Operating Leverage Inflection
Expected: Q3 FY26HIGH confidence
What: EBITDA Margin: 58.5%
Impact: 1120 bps expansion
Gandhi Special Tubes Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +19.6%Strong5w Streak
In , Gandhi Special Tubes Ltd (Steel - Tubes/Pipes) is outperforming Nifty 500 with +19.6% relative strength. Fundamentals: Strong. On a 5-week streak.
Gandhi Special Tubes Ltd Key Facts
- PE Ratio
- 14.8x
- Market Cap
- ₹1,063 Cr
- PAT Growth YoY
- +33%
- Revenue Growth YoY
- +20%
- OPM
- 46.0%
- RS vs Nifty 500
- +19.6%
Strong Opportunity
What's Happening
💎PE falling while earnings hold — value emerging
💰Trading 106% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Operating Leverage Inflection
Q3 FY26HIGH
2. Share Buyback As Eps Catalyst
Q3 FY26MEDIUM
Key Risks
1. Implementation of New Labour Codes resulted in a one-time exceptional charge imp
MEDIUM2. Global tube industry is heavily dependent on hot-rolled steel prices, which are
MEDIUMSector-Specific Signals
Operating Margin (Excl OI)46.02%
Gross Profit Margin55.95%
Other Income₹6.03 Cr191.7%
Interest Expense₹0.04 Cr
Key Numbers
PAT Growth YoY
+33%
Inflection Up
Revenue YoY
+20%
Stable
Operating Margin
46.0%
+400 bps YoY
PE Ratio
14.8
Current Price
₹875
Dividend Yield
1.71%
Fundamental Score
75/100
Strong
3Y PAT CAGR
+15%
Market Cap
1.1K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Gandhi Special Tubes Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 18, 2026
Share Buyback As Eps Catalyst
Expected: Q3 FY26MEDIUM confidence
What: EPS: ₹16.81
Impact: 34.69% YoY increase
What Are the Key Risks for Gandhi Special Tubes Ltd?
Earnings deceleration risks from management commentary
Implementation of New Labour Codes resulted in a one-time exceptional charge imp
MEDIUMTrigger: Implementation of New Labour Codes resulted in a one-time exceptional charge impacting pre-tax profits.
Impact: PAT impact: ₹1.18 Cr
Management view: Recognized as an exceptional non-recurring impact.
Monitor: labor
Global tube industry is heavily dependent on hot-rolled steel prices, which are
MEDIUMTrigger: Global tube industry is heavily dependent on hot-rolled steel prices, which are rising in regional markets like Turkey.
Management view: Not Given
Monitor: commodity
What Did Gandhi Special Tubes Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹48.44 Cr
YoY +21.82%QoQ +0.85%
Revenue growth was primarily driven by a 21.8% year-on-year increase, though sequential momentum was flat at 0.85%.
EBITDA
₹28.33 Cr
YoY +50.6%Margin 58.5%
EBITDA margins expanded significantly by 1120 bps YoY to 58.5%, aided by a fair value gain on investments.
PAT
₹19.70 Cr
YoY +29.94%QoQ +11.35%
PAT grew 30% YoY despite an exceptional charge of ₹1.18 Cr related to new labor code implementation.
Other Highlights
• Exceptional charge of ₹1.18 Cr for New Labour Codes implementation.
• Other income included a fair value gain on investments of ₹14.16 Cr.
• Nine-month PAT grew 26.27% YoY to ₹58.99 Cr.
What Sector Metrics Matter for Gandhi Special Tubes Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Operating Margin (Excl OI)
46.02%
QoQ 222 bps
Why: Effective cost management and favorable product mix dynamics in the steel tubes business.
Gross Profit Margin
55.95%
QoQ 554 bps
Why: Substantial improvement from 50.41% in Q2 FY26.
Other Income
₹6.03 Cr
YoY 191.7%QoQ -25.28%
Why: Includes a fair value gain on investments of ₹14.16 Cr for the quarter.
Interest Expense
₹0.04 Cr
Why: Company operates as a virtually debt-free entity with zero long-term debt.
Employee Cost % of Revenue
5.02%
Why: Based on Mar 31, 2025 annual data, maintained at low levels.
How Fast Is Gandhi Special Tubes Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +20% | +8% | Stable |
| PAT (Net Profit) | +33% | +15% | Inflection Up |
| OPM | 46.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Steel - Tubes/Pipes Stocks Beating Nifty 500
Frequently Asked Questions: Gandhi Special Tubes Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Gandhi Special Tubes Ltd's latest quarterly results?
Gandhi Special Tubes Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +33.3% (turning around (inflection up))
- Revenue Growth YoY: +20.0%
- Operating Margin: 46.0% (volatile)
Is Gandhi Special Tubes Ltd's profit growing or declining?
Gandhi Special Tubes Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +33.3% (latest quarter)
- PAT Growth QoQ: +11.1% (sequential)
- 3-Year PAT CAGR: +14.8%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Gandhi Special Tubes Ltd's revenue growth trend?
Gandhi Special Tubes Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +20.0%
- Revenue Growth QoQ: 0.0% (sequential)
- 3-Year Revenue CAGR: +8.1%
How is Gandhi Special Tubes Ltd's operating margin trending?
Gandhi Special Tubes Ltd's operating margin is volatile.
- Current OPM: 46.0%
- OPM Change YoY: +4.0% basis points
- OPM Change QoQ: +2.0% basis points
What is Gandhi Special Tubes Ltd's 3-year profit and revenue CAGR?
