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Graphite India Ltd. Stock Analysis

Small Cap
Evaluated by 3688 users | BSE: 509488 | NSE: GRAPHITE |
Electrodes & Welding Equipment
Graphite India (GIL), incorporated in 1964 in collaboration with “The Great Lakes Carbon Corporation of USA”. is engaged in manufacturing of graphite electrodes. GIL set up its first facility at Durgapur in east India in 1967.Besides graphite electrodes, the company also...

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.
Graphite India Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.07%11.72%7.96%7.52%4.19%4.35%4.26%37.14%71.41%0.2%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,2261,6711,7651,7681,4971,3471,3062,9586,7372,875
Y-o-Y Gr. Rt.-36.3%5.6%0.2%-15.3%-10.1%-3%126.6%127.8%-57.3%
Adjusted EPS (Rs.) 8.5810.567.917.723.944.094.0244.79141.61-0.14
Y-o-Y Gr. Rt.-23.1%-25.1%-2.4%-49%3.8%-1.7%1014.2%216.2%-100.1%
Book Value per Share (Rs.) 71.8479.9484.288.8589.7689.1294.77133.15238.15195
Adjusted Net Profit 1682061551517779.978.58752,767-2.8
Net Op. Cash Flow (Rs. Cr.) -18.128.610.45611742852507041,770172
Debt to Cash Flow from Ops -14.6916.1358.210.611.430.630.510.220.22.42
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.
Graphite India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.9%13.9%30.1%-57.3%
Adjusted EPS -163.3%-151.3%-132.7%-100.1%
Book Value per Share 11.716.827.2-18.1
Share Price 14.9% 26.8% -25.8% -25.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.9713.929.648.924.414.574.3739.376.27-0.07
Operating Profit Margin (%) 23.0919.0715.8316.0810.8911.166.0145.7262.43-3.28
Net Profit Margin (%) 13.6812.358.758.535.145.936.0129.5841.07-0.1
Debt to Equity 0.190.30.370.20.140.10.070.060.080.11
Working Capital Days 311278311369468492380160116301
Cash Conversion Cycle 2242062392392532502117744215
Entity Percentage Holding
Promoters 65.34%
Institutions 11.64%
Non-Institutions 23.02%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Graphite India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Graphite India Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Graphite India Ltd.'s performance infers:

Graphite India Ltd. earnings have declined by -151.3%, whereas share price has appreciated 26.8% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Graphite India Ltd. share prices over the last 10 years. Here is what we found out:

Graphite India Ltd. share price has appreciated 10.1% annually over the past ten years.

Graphite India (GIL), incorporated in 1964 in collaboration with “The Great Lakes Carbon Corporation of USA”. is engaged in manufacturing of graphite electrodes. GIL set up its first facility at Durgapur in east India in 1967.

Besides graphite electrodes, the company also manufactures anodes, other miscellaneous carbon and graphite products and calcined petroleum coke. The company has diversified into specialty products namely flexible graphite sheets and tubes, resulting in

Graphite India (GIL), incorporated in 1964 in collaboration with “The Great Lakes Carbon Corporation of USA”. is engaged in manufacturing of graphite electrodes. GIL set up its first facility at Durgapur in east India in 1967.

Besides graphite electrodes, the company also manufactures anodes, other miscellaneous carbon and graphite products and calcined petroleum coke. The company has diversified into specialty products namely flexible graphite sheets and tubes, resulting in the setting up of a specialty division at Bangalore and a graphite equipment glass reinforced pipes division at Nashik.

Presently, company’s manufacturing plants are located at Durgapur, Bangalore and Nashik. The company has also set up a hydel power plant located in Karnataka with a production capacity of 18 MW. GIL export 65% of its production to overseas markets with a presence in 50 countries.

Graphite India undertakes research and development activities in the area of carbon – carbon composites for defence aircraft application. It also focuses on introducing improvements in processing to increase productivity, upgrade the quality of carbon composites, new product and process technology up gradation. Besides this, the company is also concentrating on tapping the unexplored specialty applications of graphite.

The company also owns subsidiaries namely Graphite International BV and Carbon International Holdings NV. The company has received ISO 9001: 2000 certification for its quality management.

Apart from Graphite Electrodes, other main products are –

1)     Specialty Carbon and Graphite                         
2)     Impervious Graphite Equipments
3)     Calcined Petroleum Coke & Carbon Electrode Paste
4)     Glass Reinforced Plastic Pipes
5)     High Speed Steel & Alloy Tool Steels

Award and Recognition

The company has received Top Exporter Award of CAPEXIL for its export performance.

The company enjoys the status of a Three Star Export House.

2010-11 -

Best Vendor Delivery Compliance (Large Enterprise)

2011-12                                                                                                              

Rolta Corporate Award 2011
National Award for Export Excellence for 2010-11
National Award for Export Excellence 2009-10Top Exporter Award ER 2009-10
Special Export Award for 2010-11
ECGC – D&B Indian Exporters’ Excellence Awards 2012
National Award for Export Excellence in 2011-12

2012-13                                                                                                          

National Award 2011-12                                                                       

Indian Exporter Excellence Award 2012
12th Annual  Greentech Safety Award 2013

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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