Gandhi Special Tubes Limited (GANDHITUBE) AI Stock Analysis

• Market Cap: ₹8.90B
• Dividend Yield: 1.95%
• Average Volume (3M): 371.00
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.85
• Revenue Growth: 5.35%
• EPS Growth: 14.24%
• Country: IN
• Employees: 385
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): 14.56
• Shares Outstanding: 12,152,000
• 10 Day Avg. Volume: 102
• 30 Day Avg. Volume: 371
• PEG Ratio: 2.41
• Price to Book (P/B): 2.98
• Price to Sales (P/S): 4.59
• P/FCF Ratio: 17.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: ₹765.00 ▼(-12.28% Downside)

Gandhi Special Tubes Limited has a strong financial foundation with consistent growth and profitability, which is the most significant factor in its score. However, technical analysis indicates weak momentum, and valuation metrics suggest the stock is fairly valued. The absence of earnings call and corporate events data means these factors do not influence the score.

Positive Factors

Strong balance sheet / low leverage

A very high equity ratio and minimal leverage materially reduce financial risk and interest burden. This balance sheet strength supports capacity for capex, working capital needs, and strategic investments without stressing liquidity, improving resilience across economic cycles.

Robust free cash flow generation

Nearly doubling free cash flow indicates strong cash conversion and operational cash generation. Sustainable FCF provides durable funding for reinvestment, dividends, debt reduction or buffer against cyclicality, strengthening long-term capital allocation flexibility.

High margins with consistent revenue growth

Elevated gross and net margins reflect pricing power and product differentiation in precision and specialty tubes. Combined with consistent revenue growth, this margin profile supports strong return on capital and the ability to absorb input cost increases over the medium term.

Negative Factors

Declining EBIT margin

A falling EBIT margin signals weakening operational efficiency or rising operating costs. If structural, margin compression can erode core profitability and ROE, forcing either cost restructuring or higher pricing that may pressure demand over the next several quarters.

Volatility in investing and financing cash flows

Irregular investing and financing patterns can create unpredictable free cash availability despite strong operating cash flow. This variability complicates capital planning, may limit steady shareholder returns, and could require episodic external financing in downcycles.

Concentration in cyclical end markets

Heavy exposure to automotive, engineering and construction ties revenue to macro and industry cycles. Demand swings in these sectors can produce multi-quarter revenue volatility, making stable growth and planning harder without further end-market diversification.

Gandhi Special Tubes Limited Business Overview & Revenue Model

Company Description

Gandhi Special Tubes Limited manufactures and markets welded and seamless steel tubes, and nuts in India. The company offers cold drawn bright annealed seamless steel tubes; precision electric resistance welded steel tubes; cold formed coupling nuts; and high pressure diesel fuel injection tubes. It supplies its products primarily to the original equipment manufacturers of the automotive sector, farm equipment manufacturers, construction equipment manufacturers, and other engineering industries. The company is also involved in the wind power generation activities in Maharashtra and Gujarat. It exports its products. The company was formerly known as Gandhi Special 07 Tubes Ltd. Gandhi Special Tubes Limited was incorporated in 1985 and is based in Mumbai, India.

How the Company Makes Money

Gandhi Special Tubes Limited generates revenue through the manufacturing and sale of specialized tubes and pipes across multiple sectors. The company has established key revenue streams through direct sales to OEMs (Original Equipment Manufacturers) in the automotive sector, where precision and reliability are paramount. Additionally, GANDHITUBE benefits from long-term contracts with major construction firms and engineering companies that require custom tubing solutions. The company also engages in export activities, expanding its market reach and contributing to its revenue. Strategic partnerships with suppliers and distributors enhance its market presence, while continuous investment in R&D ensures product innovation, allowing GANDHITUBE to maintain a competitive edge and adapt to evolving customer needs.

Gandhi Special Tubes Limited Financial Statement Overview

Summary

Gandhi Special Tubes Limited demonstrates strong financial performance with consistent revenue growth, high profitability, and a robust balance sheet. The company has a low debt-to-equity ratio and strong equity base, indicating financial stability. However, a declining EBIT margin suggests some operational challenges.

Income Statement

Gandhi Special Tubes Limited shows a strong income statement with consistent revenue growth and robust profitability. The revenue growth rate has been positive each year, demonstrating resilience and market demand. Gross and net profit margins are strong, with the latest year showing a gross profit margin of approximately 50.3% and a net profit margin of 34%. However, there is a noticeable decrease in EBIT margin over the past year, indicating some operational challenges. Overall, the company's income statement reflects solid profitability and growth.

Balance Sheet

The balance sheet of Gandhi Special Tubes Limited is robust with a strong equity base, as indicated by an equity ratio of 92.9% in the latest year. The debt-to-equity ratio is very low at 0.9%, reflecting prudent financial management and low leverage risk. Return on equity is commendable, indicating efficient use of shareholder funds to generate profits. The stability and low leverage position the company well for future growth and risk mitigation.

Cash Flow

Cash flow analysis reveals a positive trajectory with impressive free cash flow generation, which grew by 96.9% in the most recent year. The operating cash flow to net income ratio is healthy, indicating strong cash generation relative to profits. The free cash flow to net income ratio further highlights efficient cash use. However, fluctuations in investing and financing cash flows suggest potential volatility in future cash flows that should be monitored.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.80B	1.73B	1.71B	1.67B	1.37B	1.14B
Gross Profit	1.04B	867.59M	1.03B	1.05B	792.43M	726.92M
EBITDA	899.18M	802.77M	765.09M	661.41M	538.09M	509.30M
Net Income	659.64M	586.74M	555.79M	473.37M	385.66M	361.52M
Balance Sheet
Total Assets	0.00	2.86B	2.43B	2.02B	1.66B	1.92B
Cash, Cash Equivalents and Short-Term Investments	86.75M	88.51M	65.18M	499.19M	350.16M	687.87M
Total Debt	0.00	2.49M	2.82M	3.14M	3.98M	3.19M
Total Liabilities	-2.66B	202.53M	199.06M	202.48M	191.97M	204.62M
Stockholders Equity	2.66B	2.66B	2.23B	1.82B	1.47B	1.72B
Cash Flow
Free Cash Flow	0.00	450.25M	228.58M	443.88M	376.33M	312.64M
Operating Cash Flow	0.00	488.30M	263.57M	453.19M	414.69M	324.26M
Investing Cash Flow	0.00	-321.18M	-366.83M	-74.53M	216.63M	-200.24M
Financing Cash Flow	0.00	-158.40M	-146.98M	-122.75M	-635.77M	-116.76M

Gandhi Special Tubes Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 872.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GANDHITUBE, the sentiment is Negative. The current price of 872.05 is above the 20-day moving average (MA) of 730.03, above the 50-day MA of 749.12, and above the 200-day MA of 771.48, indicating a bearish trend. The MACD of -13.74 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GANDHITUBE.

Gandhi Special Tubes Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCCL	72 Outperform	₹1.17B	10.94	―	10.99%	-76.65%	-76.77%
GANDHITUBE	67 Neutral	₹8.90B	13.40	―	1.95%	5.35%	14.24%
MAHASTEEL	66 Neutral	₹12.51B	123.58	―	―	11.83%	124.74%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.81B	10.67	―	1.23%	0.69%	-7.54%
VISAKAIND	59 Neutral	₹5.43B	11.56	―	0.74%	6.79%	―
MMP	58 Neutral	₹6.39B	27.41	―	0.78%	26.79%	-35.43%