🧵 At a Glance
Garware Marine gave up its fishing net dreams back in 2013 and pivoted to a niche ship repair business. The result? 11 years later, it still clocks just ₹1.2 Cr revenue annually. Somehow, it has a market cap of ₹21 Cr, 10,800 shareholders, and a P/E of 49. What is this – a boat repair unicorn?
1️⃣ WTF Do They Even Do?
- Used to manufacture nylon fishing nets 🐠
- Pivoted in 2013 to ship repair services ⚓️
- Provides repair services to a handful of shipowners (yes, that’s their wording)
- No mention of fleet, dry docks, or repair capacity – niche AF
- Not connected to Garware Technical Fibres – that’s a different universe altogether
2️⃣ Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY24 | FY25 | Trend |
|---|---|---|---|
| Revenue | ₹0.66 Cr | ₹1.20 Cr | 🔼 +82% |
| Net Profit | -₹0.07 Cr | ₹0.43 Cr | 📈 Positive |
| OPM % | -18.2% | 36.7% | ✨ Big shift |
| ROE | Negligible | 2.97% | Better |
| ROCE | -0.74% | 3.03% | Improving |
📌 Despite tiny scale, FY25 saw a real turnaround in margin and profit. But… are we cheering ₹1.2 Cr revenue?
3️⃣ Valuation – Is It Justified?
- P/E: 48.7 😵
- P/B: 1.16 ✅ (BV = ₹31.2)
- Market Cap = ₹20.9 Cr
- Sales to Mcap ratio = 17.4x 🤡
🧮 Fair Value Estimate:
- EPS = ₹0.75 (FY25)
- FV (15–20x sustainable EPS) = ₹11 – ₹15
- Current Price ₹36.3 = overboard 🚤
4️⃣ What’s Cooking?
- FY25: Rs.10 Cr corporate guarantee approved (👀 to whom and why?)
- Secretarial compliance: ✅
- EGM passed related-party transactions, loan approvals – possible expansion or “adjustments”
- Promoter stake unchanged: 37.5% (still low)
5️⃣ Balance Sheet – Light or Leaky?
| Item | FY25 |
|---|---|
| Total Assets | ₹19.17 Cr |
| Fixed Assets | ₹0.02 Cr |
| Investments | ₹13.7 Cr |
| Borrowings | ₹0 |
| Equity + Reserves | ₹17.96 Cr |
💼 Company is debt-free, asset-light, but investments > revenue → looks more like a holding company?
6️⃣ Cash Flow – Kaise Chalu Hai?
| FY25 | Value |
|---|---|
| CFO | ₹0 |
| CFI (Investing) | -₹0.01 Cr |
| CFF (Financing) | ₹0 Cr |
| Net Cash Flow | -₹0.01 Cr |
📉 Basically, no cash flow activity. You might generate more profit running a vada pav stall outside CST.
7️⃣ Ratios – Stressy & Micro
| Metric | FY25 |
|---|---|
| ROE | 2.97% |
| ROCE | 3.03% |
| OPM | 36.7% |
| Net Profit | ₹0.43 Cr |
| EPS | ₹0.75 |
👎 P/E is disproportionate to fundamentals
✅ At least ROE is now positive
8️⃣ P&L – Mini Scale, Maxi P/E
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY23 | ₹1.22 | ₹0.12 | ₹0.21 |
| FY24 | ₹0.66 | -₹0.07 | -₹0.12 |
| FY25 | ₹1.20 | ₹0.43 | ₹0.75 |
🔍 Revenue is flat for a decade → margin swings decide everything
9️⃣ Peer Comparison – Why Is It Even Here?
| Company | P/E | Sales (₹ Cr) | ROE (%) | Mcap (₹ Cr) |
|---|---|---|---|---|
| Garware Marine | 48.7 | ₹1.2 | 2.97 | ₹21 Cr |
| Garware Tech Fibres | 39.0 | ₹1,540 | 18.7 | ₹9,022 Cr |
| Indo Count Inds | 23.2 | ₹4,151 | 11.3 | ₹5,693 Cr |
📉 Garware Marine has lowest revenue, lowest ROE, highest valuation mismatch
🔟 Misc – Shareholding, Actions, Footnotes
- Promoters = 37.55% (unchanged)
- No FII/DII presence
- Public holds 60%
- Corporate guarantee of ₹10 Cr = BIGGER than revenue – wtf?
- Cash conversion cycle = 1,527 days (😱 insane debtor days)
🔁 Working Capital – Titanic Cycle 🧊
| Metric | FY25 |
|---|---|
| Debtor Days | 1,527 |
| CCC | 1,527 |
| WC Days | 1,417 |
This isn’t a business – it’s a museum exhibit on how to trap cash forever.
🧑⚖️ EduInvesting Verdict™
“From Nylon Nets to Ship Repairs — but still trying to stay afloat.”
Garware Marine is a low-revenue, high-multiple, deep microcap. The business may be stable, but…
- Sales = under ₹2 Cr in 10+ years
- Profits = under ₹50 lakh
- Promoter stake = under 40%
- Cash flows = almost zero
- Valuation = excessive for the size
Only thing rising is the number of shareholders (from 6.7K to 10.8K in 1 year) – driven by speculative frenzy, not fundamentals.
🧮 Fair Value Range (15–20x EPS ₹0.75) = ₹11 – ₹15
(Current Price = ₹36.3 → 2–3x overvalued)
✍️ Written by Prashant | 📅 7 July 2025
Tags: Garware Marine, Ship Repair, Penny Stock Bubble, BSE Microcap, Valuation Trap, EduInvesting, Promoter Holding, Corporate Guarantee Mystery
