Ganga Forging Ltd. (GANGAFORGE) AI Stock Analysis

• Market Cap: ₹446.20M
• Dividend Yield: N/A
• Average Volume (3M): 342.05K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 1.05%
• EPS Growth: -531.16%
• Country: IN
• Employees: 43
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.22
• Shares Outstanding: 134,802,230
• 10 Day Avg. Volume: 688,212
• 30 Day Avg. Volume: 342,046
• PEG Ratio: 7.17
• Price to Book (P/B): 1.88
• Price to Sales (P/S): 1.40
• P/FCF Ratio: -7.84
• 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: 57 Neutral
• Price Target: ₹3.50 ▲(0.57% Upside)

The score is driven mainly by solid revenue growth and a stable balance sheet, offset by weak cash-flow conversion (negative operating/free cash flow) and modest profitability. Technicals are mixed with slightly negative momentum, and valuation signals are constrained by a negative P/E and no dividend yield.

Positive Factors

Revenue Growth

A 16% year-on-year revenue increase indicates strengthening demand for forged components and successful order capture. Durable top-line growth supports higher capacity utilization, potential scale benefits, and provides a foundation to invest in process improvements and diversify end markets over the medium term.

Balance Sheet Strength

A moderate debt-to-equity ratio and strong equity share provide financial flexibility in a capital-intensive manufacturing sector. Manageable leverage lowers refinancing and solvency risk, enabling the company to fund working capital, sustain operations through cycles, and pursue selective capex without excessive balance-sheet strain.

Improved Gross Margin

A materially higher gross margin points to improved production efficiency or better pricing power for forged components. Sustained gross margin gains can provide a durable buffer against raw-material volatility, support targeted reinvestment in value-added machining, and underpin longer-term margin stability if maintained.

Negative Factors

Negative Cash Flow Conversion

Operating and free cash flow turning negative despite positive reported earnings signals weak cash conversion and potential liquidity pressure. Over months this can force reliance on external financing, constrain discretionary capex, limit ability to smooth working capital swings, and increase refinancing risk.

Thin Profitability and Declining EBIT

A declining EBIT margin and a net margin near 1.4% indicate limited operating leverage and fragile after-tax profitability. Structurally thin margins reduce the firm's capacity to absorb input cost shocks, invest in productivity, or deliver consistent returns to shareholders without improving operational efficiency or pricing.

Low Return on Equity

ROE below 2% reflects low capital efficiency and weak shareholder returns relative to invested equity. Persistently low ROE constrains long-term value creation, signaling the need for margin expansion, better asset utilization, or strategic capital reallocation to drive sustainable improvements in profitability.

Ganga Forging Ltd. Business Overview & Revenue Model

Company Description

Ganga Forging Limited engages in the manufacture and sale of steel forging parts in India. It offers forged crankshafts, crankshaft single and double cylinders, straight and incline connecting rods, forged and big yokes, pins and shafts, spiders/cross, forged flanges, forged clamps and flanges, and blind flanges, as well as socket clevise, anchor shackle, and dead end pin electrical power transmission parts. The company also provides aluminum forging products. It serves clients in construction, railway, mechanical, oil refinery, mining, and other industries. The company was incorporated in 1988 and is based in Rajkot, India.

How the Company Makes Money

Ganga Forging Ltd. generates revenue through multiple streams, primarily by manufacturing and selling forged components to various industries, including automotive and aerospace. The company's revenue model is centered around contract manufacturing, where it enters into agreements with clients for bulk production of custom components. Key revenue streams include direct sales of forged parts, long-term contracts with major OEMs (Original Equipment Manufacturers), and aftermarket sales for replacement parts. Additionally, strategic partnerships with suppliers and industry players enhance its market reach and enable access to new technologies, further contributing to its earnings. The company may also engage in value-added services such as design and engineering support, which can provide additional revenue opportunities.

Ganga Forging Ltd. Financial Statement Overview

Summary

Revenue growth is strong and the balance sheet is stable with manageable leverage, but profitability is weak (modest net margin) and 2025 operating/free cash flow is negative, which materially reduces overall financial quality.

Income Statement

Ganga Forging Ltd. has shown a consistent increase in total revenue over the years, with a notable revenue growth rate of 16.12% from 2024 to 2025. The gross profit margin improved significantly in 2025, reaching 26.45%, indicating efficient production processes. However, the EBIT margin has declined from previous years, and the net profit margin is modest at 1.42%, suggesting opportunities for improving operational efficiency and cost management.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.51, reflecting a balanced approach to leveraging debt. The equity ratio stands at 54.86%, indicating a strong equity position relative to total assets. Return on equity (ROE) is relatively low at 1.91% in 2025, highlighting room for enhancing shareholder returns. Overall, the balance sheet reflects stability, with a solid equity base and manageable debt levels.

