GMM Pfaudler Limited (GMMPFAUDLR) AI Stock Analysis

• Market Cap: ₹43.79B
• Dividend Yield: 0.19%
• Average Volume (3M): 13.47K
• Price to Earnings (P/E): 65.3
• Beta (1Y): 0.75
• Revenue Growth: 3.69%
• EPS Growth: -36.27%
• Country: IN
• Employees: 784
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial - Machinery
• EPS (TTM): 9.21
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,028.00 ▼(-5.95% Downside)

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

Specialized product niche (glass-lined equipment)

GMM Pfaudler's focus on glass-lined reactors and corrosion-resistant process equipment targets customers where contamination control is critical. This specialization creates high technical barriers, long sales cycles, and stickier after-sales service demand, supporting durable revenue and competitive positioning.

Improving margins and operational efficiency

Sustained improvement in gross and net margins and strong EBIT/EBITDA indicate effective cost control and scale benefits. Higher structural margins provide a durable buffer against cyclical revenue swings, enable reinvestment in R&D/service capabilities, and support long-term profitability resilience.

Healthy cash generation and FCF growth

Consistent conversion of earnings into operating cash and rising free cash flow underpin financial flexibility for capex, aftermarket service expansion, and debt servicing. Robust cash generation supports sustainable reinvestment in engineered solutions and reduces dependence on external financing.

Negative Factors

Revenue volatility and recent dip

The business is exposed to lumpy, project-driven orders from chemical and pharmaceutical customers, creating revenue volatility. A recent revenue dip highlights execution and timing risk for capital equipment cycles, complicating forecasting and potentially stressing margins during softer periods.

Earnings per share contraction

A sharp EPS decline signals material pressure on profitability or one-off impacts that reduced shareholder returns. Sustained EPS contraction can limit retained earnings for growth, weaken investor confidence, and constrain management's ability to fund strategic investments without increasing leverage.

Moderate reliance on debt

While leverage appears manageable, a structural reliance on debt reduces financial flexibility and increases interest-rate and refinancing exposure. In cyclical industry downturns or lumpy order periods, higher debt dependence could pressure liquidity and limit the company's ability to pursue strategic initiatives.

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 Limited generates revenue primarily through the sale of its specialized process equipment and systems. Key revenue streams include the manufacturing and sale of glass-lined reactors and storage tanks, which are in high demand in the chemical and pharmaceutical sectors. The company also earns income from providing installation services, after-sales support, and maintenance contracts for its equipment. Significant partnerships with leading chemical and pharmaceutical companies further enhance its market reach and customer base, contributing to stable and recurring revenue. Additionally, the company may benefit from ongoing projects and contracts that involve large-scale production and custom-engineered solutions, which provide further financial stability and growth opportunities.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	32.08B	31.99B	34.46B	31.78B	25.41B	10.01B
Gross Profit	21.43B	18.40B	6.88B	18.96B	15.27B	5.51B
EBITDA	3.86B	3.61B	4.79B	4.59B	2.91B	1.29B
Net Income	429.40M	529.70M	1.79B	1.64B	850.50M	734.40M
Balance Sheet
Total Assets	0.00	31.03B	31.57B	33.55B	27.28B	24.17B
Cash, Cash Equivalents and Short-Term Investments	4.45B	4.67B	3.21B	3.12B	2.91B	2.44B
Total Debt	0.00	8.50B	9.06B	9.73B	6.36B	6.33B
Total Liabilities	-10.30B	20.73B	21.83B	25.39B	20.59B	18.87B
Stockholders Equity	10.30B	10.23B	9.68B	8.04B	5.27B	4.07B
Cash Flow
Free Cash Flow	0.00	3.15B	2.20B	1.16B	1.05B	776.22M
Operating Cash Flow	0.00	3.78B	2.84B	1.85B	2.36B	1.57B
Investing Cash Flow	0.00	-523.00M	-317.00M	-3.11B	-1.17B	-659.45M
Financing Cash Flow	0.00	-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: Positive
• 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 1011.75, above the 50-day MA of 1059.27, and below the 200-day MA of 1148.23, indicating a bearish trend. The MACD of -28.43 indicates Positive momentum. The RSI at 33.18 is Neutral, neither overbought nor oversold. The STOCH value of 24.60 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	₹73.46B	10.99	―	2.80%	15.25%	26.49%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹43.79B	65.25	―	0.19%	3.69%	-36.27%
HLEGLAS	59 Neutral	₹26.53B	47.08	―	0.24%	18.87%	99.04%
RHIM	59 Neutral	₹91.98B	58.46	―	0.55%	8.65%	―
GREENPANEL	49 Neutral	₹28.20B	-2,423.63	―	0.13%	-1.76%	-102.89%