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Check Before You Invest : Gensol Engineering Ltd

BSE: 542851 NSE: GENSOL ISIN: INE06H201014
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Gensol Engineering Ltd belong to?
Gensol Engineering Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Gensol Engineering Ltd a good quality company?
Gensol Engineering Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Gensol Engineering Ltd undervalued or overvalued?
Gensol Engineering Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Gensol Engineering Ltd a good buy now?
Gensol Engineering Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Gensol Engineering Ltd?
Gensol Engineering Ltd revenue growth is 143.7% for FY-2024 , which is above its 5 year CAGR of 63% , indicating faster growth.
Q.2 Gross Profit margin of Gensol Engineering Ltd?
Gensol Engineering Ltd Gross profit margin which is the profit after deduction of direct costs, is 20% for FY-2024 , which is above its 5 year median of 9.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Gensol Engineering Ltd?
Gensol Engineering Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27% for FY-2024 , which is above its 5 year median of 11.44% indicating increasing margins.
Q.4 Net Profit Margin of Gensol Engineering Ltd?
Gensol Engineering Ltd Net Profit Margin is 8.9% for FY-2024 , is above with its 5 year median of 6.75%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 20 9.7
Operating Profit Margin 27 11.44
Net Profit Margin 8.9 6.75
Q.5 Return on Asset of Gensol Engineering Ltd?
Gensol Engineering Ltd Return on Asset is 5.31%, which is above its 5 year historical median of 4.99%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Gensol Engineering Ltd?
Gensol Engineering Ltd Return on equity is 29.39% for FY-2024 , which is above its historical median of 20.09%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Gensol Engineering Ltd?
Gensol Engineering Ltd Return on capital employed is 18.76% for FY-2024 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of Gensol Engineering Ltd?
Gensol Engineering Ltd Cash conversion cycle is 32 days, below its historical median of 63 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.6 0.96
ROE 29.39 20.09
ROCE 18.76 17.34
Cash Conversion Cycle 32 days 63 days
Q.9 Debt to Equity ratio of Gensol Engineering Ltd?
Gensol Engineering Ltd Debt-to-Equity ratio is 3.42 , which is above with the industry average of 0.38 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Gensol Engineering Ltd?
Gensol Engineering Ltd Debt to cash flow from operations is -22.81 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Gensol Engineering Ltd?
Promoters hold 35.87% of the Gensol Engineering Ltd, with 95.10% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Gensol Engineering Ltd vs industry peers?
Gensol Engineering Ltd revenue CAGR is 62.98% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 904 103.6
Gross Profit 180.8 5.2
Operating Profit 242.7 6
Net Profit 80.5 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.6 0.63
ROE 29.39 6.64
ROCE 18.76 11.13
Cash Conversion Cycle (days) 32.42 51

Valuation & price assessment

Q.1 Stock return of Gensol Engineering Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 6.26% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 6.3% -59.9% -78.3%
Q.3 Valuation ratios of Gensol Engineering Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 0.76 43.99 27.03
Price to Book 0.14 6.56 1.70
Price to Sales 0.08 3.21 1.45
EV to EBITDA 2.03 19.90 11.36

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