Garware Hi Tech Films Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Garware Hi Tech Films Ltd trades at ₹6,963, in a confirmed uptrend and 20 weeks into that stage. That is +48.1% against its own 200-day average. It sits at 100% of a 52-week range of ₹2,823 to ₹6,972. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 30 straight weeks.

Today the stock is in a confirmed uptrend — week 20 of stage 2, confirmed. At ₹6,963 it trades +48.1% versus its 200-day average and sits at 100% of its 52-week range (₹2,823–₹6,972).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +6,526% while the NIFTY 500 moved +272% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 30 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: the P/E sits at the 99th percentile of its own range.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Garware Hi Tech Films Ltd trades at 47.4× P/E, about the priciest it has ever traded. Its long-run median P/E is 16.6×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 47.4× is about the priciest it has ever traded, against a long-run median of 16.6× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved +2.1% against a +88.0% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +49.6%/yr price move, ~+21.8%/yr came from earnings growth and ~+27.8 pp from the multiple (expanding); over 10y, of the +50.1%/yr price move, ~+34.8%/yr came from earnings growth and ~+15.3 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Topping out Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Garware Hi Tech Films Ltd reads as topping out on its fundamental arc. Topping out — revenue, profit and EPS growth have decelerated hard (revenue growth +27.1% at its peak → +0.6% latest) while ROCE still reads 17.6%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: decelerating from a peak is where good stories quietly end — the multiple usually notices late.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

62.8/100 — rank 1 of 3 in Packaging - Films · 97% evidence confidence

Garware Hi Tech Films Ltd scores 62.8 out of 100 against the 3 companies it is compared with in Packaging - Films, ranking 1. Price leads the evidence: RS versus the benchmark is 69.3%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 12 + 19.2 + 11.6 + 20 = 62.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Garware Hi Tech Films Ltd reported ₹597 Cr of revenue in the Mar 26 quarter, +8.9% year on year. Over 10 years it has compounded at 9.5% a year. The last full year, FY26, came in at ₹2,120 Cr. The last four reported quarters add to ₹2,121 Cr.

Garware Hi Tech Films Ltd reported ₹597 Cr of revenue in the Mar 26 quarter, +8.9% year on year. Over 10 years it has compounded at 9.5% a year. The last full year, FY26, came in at ₹2,120 Cr. The last four reported quarters add to ₹2,121 Cr.

FY26 revenue came in at ₹2,120 Cr (+0.5% on the year), capping 10 years at 9.5% compound. The latest quarter (Mar 26) printed ₹597 Cr, +8.9% year on year.

Pace check: the last four quarters averaged +0.9% growth against the decade's 9.5% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +0.6% over the last 4 quarters against +12.4%/yr over the last 8 — rolling over; TTM profit +2.1% vs +28.7%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 23.0% this quarter (+4.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Garware Hi Tech Films Ltd's operating margin is 23.0% in the Mar 26 quarter, +4.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0% to 22.0%. The current quarter is running above every full year in that window.

Garware Hi Tech Films Ltd's operating margin is 23.0% in the Mar 26 quarter, +4.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0% to 22.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 23.0%, +4.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 7.0%–22.0%.

Why the margin moved: operating margin went +3.6 pp year on year while gross margin went +3.5 pp — the gain came mostly from the gross line: input costs and pricing.

→ Margins held — did that reach the bottom line? Next: profit +38.5% in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Garware Hi Tech Films Ltd earned ₹108 Cr of net profit in the Mar 26 quarter, +38.5% year on year. Full-year FY26 profit was ₹338 Cr. The 10-year compound rate is 35.7%. That is 18.1% of the quarter's revenue. The same quarter a year earlier earned ₹78.0 Cr.

Garware Hi Tech Films Ltd earned ₹108 Cr of net profit in the Mar 26 quarter, +38.5% year on year. Full-year FY26 profit was ₹338 Cr. The 10-year compound rate is 35.7%. That is 18.1% of the quarter's revenue. The same quarter a year earlier earned ₹78.0 Cr.

Mar 26 profit was ₹108 Cr, +38.5% year on year. On the full year, FY26 printed ₹338 Cr (+2.1%), and the 10-year compound rate is 35.7%.

Why profit moved: revenue contributed +8.9% and the margin +4.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +3.0% vs revenue +0.9%. Profit and revenue are moving roughly in step.

→ Profit rose — but did the cash follow? Next: 89% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 89% of Garware Hi Tech Films Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹275 Cr of operating cash against ₹338 Cr of profit. After ₹168 Cr of capital spending, ₹107 Cr was left as free cash.

FY26: operating cash of ₹275 Cr against reported profit of ₹338 Cr, leaving free cash of ₹107 Cr after ₹168 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 89% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 89%: the cash cycle stretched 35 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.0× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹252 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Garware Hi Tech Films Ltd's cash conversion cycle runs 89 days in FY26, up from 54 days in FY21. Capital spending ran ₹252 Cr over the last 3 years. At FY26 sales of ₹2,120 Cr each day of that cycle holds about ₹5.8 Cr, so roughly ₹517 Cr sits inside the business at any moment.

FY26: debtors at 9 days, inventory at 149 days — roughly 4.9 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 89 days, looser than FY21's 54.

The full loop: cash goes out to suppliers and production on day 0; stock waits 149 days to sell; customers pay about 9 days after that; and suppliers themselves are paid at 69 days — netting out to the 89-day cycle.

In money terms: at FY26 sales of ₹2,120 Cr, each day of the cycle holds about ₹5.8 Cr — so the 89-day loop keeps roughly ₹517 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹252 Cr over the last 3 fiscal years against ₹125 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹26.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is 18% and the ROIC − WACC spread is +3.8 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Garware Hi Tech Films Ltd earns a ROCE of 18% in FY26. That is up from a trough of 5% in FY14. Return on invested capital clears the cost of that capital by +3.8 percentage points, so growth here adds value rather than only size. The wiring behind it is 15.9% net margin on 0.70× asset turns.

FY26 ROCE is 18%, recovered from a FY14 trough of 5% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 15.9% net margin × 0.70× asset turns × 1.13× balance-sheet leverage ≈ 12.6% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 15.8% − 12.0% = a +3.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.01.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Garware Hi Tech Films Ltd carries total debt of ₹16.0 Cr against shareholder equity of ₹2,656 Cr as of Mar 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.12 in FY22 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹16.0 Cr against shareholder equity of ₹2,656 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.12 (FY22) to 0.01 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions added 3.7 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 3.7 points of Garware Hi Tech Films Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 4.2% of the company. Domestic institutions moved +1.6 points over the same window, to 6.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +3.7 points over 8 quarters to 4.2%; Domestic institutions: +1.6 points over 8 quarters to 6.3%; Promoters: +0.0 points over 8 quarters to 60.7%.

Why the register moved: foreign institutions drove it (+3.7 points), alongside domestic institutions (+1.6 points) — steady accumulation by institutions reading the same numbers this page reads.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Garware Hi Tech Films Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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