Altman Z″
Needs current assets and current liabilities.
GULF · Not specified · INE1WDC01012
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Gulf Lloyds (India) Limited provides third-party quality inspection, verification, audit, and certification services across various industries including oil and gas, retail, manufacturing, infrastructure, food, pharmaceutical, consumer products, energy, textile, construction, refinery, power plants, aerospace, and electrical & electronics. The company operates in the service industry and does not require conventional raw materials. Its operations depend on the technical expertise of its personnel, which includes 584 regular inspection engineers and 68 freelance inspection engineers out of a total 715 employees. The company operates from multiple leased premises situated at Gala Empire, Thaltej, Ahmedabad. To offer testing and training services in-house, the company incorporated a subsidiary and has entered into MOUs with NABL-accredited laboratories for testing activities. It acquires business from top domestic and export clients, with the top 10 customers contributing 73.93% of revenue from operations in Fiscal 2026.
Gulf Lloyds (India) Limited carries on the business of third-party quality inspection, audit and certification services to all type and size of industries and industrial sectors.
Source: p.280, p.281, p.282, p.283, p.290, p.296, p.387
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived |
|---|---|---|---|---|---|---|---|
| consolidated FLAG: basis differs from previous years | FY26 | 4.3029 | 7.9039 | 12.06% | 35.6794 | yes | |
| standalone | FY25 | 4.668 | 7.6645 | 13.11% | 35.6082 | yes | |
| standalone | FY24 | 1.6775 | 2.9651 | 7.21% | 23.2599 | yes |
Written before listing, answered from the document itself.
How are the IPO funds being deployed?
The Rs 18.19 Cr fresh issue will primarily fund working capital (Rs 7.15 Cr), capital expenditure for office premises (Rs 3.71 Cr), and repayment of unsecured loans (Rs 3.00 Cr).
p.216
Who are the promoters and what is their holding?
The promoters are Jaykumar Bhagirathkumar Bhavsar, Bhagirath Punjalal Bhavsar, Anitaben Bhagirathkumar Bhavsar, and Shivaniben Jaykumar Bhavsar. They will hold 72.88% post-issue, and their average cost of acquisition is highly diluted and near zero due to a massive bonus issue in May 2025.
p.174, p.177, p.184, p.194
Are there material related party transactions extracting value?
Yes. The company engages in heavy unsecured borrowing and lending with its directors and has notably given capital advances to multiple directors specifically for property purchases. It also pays rent to its directors.
p. 130, p. 131, p. 132, p. 436, p. 437
Does the company's cash flow match its reported profits?
No. In FY26, the company reported a PAT of Rs 4.30 Cr but generated negative operating cash flows of Rs -1.37 Cr. This decay was exacerbated by trade receivables climbing to Rs 15.56 Cr.
p. 116-126, 212-213, 329-331, 335-337, 340-345, 411, 466-468, 474-475
What structural market risks apply to this issue?
As an SME IPO, it carries a standing context of a strict minimum investment lot size (1200 shares), mandatory 5% circuit filters, high dependence on the designated market maker (Prabhat Financial Services Limited) for liquidity, and an inherently thin free float.
p.2, p.8, p.11, p.43, p.124, p.148, p.154
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2014-09-26 | Jaykumar Bhagirathkumar Bhavsar | 3000 | 10 | promoter | initial | p.174 |
| 2014-09-26 | Bhagirath Punjalal Bhavsar | 4000 | 10 | promoter | initial | p.174 |
| 2014-09-26 | Anitaben Bhagirathkumar Bhavsar | 3000 | 10 | promoter | initial | p.174 |
| 2016-03-04 | Jaykumar Bhavsar | 300 | 10 | promoter | transfer | p.190 |
| 2016-03-04 | Anitaben Bhavsar | 300 | 10 | promoter | transfer | p.192 |
| 2024-12-03 | Shivaniben Bhavsar | 5 | 5000 | promoter | transfer | p.192, p.193 |
| 2024-12-03 | Ashokkumar Bhavsar | 3 | 5000 | promoter group | transfer | p.192 |
| 2024-12-03 | Nimisha Bhavsar | 3 | 5000 | promoter group | transfer | p.192 |
| 2024-12-03 | Akash Dhobi | 3 | 5000 | other | transfer | p.192 |
| 2024-12-03 | Shivam Shah | 3 | 5000 | other | transfer | p.193 |
| 2025-05-12 | Jaykumar Bhagirathkumar Bhavsar | 1617000 | promoter | bonus | p.177 | |
| 2025-05-12 | Bhagirath Punjalal Bhavsar | 1666000 | promoter | bonus | p.177 | |
| 2025-05-12 | Anitaben Bhagirathkumar Bhavsar | 1608670 | promoter | bonus | p.177 | |
| 2025-05-12 | Shivaniben Jaykumar Bhavsar | 2450 | promoter | bonus | p.177 |
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
ROE of 31.6% breaks into a 12.1% net margin, 1.01x asset turnover, and 2.59x leverage.
Why this reading: Surfaced for context, not as a concern — it only becomes meaningful if it persists or pairs with other signals.
ROE 31.6% = net margin 12.1% × asset turnover 1.01x × equity multiplier 2.59x. Reading ROE through its three drivers shows whether returns are built on pricing power (margin), capital efficiency (turnover), or borrowing (leverage).
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Needs at least two financial years.
Needs two financial years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
(net profit − operating cash flow) ÷ average total assets
(₹4 − ₹-1) cr ÷ average assets
16.1%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
12.1% × 1.01 × 2.59
31.6%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹7 cr ÷ ₹2 cr
4.53×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹16 cr ÷ ₹14 cr
1.15×
Read against the sector — infrastructure carries more than software.Needs two financial years.
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Models that need these lines are withheld rather than estimated: two comparable financial years. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Not specified). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
How the register has moved over recent quarters — the direction matters more than the level.
Promoter held steady from 72.92% to 72.92% across these quarters.
Other held steady from 27.08% to 27.08% across these quarters.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2026 |
|---|---|
| Debtor days
How long customers take to pay | 159 |
| Cash conversion cycle
Debtor + inventory − payable days | 159 |
| Working capital days | 58 |
The shape of the business over time (annual) — read the direction, not the single print.
| Item | FY2026 |
|---|---|
| Equity Capital | 5 |
| Reserves | 9 |
| Borrowings | 16 |
| Net block | 2 |
| CWIP | 0 |
| Investments | 0 |
| Total Assets | 35 |
| Line | FY2026 |
|---|---|
| Cash from operations | -1 |
| Cash from investing | -1 |
| Cash from financing | 5 |
| Free cash flow | -3 |
| Net change in cash | 2 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
The same read, applied to the companies this one competes with.