1. At a Glance
Grauer & Weil (a.k.a. Growel) just pulled off a quarter where it made ₹249 crore in sales and ₹43.6 crore in net profit — all while suspending its mall operations and simultaneously launching production in a UAE subsidiary. That’s like quitting your day job and opening a startup… but also somehow paying your bills better than before.
2. Introduction
Founded in 1957, back when the Beatles hadn’t even formed, Growel now makes surface finishing chemicals, does engineering, and runs (or rather, ran) a mall. They’re AS 9100 certified — which sounds like a Star Wars droid, but actually means their processes are aerospace-grade.
The company istheIndian one-stop corrosion protection shop for any substrate — steel, aluminium, or your patience in reading company filings.
3. Business Model (WTF Do They Even Do?)
Think of Growel as the painter, polisher, and armour-plater for industrial metals. It manufactures chemical solutions for electroplating, paints, and other surface finishes.
- Chemicals:The main bread and butter — used in automotive, engineering, defence, aerospace.
- Engineering Division:Builds electroplating plants and systems.
- Mall Operations:Suspended this quarter (probably a good idea given footfalls everywhere are competing with empty parking lots).
- Global Footprint:Now in UAE via subsidiary — targeting GCC demand.
4. Financials Overview
Quarterly Snapshot
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 249.32 | 253.26 | 340.00 | -1.6% | -26.7% |
| EBITDA (₹ Cr) | 53.00* | 52.00* | 30.00* | 1.9% | 76.7% |
| PAT (₹ Cr) | 43.65 | 43.61 | 26.00 | 0.1% | 67.9% |
| EPS (₹) | 0.96 | 0.95 | 0.57 | 1.1% | 68.4% |
*EBITDA estimated from
operating profit.
Commentary:YoY flat as a dosa on a cold tawa, but QoQ rebound is strong. Apparently, suspending mall ops freed management bandwidth (and cash) to actually run the core business.
5. Valuation (Fair Value RANGE)
P/E Method:
- FY25 EPS: ₹3.47
- Assume forward EPS growth ~8–10%, FY26E EPS ≈ ₹3.75–₹3.82
- Peer P/E range: 18–30
- FV range (P/E × EPS) = ₹67.5 to ₹114.6
EV/EBITDA Method:
- FY25 EBITDA ≈ ₹189 Cr
- EV/EBITDA industry range: 9–12×
- FV range = ₹1,701 Cr – ₹2,268 Cr EV ⇒ per share ₹87–₹116
DCF Method:
- Using 10% discount rate, 6% terminal growth, FCFF from OCF trend.
- FV range = ₹85–₹110
Combined FV Range:₹80 – ₹115
Disclaimer:This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- UAE Subsidiary Production
