Graphite India Limited stands as one of India's leading manufacturers of graphite electrodes and related carbon products, with operations spanning over five decades since its establishment in 1967. The company specializes in the production of high-quality electrodes used in electric arc furnaces for steel production, maintaining advanced manufacturing processes and commitment to quality that ensures products meet international standards. Founded in collaboration with the erstwhile Great Lakes Carbon Corporation (GLCC) of the US, Graphite India Ltd. has been in the graphite and carbon industry for more than 50 years.
Graphite India Ltd. is presently headquartered in Kolkata, West Bengal. Founded in 1974, GIL has established an 18MW hydel power for captive consumption and its manufacturing facilities are located across the nation. The company's business model focuses on manufacturing and selling of graphite & carbon and other products.
The company operates an extensive manufacturing network with six manufacturing plants in India. The company operates three operations in Nurnberg, Germany, & Durgapur & Nashik, India, with a combined manufacturing capacity of 98,000 TPA. In addition to this, the company also has a 100% owned subsidiary, Graphite COVA GmbH, at Nuremberg, Germany.
However, the company has undertaken strategic restructuring measures. The corporation has made the decision to liquidate a step-down subsidiary & to stop producing graphite electrodes in Germany. ₹53 Crore were set aside to meet the costs of restructuring, social security, & property, plant, & equipment impairment.
Graphite Products, Other Miscellaneous Carbon, & Graphite Electrodes are among the products that the company produces. They also produce carbon paste, impervious graphite equipment (IGE) & spares, & calcined petroleum coke. Graphite India Ltd. is a prominent manufacturer of graphite electrodes and carbon and graphite specialty products, such as flexible graphite sheets and tubes in the country.
The company's strong market presence, technological expertise, & focus on customer satisfaction have positioned it as a key player in the graphite industry. With global partnerships and efficient production, it ensures timely deliveries and maintains a strong global presence in the industry.
As of the latest available data, Graphite India Ltd has a Market Cap of ₹11,025 Crore. Today's market capitalization of Graphite India Ltd (GRAPHITE) is ₹9,503.07 Crore. The company has shown mixed financial performance in recent periods.
- Revenue Performance: Graphite India (NSE) has an operating revenue of ₹2,560.00 Crore on a trailing 12-month basis. An annual revenue de-growth of -8% needs improvement.
- Quarterly Performance (Q3 FY25): For the third quarter of fiscal year 2025 (Q3 FY25), Graphite India Ltd reported total income of ₹542 Crore. This represents a decline of 33.2% compared to the previous quarter (Q2 FY25), where the total income was ₹811 Crore. Year-over-year, the total income also saw a decrease of 28.0% from ₹753 Crore in Q3 FY24.
- Profitability Challenges: The profit after tax for Q3 FY25 was a loss of ₹21 Crore, contrasting sharply with the profit of ₹194 Crore in the previous quarter and ₹17 Crore in the same quarter of the previous year.
- Debt Position: Company is almost debt-free. The company is debt free and has a strong balance sheet, enabling it to report stable earnings growth across business cycles.
- Return Metrics: Company has a low return on equity of 4.62% over last 3 years. Pre-tax margin of 23% is great, ROE of 7% is fair but needs improvement.
- Dividend Policy: Company has been maintaining a healthy dividend payout of 52.1%.
The company has faced operational challenges in recent periods. FY23's consolidated capacity utilization was approximately 55%, compared to FY22's 81%. The company has delivered a poor sales growth of -3.72% over the past five years.
Working capital days have increased from 307 days to 539 days. This indicates challenges in working capital management that the company needs to address.
Graphite India has been focusing on sustainability initiatives. Graphite India received an independent ESG score of 57 for FY 2023-24 from NSE Sustainability. SES ESG Research assigned Graphite India 61.3 ESG score for FY2023-24, unsolicited and publicly sourced.
Graphite India is part of BSE 500, Nifty 500, BSE SmallCap, BSE Allcap, BSE Industrials, BSE 250 SmallCap Index, BSE 400 MidSmallCap Index, Nifty MidSmallcap 400, Nifty Smallcap 250, Nifty 500 Multicap 50:25:25, Nifty Total Market, Nifty500 Equal Weight, Nifty500 LargeMidSmall Equal-Cap indices, reflecting its significant presence in the Indian equity markets.
Analyst recommendations show cautious optimism. Graphite India Ltd target price ₹654, a slight upside of 34.46% compared to current price of ₹486.4, according to 2 analyst ratings. The company's strong market position in the graphite electrode industry, debt-free status, and established manufacturing capabilities provide a solid foundation, though operational efficiency improvements and market demand recovery remain key factors for future performance.
The company continues to focus on maintaining its leadership position in the graphite electrode market while addressing operational challenges and exploring opportunities for growth in the evolving steel industry landscape.
