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Check Before You Invest : GK Energy Ltd

BSE: 544525 NSE: GKENERGY ISIN: INE1AG301022
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does GK Energy Ltd belong to?
GK Energy Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is GK Energy Ltd a good quality company?
GK Energy Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is GK Energy Ltd undervalued or overvalued?
GK Energy Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is GK Energy Ltd a good buy now?
GK Energy 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

Q.1 Revenue growth of GK Energy Ltd?
GK Energy Ltd revenue growth is 166.3% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of GK Energy Ltd?
GK Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.6% for FY-2025 , which is above its 5 year median of 10.75% , indicating increasing margins.
Q.3 Operating Profit Margin of GK Energy Ltd?
GK Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 18.24% for FY-2025 , which is above its 5 year median of 12.68% indicating increasing margins.
Q.4 Net Profit Margin of GK Energy Ltd?
GK Energy Ltd Net Profit Margin is 12.17% for FY-2025 , is above with its 5 year median of 7.86%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.6 10.75
Operating Profit Margin 18.24 12.68
Net Profit Margin 12.17 7.86
Q.5 Return on Asset of GK Energy Ltd?
GK Energy Ltd Return on Asset is 33.4%, which is above its 5 year historical median of 21.44%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of GK Energy Ltd?
GK Energy Ltd Return on equity is 100.52% for FY-2025 , which is above its historical median of 85.04%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of GK Energy Ltd?
GK Energy Ltd Return on capital employed is 74.34% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of GK Energy Ltd?
GK Energy Ltd Cash conversion cycle is 61 days, above its historical median of 51 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 2.75 2.53
ROE 100.52 85.04
ROCE 74.34 55.01
Cash Conversion Cycle 61 days 51 days
Q.9 Debt to Equity ratio of GK Energy Ltd?
GK Energy Ltd Debt-to-Equity ratio is 1.04 , 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 GK Energy Ltd?
GK Energy Ltd Debt to cash flow from operations is -2.21 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of GK Energy Ltd?
Promoters hold 79.20% of the GK Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of GK Energy Ltd vs industry peers?
GK Energy Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,094.8 103.6
Gross Profit 181.8 5.2
Operating Profit 200 6
Net Profit 133 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 2.75 0.63
ROE 100.52 6.64
ROCE 74.34 11.13
Cash Conversion Cycle (days) 60.96 51

Valuation & price assessment

Q.1 Stock return of GK Energy Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -
Q.3 Valuation ratios of GK Energy 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 18.59 21.60 27.03
Price to Book 2.95 3.69 1.70
Price to Sales 2.26 2.63 1.45
EV to EBITDA 12.11 14.08 11.36

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