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Check Before You Invest : GNG Electronics Ltd

BSE: 544455 NSE: EBGNG ISIN: INE18JU01028
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does GNG Electronics Ltd belong to?
GNG Electronics Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is GNG Electronics Ltd a good quality company?
GNG Electronics Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is GNG Electronics Ltd undervalued or overvalued?
GNG Electronics Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 120.66 203.64
Price to Book 9.55 7.32
Price to Sales 5.25 5.35
EV to EBITDA 56.33 62.36
Q.4 Is GNG Electronics Ltd a good buy now?
GNG Electronics Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of GNG Electronics Ltd?
GNG Electronics Ltd revenue growth is 20.9% for FY-2025, which is below its 3-year CAGR of 25.99%, indicating slower growth.

Q.2 Gross Profit margin of GNG Electronics Ltd?
GNG Electronics Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.9% for FY-2025, which is above its 3-year median of 3.1%, indicating increasing margins.

Q.3 Operating Profit Margin of GNG Electronics Ltd?
GNG Electronics Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.29% for FY-2025, which is above its 3-year median of 5.67% indicating increasing margins.

Q.4 Net Profit Margin of GNG Electronics Ltd?
GNG Electronics Ltd Net Profit Margin is 2.62% for FY-2025, is above its 3-year median of 1.97%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 4.9 3.1
Operating Profit Margin (%) 7.29 5.67
Net Profit Margin (%) 2.62 1.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GNG Electronics Ltd?
GNG Electronics Ltd Return on Asset is 5.42%, which is above its 3-year historical median of 4.83%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of GNG Electronics Ltd?
GNG Electronics Ltd Return on capital employed is 17.58% for FY-2025, which is above its 3-year historical median of 14.11%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of GNG Electronics Ltd?
GNG Electronics Ltd Return on equity is 22.13% for FY-2025, which is above its 3-year historical median of 14.65%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of GNG Electronics Ltd?
GNG Electronics Ltd Cash conversion cycle is 93 days, below its 3-year historical median of 99 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 2.07 2.15
ROE (%) 22.13 14.65
ROCE (%) 17.58 14.11
Cash Conversion Cycle 93 days 99 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of GNG Electronics Ltd?
GNG Electronics Ltd Debt-to-Equity ratio is 2.45, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of GNG Electronics Ltd?
GNG Electronics Ltd Debt to cash flow from operations is -24.96, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GNG Electronics Ltd?

Q.1 Promoter shareholding and pledge status of GNG Electronics Ltd?
Promoters hold 78.71% of the GNG Electronics Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does GNG Electronics Ltd performance compare with that of its Peers?

Q.1 Revenue growth of GNG Electronics Ltd vs industry peers?
GNG Electronics Ltd revenue CAGR is 25.99%, compared to the industry median CAGR of 4.99%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 20.9 5
Gross Profit Growth (%) 94.4 17.6
Operating Profit Growth (%) 57.6 20.8
Net Profit Growth (%) 72.7 18.9
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 2.07 0.66
ROE (%) 22.13 2.9
ROCE (%) 17.58 4.31
Cash Conversion Cycle (days) 92.61 49

Valuation & price assessment

Q.1 Stock return of GNG Electronics Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of GNG Electronics Ltd vs historical?
The current P/E ratio of 120.66 is lower than its historical median of 203.64, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 120.66 203.64 35.02
Price to Book 9.55 7.32 1.68
Price to Sales 5.25 5.35 2.16
EV to EBITDA 56.33 62.36 15.51

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