Butterfly Gandhimathi Appliances Reports Strong Profit Growth Amid Declining Institutional Interest

Butterfly Gandhimathi Appliances, a small-cap player in the Electronics & Appliances sector, has recently undergone an adjustment in its evaluation. The company reported positive financial performance for the quarter ending March 2025, with a notable growth in profit before tax (PBT) and profit after tax (PAT). Specifically, PBT reached Rs 9.78 crore, reflecting a growth rate of 138.08%, while PAT stood at Rs 9.03 crore, marking an increase of 151.2%.
Despite these positive quarterly results, the company has exhibited a low Debt to Equity ratio of 0.03 times, indicating a conservative financial structure. However, long-term growth metrics reveal a more complex picture, with net sales growing at an annual rate of 4.96% and operating profit at 9.37% over the past five years. Additionally, institutional investor participation has seen a decline, with a reduction of 1.09% in their stake over the previous quarter.

The stock has generated a return of -14.45% over the past year and has consistently underperformed against the benchmark BSE500 in the last three annual periods. The company's attractive valuation is highlighted by a return on equity (ROE) of 10 and a price-to-book value ratio of 4, although it trades at a discount compared to its peers' historical valuations.

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