Check Before You Invest : GKW Ltd

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

GKW Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.

Q: Is GKW Ltd a good quality company?

GKW 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: Is GKW Ltd undervalued or overvalued?

GKW 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. Price to Earnings, Current: 284.79, Historic Median: 39.63. Price to Book, Current: -70.41, Historic Median: -24.27. Price to Sales, Current: 74.85, Historic Median: 26.18. EV to EBITDA, Current: 192.5, Historic Median: 24.54

Q: Is GKW Ltd a good buy now?

GKW 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

Q: Revenue growth of GKW Ltd?

GKW Ltd revenue growth is 3% for FY-2017, which is above its 5-year CAGR of -15.64%, indicating faster growth.

Q: Gross Profit margin of GKW Ltd?

GKW Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.5% for FY-2017, which is above its 5-year median of 27.9%, indicating increasing margins.

Q: Operating Profit Margin of GKW Ltd?

GKW Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.83% for FY-2017, which is above its 5-year median of 14.46% indicating increasing margins.

Q: Net Profit Margin of GKW Ltd?

GKW Ltd Net Profit Margin is 26.28% for FY-2017, is in line with its 5-year median of 26.28%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 38.5, Historic Median: 27.9. Operating Profit Margin (%), Current: 34.83, Historic Median: 14.46. Net Profit Margin (%), Current: 26.28, Historic Median: 26.28

Q: Return on Asset of GKW Ltd?

GKW Ltd Return on Asset is 3.08%, which is below its 5-year historical median of 3.68%, indicating deteriorated asset utilization efficiency.

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

GKW Ltd Return on capital employed is 4.87% for FY-2017, which is in line with its 5-year historical median of 4.89%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : GKW Ltd

Snapshot

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

GKW Ltd belongs to the Transportation & Logistics sector, operating specifically within the Logistics segment.

Q.2 Is GKW Ltd a good quality company?

GKW 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 GKW Ltd undervalued or overvalued?

GKW 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	284.79	39.63
Price to Book	-70.41	-24.27
Price to Sales	74.85	26.18
EV to EBITDA	192.5	24.54

Q.4 Is GKW Ltd a good buy now?

GKW 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 GKW Ltd?

GKW Ltd revenue growth is 3% for FY-2017, which is above its 5-year CAGR of -15.64%, indicating faster growth.

Q.2 Gross Profit margin of GKW Ltd?

GKW Ltd Gross profit margin which is the profit after deduction of direct costs, is 38.5% for FY-2017, which is above its 5-year median of 27.9%, indicating increasing margins.

Q.3 Operating Profit Margin of GKW Ltd?

GKW Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 34.83% for FY-2017, which is above its 5-year median of 14.46% indicating increasing margins.

Q.4 Net Profit Margin of GKW Ltd?

GKW Ltd Net Profit Margin is 26.28% for FY-2017, is in line with its 5-year median of 26.28%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	38.5	27.9
Operating Profit Margin (%)	34.83	14.46
Net Profit Margin (%)	26.28	26.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of GKW Ltd?

GKW Ltd Return on Asset is 3.08%, which is below its 5-year historical median of 3.68%, indicating deteriorated asset utilization efficiency.

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

GKW Ltd Return on capital employed is 4.87% for FY-2017, which is in line with its 5-year historical median of 4.89%. 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 GKW Ltd?

GKW Ltd Return on equity is 3.57% for FY-2017, which is below its 5-year historical median of 4.18%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of GKW Ltd?

GKW Ltd Cash conversion cycle is -5 days, below its 5-year historical median of 16 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)	0.12	0.15
ROE (%)	3.57	4.18
ROCE (%)	4.87	4.89
Cash Conversion Cycle	-5 days	16 days

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

Q.9 Debt to Equity ratio of GKW Ltd?

GKW Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.44, indicating lower debt levels in the industry.

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

GKW Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of GKW Ltd?

Q.1 Promoter shareholding and pledge status of GKW Ltd?

Promoters hold 75.00% of the GKW Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of GKW Ltd vs industry peers?

GKW Ltd revenue CAGR is 0.48%, 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 (%)	3	0
Gross Profit Growth (%)	66.7	14.2
Operating Profit Growth (%)	150	11.5
Net Profit Growth (%)	-63.6	12.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.12	1.75
ROE (%)	3.57	9.41
ROCE (%)	4.87	12.69
Cash Conversion Cycle (days)	-5.04	43

Valuation & price assessment

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

Over the last 5 year(s), the stock has delivered a CAGR of 27.72% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	27.7%	49.2%	-5.3%

Q.2 Valuation ratios of GKW Ltd vs historical?

The current P/E ratio of 284.79 is higher than its historical median of 39.63, 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	284.79	39.63	19.94
Price to Book	-70.41	-24.27	2.00
Price to Sales	74.85	26.18	0.89
EV to EBITDA	192.5	24.54	10.78

Check more companies

1. Delhivery

2. BlackBuck

3. Shadowfax Tech.

4. Transport Corp.

5. TVS Supply Chain Sol

6. VRL Logistics

7. Mahindra Logistics

8. Sindhu Trade Links

9. Gateway Distriparks

10. Afcom Holdings

Check trending companies

1. Nava Ltd.

2. Honeywell Automation India Ltd.

3. Hindustan Copper Ltd.

4. SBI Life Insurance Company Ltd.

5. Titan Company Ltd.

Check Before You Invest : GKW Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

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

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.