At a Glance
Agarwal Float Glass started life as a glass trader but now wants to be a mini-Asahi India Glass. With a market cap of ₹35 Cr, rights issue in progress, and OPM swinging like a pendulum, it’s SME drama at its finest. The stock’s 52% crash from highs is a clear case of tempered expectations.
1. 🧠 Introduction with Hook
From bulk trading to glass processing and art design, Agarwal Float Glass (AGARWALFT) wants to shine in the industrial glass segment — just like your bathroom mirror after Windex.
But…
- Glass breaks
- Margins break
- And so did the share price — down –52% from its ₹104 peak to ₹48.
SME IPO euphoria’s over. Let’s see what remains behind the shattered dreams.
2. 🛠️ WTF Do They Even Do?
Agarwal Float isn’t a manufacturer — it’s a glass trader (till recently).
- Procures sheet glass & toughened glass from large suppliers
- Resells through channel partners or direct sales managers
- In FY24-25: Set up their own glass processing unit (cutting, polishing, art design)
- Key product categories: architectural glass, processed decorative glass, mirrors, laminated panels
Basically, they were middlemen, but now want to do value addition — with a capital ‘A’ and a ₹15 Cr rights issue.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | ₹48.2 Cr | ₹78.9 Cr | ₹72.1 Cr |
| Net Profit | ₹2.49 Cr | ₹0.19 Cr | ₹3.07 Cr |
| OPM | 9.5% | 1.15% | 7.85% |
| ROE | 18.1% | 2.6% | 18.09% |
| ROCE | 23.9% | 5.5% | 17.6% |
🟢 FY25 was a comeback year
🔴 FY24 = Margin Collapse + Rights Issue Panic
⚠️ Still not consistent — and that’s dangerous for microcaps
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹48
- Market Cap: ₹35 Cr
- EPS (TTM): ₹4.24
- P/E: 11.3x
- Book Value: ₹25.6 → P/B = 1.88
🧮 Fair Value Range: ₹30–₹50 (Assuming sustainable EPS ₹3–4 and P/E of 10–12x)
Not outrageous. But for a company where one quarter wrecks the year, caution’s the word.
5. 🔥 What’s Cooking – News, Triggers, Drama
- ✅ Glass processing plant live (Sep 2023): After ₹5 Cr capex, production began
- 🧾 ₹15 Cr Rights Issue in 2025 to scale further — capital base up from ₹8 Cr → ₹11 Cr
- 📉 FY24 profit tanked to ₹19 lakh due to startup expenses + OPEX surge
- 💰 Big industrial order worth ₹5 Cr in Sept 2023
- 👷 Plans to enter decorative and architectural glass artwork segments
Basically, FY24 was “spend to grow.” FY25 showed early payoff. FY26 = judgement year.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity | ₹7.24 Cr | ₹7.24 Cr | ₹7.24 Cr |
| Reserves | ₹8 Cr | ₹8.2 Cr | ₹11.3 Cr |
| Borrowings | ₹8.98 Cr | ₹13.2 Cr | ₹17.5 Cr |
| Assets | ₹27 Cr | ₹30.3 Cr | ₹38.9 Cr |
| CWIP | 0 | 0 | ₹4.43 Cr |
🟡 Debt’s up post-processing unit
🟢 ROCE back to 17.6% in FY25
🔴 Still tiny balance sheet — one bad customer and the whole thing could wobble
7. 💵 Cash Flow – Sab Number Game Hai
| Metric | FY24 | FY25 |
|---|---|---|
| Op Cash Flow | ₹–0.81 Cr | ₹1.62 Cr |
| Capex (Investing) | ₹–0.11 Cr | ₹–4.53 Cr |
| Financing | ₹0.98 Cr | ₹2.81 Cr |
| Net Flow | ₹0.06 Cr | ₹–0.10 Cr |
They’ve officially moved from “Paisa nahi ban raha” to “Paisa lagana padega”
8. 📊 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 18.09% |
| ROCE | 17.60% |
| OPM | 7.85% |
| D/E | ~0.6 |
| Debtor Days | 31.4 (was 56.7 in FY24) ✅ |
| Inventory Days | 77.85 |
| Payables | 6.36 😬 |
They pay fast, but collect cash even faster.
CCC: 102 days → Efficient working capital, finally.
9. 🧾 P&L Breakdown – Show Me the Money
- FY25 Revenue: ₹72 Cr
- Operating Profit: ₹5.66 Cr
- PAT: ₹3.07 Cr
- Interest: ₹1.46 Cr (chunky for a microcap)
👁️ Watch that interest expense as they scale — a 10% rate will sting at this size.
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | CMP | P/E | ROE | OPM | MCap |
|---|---|---|---|---|---|
| Sejal Glass | ₹470 | 43x | 32.6% | 13.9% | ₹475 Cr |
| Agarwal Toughened | ₹125 | 14.5x | 27.5% | 36% | ₹220 Cr |
| Borosil Renewables | ₹515 | – | –7.4% | –70% | ₹6,800 Cr |
| Agarwal Float | ₹48 | 11.3x | 18.1% | 7.85% | ₹35 Cr |
They’re the lowest cost bet in the sector — but also the least proven in processing.
11. 📦 Miscellaneous – Shareholding, Promoters, etc.
| Holder | % |
|---|---|
| Promoters | 57.55% (down from 69.8%) ⚠️ |
| Public | 42.45% |
| FII/DII | 0% |
⚠️ Promoter holding falling consistently — dilution from rights issue likely contributing
👥 Only 471 shareholders in Mar 2025 = still very thinly traded
12. 🧠 EduInvesting Verdict™
AFGIL is a classic SME evolution story:
- Start as a trader
- Add capex
- Launch processing unit
- Raise more funds
- Chase volume
- Hope to become a “mini Borosil”
But it’s early days.
Pros:
- Valuation still reasonable
- Processing unit gives margin upside
- Efficient working capital
Cons:
- Earnings volatile
- Debt-funded growth
- Rights issue = dilution risk
- No dividend. No moat. No brand.
🎯 Fair Value Range: ₹30–₹50 (until proven consistent)
✍️ Written by Prashant | 📅 8 July 2025
Tags: Agarwal Float Glass, SME stocks, glass processing, Borosil peer, smallcap industrials, rights issue, glass sector India, decorative glass, architectural glass, microcap turnaround
