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

• Market Cap: ₹84.74B
• Dividend Yield: 0.37%
• Average Volume (3M): 5.62K
• Price to Earnings (P/E): 32.4
• Beta (1Y): 2.07
• 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: 78 Outperform
• Price Target: ₹4,200.00 ▲(32.49% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

Score is driven primarily by strong financial performance (growth, margins, cash conversion, and minimal leverage). Technicals remain supportive but look overextended (high RSI/Stoch), and valuation is only moderate with a low dividend yield.

Positive Factors

Balance Sheet Strength

Extremely low leverage and a high equity ratio provide durable financial flexibility, lowering refinancing and solvency risk across cycles. A 14% ROE indicates effective capital deployment, enabling funding for capex, R&D or buffers in downturns without depending on debt.

Cash Conversion & FCF

Strong free cash flow growth and near‑one operating cash conversion show the company reliably turns reported earnings into cash. This durable cash generation supports reinvestment, working capital, and potential shareholder returns while reducing reliance on external financing.

Revenue & Margin Expansion

Robust top‑line growth with expanding gross and net margins suggests sustainable pricing power and cost control in specialty films. High operating margins reflect differentiated, high‑value products and durable end‑market demand across solar, automotive and architectural segments.

Negative Factors

EPS Volatility

Negative EPS growth despite revenue gains indicates volatility in per‑share earnings that could stem from cost swings, one‑offs, or capital allocation effects. Persistent EPS declines can constrain retained earnings growth, investor confidence, and the company’s ability to compound shareholder value.

Input Cost Sensitivity

Manufacturing specialty films is material‑ and energy‑intensive; margins are structurally exposed to polymer resin and energy price fluctuations. Prolonged commodity inflation or energy shocks would compress margins unless the company can sustainably pass costs to customers or improve product mix.

Limited Recurring Revenue

A product‑sales driven model with limited recurring or contractual revenues increases cyclicality and lowers revenue visibility. Dependence on new orders and end‑market demand makes cash flow and utilization less predictable over time, raising execution risk during demand softening.

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 primarily makes money by manufacturing and selling specialty polymer films and film-based solutions. Its revenue model is predominantly product-sales driven, where earnings come from (1) selling high-performance films (e.g., solar control/window films and other specialty/functional films) to domestic and international customers, and (2) providing value-added film solutions that command higher margins than commodity packaging films due to differentiated properties (such as optical performance, heat/UV control, surface functionality, durability, or application-specific performance). The company’s profitability is influenced by its ability to maintain premium pricing through product differentiation, manage raw-material inputs (polymer resins and additives) and energy costs, and sustain utilization of manufacturing lines. Specific details on customer concentration, segment-wise revenue split, named strategic partnerships, licensing arrangements, or recurring service/subscription revenues are null.

Garware Hi-Tech Films Limited Financial Statement Overview

Summary

Strong overall fundamentals: income statement strength (88) driven by 25.8% revenue growth and improved net margin (15.7%); very solid balance sheet (85) with extremely low leverage (debt-to-equity 0.006) and high equity ratio (88.4%); healthy cash generation (82) with strong free cash flow growth (74.6%) and near-1.0 operating cash flow to net income conversion.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	20.79B	21.09B	16.77B	14.23B	12.75B	9.71B
Gross Profit	10.91B	10.01B	8.59B	6.72B	3.37B	5.62B
EBITDA	4.54B	4.41B	3.21B	2.69B	2.77B	2.29B
Net Income	3.13B	3.31B	2.03B	1.66B	1.67B	1.26B
Balance Sheet
Total Assets	28.32B	26.82B	23.24B	22.14B	21.33B	18.68B
Cash, Cash Equivalents and Short-Term Investments	6.97B	6.50B	3.84B	3.76B	2.99B	2.21B
Total Debt	184.10M	152.10M	199.15M	1.57B	2.02B	1.53B
Total Liabilities	3.25B	3.10B	2.79B	3.59B	4.22B	3.05B
Stockholders Equity	25.07B	23.72B	20.45B	18.56B	17.11B	15.64B
Cash Flow
Free Cash Flow	762.10M	2.71B	1.55B	1.48B	460.69M	1.35B
Operating Cash Flow	1.63B	3.30B	1.72B	2.18B	1.72B	1.99B
Investing Cash Flow	-1.24B	-2.75B	469.14M	-1.70B	-1.41B	-1.26B
Financing Cash Flow	-552.30M	-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: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 below the 20-day moving average (MA) of 3969.49, below the 50-day MA of 3698.85, and below the 200-day MA of 3545.72, indicating a neutral trend. The MACD of -29.15 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 13.94 is Positive, 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	78 Outperform	₹84.74B	32.39	―	0.37%	4.20%	2.14%
POCL	69 Neutral	₹32.05B	31.42	―	0.25%	23.51%	48.21%
JINDALPOLY	62 Neutral	₹41.86B	-5.55	―	1.18%	19.84%	-115.35%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
POLYPLEX	54 Neutral	₹26.76B	44.38	―	0.79%	5.98%	-52.53%
PREMEXPLN	54 Neutral	₹23.52B	116.03	―	0.10%	48.22%	90.63%
PRINCEPIPE	51 Neutral	₹26.53B	-310.89	―	0.20%	-4.37%	-82.37%

Garware Hi-Tech Films Limited Corporate Events

Garware Hi-Tech Films Seeks Shareholder Nod for New Whole-Time Director via E-Voting

Garware Hi-Tech Films Limited has initiated a postal ballot process to seek shareholder approval for appointing Mr. Uday V. Joshi as a whole-time director via a special resolution conducted through remote e-voting. The company has engaged National Securities Depository Limited to provide the e-voting platform, with voting open from February 23 to March 24, 2026, and results to be announced by March 26, 2026, underscoring its reliance on digital governance mechanisms and formal shareholder consent for board-level changes.

Eligible shareholders will receive the postal ballot notice and explanatory statement electronically based on their registered email addresses, and those without registered emails are directed to follow procedures outlined in the notice to participate. By centralizing the process on its website and NSDL’s portal, the company is emphasizing transparency and accessibility in its corporate decision-making, which may reassure investors about oversight of leadership appointments and compliance with listing regulations.