MoneyWorks4Me

Check Before You Invest : Gujarat Cotex Ltd

BSE: 514386 NSE: GUJCOTEX ISIN: INE004C01028
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Gujarat Cotex Ltd belong to?
Gujarat Cotex Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Gujarat Cotex Ltd a good quality company?
Gujarat Cotex 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 Cotex Ltd undervalued or overvalued?
Gujarat Cotex 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 0-year
Historic Median
Price to Earnings - 4.66
Price to Book - 1.10
Price to Sales - 2.33
EV to EBITDA - 24.72
Q.4 Is Gujarat Cotex Ltd a good buy now?
Gujarat Cotex 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.

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

Q.1 Debt to Equity ratio of Gujarat Cotex Ltd?
Gujarat Cotex Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Gujarat Cotex Ltd?
Gujarat Cotex Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Gujarat Cotex Ltd?
Promoters hold 1.72% of the Gujarat Cotex Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Gujarat Cotex Ltd vs industry peers?
Gujarat Cotex Ltd revenue CAGR is %, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) - 17.9
Operating Profit Growth (%) - 20.6
Net Profit Growth (%) - 17.6
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.77
ROE (%) - 3.46
ROCE (%) - 4.58
Cash Conversion Cycle (days) - 53

Valuation & price assessment

Q.1 Stock return of Gujarat Cotex Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.2% 18.4% 8.5% -49.6%
Q.2 Valuation ratios of Gujarat Cotex Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 4.66, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 4.66 -
Price to Book - 1.10 -
Price to Sales - 2.33 -
EV to EBITDA - 24.72 -

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