NSE: GARWAREHTECH CMP: Rs 6621.50 P/E: 45.54x ROCE: 18.02% 6M Ret: +112.92% Div Yld: 0.18% ATH: Rs 7087.00
Key Performance Indicators
Garware Hi Tech trades at Rs 6621.50 on NSE (GARWAREHTECH), with a market capitalisation of Rs 15403.25 crore. The price-to-earnings ratio is 45.54x. Return on capital employed stands at 18.02%. The six-month return is +112.92%. Quarterly net profit is Rs 108.21 crore (+39.09% year-on-year change). Quarterly sales stand at Rs 596.69 crore (+8.90% year-on-year). The dividend yield is 0.18%. The all-time high is Rs 7087.00, 7.0% above the current price.
Highlights
Garware Hi Tech has delivered a six-month return of 112.92%, with a market capitalisation of Rs 15403.25 crore at the current price of Rs 6621.50. The all-time high of Rs 7087.00 sits 7.0% above the current price, indicating the stock has corrected from its historical peak and offers headroom for appreciation toward that level. The company's ROCE of 18.02% — well above the 15% quality benchmark, placing it among the strongest capital-return businesses in this collection — is a key distinguishing fundamental metric.
The P/E of 45.54x carries a moderate growth premium relative to the Indian market average, pricing in above-economy earnings growth expectations. The dividend yield of 0.18% provides a meaningful income component — a signal of cash generation capability and management's willingness to return capital. The industrials sector tailwinds — industrial PLI schemes, infrastructure investment, and manufacturing growth — provide structural support for sustained revenue and earnings growth.
Business Overview
Garware Hi-Tech Films is a specialty polymer films company manufacturing polyester films, safety and security window films, automotive films, and high-performance protective coatings for automotive, architectural, agricultural, and industrial applications. The company is a world-leading manufacturer of agricultural mulch films and greenhouse films — specialty polymer products that improve crop yields by managing soil temperature, moisture retention, and weed suppression. Garware also manufactures automotive tinting and protective films distributed through professional installer networks globally.
The quarterly profit of Rs 108.21 crore growing 39.09% on revenue of Rs 596.69 crore growing 8.90% reflects a high-margin specialty films business generating strong profitability on steady revenue. The P/E of 45.54 times and ROCE of 18.02% describe a premium-valued specialty manufacturer with above-average capital returns. The six-month return of 112.92% and the all-time high of Rs 7,087.00 — Rs 465.50 above the current price of Rs 6,621.50 — indicate meaningful headroom. India's growing precision agriculture adoption and global automotive film demand are the key structural growth drivers.
Financial Analysis
Garware Hi Tech's most recent quarterly financial results show revenue of Rs 596.69 crore (+8.90% year-on-year) and net profit of Rs 108.21 crore (39.09% year-on-year variation). Profit growth meaningfully exceeding revenue growth indicates improving profitability margins — a positive structural signal if it reflects genuine cost efficiency or product mix improvement rather than temporary factors.
The ROCE of 18.02% is the primary quality indicator for this business. At 18.02%, the company generates exceptional returns on every rupee of capital deployed — a level sustained only by businesses with genuine competitive moats including proprietary technology, strong customer relationships, regulatory barriers to entry, or scale-based cost advantages that prevent competitors from replicating the returns.
At Rs 15403.25 crore — a mid-cap company with growing institutional visibility — Garware Hi Tech is at the scale where institutional investors are beginning to build meaningful positions, creating a potential re-rating catalyst as coverage broadens.
Investor Highlights
The investment case for Garware Hi Tech rests on the combination of a 18.02% ROCE — indicating a capital-efficient business with sustainable competitive advantages — and a demonstrated revenue and earnings growth trajectory that supports the current P/E of 45.54x. High-ROCE businesses are particularly attractive for long-duration compounding: when a company reinvests earnings at 18%+ returns on capital, each rupee retained creates more shareholder value than if it were distributed, making reinvestment in the business mathematically superior to dividend payment at all but very high cost-of-capital environments.
With the current price 7.0% below the all-time high of Rs 7087.00, there is established headroom toward the historical peak. If fundamental performance continues to deliver quarterly profit growth and improving ROCE, the stock has a reference target for re-rating toward the all-time high level.
The dividend yield of 0.18% provides a foundational income return that is independent of capital appreciation — a meaningful characteristic for investors who value income alongside growth. A dividend-paying company with a positive ROCE above 15% is distributing cash it does not need for reinvestment at attractive rates, implying the business generates more cash than its optimal reinvestment requirements. Investors should access the company's latest annual report and quarterly results on the BSE/NSE portal for current financial data and management commentary on the growth outlook.
Frequently Asked Questions
Q: What does Garware Hi Tech do and why has it delivered a 112.92% six-month return?
A: Garware Hi Tech operates in India's industrials sector. The 112.92% six-month return reflects a combination of sector-level tailwinds, improving quarterly financial performance — quarterly profit growing 39.09% and revenue growing 8.90% year-on-year — and market re-rating of the company's growth and quality profile. Specific business details and catalysts are documented in BSE/NSE exchange filings.
Q: What does the ROCE of 18.02% indicate about Garware Hi Tech's business quality?
A: Garware Hi Tech's ROCE of 18.02% measures pre-tax profit generated per rupee of total capital employed. At 18.02%, this is an exceptional reading that places the company among India's highest capital-efficiency businesses — indicating strong competitive advantages that protect margins and returns from erosion by competition. Tracking ROCE over multiple quarters provides a leading indicator of business quality improvement or deterioration.
Q: How does the P/E of 45.54x compare to fundamentals for Garware Hi Tech?
A: The P/E of 45.54x should be assessed in conjunction with the earnings growth rate and ROCE. At 45.54x, the stock carries a moderate premium relative to the market average of 20–25x, compensated in part by the ROCE of 18.02% and the quarterly earnings growth of 39.09%.
Q: What is Garware Hi Tech's all-time high and how far is the current price from it?
A: Garware Hi Tech's all-time high is Rs 7087.00. The current price of Rs 6621.50 is 7.0% below the all-time high, offering potential headroom for appreciation if fundamental performance supports continued market re-rating. The all-time high provides a reference ceiling that informs sentiment and potential price target discussion, though fundamental value — determined by earnings, ROCE, and growth — is the primary determinant of sustainable price levels.
Q: Where can investors access Garware Hi Tech's official financial data and disclosures?
A: Garware Hi Tech's quarterly results, annual reports, investor presentations, shareholding patterns, and all material corporate announcements are filed with NSE and BSE and are freely accessible through the exchange filing portals at nseindia.com and bseindia.com. SEBI listing regulations mandate timely disclosure of all financial results and material developments. These filings are the primary source of verified financial and operational data for investment analysis.