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Gujarat State Financial Corporation Ltd. Stock Analysis

Small Cap
Evaluated by 104 users | BSE: 532160 | NSE: GUJSTATFIN |
Finance Term Lending
Gujarat State Financial Corporation (GSFC) incorporated on May 1, 1961 is a pioneer term lending development financial institution in the State of Gujarat. It is created under the State Financial Corporation Act, 1951 passed by Parliament. GSFC’s mandate is to provide finance to small...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Operating Income (Rs. Cr.)27.523.626.225.11841.433.717.117.721.1
Y-o-Y Gr. Rt.--14.4%11.3%-4.5%-28.1%129.6%-18.6%-49.4%3.6%19.1%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
-14.52-17.61-23.44-12.7-12.66-10.64-11.78-13.15-12.96-12.89
Y-o-Y Gr. Rt.-NANANANANANANANANA
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
-133.1-150.66-174.1-186.8-199.46-210.1-221.88-235.03-247.99-260.88
Y-o-Y Gr. Rt.-NANANANANANANANANA
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)-434.94-443.65-447.84-166.68-130.45-95.82-90.9-92.88-85.93-78.51
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Gujarat State Financial Corporation Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income-2.9%3.2%-14.5%19.1%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
NANANANA
Book Value per Share
NANANANA
Share Price -3.8% -2.2% -16.7% 211.1%
Key Financial Ratios
RATIOS \ YEARSMar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)0000000000
Margins
Net Profit Margin (%) -469.78-665.71-796.21-451.54-625.7-229.04-311.5-686.5-653.54-545.52
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 0000000000
Entity Percentage Holding
Promoters 83.95%
Institutions 5.75%
Non-Institutions 10.30%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Guj. State Fin. Corp's performance infers:

Guj. State Fin. Corp earnings have grown by 0%, whereas share price has depreciated -2.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Guj. State Fin. Corp share prices over the last 10 years. Here is what we found out:

Guj. State Fin. Corp share price has depreciated -7.4% annually over the past ten years.

Gujarat State Financial Corporation (GSFC) incorporated on May 1, 1961 is a pioneer term lending development financial institution in the State of Gujarat. It is created under the State Financial Corporation Act, 1951 passed by Parliament. GSFC’s mandate is to provide finance to small and medium scale enterprises.

Formed in 1960, GSFC has sanctioned loans and advances of over Rs.4400 crores; out of which, it has disbursed over Rs.3,300 crores to 47,000 units in the state. This has

Gujarat State Financial Corporation (GSFC) incorporated on May 1, 1961 is a pioneer term lending development financial institution in the State of Gujarat. It is created under the State Financial Corporation Act, 1951 passed by Parliament. GSFC’s mandate is to provide finance to small and medium scale enterprises.

Formed in 1960, GSFC has sanctioned loans and advances of over Rs.4400 crores; out of which, it has disbursed over Rs.3,300 crores to 47,000 units in the state. This has created almost 6,83,000 jobs in Gujarat. The corporation has played a stellar role in creating new and first time entrepreneurs, has provided much needed finance to small and medium scale enterprises and has played a significant role in the industrial development and economic growth of Gujarat.

The company’s main objective is to provide financial assistance to small and medium scale new/existing industrial and service sector units all over Gujarat for acquisition of fixed assets, preliminary and pre-operative expenses, expansion, modernization, diversification etc.

GSFC has played an important role in the industrial development of the state. Till date, it has financed 47,331 units and disbursed Rs. 3,300 crore, generating employment for over 6,00,000 persons. Many units financed by it are now well established and have also graduated from small to medium and large scale.

Since the last few years, corporation is passing through financially difficult times. Due to very heavy NPA and as commercial banks are now performing similar activity has stopped advancing fresh loans since October 2001.

Currently, it is engaged in the activity of recovering dues from its borrowers and paying its lenders. One Time Settlement schemes have been introduced to expedite recovery.

Cost cutting exercise has been implemented to reduce manpower by deputing staff to various government departments and by implementing VRS.

Government has formed a high-powered committee under Chief Secretary to decide on the future of GSFC. Committee has decided to offer VRS to employees, have OTS scheme and restructure the organization.

GSFC provides the following services:

  • Providing financial assistance of up to Rs. 24 million for acquiring fixed assets like land, factory building, Plant & Machinery, including technical know-how fees and pre-operative expenses for setting up new projects.
  • Offering term finance for expansion, diversification, renovation, modernisation, procuring quality control equipment, pollution control equipment and energy -saving devices.
  • Offering financial assistance under different schemes as General Term Loan, Seed Capital and Special Capital.
  • Providing financial assistance at liberal terms to SC/ST entrepreneurs and ex-servicemen.
  • Eligibility of 1% concession on interest rates on loans up to Rs. 24 million ($4.9 million approximately) for reputed clients with good track record (GOLD CARD SCHEME)
  • Loan assistance to small or medium-sized units that are financially sound and functional for at least 4 years, earning profits for the last 3 years.
  • Soft grants to industries existing for at least 5 years, to adopt new/ improved technology and production methods. Also, loans on liberal terms for proposals aimed at better productivity, reduced production costs, pollution control etc.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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