Butterfly Gandhimathi Appliances 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.

Butterfly Gandhimathi Appliances Ltd trades at ₹586, in a confirmed uptrend and 9 weeks into that stage. That is −12.1% against its own 200-day average. It sits at 0% of a 52-week range of ₹586 to ₹776. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (4 weeks and counting).

Today the stock is in a confirmed uptrend — week 9 of stage 2, confirmed. At ₹586 it trades −12.1% versus its 200-day average and sits at 0% of its 52-week range (₹586–₹776).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +233% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (4 weeks and counting; last ahead the week of 2026-08-14) — 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.

Story check

Butterfly Gandhimathi Appliances Ltd's story is not scored yet against the markers our research file set on 19 July 2026. Where it sits in its own cycle: EXPANSION_STARTED. Still open: A drop in OPM below the normalized historical level coupled with negative free cash flow for two consecutive quarters would invalidate the deleveraging and cash-conversion thesis.

Our read, 19 July 2026. Early stage earnings-driven compression with deleveraging balance sheet, but requires margin inflection to sustain.

From the numbers. PE has compressed significantly, down from an anomalous peak. This contraction has been earnings-driven, reflecting a stabilizing operational base.

From the price. Price stage 2, week 9 — below its 200-day line, relative strength falling.

From the research. Early stage earnings-driven compression with deleveraging balance sheet, but requires margin inflection to sustain.

🚨 Where they disagree. PE has compressed significantly, down from an anomalous peak. This contraction has been earnings-driven, reflecting a stabilizing operational base.

What is proven. Early stage earnings-driven compression with deleveraging balance sheet, but requires margin inflection to sustain.

What is not proven yet. A drop in OPM below the normalized historical level coupled with negative free cash flow for two consecutive quarters would invalidate the deleveraging and cash-conversion thesis.

🚨 What would change our mind. A drop in OPM below the normalized historical level coupled with negative free cash flow for two consecutive quarters would invalidate the deleveraging and cash-conversion thesis.

Layer 1 read, 19 July 2026 — KEEP. Real margin and cash normalization off a FY24 loss, but the top line is stagnant — a recovery, not a growth story. Butterfly's OPM has normalized to a stable 7-9% with WC improving to 22 days and strong cash conversion, and the PE sits at the 21st percentile — a genuine deleveraging recovery. But the headline +1025% EPS is a base effect off the Mar-2024 loss quarter (EPS -11.05), and FY26 revenue is actually below FY22 with implied growth already STRETCHED — so there is only one nameable runway driver (margin normalization). Bronze/synthetic build with 7 inferred claims caps conviction at P2.

What would change Layer 1’s mind. If OPM drops below the normalized ~7% level coupled with negative free cash flow for two consecutive quarters, the deleveraging/cash-conversion thesis is invalidated; conversely, a resumption of real revenue GROWTH (Q1FY27 revenue YoY meaningfully positive) would upgrade this toward P1.

Layer 2 read, 19 July 2026 — BENCH. Real margin recovery but no revenue growth behind it and no external signal — thin P2 held on the bench. Butterfly's turnaround is genuine on the margin/cash side — OPM has normalized to 7-9%, working capital tightened to 22 days and cash conversion is strong (OCF/PAT 1.85) at a compressed 21st-percentile PE. But it is a one-legged recovery: the top line is stagnant, with FY26 revenue below FY22 and TTM revenue flat even as profit grew off a base-effect loss quarter, so the Margin-Inflection-vs-Revenue-Growth model argues against a durable re-rating. The sector is out-of-gate with no external stream to corroborate anything, so with an elevated MoS and synthetic-only conviction this stays a bench candidate.

What would change Layer 2’s mind. Two consecutive quarters of top-line growth (revenue clearing the FY22 level) confirming the margin recovery is now volume-backed — that would add the missing second runway leg and flip BENCH→ADVANCE. Conversely, OPM dropping below the normalized level with negative FCF for two quarters would flip it toward DROP.

