Author: Prashant Marathe
Date Published: May 21, 2025

🧾 At a Glance

• Total Income (Q4): ₹801.86 Cr
• Net Loss (Q4): ₹279.40 Cr
• EPS (Q4): ₹-6.00
• CMP: ₹1,267
• EduFair Value: ₹950–₹1,050 (based on FY EPS)
  👉 Verdict: One bad quarter. But market’s betting it’s a one-off.

🧪 About the Company

GMM Pfaudler Ltd is India’s market leader in:

• Glass-lined equipment
• Chemical process vessels
• High-performance reactor systems

Think of them as the invisible infrastructure behind pharma, agro, specialty chem — literally the containers where molecules are made.

Global presence via Pfaudler Inc.
High margin B2B biz. Usually very stable.

📉 Q4 FY25 Breakdown

🔻 One-time expense nuked the quarter.
Still, market took it in stride — CMP rose 5% today.

Why?

🧠 EduInvesting Take

“The loss is big. But the business model is bigger.”

✅ Strong global order book
✅ India + Germany manufacturing
✅ Core margins remain intact
✅ This loss? Non-cash impairment due to accounting reclassification

Market believes:

• Cash flows are fine
• No change in core operations
• Future EPS will bounce back

📊 FY25 (Full-Year) Snapshot

So despite a ₹279 Cr Q4 loss, the full year still ended with ₹27+ EPS.

🧮 EduFair Value Estimate

• EPS (TTM, adjusted): ₹27.80
• Assign P/E = 35–38 (industrial process leaders)
  ✅ EduFair Value = ₹950–₹1,050

CMP = ₹1,267 → Overvalued by ~20–30%, unless FY26 sees a turnaround.

⚠️ Risks

• 📉 Earnings volatility from global acquisitions
• 🧾 One-time hits = confidence erosion
• 💵 Limited retail coverage = delayed rerating
• 📊 Global slowdown can pause capex cycles in client industries

💸 CMP vs Fair Value

🏁 EduFinal Word

GMM Pfaudler is:

• A fantastic business ✅
• With a horrible quarter ❗
• Still growing globally ✅
• Slightly overvalued ❌

Edu Verdict:
Avoid fresh entry. Hold if invested. Re-enter under ₹1,000.

This stock is down on paper, but not in cash flow.