Cash Flow

Ganga Forging faces challenges in cash flow management, with negative operating cash flow and free cash flow in 2025. The free cash flow to net income ratio is negative, indicating that net income is not translating into free cash flow. This suggests potential liquidity issues and the need for improved cash flow management strategies. Despite these challenges, the company has managed to secure financing to support its operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	424.55M	432.19M	372.12M	334.10M	288.32M	225.81M
Gross Profit	124.99M	114.31M	34.50M	110.40M	104.04M	48.12M
EBITDA	20.47M	29.02M	26.02M	25.66M	38.03M	17.54M
Net Income	1.01M	6.13M	4.43M	16.57M	10.34M	1.07M
Balance Sheet
Total Assets	0.00	586.83M	463.08M	347.29M	310.45M	312.01M
Cash, Cash Equivalents and Short-Term Investments	3.24M	3.24M	8.57M	1.80M	158.34K	1.86M
Total Debt	0.00	165.82M	99.88M	142.97M	116.74M	105.36M
Total Liabilities	-321.89M	264.94M	148.95M	213.95M	193.95M	190.96M
Stockholders Equity	321.89M	321.89M	314.13M	133.34M	116.50M	121.05M
Cash Flow
Free Cash Flow	0.00	-77.10M	-118.16M	-23.60M	-11.75M	20.39M
Operating Cash Flow	0.00	-50.64M	-106.35M	-10.89M	13.24M	30.12M
Investing Cash Flow	0.00	-22.14M	-11.59M	-5.60M	-16.87M	-588.58K
Financing Cash Flow	0.00	57.94M	124.72M	18.15M	1.91M	-10.39M

Ganga Forging Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.48
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GANGAFORGE, the sentiment is Positive. The current price of 3.48 is above the 20-day moving average (MA) of 3.33, above the 50-day MA of 3.32, and below the 200-day MA of 3.78, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.53 is Neutral, neither overbought nor oversold. The STOCH value of 35.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:GANGAFORGE.

Ganga Forging Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹310.49B	50.70	―	0.65%	7.34%	2.27%
MMFL	72 Outperform	₹19.47B	20.38	―	1.07%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GANGAFORGE	57 Neutral	₹446.20M	-14.71	―	―	1.05%	-531.16%
RKFORGE	54 Neutral	₹92.83B	42.98	―	0.38%	-4.73%	-19.52%
KALYANIFRG	53 Neutral	₹2.22B	29.24	―	0.62%	0.76%	17.16%

Ganga Forging Ltd. Corporate Events

Ganga Forging Publishes EGM and Remote E-Voting Notice in Line with SEBI Norms

Ganga Forging Limited, a Rajkot-based forging manufacturer, operates in the metal components industry with a focus on supplying forged products to industrial clients across India. The company has notified the stock exchange that it has published a newspaper notice regarding its upcoming Extra-Ordinary General Meeting (EGM) and the accompanying remote e-voting arrangements, in compliance with SEBI listing regulations and applicable company law rules. The disclosures, carried in editions of the Financial Express in English and Gujarati, underscore the company’s adherence to mandated corporate governance and shareholder communication standards, ensuring investors are informed about the EGM process and their options to vote electronically.

Ganga Forging Calls EGM to Double Authorised Share Capital

Ganga Forging Limited has called an Extraordinary General Meeting (EGM) of shareholders for 12 February 2026 at its Rajkot registered office, with remote e-voting facilities arranged through MUFG Intime India’s Instavote platform to comply with Companies Act and SEBI listing regulations. The key agenda items are to seek shareholder approval to increase the company’s authorised share capital from Rs 18 crore to Rs 35 crore and to amend the capital clause of its Memorandum of Association accordingly, a move that would expand its capacity to issue additional equity shares and potentially support future capital-raising or expansion initiatives.

Ganga Forging Enters Elastic Rail Clip Segment to Tap Indian Railways Demand

Ganga Forging Limited has announced its entry into the elastic rail clip segment, a key railway track fastening component used by Indian Railways to secure rails to sleepers and ensure track stability and safety. The company is seeking approval from the Research Designs and Standards Organization (RDSO) under the Ministry of Railways, which would enable it to participate in Indian Railways procurement alongside a limited pool of approved suppliers concentrated in western India, a structure that supports favorable demand and long-term business visibility. Ganga Forging has set up an installed capacity of about 325,000 elastic rail clips per month, translating at an indicative price of ₹120 per unit into potential annual revenue of around ₹48 crore from this product line, with an expected net profit margin of roughly 20 percent, underscoring the segment’s potential to be a meaningful and profitable addition to its turnover and its position in railway infrastructure components.