SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Gujarat Mineral Development Corporation Ltd

BSE: 532181 NSE: GMDCLTD ISIN: INE131A01031
  |   Sector:  Metals & Mining   |   Industry:  Mining & Minerals

Snapshot

Q.1 Which industry/sub-sector does Gujarat Mineral Development Corporation Ltd belong to?
Gujarat Mineral Development Corporation Ltd belongs to the Metals & Mining sector, operating specifically within the Mining & Minerals segment.
Q.2 Is Gujarat Mineral Development Corporation Ltd a good quality company?
Gujarat Mineral Development Corporation Ltd is a average quality company, based on a somewhat consistent 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 Gujarat Mineral Development Corporation Ltd undervalued or overvalued?
Gujarat Mineral Development Corporation Ltd appears 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 5-year
Historic Median
Price to Earnings 20.92 13.39
Price to Book 2.93 1.48
Price to Sales 7.81 3.04
EV to EBITDA 22.75 9.80
Q.4 Is Gujarat Mineral Development Corporation Ltd a good buy now?
Gujarat Mineral Development Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd revenue growth is 15.8% for FY-2025, which is above its 5-year CAGR of 14.49%, indicating faster growth.

Q.2 Gross Profit margin of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 34.7% for FY-2025, which is in line with its 5-year median of 34.7%, indicating stable margins.

Q.3 Operating Profit Margin of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.47% for FY-2025, which is below its 5-year median of 25.46% indicating decreasing margins.

Q.4 Net Profit Margin of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Net Profit Margin is 24.13% for FY-2025, is in line with its 5-year median of 24.13%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 34.7 34.7
Operating Profit Margin (%) 22.47 25.46
Net Profit Margin (%) 24.13 24.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Return on Asset is 9.15%, which is above its 5-year historical median of 8.37%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Return on capital employed is 14.32% for FY-2025, which is in line with its 5-year historical median of 14.32%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Return on equity is 11.07% for FY-2025, which is above its 5-year historical median of 10.1%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Cash conversion cycle is -20 days, below its 5-year historical median of -6 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.38 0.38
ROE (%) 11.07 10.1
ROCE (%) 14.32 14.32
Cash Conversion Cycle -20 days -6 days

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

Q.9 Debt to Equity ratio of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Debt-to-Equity ratio is 0.02, which is lower the industry average of 0.12, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gujarat Mineral Development Corporation Ltd?
Gujarat Mineral Development Corporation Ltd Debt to cash flow from operations is 0.12, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gujarat Mineral Development Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Gujarat Mineral Development Corporation Ltd?
Promoters hold 74.00% of the Gujarat Mineral Development Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gujarat Mineral Development Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gujarat Mineral Development Corporation Ltd vs industry peers?
Gujarat Mineral Development Corporation Ltd revenue CAGR is 14.49%, compared to the industry median CAGR of 1.53%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.8 1.5
Gross Profit Growth (%) 13.2 14.6
Operating Profit Growth (%) 5.1 15.6
Net Profit Growth (%) 15.4 13.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.38 0.44
ROE (%) 11.07 9.11
ROCE (%) 14.32 9.61
Cash Conversion Cycle (days) -20.37 99

Valuation & price assessment

Q.1 Stock return of Gujarat Mineral Development Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 25.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
25.9% 54.3% 58.9% 87.9%
Q.2 Valuation ratios of Gujarat Mineral Development Corporation Ltd vs historical?
The current P/E ratio of 20.92 is higher than its historical median of 13.39, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 20.92 13.39 16.81
Price to Book 2.93 1.48 2.04
Price to Sales 7.81 3.04 6.16
EV to EBITDA 22.75 9.80 7.12

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×