1. At a Glance
Grauer & Weil (Growel) is that rare BSE SmallCap which makes chemicals, engineers machinery, and also runs a shopping mall — because why not? With ₹4,369 Cr market cap, a shiny ROCE of 23.3%, and ROE of 17.6%, this 1957-born company has been compounding quietly while most investors were busy chasing meme stocks. It’s debt-light, dividend-paying, and now has a UAE plant operational — because local markets are too small for their ambition. At ₹96.4 per share, it’s not a “dirt cheap” value play, but it’s also not trading at Kaynes Tech’s oxygen-thin P/E altitudes.
2. Introduction
If your portfolio is full of “buzzword” companies — AI, EV, blockchain — Grauer & Weil is the guy at the corner who just says, “We make surface coatings that stop your expensive machines from rusting. Pay up.”
From industrial electroplating chemicals to engineering equipment and even a profitable foray into real estate (Growel’s 101 Mall in Mumbai), they’ve turned diversification into an art form. Think of them as the chemical industry’s Swiss Army knife — always something in their product line that a client needs.
Over the last 5 years, profits grew at 17% CAGR, revenues at 13%, and stock price at a neat 38% CAGR. That’s the type of compounding that quietly builds empires while the market’s spotlight is somewhere else.
3. Business Model (WTF Do They Even Do?)
Grauer & Weil operates in three main verticals:
- Chemicals Division – Electroplating chemicals,
- pre-treatment and post-treatment solutions, and corrosion-protection systems. Clients are from automotive, electronics, defense, and aerospace (AS 9100 certified).
- Engineering Division – Designs and manufactures surface finishing plants and equipment, both standard and customised.
- Real Estate – Owns and operates Growel’s 101 Mall in Mumbai, contributing rental income that’s as predictable as Monday morning traffic.
They are the only Indian company offering complete corrosion protection solutions across substrates — steel, aluminium, you name it. This ensures sticky customers with high switching costs.
4. Financials Overview
Let’s run the numbers through the EduInvesting sarcasm filter:
- FY25 Sales: ₹1,134 Cr
- FY25 EBITDA: ₹189 Cr (EBITDA margin ~17%)
- FY25 PAT: ₹157 Cr (PAT margin ~14%)
- 5-Year PAT CAGR: 17%
- EPS (TTM): ₹3.47
- Recalculated P/E: ₹96.4 ÷ ₹3.47 ≈ 27.77 (close to 28.5)
- Debt: ₹12 Cr – practically lunch money in corporate terms
- Cash from Ops FY25: ₹144 Cr – enough to fund capex without bankers breathing down their necks
This is not a rocket-ship growth story, but a steady engine room
