Why is Grindwell Norton Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 11.58% and Operating profit at 14.29% over the last 5 years
2
Negative results in Dec 24
- ROCE(HY) Lowest at 23.60%
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.24 times
- PBDIT(Q) Lowest at Rs 123.44 cr.
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 02-Apr-25 and has generated -4.23% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
With ROE of 18.2, it has a Very Expensive valuation with a 8.5 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -22.45%, its profits have fallen by -5.6%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -22.45% returns in the last 1 year, the stock has also underperformed BSE 500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Abrasives)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Grindwell Norton for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Grindwell Norton
-22.7%
-0.66
34.08%
SENSEX
0.45%
0.02
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
11.58%
EBIT Growth (5y)
14.29%
EBIT to Interest (avg)
65.07
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.30
Tax Ratio
24.16%
Dividend Payout Ratio
49.06%
Pledged Shares
0
Institutional Holding
25.05%
ROCE (avg)
33.54%
ROE (avg)
19.06%
Valuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
42
Price to Book Value
8.52
EV to EBIT
40.01
EV to EBITDA
33.16
EV to Capital Employed
11.48
EV to Sales
6.06
PEG Ratio
NA
Dividend Yield
1.07%
ROCE (Latest)
29.39%
ROE (Latest)
18.20%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
Technical Movement
1What is working for the Company
NO KEY POSITIVE TRIGGERS
-10What is not working for the Company
ROCE(HY)
Lowest at 23.60%
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.24 times
PBDIT(Q)
Lowest at Rs 123.44 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 17.57%
PBT LESS OI(Q)
Lowest at Rs 98.20 cr.
PAT(Q)
At Rs 86.82 cr has Fallen at -6.1%
EPS(Q)
Lowest at Rs 7.84
Loading Valuation Snapshot...
Here's what is not working for Grindwell Norton
Debtors Turnover Ratio- Half Yearly
Lowest at 7.24 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 123.44 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 17.57%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 98.20 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 98.20 cr has Fallen at -9.83%
Year on Year (YoY)MOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 86.82 cr has Fallen at -6.1%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 7.84
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)