The test written in advance. A drop in OPM below the normalized historical level coupled with negative free cash flow for two consecutive quarters would invalidate the deleveraging and cash-conversion thesis. — the thesis as written as stated by the next result.

The test written in advance. Top-line stagnation — Top-line stagnation Q1 FY27 revenue YoY growth by the next result.

What the company does. PE has compressed by half year-on-year to its trough decile, driven primarily by earnings. Cash conversion is strong (OCF to PAT near double over three years), with generated free cash flow used to repay debt. Revenue growth is flat and margins have been steady, meaning the multiple compression needs a top-line catalyst to drive a re-rating.

🚨 What the surface reading misses. The surface reading is: PE is extremely low, suggesting undervaluation. The research reads it further: The compression is earnings-driven following a cyclical normalization of margins rather than a fundamental business collapse.

Lever 1 · Operating leverage — BUILDING. Consistent cash conversion driving debt reduction. What proves it keeps working: Deleveraging via Free Cash Flow. It stops working if Working capital cycle elongates, absorbing operational cash flow.

Sources: our stock research file (19 July 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

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

Butterfly Gandhimathi Appliances Ltd reported ₹214 Cr of revenue in the Jun 26 quarter, +14.1% year on year. That is the 7th straight quarter of year-on-year growth. Over 10 years it has compounded at 0.5% a year. The last full year, FY26, came in at ₹943 Cr. The last four reported quarters add to ₹970 Cr.

FY26 revenue came in at ₹943 Cr (+9.0% on the year), capping 10 years at 0.5% compound. The latest quarter (Jun 26) printed ₹214 Cr, +14.1% year on year — the 7th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +11.8% growth against the decade's 0.5% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +11.4% over the last 4 quarters against +4.1%/yr over the last 8 — accelerating.

FY26-Q3. Revenue and operating margin were consistent with historical averages. The performance indicates stable execution in a potentially soft demand environment, with working capital metrics continuing to support cash flow generation.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

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.

Butterfly Gandhimathi Appliances Ltd's operating margin is 7.0% in the Jun 26 quarter, +0.2 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged −4.9% to 9.0%. The current quarter sits inside that band.

Why this happened. The company has demonstrated a structural ability to convert profits into cash, generating healthy free cash flow over multiple years. This cash is being actively deployed to pay down debt, strengthening the balance sheet and reducing interest burden.

The latest quarter's operating margin is 7.0%, +0.2 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −4.9%–9.0%, and FY26's 9.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.2 pp year on year while gross margin went +0.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q3. Revenue and operating margin were consistent with historical averages. The performance indicates stable execution in a potentially soft demand environment, with working capital metrics continuing to support cash flow generation.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

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

Butterfly Gandhimathi Appliances Ltd earned ₹8.9 Cr of net profit in the Jun 26 quarter, +38.3% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹46.0 Cr. The 10-year compound rate is 14.4%. That is 4.2% of the quarter's revenue. The same quarter a year earlier earned ₹6.4 Cr.

Jun 26 profit was ₹8.9 Cr, +38.3% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹46.0 Cr (+39.4%), and the 10-year compound rate is 14.4%.

Why profit moved: revenue contributed +14.1% and the margin +0.2 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +32.2% vs revenue +11.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q3. Revenue and operating margin were consistent with historical averages. The performance indicates stable execution in a potentially soft demand environment, with working capital metrics continuing to support cash flow generation.

Why-sources: our stock research file (19 July 2026) and the company’s own results for those quarters.

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 185% of Butterfly Gandhimathi Appliances Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹88.0 Cr of operating cash against ₹46.0 Cr of profit. After ₹14.0 Cr of capital spending, ₹74.0 Cr was left as free cash.

FY26: operating cash of ₹88.0 Cr against reported profit of ₹46.0 Cr, leaving free cash of ₹74.0 Cr after ₹14.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 185% 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 185%: the cash cycle held roughly steady between FY21 and FY26 — so conversion tracks profitability rather than the cycle.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

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).

