At a Glance
Gayatri Bio-Organics (GBO) is that friend who always promises to “start the gym next Monday.” Once a starch and sorbitol player, it’s now a company with zero revenue, negative margins, ROCE at -40.7%, and reserves more negative than your ex’s vibes. Promoter holding crashed to 21.6% (from 43%), operations are frozen, and EPS is a consistent -₹0.09. Despite all this, the stock trades at ₹8.80 – because penny stocks have nine lives.
Introduction
There was a time when Gayatri Bio-Organics actually made and sold starch derivatives. Fast forward to today, it’s in a long nap phase – operations halted, debts lingering, and public investors forming 77% of the shareholding (translation: promoters said “nah”).
The company barely files anything beyond compliance certificates. No product launches, no expansion, no revenue. Still, the stock gained 48% in the last year. Logic? None. Retail FOMO? Plenty.
Business Model (WTF Do They Even Do?)
Once upon a time, GBO:
- Manufactured starch, sorbitol, liquid glucose, corn derivatives.
- Sold to food, pharma, and chemical companies.
- Generated ₹213 Cr revenue in FY14.
Now:
- Plants shut.
- Revenue ₹0.
- Operating costs linger.
- Business model? “Survive another quarter.”
Financials Overview
- Revenue (Q1 FY26): ₹0
- Net Loss: ₹0.26 Cr
- ROCE: -40.7%
- Book Value: -₹4.56
- Debt: ₹37 Cr
The company bleeds slowly, like a leaky bucket. Even when it had a blip of revenue in Mar’23 (₹1.6 Cr), losses still followed. The financial sheet is a horror show.
Valuation
Using conventional valuation is like applying sunscreen at midnight, but let’s try:
- P/E Method: Not applicable (loss-making).
- EV/EBITDA: Negative EBITDA.
- DCF: Cash flows? What cash flows?
🎯 Fair Value Range: ₹0 – ₹5 (if revival happens, sky’s the limit; if not, delisting party).
What’s Cooking – News, Triggers, Drama
- AGM scheduled (via video conference – because who wants to face investors?).
- No production updates.
- Promoters cut stake drastically.
- Only trigger: speculative buying and restructuring hopes.
Balance Sheet – Auditor Comedy
| Particulars | Mar 2025 (₹ Cr) |
|---|---|
| Assets | 1.66 |
| Liabilities | 38.5 |
| Net Worth | -36.9 |
| Borrowings | 36.9 |
Commentary: Negative net worth. Borrowings exceed assets. If this were a movie, it’s “Final Destination 6.”
Cash Flow – Sab Number Game Hai
| Year | Ops (₹ Cr) | Invest (₹ Cr) | Finance (₹ Cr) |
|---|---|---|---|
| 2023 | -0.56 | 0.00 | 0.56 |
| 2024 | -0.69 | 0.00 | 0.70 |
| 2025 | -0.55 | 0.00 | 0.54 |
Commentary: Cash flows so tiny they make pocket change look rich.
Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | N/A (negative) |
| ROCE | -40.7% |
| P/E | N/A |
| PAT Margin | N/A |
| D/E | 1.5 |
Commentary: Financially stressed to the core.
P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| 2023 | 1.6 | -0.77 | -1.01 |
| 2024 | 0.0 | -0.53 | -0.68 |
| 2025 | 0.0 | -0.45 | -0.73 |
Commentary: Revenue vanished; losses stuck around like unwanted guests.
Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| SRF | 15,048 | 1,431 | 64 |
| Tata Chemicals | 14,817 | 461 | 55 |
| GNFC | 7,892 | 597 | 13 |
| GBO | 0 | -0.77 | N/A |
Commentary: Comparing GBO to peers is like comparing a parked bicycle to a bullet train.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 21.6% (was 43%).
- FIIs: 0.01% (just a formality).
- DIIs: 0.65%.
- Public: 77.7%.
Public holds the bag, literally.
EduInvesting Verdict™
Gayatri Bio-Organics is a classic zombie stock – neither dead nor alive. No revenue, negative equity, promoters exiting – yet stock is up 48% in a year because speculative money loves a turnaround dream.
SWOT Snapshot:
- Strengths: Historical brand, dormant assets.
- Weaknesses: No operations, negative net worth, promoter exit.
- Opportunities: Acquisition by a bigger player or debt restructuring.
- Threats: Delisting, insolvency.
This is not an investment, it’s a lottery ticket. If management revives production, returns could surprise. If not, well, popcorn for shareholders.
Written by EduInvesting Team | 29 July 2025
SEO Tags: Gayatri Bio-Organics, Penny Stocks, Starch Industry, Loss-Making Companies, Turnaround Stories
