GMM Pfaudler

GMM Pfaudler supplies engineered equipment and systems for the chemical and pharmaceutical markets. The German parent holds 50.44% stake - 75% is total promoters stake and balance 24.56% is held by the Indian promoters.

The company posted a dull and stable kind of number for Q1F17. On a 4% (YoY) rise in total sales at Rs.57 crore, the company posted a 67% rise in net profit at Rs.5 crore. The main contribution comes from Chemical Process Equipment vertical which showed a 21% drop in revenue but EBIT rose 132% with EBIT margins going up from 9.62% to 18.27%. The second vertical, Mixing Systems, showed a 27% drop in EBIT with margins also declining from 9.83% to 7.09%. The third vertical – Filtration/Separation equipment unit posted a loss.

The company’s equity is tiny at Rs.2.92 crore and EPS for the quarter was at Rs.3.47 (FV of Rs.2/share). The high discounting for the stock is on account of its Reserve at Rs.138 crore and there is hope that the company will declare a bonus.