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Check Before You Invest : Gayatri Projects Ltd

BSE: 532767 NSE: GAYAPROJ ISIN: INE336H01023
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Gayatri Projects Ltd belong to?
Gayatri Projects Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Gayatri Projects Ltd a good quality company?
Gayatri Projects Ltd is a weak quality company, based on a inconsistent 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 Gayatri Projects Ltd undervalued or overvalued?
Gayatri Projects 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 0.38 -
Price to Book 0.97 -
Price to Sales 1.11 0.11
EV to EBITDA 17.16 -4.31
Q.4 Is Gayatri Projects Ltd a good buy now?
Gayatri Projects 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

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 Gayatri Projects Ltd?
Gayatri Projects Ltd revenue growth is -33.8% for FY-2025, which is in line with its 5-year CAGR of -33.42%, indicating stable growth.

Q.2 Gross Profit margin of Gayatri Projects Ltd?
Gayatri Projects Ltd Gross profit margin which is the profit after deduction of direct costs, is 43.2% for FY-2025, which is above its 5-year median of 3.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Gayatri Projects Ltd?
Gayatri Projects Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0.18% for FY-2025, which is in line with its 5-year median of 0.18% indicating stable margins.

Q.4 Net Profit Margin of Gayatri Projects Ltd?
Gayatri Projects Ltd Net Profit Margin is 27.54% for FY-2025, is above its 5-year median of 1.11%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 43.2 3.3
Operating Profit Margin (%) 0.18 0.18
Net Profit Margin (%) 27.54 1.11

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Gayatri Projects Ltd?
Gayatri Projects Ltd Return on Asset is 3.63%, which is above its 5-year historical median of 0.75%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Gayatri Projects Ltd?
Gayatri Projects Ltd Return on capital employed is 6.8% for FY-2025, which is above its 5-year historical median of 2.96%. 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 Gayatri Projects Ltd?
Gayatri Projects Ltd Return on equity is 0% for FY-2025, which is below its 5-year historical median of 3.37%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Gayatri Projects Ltd?
Gayatri Projects Ltd Cash conversion cycle is 493 days, above its 5-year historical median of 289 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.13 0.24
ROE (%) - 3.37
ROCE (%) 6.8 2.96
Cash Conversion Cycle 493 days 289 days

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

Q.9 Debt to Equity ratio of Gayatri Projects Ltd?
Gayatri Projects Ltd Debt-to-Equity ratio is -2.52, which is lower the industry average of 0.38, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Gayatri Projects Ltd?
Gayatri Projects Ltd Debt to cash flow from operations is 13.09, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Gayatri Projects Ltd?

Q.1 Promoter shareholding and pledge status of Gayatri Projects Ltd?
Promoters hold 3.94% of the Gayatri Projects Ltd, with 72.40% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Gayatri Projects Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Gayatri Projects Ltd vs industry peers?
Gayatri Projects Ltd revenue CAGR is -33.42%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -33.8 0
Gross Profit Growth (%) 506.3 16.3
Operating Profit Growth (%) 0 13.9
Net Profit Growth (%) 202.4 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.13 0.62
ROE (%) - 6.32
ROCE (%) 6.8 10.58
Cash Conversion Cycle (days) 492.66 51

Valuation & price assessment

Q.1 Stock return of Gayatri Projects Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -15.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-15.9% -7.6% 52.5% 169.9%
Q.2 Valuation ratios of Gayatri Projects Ltd vs historical?
The current P/E ratio of 0.38 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 0.38 - 21.52
Price to Book 0.97 - 1.74
Price to Sales 1.11 0.11 1.51
EV to EBITDA 17.16 -4.31 11.49

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