Garg Furnace

BSE: GARGFUR · Iron & Steel Products

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52W Range₹109 – ₹256

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Snapshot

Unlock Garg Furnace's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Garg Furnace Limited is an Indian manufacturer and trader specialising in alloy steel, wire rods, ingots, and billets. The company operates a secondary steel facility in Ludhiana, serving the infrastructure and automotive component sectors.

Business Model

The company generates revenue through the integrated manufacturing of steel products using induction furnaces and rolling mills, alongside wholesale trading of steel scrap and finished goods.

Growth Outlook

Growth is driven by the company's ability to supply essential raw materials to the domestic engineering and construction sectors. Future prospects remain tied to the demand cycles within the regional infrastructure market.

Key Risks

  • Raw Material Price Volatility. Fluctuations in the cost of steel scrap and iron inputs can significantly impact profit margins.
  • Cyclical Industry Demand. The company is highly susceptible to downturns in the infrastructure and automotive sectors which drive steel consumption.
  • Operational Concentration. Reliance on a single manufacturing facility in Ludhiana exposes the company to localised operational or regulatory disruptions.
  • Competitive Market Pressure. As a small-cap entity, the company faces intense competition from larger, more integrated steel producers in the domestic market.

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Key Metrics

REVENUE

₹289 Cr

TTM · standalone

+10.6%YoY

NET PROFIT

₹10 Cr

TTM · standalone

+34.9%YoY

EPS

₹17.42

TTM · standalone

+10.5%YoY

RETURN ON EQUITY

14.4%

TTM · standalone

-0.2 ppYoY

RETURN ON CAPITAL EMPLOYED

15.2%

TTM · standalone

+0.8 ppYoY

P/E

13.2x

Q4 FY26 · standalone

13.2 vs 9.0x5Y avg

EV/EBITDA

11.7x

Q4 FY26 · standalone

11.7 vs 1.6x5Y avg

EBITDA MARGIN

4.6%

TTM · standalone

+1.0 ppYoY

Peers · Iron & Steel Products

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Garg FurnaceGARGFUR
₹141 Cr13.2111.6810.6%4.6%14.4%15.2%+38.7%
Azad India Mobility LimitedAZADIND
₹441 Cr4297.501102.62—1.0%0.2%0.2%-43.2%
ManaksiaMANAKSIA
₹438 Cr6.214.574.3%11.4%9.9%13.1%-12.0%
Modern MalleableMODMA
₹397 Cr16.2711.84129.5%19.3%14.5%18.8%—
SurajSURAJLTD
₹362 Cr42.8118.12-15.2%12.0%6.1%12.6%-39.7%
Shah MetacorpSHAH
₹321 Cr21.6423.4048.8%10.1%5.6%5.4%-19.2%

As of Q4 FY26

Financials