1. At a Glance – The Crusher That Needs Crushing
Gujarat Apollo Industries is trading at ₹374 with a market cap of ₹485 crore. Book value? ₹379. So yes, the stock is practically hugging its book value like a confused value investor at a bear market party.
In the latest December 2025 quarter (Q3 FY26), sales came in at ₹16.17 crore, up a solid 159% QoQ. PAT? ₹0.63 crore. EPS? ₹0.49.
But hold your celebration laddoos.
Operating margin is a brutal -24.24%. ROCE stands at 1.31%. ROE is a microscopic 0.16%. Interest coverage ratio is 0.78. That means operating profits don’t even cover interest comfortably.
Three-month return: -17.4%
Six-month return: -26.3%
One-year return: +39.9%
So the stock has run up over the year — but the business looks like it’s still searching for a helmet before entering the mining site.
And earnings include other income of ₹26.72 crore (TTM). That’s not operating magic. That’s accounting perfume.
Curious already? Good. Let’s dig.
2. Introduction – The Apollo That Isn’t Shooting to the Moon
Gujarat Apollo Industries Ltd was incorporated in 1986 and manufactures mining and road construction machinery.
Sounds powerful, right?
Crushing. Screening. Impact crushers. Mobile plants. Heavy machines. Dust flying. Hardcore industrial vibes.
But here’s the twist.
For years, the company has struggled with operating profitability. Sales have grown 52% TTM, but profits? TTM PAT is -₹4.64 crore. Operating margins have been negative for most years.
Now imagine this.
You sell crushing machines. But your own margins are getting crushed.
Is this a cyclical blip? Or structural weakness?
Let’s break it down piece by piece.
3. Business Model – WTF Do They Even Do?
Gujarat Apollo manufactures:
- Jaw Crushers
- Cone Crushers (HP & GP)
- Vertical & Horizontal Shaft Impact Crushers
- Vibrating Screens
- Mobile Crushing Plants
- Bucket Crushers
- Coal Sampling Units
Clients include:
- Mining companies
- Quarries
- Construction players
- Recycling operators
Revenue breakup FY23:
- 52% Resale of materials
- 30% Construction & Mining Machinery & Spares
- 6% Renting property
- 4% Sale of land
- 3% Dividend from subsidiary
- 3% Other income
Wait.
52% resale of materials?
So half the revenue is trading activity. Not manufacturing dominance.
Exports form 13%. Domestic 87%.
Material subsidiary: AEML Investments Ltd contributes 50% of turnover.
So the company is partly manufacturing, partly trading, partly investing, partly dividend-earning.
Is it focused?
Or is it doing side
