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Check Before You Invest : Goldstar Power Ltd

BSE: 0 NSE: GOLDSTAR ISIN: INE405Y01021
  |   Sector:  Automobiles   |   Industry:  Batteries

Snapshot

Q.1 Which industry/sub-sector does Goldstar Power Ltd belong to?
Goldstar Power Ltd belongs to the Automobiles sector, operating specifically within the Batteries segment.
Q.2 Is Goldstar Power Ltd a good quality company?
Goldstar Power 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 Goldstar Power Ltd undervalued or overvalued?
Goldstar Power Ltd appears Fair, as its key valuation ratios are in line with 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 88.5 90.38
Price to Book 2.5 7.09
Price to Sales 4.17 4.58
EV to EBITDA 32.24 32.55
Q.4 Is Goldstar Power Ltd a good buy now?
Goldstar Power 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 Goldstar Power Ltd?
Goldstar Power Ltd revenue growth is -3.6% for FY-2025, which is below its 5-year CAGR of 6.16%, indicating slower growth.

Q.2 Gross Profit margin of Goldstar Power Ltd?
Goldstar Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is in line with its 5-year median of 10.5%, indicating stable margins.

Q.3 Operating Profit Margin of Goldstar Power Ltd?
Goldstar Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 9.44% for FY-2025, which is in line with its 5-year median of 9.44% indicating stable margins.

Q.4 Net Profit Margin of Goldstar Power Ltd?
Goldstar Power Ltd Net Profit Margin is 4.71% for FY-2025, is in line with its 5-year median of 4.71%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 10.5 10.5
Operating Profit Margin (%) 9.44 9.44
Net Profit Margin (%) 4.71 4.71

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Goldstar Power Ltd?
Goldstar Power Ltd Return on Asset is 4.33%, which is in line with its 5-year historical median of 4.33%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Goldstar Power Ltd?
Goldstar Power Ltd Return on capital employed is 11.52% for FY-2025, which is in line with its 5-year historical median of 11.52%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Goldstar Power Ltd?
Goldstar Power Ltd Return on equity is 7.77% for FY-2025, which is in line with its 5-year historical median of 7.77%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Goldstar Power Ltd?
Goldstar Power Ltd Cash conversion cycle is 155 days, in line with its 5-year historical median of 155 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.92 1.05
ROE (%) 7.77 7.77
ROCE (%) 11.52 11.52
Cash Conversion Cycle 155 days 155 days

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

Q.9 Debt to Equity ratio of Goldstar Power Ltd?
Goldstar Power Ltd Debt-to-Equity ratio is 0.36, which is above the industry average of 0.06, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Goldstar Power Ltd?
Goldstar Power Ltd Debt to cash flow from operations is 1.22, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Goldstar Power Ltd?

Q.1 Promoter shareholding and pledge status of Goldstar Power Ltd?
Promoters hold 61.32% of the Goldstar Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Goldstar Power Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Goldstar Power Ltd vs industry peers?
Goldstar Power Ltd revenue CAGR is 6.16%, compared to the industry median CAGR of 5.68%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -3.6 5.7
Gross Profit Growth (%) -28.6 12.6
Operating Profit Growth (%) -28.6 9.7
Net Profit Growth (%) -50 14
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.92 1.07
ROE (%) 7.77 10.06
ROCE (%) 11.52 14.08
Cash Conversion Cycle (days) 155.25 72

Valuation & price assessment

Q.1 Stock return of Goldstar Power Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -19.38% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -19.4% -7.5% -28.1%
Q.2 Valuation ratios of Goldstar Power Ltd vs historical?
The current P/E ratio of 88.5 is in line with than its historical median of 90.38, indicating that the stock is trading near 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 88.5 90.38 35.14
Price to Book 2.5 7.09 4.58
Price to Sales 4.17 4.58 2.09
EV to EBITDA 32.24 32.55 16.12

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