Manufacturing Profits Since 1962: How GMM Pfaudler Rallied By 1640% In 4 Years

Published by Trinkerr Academy on

₹1 lakh Invested In September 2018, ₹16.4 lakhs today 💵

⚙️ Stock Name: GMM Pfaudler Ltd.

🌟 About The Company
GMM Pfaudler was started in 1962 as Gujarat Machinery Manufacturers. The company has been in the manufacturing industry for more than 50 years. It was listed on the exchange in 1979. Pfaudler Inc., the parent company, is based in the USA and is the world leader in glass-lined equipment. Pfaulder acquired 40% of Gujarat Machinery Manufacturers to form a joint venture and increased its stake to 51% in 1991.

🧺 Product Portfolio
Over the years, the company has diversified itself to offer:
⚙️ Mixing Systems
⚙️ Filtration & Drying Equipment
⚙️ Engineered Systems
⚙️ Tailor-made Process Equipment

🗝️ Key Developments
⚙️ With no shares pledged, it has had a strong promoter holding from the beginning which shows the high conviction of promoters in the company.
⚙️ Has very little to no debt historically which is a sign of efficient utilisation of the funds.
⚙️ Top and bottom lines have grown consistently over the years.
⚙️ Profits have grown by 29% annually for the last 5 years and revenue has grown by 25% annually.
⚙️ Has good fundamentals and enjoys a 50% monopoly in the glass line industry, domestically.

💰 Stock Value
⚙️ The company issued a bonus of 2:1 on 11 July 2022, reducing the buying price from ₹343.40 to ₹114.54 by increasing the total number of shares from 291 to 873.

⚙️ On September 24, 2018, the shares of the company were trading at ₹343.40, while they were priced at ₹1884.85 as of September 23, 2022.


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