GMM Pfaudler Limited (GMMPFAUDLR) AI Stock Analysis

• Market Cap: ₹38.57B
• Dividend Yield: 0.19%
• Average Volume (3M): 13.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: 3.69%
• EPS Growth: -36.27%
• Country: IN
• Employees: 784
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Machinery
• EPS (TTM): -1.78
• Shares Outstanding: 44,957,226
• 10 Day Avg. Volume: 32,736
• 30 Day Avg. Volume: 13,466
• PEG Ratio: -1.26
• Price to Book (P/B): 4.56
• Price to Sales (P/S): 1.46
• P/FCF Ratio: 14.80
• 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): 28.85
• Revenue Forecast (FY): ₹35.21B

• Rating: 61 Neutral
• Price Target: ₹905.00 ▼(-17.20% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

GMM Pfaudler Limited's strong financial performance is a key strength, supported by robust revenue growth and effective cash flow management. However, technical indicators suggest bearish momentum, and the stock appears overvalued with a high P/E ratio and low dividend yield. These factors contribute to a moderate overall stock score.

Positive Factors

Revenue & margin improvement

Consistent revenue growth paired with improving gross and net margins indicates durable demand in chemical and pharma end markets, better pricing or cost control, and operational leverage. These traits support sustainable profitability over the next several months and strengthen cash generation prospects.

Strong cash generation

Solid conversion of earnings into cash provides flexibility to fund capex, aftermarket services, and working capital without heavy reliance on external financing. Persistent positive operating cash flow underpins long-term reinvestment and resilience through project timing variability.

Manageable leverage / solid equity

A favorable debt-to-equity profile and positive return on equity grant financial flexibility for bidding projects, funding growth, and absorbing cyclical downturns. Manageable leverage reduces refinancing risk and supports strategic investments and aftermarket expansion over the medium term.

Negative Factors

Sharp EPS contraction

An ~85% drop in reported EPS signals a material hit to profitability or one-off losses that undermine earnings predictability. Such a large swing raises concern about margin sustainability, project execution or exceptional charges that could persist and pressure investor returns over the coming months.

Revenue volatility / 2025 dip

A revenue dip highlights the lumpy, project-driven nature of the business and exposure to cyclical industrial capex. This variability reduces predictability of cash flows and capacity utilization, complicating planning for production, inventory and aftermarket service expansion over the medium term.

Free cash flow fluctuations

Variability in free cash flow growth suggests working capital swings or timing mismatches on projects. Even with strong average cash conversion, such swings can constrain reinvestment or debt servicing during downturns and limit consistent funding for aftermarket or R&D initiatives over several quarters.

GMM Pfaudler Limited Business Overview & Revenue Model

Company Description

GMM Pfaudler Limited manufactures and sells corrosion-resistant glass lined equipment used primarily in the chemical, pharmaceutical, and allied industries in India and internationally. The company's products include glass lined equipment comprising glass lined reactors, columns and vessels, conical blender dryers, pipes and fittings, glass steel, and polytetrafluoroethylene lined pipes and fittings; and filtration and drying equipment, such as agitated nutsche filters and filter dryers, centrifugal disc filters, spherical dryers, and vacuum paddle dryers under the Mavazwag, Funda, Mavasphere, and Mavapad names. It also offers mixing systems; and heavy engineering products comprising heat exchangers, as well as pressure vessels, which include Cr-Mo reactors, agitated reactors, column towers with internals, digesters, and scrubbers. In addition, the company provides engineered systems, such as wiped film evaporators for use in the food processing, pharmaceutical, fine chemicals, polymers and resins, fats and oils, and petrochemical industries; and temperature control units for heating and cooling applications for the pharmaceutical, chemical, biotech, food, flavor and fragrance, and nutraceutical industries. Further, it offers glass thickness measurement, glass integrity checks, and high voltage spark and conductivity tests, as well as preventive maintenance services; and operates acid concentration plants to recover the acid for further use. The company was formerly known as Gujarat Machinery Manufacturers Limited and changed its name to GMM Pfaudler Limited in 1999. The company was incorporated in 1962 and is based in Mumbai, India. GMM Pfaudler Limited is a subsidiary of Pfaudler Inc.

