1. At a Glance
The ₹18,000 Cr abrasives titan just reported flat revenue, flat profit, flat margins — basically the corporate version of the beige paint sample. But it’s still trading at 52x earnings, backed by Saint-Gobain muscle and a juicy dividend. So, what’s the catch? Maybe the story’s hidden in the grind.
2. Introduction with Hook
Imagine if your most boring cousin turned out to secretly own a gold mine. That’s Grindwell Norton. Quiet, disciplined, and French-parented, this abrasive giant keeps churning ₹90 Cr quarterly profits like a machine that’s allergic to drama.
- Q1 FY26 PAT: ₹94 Cr
- OPM: Holding firm at ~18%
- Stock down 35% YoY, but no cracks in the fundamentals
3. Business Model (WTF Do They Even Do?)
Grindwell Norton is basically the Michelin star chef of industrial abrasives. Except their food is sandpaper and ceramic. Their biz verticals:
- Abrasives: Sandpaper, grinding wheels, diamond tools
- Ceramics & Plastics: Engineered ceramics, refractories
- IT Services: Because… why not?
- Export & Domestic Mix: Pretty balanced
They polish everything—from turbine blades to your neighbourhood plumber’s toolkit. True blue-collar royalty.
4. Financials Overview
Q1 FY26:
| Metric | Value (₹ Cr) | YoY Growth |
|---|---|---|
| Revenue | 703 | +5.2% |
| EBITDA | 130 | Flat |
| Net Profit | 94 | -3% |
| OPM | 18.5% | Down 50 bps |
| EPS | ₹8.53 | -1.2% |
Margins steady, revenue crawling, and PAT staying loyal to the ₹90–100 Cr range like a disciplined monk.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹1,635 |
| P/E | 52.4x |
| Book Value | ₹204 |
| P/B | 8.16x |
Fair Value Range (Realistic):
- P/E Basis (30–35x FY26E EPS ₹35): ₹1,050 – ₹1,225
- P/B Basis (5–6x Book): ₹1,020 – ₹1,225
So yes, it’s trading at a premium thicker than their grinding wheels. But is it justified? Let’s keep polishing.
6. What’s Cooking – News, Triggers, Drama
- New plant land approved in Gujarat for ₹18 Cr
- CFO shuffle + director rejig
- Recent ₹17/share dividend
- Acquired 49% in ASM Pvt Ltd for ceramics play
- Engineered Ceramics facility commissioned in Halol
- Wind energy project exit = focus on core
In short: calm, contained CapEx. Like a monk with a balance sheet.
7. Balance Sheet
| Item | Mar 2025 (₹ Cr) |
|---|---|
| Equity Capital | 55 |
| Reserves | 2,200 |
| Borrowings | 84 |
| Net Worth | ₹2,255 Cr |
| Total Assets | ₹3,055 Cr |
- Debt/Equity: 0.037x
- Cash Rich: ₹458 Cr cash from ops last year
- Balance sheet could pass a Swiss audit blindfolded
8. Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) | Net Cash |
|---|---|---|---|---|
| FY23 | +393 | -251 | -140 | +1 |
| FY24 | +368 | -184 | -175 | +9 |
| FY25 | +458 | -215 | -221 | +22 |
Free cash flow positive, dividend-paid, and investing in growth. This is what wealth preservation looks like.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 16.0% |
| ROCE | 20.9% |
| OPM | 18.0% |
| Dividend Yield | 1.09% |
| D/E | 0.037x |
Sexy in a Warren Buffett kind of way.
10. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY23 | 2,541 | 362 | 32.69 |
| FY24 | 2,687 | 384 | 34.65 |
| FY25 | 2,812 | 371 | 33.30 |
| TTM | 2,809 | 372 | 33.42 |
Flatline growth, but steady profitability. This is not for adrenaline junkies. This is for dividend disciples.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Timken India | 3,147 | 445 | 57.1 |
| SKF India | 4,919 | 565 | 42.8 |
| Carborundum Uni | 4,894 | 361 | 50.4 |
| Grindwell | 2,809 | 372 | 52.4 |
Mid-size in revenue, but matches peers in PAT. Probably because they know how to grind margins better.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar ’23 | Jun ’25 |
|---|---|---|
| Promoters | 58.04% | 58.04% |
| FIIs | 8.28% | 6.81% |
| DIIs | 15.32% | 18.20% |
| Public | 18.37% | 16.95% |
- DIIs quietly accumulating
- Public interest declining (which value investors call “opportunity”)
- FII exits might explain recent correction
13. EduInvesting Verdict™
Grindwell Norton is the kind of stock that bores you to wealth. It won’t dazzle you. It won’t dump you. It just keeps grinding earnings year after year.
If you’re okay paying up for quality, this is industrial Zen. But if you need adrenaline, look elsewhere—maybe crypto?
“Built for balance sheets, not headlines.”
Metadata:
Written by EduInvesting Team | 25 July 2025
Tags: Grindwell Norton, Abrasives, Saint-Gobain, Ceramics, EduInvesting Premium
