Leading Supplier of Process Equipments to the Pharmaceutical and Chemical Industries Secures Rs 330 Crore European Contract Through German Subsidiary,
While the 1-year return is down by 14.93 per cent and the 3-year return by 11.25 per cent
GMM Pfaudler Limited has announced a major international contract win through its wholly-owned German subsidiary, Pfaudler Normag Systems GmbH. The contract, valued at EUR 33.2 million (approximately Rs 330 crore), has been awarded by a prominent European manufacturer engaged in the production of light and medium weapons, ammunition, and tools for both defense and civilian sectors. This development marks a key milestone for the Indian Mid-Cap company, further reinforcing its global presence and expertise in corrosion-resistant systems.
The scope of the order involves the design, engineering, and supply of complete end-to-end acid recovery equipment and systems. The company is expected to receive a 30 per cent down payment upon signing, with the execution timeline spread across four years. This large international order is likely to contribute meaningfully to the company's revenues, highlighting the trust placed in GMM Pfaudler’s engineering and project execution capabilities by global clients.
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As of June 19, 2025, the stock of GMM Pfaudler is trading at Rs 1,148.7, compared to its 52-week high of Rs 1,466.9 and 52-week low of Rs 1,002.6. The company's market capitalization stands at Rs 5,228 crore. While the 1-year return is down by 14.93 per cent and the 3-year return by 11.25 per cent, the long-term fundamentals remain tied to its core manufacturing segments and global operations. The Price-Earnings (PE) ratio is currently at 98.18, reflecting investor expectations around future earnings growth.
GMM Pfaudler is a leading player in the glass-lined equipment industry, serving primarily the pharmaceutical and chemical sectors. With operations spread across India, Europe, the Americas, and China, it has 20 manufacturing facilities globally. The business is segmented into Technologies, Services, and Systems, with Technologies accounting for 60 per cent of revenue. In FY24, the company recorded an order intake of around Rs 3,000 crore and maintained an order backlog of Rs 1,700 crore. Looking ahead, the company targets a revenue of Rs 3,700 crore and an EBITDA margin of 17 per cent for FY25.
Recent strategic initiatives include the acquisition of Canada-based MixPro to expand its industrial mixing product line. Despite global market headwinds, signs of recovery are emerging in Europe and the Americas, supporting a positive outlook. Petunia Investments Limited is a notable public shareholder, holding an 8.25 per cent stake in the company.
Disclaimer: The article is for informational purposes only and not investment advice.