Ganga Forging Ltd. (GANGAFORGE) AI Stock Analysis

• Market Cap: ₹514.94M
• Dividend Yield: N/A
• Average Volume (3M): 323.61K
• Price to Earnings (P/E): 509.3
• Beta (1Y): 1.19
• Revenue Growth: 18.38%
• EPS Growth: -86.09%
• Country: IN
• Employees: 43
• Sector: Industrials
• Sector Strength: 71
• Industry: Manufacturing - Metal Fabrication
• EPS (TTM): -0.02
• Shares Outstanding: 134,802,230
• 10 Day Avg. Volume: 584,435
• 30 Day Avg. Volume: 323,608
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹3.50
• Price Target Upside: -8.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 53 Neutral
• Price Target: ₹3.50 ▼(-8.38% Downside)

The overall stock score is primarily impacted by the company's strong revenue growth and stable balance sheet, which are offset by significant challenges in profitability margins and cash flow management. The technical analysis indicates a bearish trend, and the extremely high P/E ratio suggests overvaluation, further weighing down the score.

Positive Factors

Revenue Growth

Consistent revenue growth at 16.12% from 2024 to 2025 indicates expanding market reach and product demand, supporting long-term business sustainability.

Balance Sheet Health

A strong equity position and manageable debt levels provide financial stability, enabling the company to invest in growth opportunities.

Gross Profit Margin Improvement

Improved gross profit margin reflects efficient production processes, enhancing profitability and competitive positioning in the market.

Negative Factors

Cash Flow Challenges

Negative cash flow indicates liquidity issues, necessitating improved cash management strategies to ensure financial flexibility and operational stability.

Profitability Margins

Declining EBIT and modest net profit margins highlight the need for better cost management to enhance profitability and shareholder value.

Low Return on Equity

Low ROE suggests inefficient use of equity capital, indicating potential areas for improvement in operational efficiency and investment returns.

Ganga Forging Ltd. Business Overview & Revenue Model

Company Description

Ganga Forging Ltd. (GANGAFORGE) is a leading manufacturing company specializing in the production of high-quality forged components for various industries. The company operates primarily in the automotive, agriculture, and industrial sectors, providing a diverse range of products such as crankshafts, connecting rods, and other precision-engineered components. With a focus on innovation and quality, Ganga Forging Ltd. has established itself as a trusted supplier in both domestic and international markets.

How the Company Makes Money

Ganga Forging Ltd. generates revenue through the manufacturing and sale of forged components to various industries, primarily focusing on the automotive, agriculture, and industrial sectors. The company makes money by producing and supplying high-demand components such as crankshafts and connecting rods, which are essential for the operation of machinery and vehicles. Revenue streams include direct sales to original equipment manufacturers (OEMs) and aftermarket suppliers. Additionally, Ganga Forging Ltd. may also engage in strategic partnerships and collaborations to enhance its market reach and product offerings, contributing to its earnings.

Ganga Forging Ltd. Financial Statement Overview

Summary

Ganga Forging Ltd. shows strong revenue growth and a stable equity position. However, it faces challenges in profitability margins and cash flow management. The balance sheet is stable with a healthy equity ratio, but improvements in operational efficiency and cash flow strategies are needed.

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 2022	Dec 2022	Dec 2021
Income Statement
Total Revenue	419.22M	432.19M	372.12M	279.37M	334.10M	225.81M
Gross Profit	123.73M	114.31M	34.50M	64.75M	110.40M	48.12M
EBITDA	31.90M	29.02M	26.02M	25.48M	19.92M	17.90M
Net Income	7.22M	6.13M	4.43M	10.34M	16.57M	1.07M
Balance Sheet
Total Assets	0.00	586.83M	463.08M	310.45M	347.29M	312.01M
Cash, Cash Equivalents and Short-Term Investments	2.96M	3.24M	8.57M	158.34K	1.80M	1.86M
Total Debt	0.00	165.82M	99.88M	116.74M	142.97M	105.36M
Total Liabilities	-321.00M	264.94M	148.95M	193.95M	213.95M	190.96M
Stockholders Equity	321.00M	321.89M	314.13M	116.50M	133.34M	121.05M
Cash Flow
Free Cash Flow	0.00	-77.10M	-118.16M	-11.75M	-23.60M	20.39M
Operating Cash Flow	0.00	-50.64M	-106.35M	13.24M	-10.89M	30.12M
Investing Cash Flow	0.00	-22.27M	-11.59M	-16.87M	-5.60M	-588.58K
Financing Cash Flow	0.00	67.57M	124.72M	1.91M	18.15M	-28.34M

Ganga Forging Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.82
• 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 3.82 is above the 20-day moving average (MA) of 3.45, above the 50-day MA of 3.62, and below the 200-day MA of 5.17, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.31 is Neutral, neither overbought nor oversold. The STOCH value of 73.22 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
MMFL	67 Neutral	₹16.23B	14.64		1.19%	-4.47%	-17.62%
SONACOMS	66 Neutral	₹279.74B	47.37		0.71%	5.20%	1.76%
Sector *	63 Neutral	$10.70B	15.26	7.37%	2.02%	2.87%	-14.59%
KALYANIFRG	60 Neutral	₹2.60B	27.73		0.56%	4.21%	142.44%
GANGAFORGE	53 Neutral	₹514.94M	509.33		―	18.38%	-86.09%
ELFORGE	―	₹396.53M	25.18		―	―	―
RKFORGE	51 Neutral	₹105.89B	25.14		0.34%	0.55%	17.34%