At a Glance

Ganga Bath Fittings Ltd, a premium bathroom accessories company incorporated in 2004, went public in June 2025. With 68% of sales from its own brands, a high 33% ROE, and expansion-ready capacity utilization, the fundamentals look strong. But high receivables, low float, and promoter exit post-IPO raise some slippery questions.

🧼 1. What Do They Even Do?

Short answer: Everything your bathroom needs except toilet paper.

Ganga Bath Fittings Ltd (GBFL) is a vertically integrated bathroom fittings player engaged in:

• 🔧 Manufacturing: Chrome fittings, ABS taps, steel showers, and even Belgium-style mirrors.
• 📦 Trading: Imports third-party sanitaryware and resells under “Ganga” brand.
• 🧪 OEM Supply: Makes bath accessories for third-party brands via contract manufacturing.
• 🏷️ Brands: Ganga, Glimpse, Stepian, Tora.

This isn’t your average local plumber story. They’ve got 3 manufacturing units, and products placed in retail chains and OEM pipelines across 20+ Indian states.

🧠 2. Their Secret Sauce — The Brand Game

Let’s talk about revenue diversification:

🔍 Revenue Mix – 9MFY25

👉 68% of revenue comes from products under their own brand umbrella. That’s impressive for an SME where most players just trade or do OEM work.

Why it matters? Higher brand share = Better margins, stronger pricing power, and less dependence on third parties.

🏭 3. Manufacturing — The Three Musketeers

GBFL operates three units:

GPI and GI are nearing optimal usage — great for leverage. GBS needs a little more fire under its steel cauldron.

📊 4. Segment Wise Revenue — What’s Selling?

The visual shared earlier shows how revenue is concentrated:

• Chrome-Plated (GI Unit): 46.26%
• Plastic Molded (GPI): 32.25%
• Steel & Showers (GBS): 16.37%
• Sanitaryware Items: 5.12%

Translation: Chrome is king, plastic is the prince, and steel is… the struggling cousin.

🌍 5. Gujarat — The Bathroom Capital?

You’ll be shocked to know how dependent Ganga is on just a handful of states:

If Gujarat coughs, GBFL might catch the flu. Regional concentration risk is real.

📈 6. Financials: Rain Shower or Leak?

Let’s decode the real story.

💸 Revenue Growth (₹ Cr)

🤑 Profit Growth (₹ Cr)

ROE = 33%
ROCE = 28.3%

Margins have literally gone from bathroom tap trickles to power showers. OPM jumped from 11.3% (FY24) to 25.29% (9MFY25).

📉 7. The Dirty Corners (Red Flags)

Not everything is rosy behind the shower curtain.

• 🚨 Debtor Days: 232 — customers taking 7.5 months to pay.
• 🧻 Inventory Days: 611 — maybe they’ve stored bathroom items for the next Kumbh Mela?
• 🕰️ Working Capital Cycle: 486 days — that’s longer than some political alliances in India.
• 😨 Promoter Holding Drop: –29.6% after IPO. Not a confidence vote.

These metrics could wreck operating cash flow despite profitability.

💥 8. IPO Performance — Splash or Slip?

• IPO Date: June 11, 2025
• Price: ₹49
• Listing: ₹59 (+20.4% pop)
• CMP (as of June 16): ₹48.1

Already under water. Investors who chased the opening day euphoria are sitting on minor cuts.

Market Cap = ₹107 Cr
P/E = 29.6x — Fair for SME with strong margins, but not if growth slows.

🧠 TL;DR — Clean Play or Pipe Dream?

🧻 Final Verdict — To Flush or Not to Flush?

Ganga Bath Fittings Ltd has the makings of a strong SME brand: premium products, in-house manufacturing, strong margins, and serious brand push. The IPO was no flop—it showed the street loves a good bath story.

But…

• High debtor days
• Ballooning inventory
• Promoter stake cuts
• And Gujarat dependency

…mean that while this stock looks clean on the surface, there may be fungus in the grout.

If they can fix working capital management, diversify geography, and scale steel output, Ganga might just flow into SME multibagger lists.

Until then, hold your loofah — and your risk appetite.

✍️ Written by Prashant | 📅 June 16, 2025
Tags: Ganga Bath Fittings IPO, SME Stocks India, Bathroom Accessories IPO, SME Recap 2025, Gujarat Business, Working Capital Issues, EduInvesting Stock Review