1. At a Glance
India’s biggest laptop and desktop refurbisher, GNG Electronics, is proof that you can make a fortune by fixing other people’s mistakes — literally. Operating under the “Electronics Bazaar” brand, they’ve taken the ‘don’t replace, repair’ mantra and built a ₹3,647 crore market cap empire on it. With a five-year profit CAGR of 111% and an ROE that makes mutual fund managers drool (35%), the company’s recent ₹69 crore net profit says one thing: you can get rich refurbishing laptops while your cousin still waits for his job in “AI”.
2. Introduction
Ah, the refurbishing business — where broken laptops go for rehab and come out sober, slimmer, and ready for another 3 years of Zoom calls. Founded in 2006, GNG Electronics isn’t just some side-lane shop with a stack of dusty CPUs; it’s India’s largest refurbisher of ICT devices — laptops, desktops, tablets, servers, and even smartphones.
The strategy? Go full Gandhian: don’t waste, reuse. This isn’t environmental charity — it’s capitalism in a green hoodie. They ride the global “right to repair” wave while quietly converting it into “right to profit”. Over the years, their financials have been on the same trajectory as iPhone prices — straight up. Sales went from ₹245 crore in 2020 to ₹1,411 crore in FY25. Net profit ballooned from ₹2 crore to ₹69 crore in the same period.
Yet, they’re not without quirks — the company’s cash flows look like a heart monitor, borrowings have shot up from ₹54 crore to ₹454 crore in 5 years, and their P/E is a lofty 53, making them the Ferrari of refurbishers — expensive, but people still want one.
3. Business Model (WTF Do They Even Do?)
Think of them as the spa &
rehab centre for electronics. Devices come in broken, outdated, or ugly. GNG fixes them up, replaces bad parts, upgrades specs, and sells them back into the market — locally and globally. They also do bulk refurbishing for corporates, government contracts, and educational institutions.
Revenue streams include:
- Laptop & Desktop Refurbishment: The bread and butter.
- Other ICT Devices: Tablets, servers, smartphones — basically anything with a circuit board.
- EPC-style Services: Large refurbishing projects for institutions.
Unlike consumer electronics brands chasing “new launches”, GNG makes money from old launches. The repair-over-replacement model not only saves customers money but also hooks into the ESG narrative — great for wooing foreign institutional investors.
4. Financials Overview
Recalculated P/E (based on latest annualised EPS):
- FY25 Net Profit = ₹68.83 crore
- FY25 Equity Capital = ₹19 crore → Shares outstanding = 9.5 crore (FV ₹2)
- EPS = ₹7.25
- CMP = ₹320 → P/E = 44.1 (Screener shows 53, but math > machine here)
Key Numbers (₹ crore):
- Revenue: 1,411 (FY25) ↑ 24% YoY
- EBITDA: 117 (OPM 8%)
- PAT: 69 (Net Margin 4.9%)
- ROE: 35.3%
- ROCE: 19.8%
Commentary: For a refurbishing business, these margins are respectable. It’s not FMCG-level
