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Check Before You Invest : Gyan Developers & Builders Ltd

BSE: 530141 NSE: ISIN: INE487G01018
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Gyan Developers & Builders Ltd belong to?
Gyan Developers & Builders Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Gyan Developers & Builders Ltd a good quality company?
Gyan Developers & Builders 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 Gyan Developers & Builders Ltd undervalued or overvalued?
Gyan Developers & Builders 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 11.17 -
Price to Book 3.09 1.03
Price to Sales 4 -
EV to EBITDA 8.36 -7.25
Q.4 Is Gyan Developers & Builders Ltd a good buy now?
Gyan Developers & Builders 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 Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd revenue growth is 528.6% for FY-2025, which is above its 5-year CAGR of 33.83%, indicating faster growth.

Q.2 Gross Profit margin of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Gross profit margin which is the profit after deduction of direct costs, is 39.1% for FY-2025, which is above its 5-year median of -88.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 39.13% for FY-2025, which is above its 5-year median of -151.19% indicating increasing margins.

Q.4 Net Profit Margin of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Net Profit Margin is 27.3% for FY-2025, is above its 5-year median of -94.3%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 39.1 -88.5
Operating Profit Margin (%) 39.13 -151.19
Net Profit Margin (%) 27.3 -94.3

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Return on Asset is 21.23%, which is above its 5-year historical median of -1.65%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Return on capital employed is 32.01% for FY-2025, which is above its 5-year historical median of -1.91%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Return on equity is 22.43% for FY-2025, which is above its 5-year historical median of -1.97%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Cash conversion cycle is 191 days, below its 5-year historical median of 10815 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) 0.78 0.02
ROE (%) 22.43 -1.97
ROCE (%) 32.01 -1.91
Cash Conversion Cycle 191 days 10815 days

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

Q.9 Debt to Equity ratio of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gyan Developers & Builders Ltd?
Gyan Developers & Builders Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gyan Developers & Builders Ltd?

Q.1 Promoter shareholding and pledge status of Gyan Developers & Builders Ltd?
Promoters hold 64.86% of the Gyan Developers & Builders Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gyan Developers & Builders Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gyan Developers & Builders Ltd vs industry peers?
Gyan Developers & Builders Ltd revenue CAGR is 33.83%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 528.6 0
Gross Profit Growth (%) 820 14.9
Operating Profit Growth (%) 961.5 10.4
Net Profit Growth (%) 585.7 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.78 0.1
ROE (%) 22.43 1.36
ROCE (%) 32.01 3.88
Cash Conversion Cycle (days) 190.71 439

Valuation & price assessment

Q.1 Stock return of Gyan Developers & Builders Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 23.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
23.5% 76.9% 103.7% 96.2%
Q.2 Valuation ratios of Gyan Developers & Builders Ltd vs historical?
The current P/E ratio of 11.17 is higher than its historical median of , 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 11.17 - 33.43
Price to Book 3.09 1.03 1.53
Price to Sales 4 - 5.23
EV to EBITDA 8.36 -7.25 14.43

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