Garware Hi-Tech Films Limited (GRWRHITECH) AI Stock Analysis

• Market Cap: ₹70.04B
• Dividend Yield: 0.37%
• Average Volume (3M): 5.62K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.89
• Revenue Growth: 4.20%
• EPS Growth: 2.14%
• Country: IN
• Employees: 885
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 24.00
• Shares Outstanding: 23,232,393
• 10 Day Avg. Volume: 4,727
• 30 Day Avg. Volume: 5,617
• PEG Ratio: 0.43
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 4.22
• P/FCF Ratio: 32.84
• 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: 70 Outperform
• Price Target: ₹3,351.00 ▲(5.71% Upside)

The score is primarily supported by strong financial performance (growth, margins, cash generation, and very low leverage). This is tempered by weaker technical signals (negative MACD and trading below key longer-term moving averages) and only moderate valuation support due to a low dividend yield.

Positive Factors

Revenue Growth

Sustained revenue expansion of +25.8% signals durable demand for differentiated specialty films and successful market penetration. Over 2–6 months this supports capacity utilization, pricing power and reinvestment capacity, underpinning medium-term top-line stability and growth.

Margin Sustainability

Healthy and improving gross, EBIT and EBITDA margins indicate strong product mix and cost control in engineered film lines. Margin breadth provides resilience to moderate demand swings and funds R&D/capex, supporting sustained profitability over the medium term.

Balance Sheet Strength

Near-zero leverage and a high equity ratio materially reduce financial risk, enabling the company to fund capex, weather demand cycles, and pursue selective expansion without burdening cash flow. This financial flexibility supports durable operations and strategic choices.

Negative Factors

Limited Shareholder Yield

A low dividend yield (~0.40%) constrains direct shareholder cash returns and may reduce total shareholder yield during periods absent strong buybacks. Over time this could make the stock less attractive to income-focused investors and limit return channels despite operational strength.

Product-Sales Revenue Model

Dependence on one-time product sales and the absence of recurring service or subscription revenue reduces revenue predictability and customer stickiness. Over months this raises exposure to cyclical demand and makes long-term forecasting and stable margin maintenance more challenging.

Input Cost Sensitivity

High reliance on polymer resins, additives and energy makes margins vulnerable to commodity and energy price swings. Without robust hedging or pass-through pricing, input inflation can compress margins over several months, affecting cash generation and investment plans.

Garware Hi-Tech Films Limited Business Overview & Revenue Model

Company Description

Garware Hi-Tech Films Limited manufactures and sells polyester films in India and internationally. The company offers bi-axially oriented polyethylene terephthalate/polyester films, sun control films, thermal lamination films, and specialty polyester films, as well as heat rejection films, shrink films, and paint protection films. Its polyester films are used in various application, such as label application, electrical cable insulations, graphics, packaging, face shields, thermal, TV screens, etc. The company was formerly known as Garware Polyester Limited and changed its name to Garware Hi-Tech Films Limited in April 2021. Garware Hi-Tech Films Limited was founded in 1933 and is based in Mumbai, India.

How the Company Makes Money

Garware Hi-Tech Films generates revenue primarily through the sale of its specialty films and related products. The company's key revenue streams include the production and distribution of BOPP and polyester films, which are utilized in packaging, labeling, and various industrial applications. Additionally, GRWRHITECH earns income from exports, serving international markets where demand for high-quality films is growing. The company has established significant partnerships with major players in the packaging and agricultural sectors, enhancing its market reach and driving sales. Factors contributing to its earnings include a strong focus on research and development for innovative solutions, adherence to quality standards, and an expanding customer base that relies on its advanced film technology.

Garware Hi-Tech Films Limited Financial Statement Overview

Summary

Strong fundamentals driven by robust revenue growth (+25.8%), improved net margin (15.7%), and healthy EBIT/EBITDA margins (39.0%/20.9%). Balance sheet risk is low with near-zero leverage (debt-to-equity 0.006) and high equity ratio (88.4%), supported by solid cash conversion (operating cash flow to net income 0.99) and strong free cash flow growth (+74.6%).

Income Statement

Garware Hi-Tech Films Limited has shown robust growth in its income statement metrics. The gross profit margin has consistently increased, indicating strong cost management and pricing strategy. The net profit margin improved significantly to 15.7%, reflecting better operational efficiency. Revenue growth is impressive with a 25.8% increase in the latest annual period, signaling strong market demand. Both EBIT and EBITDA margins are healthy, at 39.0% and 20.9% respectively, indicating solid core business performance.

Balance Sheet

The company exhibits a strong balance sheet with a low debt-to-equity ratio of 0.006, showcasing financial prudence with minimal leverage risk. The return on equity (ROE) stands at 14.0%, which is a positive indicator of profitability from shareholders' investments. The equity ratio is high at 88.4%, implying that the company is predominantly financed by equity, reducing financial risk.

Cash Flow

Cash flow metrics show promising trends with free cash flow growth rate at 74.6% indicating efficient capital management. The operating cash flow to net income ratio of 0.99 reflects a healthy conversion of earnings into cash. The free cash flow to net income ratio at 0.82 is also strong, indicating effective cash retention post capital expenditures.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	21.30B	21.09B	16.77B	14.23B	12.75B	9.71B
Gross Profit	11.04B	10.01B	8.59B	6.72B	3.37B	5.62B
EBITDA	4.71B	4.41B	3.21B	2.69B	2.77B	2.29B
Net Income	3.26B	3.31B	2.03B	1.66B	1.67B	1.26B
Balance Sheet
Total Assets	0.00	26.82B	23.24B	22.14B	21.33B	18.68B
Cash, Cash Equivalents and Short-Term Investments	6.40B	6.50B	3.84B	3.76B	2.99B	2.21B
Total Debt	0.00	152.10M	199.15M	1.57B	2.02B	1.53B
Total Liabilities	-23.72B	3.10B	2.79B	3.59B	4.22B	3.05B
Stockholders Equity	23.72B	23.72B	20.45B	18.56B	17.11B	15.64B
Cash Flow
Free Cash Flow	0.00	2.71B	1.55B	1.48B	460.69M	1.35B
Operating Cash Flow	0.00	3.30B	1.72B	2.18B	1.72B	1.99B
Investing Cash Flow	0.00	-2.75B	469.14M	-1.70B	-1.41B	-1.26B
Financing Cash Flow	0.00	-520.50M	-1.69B	-893.86M	58.06M	-357.98M

Garware Hi-Tech Films Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3170.10
• 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:GRWRHITECH, the sentiment is Neutral. The current price of 3170.1 is above the 20-day moving average (MA) of 2975.00, below the 50-day MA of 3317.51, and below the 200-day MA of 3474.12, indicating a neutral trend. The MACD of -79.01 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 72.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:GRWRHITECH.

Garware Hi-Tech Films Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRWRHITECH	70 Outperform	₹70.04B	22.75	―	0.37%	4.20%	2.14%
POCL	69 Neutral	₹36.28B	32.18	―	0.25%	23.51%	48.21%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
POLYPLEX	54 Neutral	₹26.60B	36.30	―	0.79%	5.98%	-52.53%
PREMEXPLN	54 Neutral	₹27.53B	59.70	―	0.10%	48.22%	90.63%
JINDALPOLY	53 Neutral	₹17.11B	-11.27	―	1.18%	19.84%	-115.35%
PRINCEPIPE	51 Neutral	₹26.49B	114.14	―	0.20%	-4.37%	-82.37%