Check Before You Invest : Gujarat Foils Ltd

Q: Which industry/sub-sector does Gujarat Foils Ltd belong to?

Gujarat Foils Ltd belongs to the Metals & Mining sector, operating specifically within the Aluminium & Aluminium Products segment.

Q: Is Gujarat Foils Ltd a good quality company?

Gujarat Foils Ltd is a quality company, based on a 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: Is Gujarat Foils Ltd undervalued or overvalued?

Gujarat Foils Ltd appears Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: -, Historic Median: -. Price to Sales, Current: 0.02, Historic Median: 0.02. EV to EBITDA, Current: -82.5, Historic Median: -82.50

Q: Is Gujarat Foils Ltd a good buy now?

Gujarat Foils 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

Q: Revenue growth of Gujarat Foils Ltd?

Gujarat Foils Ltd revenue growth is -23.9% for FY-2018, which is below its 5-year CAGR of -8.89%, indicating slower growth.

Q: Gross Profit margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Gross profit margin which is the profit after deduction of direct costs, is -171.3% for FY-2018, which is below its 5-year median of 2.3%, indicating decreasing margins.

Q: Operating Profit Margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -190.83% for FY-2018, which is below its 5-year median of 9.73% indicating decreasing margins.

Q: Net Profit Margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Net Profit Margin is -177.82% for FY-2018, is below its 5-year median of -0.34%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: -171.3, Historic Median: 2.3. Operating Profit Margin (%), Current: -190.83, Historic Median: 9.73. Net Profit Margin (%), Current: -177.82, Historic Median: -0.34

Q: Return on Asset of Gujarat Foils Ltd?

Gujarat Foils Ltd Return on Asset is -111.43%, which is below its 5-year historical median of -0.29%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Gujarat Foils Ltd?

Gujarat Foils Ltd Return on capital employed is -245.23% for FY-2018, which is below its 5-year historical median of 10.55%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Gujarat Foils Ltd

Snapshot

Q.1 Which industry/sub-sector does Gujarat Foils Ltd belong to?

Gujarat Foils Ltd belongs to the Metals & Mining sector, operating specifically within the Aluminium & Aluminium Products segment.

Q.2 Is Gujarat Foils Ltd a good quality company?

Gujarat Foils Ltd is a quality company, based on a 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 Foils Ltd undervalued or overvalued?

Gujarat Foils Ltd appears Undervalued, as its key valuation ratios are lower 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	-	-
Price to Book	-	-
Price to Sales	0.02	0.02
EV to EBITDA	-82.5	-82.50

Q.4 Is Gujarat Foils Ltd a good buy now?

Gujarat Foils 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

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 Foils Ltd?

Gujarat Foils Ltd revenue growth is -23.9% for FY-2018, which is below its 5-year CAGR of -8.89%, indicating slower growth.

Q.2 Gross Profit margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Gross profit margin which is the profit after deduction of direct costs, is -171.3% for FY-2018, which is below its 5-year median of 2.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -190.83% for FY-2018, which is below its 5-year median of 9.73% indicating decreasing margins.

Q.4 Net Profit Margin of Gujarat Foils Ltd?

Gujarat Foils Ltd Net Profit Margin is -177.82% for FY-2018, is below its 5-year median of -0.34%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	-171.3	2.3
Operating Profit Margin (%)	-190.83	9.73
Net Profit Margin (%)	-177.82	-0.34

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gujarat Foils Ltd?

Gujarat Foils Ltd Return on Asset is -111.43%, which is below its 5-year historical median of -0.29%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gujarat Foils Ltd?

Gujarat Foils Ltd Return on capital employed is -245.23% for FY-2018, which is below its 5-year historical median of 10.55%. 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 Gujarat Foils Ltd?

Gujarat Foils Ltd Return on equity is 0% for FY-2018, which is below its 5-year historical median of 9.24%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Gujarat Foils Ltd?

Gujarat Foils Ltd Cash conversion cycle is 81 days, below its 5-year historical median of 129 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)	0.64	0.86
ROE (%)	-	9.24
ROCE (%)	-245.23	10.55
Cash Conversion Cycle	81 days	129 days

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

Q.9 Debt to Equity ratio of Gujarat Foils Ltd?

Gujarat Foils Ltd Debt-to-Equity ratio is -0.88, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gujarat Foils Ltd?

Gujarat Foils Ltd Debt to cash flow from operations is 17.48, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gujarat Foils Ltd?

Q.1 Promoter shareholding and pledge status of Gujarat Foils Ltd?

Promoters hold 44.14% of the Gujarat Foils Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gujarat Foils Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gujarat Foils Ltd vs industry peers?

Gujarat Foils Ltd revenue CAGR is -8.89%, compared to the industry median CAGR of 0%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-23.9	-
Gross Profit Growth (%)	0	13.6
Operating Profit Growth (%)	0	16.2
Net Profit Growth (%)	0	11

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.64	1.36
ROE (%)	-	5.69
ROCE (%)	-245.23	9.85
Cash Conversion Cycle (days)	81.37	87

Valuation & price assessment

Q.1 Stock return of Gujarat Foils Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -27% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-27%	-	-	-

Q.2 Valuation ratios of Gujarat Foils Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , 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	-	-	19.49
Price to Book	-	-	1.70
Price to Sales	0.02	0.02	0.75
EV to EBITDA	-82.5	-82.50	9.12

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Check Before You Invest : Gujarat Foils Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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