How the Company Makes Money

GMM Pfaudler makes money primarily by selling process equipment and engineered systems to industrial customers—especially in the chemical and pharmaceutical sectors—where corrosion resistance and contamination control are critical. A major revenue stream comes from glass-lined equipment (e.g., glass-lined reactors and related vessels/components) supplied for process plants, often as part of broader project requirements. The company also generates revenue from sales of other process equipment such as mixing/agitation solutions and filtration/drying systems, typically purchased for new capacity additions, plant upgrades, and process modernization. In addition to equipment sales, the company earns from after-sales and lifecycle services tied to the installed base of equipment. These services can include spares and replacement parts, maintenance/repair support, and other customer support offerings associated with operating and maintaining specialized process equipment. Revenue is therefore a mix of project-driven/transactional equipment orders and recurring or repeat business from servicing and supplying parts for existing installations. Information on specific customer contracts, pricing structure, or named partnerships that materially drive earnings is null.

GMM Pfaudler Limited Financial Statement Overview

Summary

GMM Pfaudler Limited exhibits strong financial performance with consistent revenue growth, healthy profit margins, and effective cash flow management. However, fluctuations in revenue and free cash flow growth suggest some underlying volatility.

Income Statement

GMM Pfaudler Limited has demonstrated robust growth in revenue over recent years. The gross profit margin and net profit margin have shown improvement, indicating effective cost management and enhanced profitability. The EBIT and EBITDA margins are strong, reflecting operational efficiency. However, a dip in revenue in 2025 indicates potential volatility in sales, which could be a risk factor.

Balance Sheet

The company maintains a solid equity position with a favorable debt-to-equity ratio, suggesting manageable leverage levels. The return on equity is positive, reflecting effective utilization of shareholder funds. However, the equity ratio indicates a moderate reliance on debt, which could pose risks in volatile market conditions.

Cash Flow

The growth in free cash flow and a strong operating cash flow to net income ratio demonstrate healthy cash generation abilities. The company's ability to convert earnings into cash is commendable, though fluctuations in free cash flow growth indicate potential variability in cash generation.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	33.05B	31.99B	34.46B	31.78B	25.41B	10.01B
Gross Profit	19.16B	18.40B	6.88B	18.96B	15.27B	5.51B
EBITDA	4.23B	3.61B	4.79B	4.59B	2.91B	1.29B
Net Income	671.10M	529.70M	1.79B	1.64B	850.50M	734.40M
Balance Sheet
Total Assets	38.51B	31.03B	31.57B	33.55B	27.28B	24.17B
Cash, Cash Equivalents and Short-Term Investments	4.99B	4.67B	3.21B	3.12B	2.91B	2.44B
Total Debt	10.79B	8.50B	9.06B	9.73B	6.36B	6.33B
Total Liabilities	26.48B	20.73B	21.83B	25.39B	20.59B	18.87B
Stockholders Equity	11.76B	10.23B	9.68B	8.04B	5.27B	4.07B
Cash Flow
Free Cash Flow	340.60M	3.15B	2.20B	1.16B	1.05B	776.22M
Operating Cash Flow	647.60M	3.78B	2.84B	1.85B	2.36B	1.57B
Investing Cash Flow	-1.91B	-523.00M	-317.00M	-3.11B	-1.17B	-659.45M
Financing Cash Flow	915.10M	-2.01B	-2.44B	1.30B	-553.20M	1.05B

GMM Pfaudler Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1093.00
• 50DMA: Negative
• 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:GMMPFAUDLR, the sentiment is Negative. The current price of 1093 is above the 20-day moving average (MA) of 902.69, above the 50-day MA of 961.16, and below the 200-day MA of 1122.99, indicating a bearish trend. The MACD of -31.36 indicates Negative momentum. The RSI at 33.73 is Neutral, neither overbought nor oversold. The STOCH value of 40.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GMMPFAUDLR.

GMM Pfaudler Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GSFC	68 Neutral	₹61.41B	11.49	―	2.80%	15.25%	26.49%
HLEGLAS	64 Neutral	₹19.86B	267.77	―	0.24%	18.87%	99.04%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹38.57B	-155.37	―	0.19%	3.69%	-36.27%
RHIM	59 Neutral	₹76.58B	38.50	―	0.55%	8.65%	―
GREENPANEL	49 Neutral	₹23.78B	68.60	―	0.13%	-1.76%	-102.89%