GMM Pfaudler Ltd Share Price – NSE /  BSE

Capital Goods-Non Electrical Equipment, Small Cap

The agency has also affirmed the company’s short-term rating at ‘[ICRA] A1+’.

ICRA stated that the reaffirmation of the ratings factors in GMM Pfaudler’ (GMMPL) leadership position globally in engineering equipment and systems, including glass lined equipment (GLE), with strong in-house technical capabilities and manufacturing infrastructure.

ICRA notes that GMMPL continues to capitalise on the acquisition of Pfaulder Inc through access to technical know-how, product mix and expansive geographical manufacturing presence and customer relations, evident from the healthy revenue scale-up and order inflows over FY2023-FY2024.

Moreover, the management’s strategy of undertaking acquisitions over the past fiscals has supported GMMPL's overall business risk profile through improved geographic presence, wider product profile and addition of new end-user industries, bolstering its revenue, profits and earnings growth prospects.

Although, the same has led to increase in the company’s total debt, which in the current scenario of moderation in profitability has translated into moderation in the debt coverage metrics to some extent.

The ratings factor in the company’s healthy business position, supported by a robust global reach, strong technical capabilities and cross-selling opportunities across various product lines, and an established customer base.

The rating considers the strong presence of the company in the large vessel segment with an overall market share of over 40% globally in the GLE segment.

The ratings also consider the diversified product offerings by the company in the non-GLE segments, providing access to multiple end-user industries other than chemical and pharma.

The bolt-on acquisitions completed by the company over FY2023-FY2024 (Mixel, MixPro & Hydro Air Research Italia) will expand its product portfolio and provide access to additional market segments such as mixing, plant-based proteins, bioplastics and lithium purification.

The acquisitions will also aid the company to cater internationally to industries such as water treatment, mining and biogas, among others, in geographies where its current presence is limited to chemical and pharma and support the expansion of its existing mixing division.

The ratings are, however, constrained by the company’s continued higher debt levels owing to the sizeable debt additions to fund various acquisitions over the past fiscals, thus moderating the debt coverage metrics at a consolidated level.

The debt coverage metrics is expected to improve, going forward with profit expansion as well as debt amortization.

The ratings consider the vulnerability of the company’s profitability to the volatility in steel prices, given the production cycle of six to nine months for GLE, and upto 18 months for heavy engineering.

Further, GMMPL’s operations remain exposed to new capital investment cycles in key end-user segments, with the company deriving a major share of its revenues from the pharma and chemical sectors.

However, the company’s ability to generate healthy profitability and steady cash accruals through low-cost sourcing and benefiting from economies of scale on a sustained basis will be critical for its credit profile to improve.

ICRA also factors in the favorable demand prospects in the medium to long term on the back of healthy growth and the capex expected in pharma and specialty chemicals, both in India and overseas.

GMM Pfaudler enjoys a nearly 40% market share in the global glass lined equipment (GLE) business, while having over 50% market share in the domestic market. The company also derives revenue from the manufacture of proprietary products (mixing, filtration and drying equipment, and engineered systems), services and execution of heavy engineering projects in the domestic market. For its overseas operations, a significant revenue share is contributed by the services and system segments.

The scrip rose 0.30% to currently trade at Rs 1428.05 on the BSE.

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NBCC (India) Ltd, LTIMindtree Ltd, Tata Investment Corporation Ltd, JBM Auto Ltd are among the other stocks to see a surge in volumes on NSE today, 28 August 2024.

GMM Pfaudler Ltd witnessed volume of 56.3 lakh shares by 14:14 IST on NSE, a 35.43 times surge over two-week average daily volume of 1.59 lakh shares. The stock increased 4.45% to Rs.1,417.80. Volumes stood at 91650 shares in the last session.

NBCC (India) Ltd notched up volume of 2576.69 lakh shares by 14:14 IST on NSE, a 12.47 fold spurt over two-week average daily volume of 206.60 lakh shares. The stock rose 11.62% to Rs.198.29. Volumes stood at 84.98 lakh shares in the last session.

LTIMindtree Ltd clocked volume of 30.38 lakh shares by 14:14 IST on NSE, a 10.22 times surge over two-week average daily volume of 2.97 lakh shares. The stock gained 6.67% to Rs.6,135.00. Volumes stood at 2.69 lakh shares in the last session.

Tata Investment Corporation Ltd notched up volume of 12.35 lakh shares by 14:14 IST on NSE, a 7.5 fold spurt over two-week average daily volume of 1.65 lakh shares. The stock rose 3.48% to Rs.7,642.70. Volumes stood at 11.8 lakh shares in the last session.

JBM Auto Ltd notched up volume of 4.6 lakh shares by 14:14 IST on NSE, a 6.39 fold spurt over two-week average daily volume of 72029 shares. The stock rose 2.60% to Rs.1,948.30. Volumes stood at 71984 shares in the last session.

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RBL Bank Ltd, Tata Investment Corporation Ltd, Bajaj Holdings & Investment Ltd, NBCC (India) Ltd are among the other stocks to see a surge in volumes on BSE today, 28 August 2024.

GMM Pfaudler Ltd notched up volume of 1.03 lakh shares by 10:46 IST on BSE, a 14.72 fold spurt over two-week average daily volume of 6987 shares. The stock rose 11.18% to Rs.1,508.70. Volumes stood at 7035 shares in the last session.

RBL Bank Ltd notched up volume of 27.95 lakh shares by 10:46 IST on BSE, a 5.6 fold spurt over two-week average daily volume of 4.99 lakh shares. The stock slipped 0.97% to Rs.228.80. Volumes stood at 4.36 lakh shares in the last session.

Tata Investment Corporation Ltd recorded volume of 46759 shares by 10:46 IST on BSE, a 5.25 times surge over two-week average daily volume of 8906 shares. The stock gained 5.79% to Rs.7,799.50. Volumes stood at 50962 shares in the last session.

Bajaj Holdings & Investment Ltd witnessed volume of 4451 shares by 10:46 IST on BSE, a 4.5 times surge over two-week average daily volume of 990 shares. The stock increased 1.35% to Rs.10,075.05. Volumes stood at 1216 shares in the last session.

NBCC (India) Ltd recorded volume of 43.48 lakh shares by 10:46 IST on BSE, a 3.23 times surge over two-week average daily volume of 13.47 lakh shares. The stock gained 6.05% to Rs.188.40. Volumes stood at 4.04 lakh shares in the last session.

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On the BSE 52 Lakh shares traded in the counter as against an average trading volume of 7,606 shares traded in the past two weeks.

On the NSE 27.81 lakh shares traded in the counter as against an average trading volume 1,47,903 shares traded in the past three months.

About 41.2 lakh shares or 9.2% stake changed hands at price of Rs 1,352 per share, the estimated transaction value is to be Rs 557.3 crore. The buyers and sellers were not disclosed immediately.

As on 30 June 2024, the promoters of GMM pfaudler held a 25.18% stake in the company.

GMM Pfaudler's principal activity is the manufacture of corrosion-resistant glass lined equipment used primarily in the chemical, pharmaceutical and allied industries. The company also manufactures flouro-polymer products and other chemical process equipment such as agitated nutsche filters, filter driers, wiped film evaporators and mixing systems.

The company’s consolidated net profit declined 50.1% to Rs 25.26 crore in Q1 FY25 as compared with Rs 50.65 crore in Q1 FY24. Net sales fell 13.9% YoY to Rs 785.20 crore in Q1 FY25.

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