of fair value (₹482.63)

Significantly Below Fair Value: 506076 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 506076 is poor value based on its PE Ratio (61.4x) compared to the Indian Machinery industry average (23.9x).

PE vs Market: 506076 is poor value based on its PE Ratio (61.4x) compared to the Indian market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: 506076 is poor value based on its PEG Ratio (5x)


Price to Book Ratio

PB vs Industry: 506076 is overvalued based on its PB Ratio (12.4x) compared to the IN Machinery industry average (1.8x).


Future Growth

How is Grindwell Norton forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 506076's forecast earnings growth (12.3% per year) is above the savings rate (6.7%).

Earnings vs Market: 506076's earnings (12.3% per year) are forecast to grow slower than the Indian market (19.3% per year).

High Growth Earnings: 506076's earnings are forecast to grow, but not significantly.

Revenue vs Market: 506076's revenue (11.4% per year) is forecast to grow slower than the Indian market (13.1% per year).

High Growth Revenue: 506076's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 506076's Return on Equity is forecast to be low in 3 years time (19.7%).


Past Performance

How has Grindwell Norton performed over the past 5 years?

15.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 506076 has high quality earnings.

Growing Profit Margin: 506076's current net profit margins (14.9%) are higher than last year (12%).


Past Earnings Growth Analysis

Earnings Trend: 506076's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: 506076's earnings growth over the past year (63.5%) exceeds its 5-year average (15% per year).

Earnings vs Industry: 506076 earnings growth over the past year (63.5%) underperformed the Machinery industry 77.1%.


Return on Equity

High ROE: 506076's Return on Equity (19.8%) is considered low.


Financial Health

How is Grindwell Norton's financial position?


Financial Position Analysis

Short Term Liabilities: 506076's short term assets (₹12.5B) exceed its short term liabilities (₹4.4B).

Long Term Liabilities: 506076's short term assets (₹12.5B) exceed its long term liabilities (₹522.0M).


Debt to Equity History and Analysis

Debt Level: 506076's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: 506076's debt to equity ratio has reduced from 1.7% to 0.9% over the past 5 years.

Debt Coverage: 506076's debt is well covered by operating cash flow (2726.9%).

Interest Coverage: 506076 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Grindwell Norton current dividend yield, its reliability and sustainability?

0.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 506076's dividend (0.62%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: 506076's dividend (0.62%) is low compared to the top 25% of dividend payers in the Indian market (1.41%).


Stability and Growth of Payments

Stable Dividend: 506076's dividends per share have been stable in the past 10 years.

Growing Dividend: 506076's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.3%), 506076's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 506076's dividends in 3 years are forecast to be well covered by earnings (35% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average board tenure


CEO

B. Santhanam (64 yo)

1.5yrs

Tenure

₹16,056,000

Compensation

Mr. B. Santhanam serves as the President of Flat Glass-South Asia, Malaysia & Egypt and Managing Director of Flat Glass-South Asia, Malaysia & Egypt at Saint-Gobain India Pvt. Ltd. (formerly known as SAINT...


Board Members

Experienced Board: 506076's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 506076 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Grindwell Norton Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Grindwell Norton Limited
  • Ticker: 506076
  • Exchange: BSE
  • Founded: 1941
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹168.842b
  • Shares outstanding: 110.72m
  • Website: https://www.grindwellnorton.co.in

Number of Employees


Location

  • Grindwell Norton Limited
  • Leela Business Park
  • 5th Level
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:39
End of Day Share Price2021/10/25 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.