Gaekwar Mills Limited

1. Introduction

Gaekwar Mills Limited (ZGAEKWAR) lists on BSE, incorporated June 16, 1928 in Mumbai, Maharashtra, one of India's oldest textile firms. Ran fabric manufacturing at Bilimora, Gujarat plant under the old name 'The Gaekwar Mills Limited'. Shut down from labor unrest; declared sick by BIFR.

Important Note

Zero revenue over a decade. BIFR scheme approved 40% land for new textile units, 60% for real estate to fund revival and redeem debentures. Exited liquidation via Bombay HC June 2016 order. Real estate stalled on municipal nods. Carries Rs. 78.93 crore frozen NCD debt, Rs. 72.17 crore losses vs. Rs. 9.61 crore FY24 assets.

FY26 shift: expenses crashed from Rs. 4.83–4.94 crore yearly to Rs. 0.05–0.09 crore quarterly, flipped to tiny profits. Report covers background, promoters, FY22 - 24 finances.

2. Company Overview

Background and History

Incorporated in June 1928, operated a large fabric plant in Bilimora, South Gujarat for decades. Labor strife killed ops; sent to BIFR under Sick Industrial Companies Act. Revival sanctioned 60% land for real estate cash, 40% new textile setup. Bombay HC ended liquidation in June, 2015 (effective 2016). 

NCD Structure

Rs. 74-79 crore borrowings of Non-Convertible Debentures from BIFR scheme. Feb 2026 BSE filing seeks extension on Rs. 30 crore Series A, Rs. 5 crore Series B maturing unpaid. Zero interest cost, no cash payouts to NCD holders. Frozen under scheme; redemption tied to land sales.

FY26 Expense Collapse - Significant Development

Q1 FY26 on, quarterly expenses plunged from Rs. 1.20-1.25 crore to Rs. 0.02-0.05 crore. Other income steady Rs. 0.10-0.11 crore. Now small profits Rs. 0.06-0.09 crore quarterly first in years. BSE silent on cause; possible write-backs, old liability settlements, or staff cuts.

3. Promoter Introduction

Promoter holding fell to 0% from June 2023 and stayed there through Dec 2025. Previously just 1.07% was already near-zero. The company runs fully promoter-less. Current board per BSE FY24 annual report:

Table 1: Ownership Structure

Zero promoters marks the weakest governance in this series. 97.56% public float, no clear control. Company secretary and board nominees steer; NCD lenders hold real financial sway.

4. Financial Statement Analysis

4.1 Income Statement (FY22–FY24)

Zero operations revenue every year since FY14, through FY26. No business for over a decade. Expenses steady at Rs. 4.94, 4.89, 4.87 crore on admin, legal, NCD upkeep to stay listed. Other income swung -1.62 crore FY22 (write-down), 1.25 FY23, 0.75 FY24. Net losses Rs. 6.56, 3.64, 4.12 crore. Zero interest, dep, tax.

Table 2: Income Statement - FY22 to FY24

4.2 Balance Sheet (FY22–FY24)

Assets melted from Rs. 17.55 crore FY22 to 9.61 FY24-shell status. Rs. 2 crore equity vs. reserves -64.42, -68.06, -72.17 crore (30x equity losses). Net worth -62 to -70 crore; book value ~Rs. -372/share (Screener). Rs. 74–79 crore NCD borrowings frozen from BIFR. Fixed assets zero. 

Table 3: Balance Sheet Summary - FY22 to FY24 

4.3 Cash Flow

Cash moves tiny. Ops cash +0.46 crore FY22, -0.03 FY23, 0 FY24. No investing-no real land spend capitalized. Financing outflows -0.17 FY23, -0.25 FY24 possibly partial NCD buys from other income. No real cash engine anywhere.

Table 4: Cash Flow Summary - FY22 to FY24

4.4 Key Ratios

Table 5: Key Financial Ratios - FY22 to FY24 

5. Key Insights and Interpretation

Bilimora Land - Core Asset

All value hinges on Bilimora, Gujarat land: size, location, development viability. BIFR scheme earmarks 60% for real estate to redeem NCDs, fund 40% textile revival. Years of municipal approval delays persist-no construction start per latest reports. Financial erosion continues absent land sale.

Frozen NCDs - No Cash Burden

Rs. 78.93 crore borrowings are BIFR NCDs, not bank debt. Zero interest payments. Feb 2026 BSE filing requests extensions on Rs. 30 crore Series A, Rs. 5 crore Series B-maturing unpaid, repeatedly rolled. NCD holders await land proceeds for redemption.

FY26 Expense Drop

Q1 FY26 (Jun 2025) expenses crashed from ~Rs. 1.20 crore/quarter to Rs. 0.02–0.05 crore. Yields Rs. 0.06–0.09 crore quarterly profits (Q1–Q3 FY26) first in years. BSE filings silent; likely write-offs, liability settlements, or staff/legal cuts. Unconfirmed, so treat cautiously.

Zero Promoter Control

Holding dipped from 1.07% to 0% (Jun 2023 onward). Worst governance, no accountable group. 97.56% public (1,108 shareholders); 5–10% stake could sway direction.

6. Conclusion

97-year-old shell: ceased operations decades ago. Sole asset Bilimora land is locked in approvals. FY22–24: zero revenue, Rs. 4.87–4.94 crore annual admin losses, book value Rs. -312 to -351/share. Rs. 78.93 crore NCDs frozen.

Sole positive: FY26 expense collapse flips tiny profits. Rs. 15/share, Rs. 3.01 crore mcap rides land speculation, no earnings, ops, or control.

Sources:

1. Screener
2. BSE