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Grindwell Norton Ltd

NSE: GRINDWELL BSE: 506076

1662.40

(-0.14%)

Wed, 11 Mar 2026, 06:54 am

Grindwell Norton Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.2x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Grindwell Norton's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Grindwell Norton's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Grindwell Norton's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Grindwell Norton's earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Machinery industry average.
  • An improvement in Grindwell Norton's performance (ROE) is expected over the next 3 years.
  • Grindwell Norton's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Grindwell Norton is expected to decrease over the next 2 years.
  • Grindwell Norton's earnings are expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
  • Grindwell Norton's earnings growth is positive but not above the India market average.
  • Grindwell Norton's earnings are expected to decrease over the next year.
  • Grindwell Norton's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Grindwell Norton is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Grindwell Norton's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Grindwell Norton's revenue is expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Grindwell Norton is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Grindwell Norton is profitable, therefore cash runway is not a concern.
  • Grindwell Norton is profitable, therefore cash runway is not a concern.
  • Grindwell Norton's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (2.4% vs 0% today).
  • Grindwell Norton has no debt, therefore coverage of interest payments is not a concern.
  • Grindwell Norton's level of debt (0%) compared to net worth is satisfactory (less than 40%).
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Cons

  • Operating cash flow is negative therefore debt is not well covered.
  • Debt is not covered by short term assets, assets are -3.4793473714925E+17x debt.
  • High level of physical assets or inventory.

management

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Pros

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    Cons

    • The average tenure for the Grindwell Norton board of directors is less than 3 years, this suggests a new board.

    past

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    Pros

    • Grindwell Norton's year on year earnings growth rate has been positive over the past 5 years.
    • Grindwell Norton used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
    • Grindwell Norton has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Grindwell Norton's earnings growth has exceeded the IN Machinery industry average in the past year (9.1% vs -7.2%).
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    Cons

    • Grindwell Norton's 1-year earnings growth is less than its 5-year average (9.1% vs 13.8%)
    • Grindwell Norton has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • 506076 outperformed the Machinery industry which returned -23.7% over the past year.
    • 506076 outperformed the Market in India which returned -14.5% over the past year.
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    Cons

    • Grindwell Norton's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Grindwell Norton's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Grindwell Norton is overvalued based on assets compared to the IN Machinery industry average.
    • Grindwell Norton is poor value based on expected growth next year.
    • Grindwell Norton is overvalued based on earnings compared to the IN Machinery industry average.
    • Grindwell Norton is overvalued based on earnings compared to the India market.
    • BSE:506076 is up 5.2% underperforming the Machinery industry which returned 8.3% over the past month.
    • BSE:506076 is up 5.2% underperforming the market in India which returned 8% over the past month.

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