Gandhi Special Tubes Ltd's long-term compounding rates
- 3-Year Profit CAGR: +14.8%
- 3-Year Revenue CAGR: +8.1%
Is Gandhi Special Tubes Ltd's growth accelerating or decelerating?
Gandhi Special Tubes Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: +27.4% bps
- Sequential Acceleration: +29.3% bps
What is Gandhi Special Tubes Ltd's trailing twelve month (TTM) performance?
Gandhi Special Tubes Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹72 Cr
- TTM PAT Growth: +22.0% YoY
- TTM Revenue: ₹187 Cr
- TTM Revenue Growth: +10.7% YoY
- TTM Operating Margin: 42.6%
Is Gandhi Special Tubes Ltd overvalued or undervalued?
Gandhi Special Tubes Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 14.8x
- Price-to-Book: 3.7x
What is Gandhi Special Tubes Ltd's current PE ratio?
Gandhi Special Tubes Ltd's current PE ratio is 14.8x.
- Current PE: 14.8x
- Market Cap: 1.1K Cr
- Dividend Yield: 1.71%
How does Gandhi Special Tubes Ltd's valuation compare to its history?
Gandhi Special Tubes Ltd's current PE is 14.8x.
- Current PE: 14.8x
- Valuation Assessment: Significantly Undervalued
What is Gandhi Special Tubes Ltd's price-to-book ratio?
Gandhi Special Tubes Ltd's price-to-book ratio is 3.7x.
- Price-to-Book (P/B): 3.7x
- Book Value per Share: ₹236
- Current Price: ₹875
Is Gandhi Special Tubes Ltd a fundamentally strong company?
Gandhi Special Tubes Ltd is rated Strong with a fundamental score of 74.62/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +20.0% (10% weight)
- PAT Growth YoY: +33.3% (10% weight)
- PAT Growth QoQ: +11.1% (10% weight)
- Margins stable (10% weight)
Is Gandhi Special Tubes Ltd debt free?
Gandhi Special Tubes Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹0 Cr
What is Gandhi Special Tubes Ltd's return on equity (ROE) and ROCE?
Gandhi Special Tubes Ltd's return ratios over recent years
- FY2023: ROCE 36.0%
- FY2024: ROCE 32.0%
- FY2025: ROCE 28.0%
Is Gandhi Special Tubes Ltd's cash flow positive?
Gandhi Special Tubes Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹47 Cr
- Free Cash Flow (FCF): ₹17 Cr
- CFO/PAT Ratio: 80% (strong cash conversion)
What is Gandhi Special Tubes Ltd's dividend yield?
Gandhi Special Tubes Ltd's current dividend yield is 1.71%.
- Dividend Yield: 1.71%
- Current Price: ₹875
Who holds Gandhi Special Tubes Ltd shares — promoters, FII, DII?
Gandhi Special Tubes Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.5%
- FII (Foreign): 1.2%
- DII (Domestic): 0.1%
- Public: 25.2%
Is promoter holding increasing or decreasing in Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.5% (Mar 2026)
- Previous Quarter: 73.5% (Dec 2025)
- Change: 0.00% (stable)
How long has Gandhi Special Tubes Ltd been outperforming Nifty 500?
Gandhi Special Tubes Ltd has been outperforming Nifty 500 for 5 consecutive weeks, indicating building momentum.
Is Gandhi Special Tubes Ltd a new momentum entry or an established outperformer?
Gandhi Special Tubes Ltd is an established outperformer with 5 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd has 2 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Significant margin expansion suggests strong operational efficiency and benefit from investment gains.
- Share Buyback As Eps Catalyst — EPS growth outpaced PAT growth, likely reflecting the impact of previous share buybacks.
What are the key risks in Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd has 2 key risks worth monitoring
- [MEDIUM] Implementation of New Labour Codes resulted in a one-time exceptional charge imp — Implementation of New Labour Codes resulted in a one-time exceptional charge impacting pre-tax profits.
- [MEDIUM] Global tube industry is heavily dependent on hot-rolled steel prices, which are — Global tube industry is heavily dependent on hot-rolled steel prices, which are rising in regional markets like Turkey.
What is Gandhi Special Tubes Ltd's management guidance for growth?
Gandhi Special Tubes Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
What sector-specific metrics matter most for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's most important sub-sector-specific KPIs from the latest concall
- Operating Margin (Excl OI): 46.02% (QoQ 222 bps) — Effective cost management and favorable product mix dynamics in the steel tubes business.
- Gross Profit Margin: 55.95% (QoQ 554 bps) — Substantial improvement from 50.41% in Q2 FY26.
- Other Income: ₹6.03 Cr (YoY 191.7%) (QoQ -25.28%) — Includes a fair value gain on investments of ₹14.16 Cr for the quarter.
- Interest Expense: ₹0.04 Cr — Company operates as a virtually debt-free entity with zero long-term debt.
- Employee Cost % of Revenue: 5.02% — Based on Mar 31, 2025 annual data, maintained at low levels.
Is Gandhi Special Tubes Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Gandhi Special Tubes Ltd may be worth studying
- Earnings growing at +33.3% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹47 Cr
What is the investment thesis for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +20.0% YoY
- Appears significantly undervalued
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Key risk: Implementation of New Labour Codes resulted in a one-time exceptional charge imp
What is the future outlook for Gandhi Special Tubes Ltd?
Gandhi Special Tubes Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Undervalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Implementation of New Labour Codes resulted in a one-time exceptional charge imp
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.