Butterfly Gandhimathi Appliances Ltd's cash conversion cycle runs 48 days in FY26, up from 42 days in FY21. Capital spending ran ₹51.0 Cr over the last 3 years. At FY26 sales of ₹943 Cr each day of that cycle holds about ₹2.6 Cr, so roughly ₹124 Cr sits inside the business at any moment.

FY26: debtors at 23 days, inventory at 91 days — roughly 3.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 48 days, looser than FY21's 42.

The full loop: cash goes out to suppliers and production on day 0; stock waits 91 days to sell; customers pay about 23 days after that; and suppliers themselves are paid at 67 days — netting out to the 48-day cycle.

In money terms: at FY26 sales of ₹943 Cr, each day of the cycle holds about ₹2.6 Cr — so the 48-day loop keeps roughly ₹124 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹51.0 Cr over the last 3 fiscal years against ₹65.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹4.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

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.⚠ unverified

Butterfly Gandhimathi Appliances Ltd earns a ROCE of 17% in FY26. That is up from a trough of −8% in FY17. Return on invested capital clears the cost of that capital by +4.9 percentage points, so growth here adds value rather than only size. The wiring behind it is 4.9% net margin on 1.69× asset turns.

FY26 ROCE is 17%, recovered from a FY17 trough of −8% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 4.9% net margin × 1.69× asset turns × 1.50× balance-sheet leverage ≈ 12.4% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 16.9% − 12.0% = a +4.9 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.

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.⚠ unverified

Butterfly Gandhimathi Appliances Ltd carries total debt of ₹8.0 Cr against shareholder equity of ₹372 Cr as of Mar 26, a debt-to-equity of 0.02 — effectively unlevered. On the annual view that ratio went from 0.23 in FY22 to 0.02 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹8.0 Cr against shareholder equity of ₹372 Cr — a debt-to-equity of 0.02. On the annual view, debt-to-equity went from 0.23 (FY22) to 0.02 (FY26). The returns on this page are earned, not borrowed.

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.

Domestic institutions cut 4.7 points of Butterfly Gandhimathi Appliances Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 0.4% of the company. Promoters moved +0.0 points over the same window, to 75.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −4.7 points over 8 quarters to 0.4%; Promoters: +0.0 points over 8 quarters to 75.0%; Foreign institutions: +0.0 points over 8 quarters to 0.0%.

🚨 Why the register moved: domestic institutions drove it (−4.7 points) — distribution into the market’s bid.

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.

Butterfly Gandhimathi Appliances 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.

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.

Butterfly Gandhimathi Appliances Ltd trades at 21.3× P/E, near the bottom of its own range — cheaper only 4% of the time. Its long-run median P/E is 39.8×, measured across 10.5 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 21.3× is near the bottom of its own range — cheaper only 4% of the time, against a long-run median of 39.8× measured over 10.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +40.4% against a −16.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the −6.8%/yr price move, ~+1.5%/yr came from earnings growth and ~−8.3 pp from the multiple (compressing). 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 low against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources do not share enough overlapping reported history to be compared. A figure nobody could check is not used to price growth — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 20 July 2026 price, Butterfly Gandhimathi Appliances Ltd was paying for profit growth of about 18.7% a year. Profit itself has compounded 14.4% a year over the past 10 years. Today the market pays 21.3× P/E, the 4th percentile of its own 11-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 20 July 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed 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).

Butterfly Gandhimathi Appliances Ltd reads as mixed on its fundamental arc. Mixed — no clean majority across the growth curves, ROCE holding at 17.0% — the per-curve reads carry the story. The read is built from 9 quarters across 3 curves, on partial evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

51.9/100 — rank 3 of 6 in Domestic Appliances · 87% evidence confidence

Butterfly Gandhimathi Appliances Ltd scores 51.9 out of 100 against the 6 companies it is compared with in Domestic Appliances, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 20.2 + 14.3 + 14.4 + 3 = 51.9. 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.

Frequently asked questions