⚡ At a Glance
Gallantt Ispat Ltd, based out of Eastern Uttar Pradesh, is not your typical steel company. This ₹12,700 Cr firm makes sponge iron, TMT bars, wheat flour, runs power plants, and is even developing real estate in Lucknow. With 16% OPM, 19% ROCE, and a 5-year profit CAGR of 78%, it’s punching above its steelweight. But is this multibusiness empire durable—or dangerously diversified?
1. 🎯 Introduction – The Desi Dhirubhai Combo of Steel + Suji + Shalimar?
If someone pitched you this at a startup meetup:
“Bro, we do steel, food grains, power, and housing. Our brand is Gallantt.”
You’d laugh. Or run.
But Gallantt Ispat is actually delivering.
- FY25 PAT: ₹401 Cr
- ROCE: 19%
- OPM: 16%
- Real estate? Already launched.
- IPO? Long forgotten—this is the profitable PSU nobody knows about.
Oh, and stock is up 94% in 3 years, 45% in 1 year.
2. 🏗️ WTF Do They Even Do?
Core Business Segments:
🛠️ Steel:
- Sponge Iron
- MS Billets
- TMT Bars (Construction demand booster)
🌾 Agro:
- Atta, Maida, Suji, Bran
- Sold under “Gallantt” brand across 7 states
🔌 Power:
- In-house power generation to support captive steel ops (margin lever)
🏘️ Real Estate:
- Shalimar Gallantt – JV with Shalimar Group in Lucknow
- Residential housing project under execution
If SAIL and Patanjali had a baby… this might be it. 👶
3. 📈 Financials – Solid Steel Core, Flavored with Flour
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,007 | 3,017 | 4,057 | 4,227 | 4,293 |
| EBITDA (₹ Cr) | 111 | 296 | 364 | 448 | 694 |
| Net Profit (₹ Cr) | 81 | 176 | 141 | 225 | 401 |
| OPM % | 11% | 10% | 9% | 11% | 16% |
| EPS (₹) | 10.01 | 21.62 | 5.84 | 9.34 | 16.61 |
📈 5Y Revenue CAGR = 38%
📈 5Y PAT CAGR = 78%
📈 FY25 was breakout: margin jump, profits 2x YoY
4. 💰 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹528
- EPS (TTM): ₹16.61
- P/E: 31.8x
- Book Value: ₹118
- P/B: 4.48x
- Market Cap: ₹12,729 Cr
🚨 For steel? That’s premium territory.
But with 16% OPM and growing real estate vertical, the multiple might not be totally insane.
🎯 FV Range = ₹450 to ₹530
(Margin of safety narrows above ₹500 unless PAT growth sustains)
5. 🧂 What’s Cooking – Iron Ore Jackpot & Flour Expansion
Recent Big Moves:
- ✅ Preferred bidder for 2 iron ore blocks (50.59 Mn MT reserves) – backward integration flex 💪
- ✅ Rs. 72.5 Cr investment in real estate JV – likely to monetize Lucknow township
- ✅ FMCG push via Atta-Suji across North India – brand getting traction
- ✅ ₹579 Cr CFO in FY25 – highest ever
Also: Q4FY25 PAT = ₹116 Cr, OPM at 17%, suggesting sustained profitability
6. 🧾 Balance Sheet – Stronger Than Their TMT Bars
| Metric | FY25 |
|---|---|
| Equity Capital | ₹241 Cr |
| Reserves | ₹2,601 Cr |
| Borrowings | ₹378 Cr (↓ from ₹538 Cr in FY23) |
| Net Block | ₹1,807 Cr |
| CWIP | ₹318 Cr (new projects underway) |
✅ Healthy deleveraging
✅ Capex coming from internal accruals
✅ Investments up = Real estate play getting serious
7. 💰 Cash Flow – Sab Number Game Hai
| Metric | FY25 |
|---|---|
| CFO | ₹579 Cr 🟢 |
| CFI | ₹-460 Cr (capex + real estate) |
| CFF | ₹-114 Cr (loan repayment) |
| Net Cash | ₹+5 Cr |
They are spending. But they’re earning more. Balance is solid.
8. 📊 Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 19.2% ✅ |
| ROE | 15.1% ✅ |
| OPM | 16.2% 💰 |
| CCC | 48 days (tight ops) |
| Interest Cover | >25x (super safe) |
Steel companies usually don’t have FMCG-like margins. Gallantt does.
9. 💥 P&L Breakdown – Show Me the Money
FY25 Full-Year:
- Sales: ₹4,293 Cr
- EBITDA: ₹694 Cr
- Net Profit: ₹401 Cr
- Net Margin: 9.3%
- Dividend Payout: 8% only (they’re hoarding cash for expansion)
10. ⚔️ Peer Comparison – Do They Stand Tall?
| Company | ROCE | OPM | P/E | MCap |
|---|---|---|---|---|
| Gallantt | 19% | 16% | 31.8x | ₹12,729 Cr |
| APL Apollo | 22% | 5.8% | 64x | ₹48,885 Cr |
| Shyam Metalics | 12% | 12% | 26.9x | ₹24,429 Cr |
| Welspun Corp | 25% | 11.9% | 15.9x | ₹23,973 Cr |
Gallantt’s margins rival Shyam & APL. But valuation already reflects that.
11. 🧠 Misc – Promoters, Public & Potential Red Flags?
- Promoter Holding: 68.93% (stable)
- Public: 31%
- FIIs: Negligible
- No pledges, no dilution, no funny business seen so far
Red flags?
- Business mix is unusual
- FMCG + Real Estate + Steel = Synergy nightmare, if not managed
- Recent rally = less margin of error
12. 🧨 EduInvesting Verdict™
“Gallantt is that rare smallcap hybrid that sells steel to builders, atta to households, and flats to NRIs. All while generating ₹400 Cr profit with 48 days CCC.”
✅ Strong multi-segment model
✅ Iron ore mine = game changer
✅ Cash-rich, low debt
✅ 16% margin in steel biz? Chef’s kiss.
🚨 Slightly overvalued vs sector
🚨 Diversification could be strength—or distraction
🎯 Fair Value Range: ₹450–₹530
(Current Price = ₹528) – Near upper limit of fair zone
Keep it on radar. don’t go full wheat mill FOMO mode.
✍️ Written by Prashant | 📅 July 2, 2025
Tags: Gallantt Ispat, TMT Bars, Atta Brands, Steel Stocks, Real Estate JV, Multi-Business, EduInvesting
