GOCL Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.
Growth
Compounded Sales Growth
10 Years:
-5%
5 Years:
6%
3 Years:
20%
TTM:
-22%
Compounded Profit Growth
10 Years:
-2%
5 Years:
7%
3 Years:
-15%
TTM:
-16%
Stock Price CAGR
10 Years:
9%
5 Years:
8%
3 Years:
14%
1 Year:
-20%
Return on Equity
10 Years:
4%
5 Years:
5%
3 Years:
4%
Last Year:
3%
Last Updated: Unknown
Balance Sheet
Last Updated: September 15, 2024, 3:38 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
20
20
10
10
10
10
10
10
10
10
10
10
Reserves
1,070
1,107
997
1,017
507
811
933
900
1,155
1,142
1,400
1,409
Borrowings
2,051
1,447
1,339
1,248
1,024
802
538
1,193
1,114
1,595
1,767
1,188
Other Liabilities
342
323
184
193
190
182
202
179
171
491
321
286
Total Liabilities
3,484
2,897
2,530
2,467
1,731
1,805
1,683
2,281
2,451
3,238
3,498
2,893
Fixed Assets
1,046
1,030
971
972
338
351
361
369
374
303
313
191
CWIP
16
37
13
15
17
19
16
19
15
3
1
13
Investments
2
2
1
1
161
440
541
469
578
45
49
50
Other Assets
2,420
1,828
1,545
1,479
1,215
995
764
1,425
1,484
2,886
3,135
2,639
Total Assets
3,484
2,897
2,530
2,467
1,731
1,805
1,683
2,281
2,451
3,238
3,498
2,893
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
104
51
-20
40
27
11
38
-13
7
-62
-77
40
Cash from Investing Activity
-1,673
692
-8
139
242
268
288
-606
102
-322
173
734
Cash from Financing Activity
1,521
-751
-4
-169
-275
-279
-323
625
-105
387
-90
-800
Net Cash Flow
-48
-8
-32
10
-6
1
4
7
4
4
6
-26
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
68.00
84.00
72.00
29.00
25.00
29.00
-775.00
-506.00
14.00
8.00
3.00
-22.00
Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)
Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.
Fair Value of GOCL Corporation Ltd as of October 6, 2024 is: ₹257.53
Calculation basis:
Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.
As of October 6, 2024, GOCL Corporation Ltd is Overvalued by 37.19% compared to the current share price ₹410.00
Intrinsic Value of GOCL Corporation Ltd as of October 6, 2024 is: ₹278.67
Calculation basis:
Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.
This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
As of October 6, 2024, GOCL Corporation Ltd is Overvalued by 32.03% compared to the current share price ₹410.00
Last 5 Year EPS CAGR: 8.21%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The company has shown consistent growth in sales (428.92 cr) and profit (94.00 cr) over the years.
The stock has a low average ROCE of 5.50%, which may not be favorable.
The stock has a high average Working Capital Days of 202.58, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 82.58, which may not be favorable.
The company has higher borrowings (1,275.50) compared to reserves (1,037.33), which may suggest financial risk.
Stock Analysis
Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in GOCL Corporation Ltd:
Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
ROE%: 3.4% (Industry Average ROE: 0.49%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
Stock P/E: 26 (Industry average Stock P/E: 0)
Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
Total Debt / Equity: 0.83
Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions. Stock Rating:
About the Company - Qualitative Analysis
GOCL Corporation Ltd. is a Public Limited Listed company incorporated on 20/04/1961 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L24292TG1961PLC000876 and registration number is 000876. Currently Company is involved in the business activities of Manufacture of explosives, ammunition and fire works, Real estate activities with own or leased property, Manufacture of bare printed circuit boards, loading of components onto printed circuit boards; manufacture of interface cards (e.g. sound, video, controllers, network, modems). Company’s Total Operating Revenue is Rs. 121.27 Cr. and Equity Capital is Rs. 9.91 Cr. for the Year ended 31/03/2022.
Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in GOCL Corporation Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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