Crorepati Stock: "Always invest for the long term," Oracle of Omaha, Warren Buffett once rightly said for investment strategy in stocks. Buffett is the epitome of a success story in the stock market, with his shares trailing back to decades old. The term longer duration is a notion that every market mogul would suggest for investors who are looking to increase their savings in the stock market which is fragile, sentiment-driven and highly risky. The key is to sail through every storm of bears and grab opportunity. And to those investors who bought shares of a smallcap Garware Hi-Tech Films 23 years ago, this story is a success. Garware in the longer run has made investors crorepati, giving 89,171.28% returns in over two decades.
Garware Hi-Tech Films Share Price:
Last week, on February 21, Garware which trades under 'A' Group on BSE, stood at Rs 4195.75 apiece with a market cap of Rs 9,747.73 crore.
That being said, Garware's latest weekly gains are nearly 11%, while month-on-month performance is up by 8%. Its half-yearly gains are around 25%, and in a year, the stock has zoomed by more than 96% on BSE. It's trading lower from its 52-week high.
The stock's 52-week high was at Rs 5,373 which it touched on December 20th last year. Despite pulling back from its 1-year high, Garware made investors crorepati, especially those who held the stock at the start of 2002.
Data from BSE showed that Garware was at merely Rs 4.7 apiece on the exchange on January 4, 2002. Since then to February 21, 2025, Garware rose by Rs 4,191.05 or gave 89,171.276% returns.
Let's suppose, that if an investor bought Garware shares for Rs 25,000 on January 4, 2002, they will have 5,319.15 equity shares in their portfolio. If these shares were kept till February 21, 2025, their investment gains would be around Rs 2,22,92,817.5 or Rs 2.22 crore, while their entire corpus value would come around Rs 2,23,17,817.5 or Rs 2.23 crore. These profits are excluding the gains of dividends which Garware has diligently distributed to investors.
These gains are also without bonus issues or any stock splits. Since listing on BSE or NSE, Garware shares have neither carried any bonus or splits. However, data as per Trendlyne showed that Garware distributed about 15 dividends since September 2004.
In the last 12 months, the company paid about Rs 10 per share dividend. The last ex-date for dividend was on September 17, 2024. Its current dividend yield is at 0.24%.
Garware Hi-Tech Films Fundamentals:
Here are the fundamentals of Garware Hi-Tech Films stocks as per Trendlyne:
- Price to Earning Ratio is 31.41, lower than its sector PE ratio of 50.53.
- Stock Price rose 103.34% and underperformed its sector by 21,058.25% in the past year.
- Debt to Equity Ratio is zero as the company is debt-free.
- Return on Equity(ROE) for the last financial year was 9.94%, less than 10%, indicating an inefficient use of shareholder's capital to generate profit.
- Mutual Fund Holding decreased by 0.39% in the last quarter to 3.59.
- Promoter Share Holding stayed the same in the most recent quarter at 60.72%.
- Interest Coverage Ratio is 27.25, higher than 1.5. This means that it is able to meet its interest payments comfortably with its earnings (EBIT).
- Promoter Pledges are zero.
Also, FIIs/FPIs have increased their holdings to 2.69% by the end of Q3FY25, from 1.56% in Q2FY25. On year-on-year, foreign investors have increased their holding from 0.21% in Q3Y24.
During Q3FY25, the company reported revenue of Rs 1,561.4 crore, registering growth of 26.9% YoY, while PAT stood at Rs 253.4 crore higher by a whopping 74.2% YoY. EBITDA stood at Rs 374.1 crore, rising by 61.7% YoY. In the quarter, the company was recognized as India's Top Value Creator 2024 by Dun & Bradstreet. Also, it was granted a patent for Floatable Shrink Film.
Going ahead, the company's board have approved an investment of Rs 118 crore in a TPU extrusion line at our Waluj Plant, marking a significant step in expanding its capabilities.
As per the filing, Garware said, "this will be India's first TPU extrusion facility, reinforcing our commitment to the Make in India initiative. The project is expected to be completed within 18 months, with a planned capacity of 360 LSF per year, and production scheduled to commence by October 2026."
"The output from this new line will support the input requirements of both our existing and upcoming PPF production lines, ensuring seamless integration into our manufacturing processes while driving cost savings. Additionally, this line will accelerate our R&D process and further expand our value-added product portfolio, thus strengthening our market position," it added.
About Garware Hi-Tech Films:
Garware Hi-Tech Films, a global leader with over 90 years of legacy, epitomizes technology, innovation, and excellence in Suncontrol Window Films, Paint Protection Films and Polyester Films.
It is is one of the few companies in the world to have a vertically integrated chip-to-film operation in Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, India, with state-of-the-art facilities to produce a highly quality and varieties of specialty polyester films used in various industries/applications across the globe such as Paint Protection Films, Sun Control Films (Auto and Architectural), Shrink LabelPackaging, Reprographics, Electrical, Thermal Insulation, etc.
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