How has been the historical performance of Garodia Chemical?

Revenue and Profitability Trends

Throughout the period under review, Garodia Chemical has reported zero net sales and other operating income, resulting in total operating income consistently at nil. This absence of revenue generation has directly impacted the company's profitability, with operating profits (PBDIT) excluding other income remaining negative each year. The losses have ranged from a deficit of approximately ₹0.20 crore in 2019 to a peak loss of around ₹0.68 crore in 2020, before moderating to a loss of ₹0.21 crore in 2025.

Operating margins have remained at 0.0% throughout, reflecting the lack of revenue and persistent operating expenses. Employee costs, although minimal, have shown a slight increase in recent years, while other expenses have fluctuated, peaking at ₹0.68 crore in 2020 and declining to ₹0.19 crore by 2025. Manufacturing expenses were recorded only in 2019 at ₹0.20 crore, with no subsequent entries.

Balance Sheet and Financial Position

Garodia Chemical's balance sheet reflects a strained financial position. Share capital has remained stable at ₹7.20 crore, but reserves have been negative since 2019, deepening to nearly -₹11.90 crore by 2025. Consequently, shareholders' funds have been negative throughout, reaching approximately -₹4.70 crore in the latest fiscal year.

The company has maintained long-term borrowings, exclusively unsecured loans, which have increased steadily from ₹3.66 crore in 2020 to ₹4.82 crore in 2025. Current liabilities remain minimal, with trade payables and other current liabilities collectively under ₹0.05 crore in recent years. Total liabilities have decreased slightly from ₹0.17 crore in 2020 to ₹0.14 crore in 2025.

On the asset side, Garodia Chemical holds negligible non-current assets, with no gross block or capital work in progress reported. Non-current assets primarily consist of minor long-term loans and other non-current assets amounting to ₹0.06 crore. Current assets are minimal, with cash and bank balances fluctuating between ₹0.00 crore and ₹0.03 crore, and short-term loans and advances around ₹0.04 to ₹0.05 crore.

Book value per share has been negative throughout, declining from approximately -₹5.58 in 2020 to -₹6.52 in 2025, reflecting the accumulated losses and negative reserves.

Cash Flow and Earnings

Cash flow statements indicate no reported cash inflows or outflows from operating, investing, or financing activities during the period analysed. Opening and closing cash and cash equivalents have remained at or near zero, suggesting limited liquidity and operational activity.

Earnings per share (EPS) have been negative every year, with the steepest loss recorded in 2020 at nearly -₹0.94 per share. The EPS has shown some improvement since then but remains negative at approximately -₹0.29 per share in 2025, signalling ongoing unprofitability.

Summary and Outlook

In summary, Garodia Chemical has experienced a prolonged period without revenue generation, resulting in continuous operating losses and a deteriorating net worth. The company’s financial structure is characterised by negative shareholders’ funds and increasing unsecured borrowings, while asset holdings remain minimal. The absence of cash flow activity further underscores the limited operational engagement during the years reviewed.

For investors and market analysts, these factors highlight significant challenges in the company’s financial health and operational viability. Without a clear turnaround in revenue generation or cost management, the historical performance suggests ongoing financial strain.

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