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Gammon India Ltd. Stock Analysis

Small Cap
Evaluated by 979 users | BSE: 509550 | NSE: GAMMONIND |
Engineering - Construction
Gammon India company was incorporated way back in 1922 as a private limited company, founded by John C. Gammon and was converted into a public Ltd. company on April 31, 1962. The company provides engineering services and construction of services. It operates in plan, design and undertakes...

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.
Value Creation
 Mar'10Mar'11Mar'12Mar'13Dec'13Sep'14Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 8.57%7.89%7.6%-2.4%-8.88%-0.53%11.32%-22.01%-108.22%64.67%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,5915,5755,5515,2174,3933,9774,054762265198
Y-o-Y Gr. Rt.-21.4%-0.4%-6%-15.8%-9.5%1.9%-81.2%-65.2%-25.2%
Adjusted EPS (Rs.) 8.348.175.5-33.63-75.92-35.87-0.03-44.44-53.8-49.15
Y-o-Y Gr. Rt.--2%-32.7%-711.5%NANANANANANA
Book Value per Share (Rs.) 131.96138.2148.37117.8791.7296.5242.1417.44-35.66-83.18
Adjusted Net Profit 10611174.7-457-1,031-487-1.3-1,639-1,984-1,813
Net Op. Cash Flow (Rs. Cr.) -86-16661.6-128-353-282.812644-70.3
Debt to Cash Flow from Ops -15.06-12.8144.27-27.57-16.65-230.781,217.9328.5900
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.
Gammon India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -29.5%-46.2%-63.4%-25.2%
Adjusted EPS -221.8%NANANA
Book Value per Share -195-198.1-225.40
Share Price -35.7% -33.7% -41% -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Dec'13Sep'14Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 6.035.463.42-23.02-56.01-34.17-0.11-111.15591.0782.72
Operating Profit Margin (%) 8.784.768.672.27-6.95-2.115.93-6.6727.3311.51
Net Profit Margin (%) 2.311.991.35-8.75-23.46-12.25-0.03-215.19-748.98-914.73
Debt to Equity 0.771.131.352.24.724.942.185.5800
Working Capital Days 3133083614487638824422,7245,7266,435
Cash Conversion Cycle 110948710717017451282-1201
Entity Percentage Holding
Promoters 11.54%
Institutions 63.69%
Non-Institutions 24.77%
Pledged *92.7292.7292.7292.7292.7284.7584.7584.7584.7584.75
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Gammon India's performance infers:

Gammon India earnings have grown by 0%, whereas share price has depreciated -33.7% 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 Gammon India share prices over the last 10 years. Here is what we found out:

Gammon India share price has depreciated -39.7% annually over the past ten years.

Gammon India company was incorporated way back in 1922 as a private limited company, founded by John C. Gammon and was converted into a public Ltd. company on April 31, 1962. The company provides engineering services and construction of services. It operates in plan, design and undertakes construction of roads, highways, bridges and other projects.

Gammon India is not only the largest civil engineering construction company in India, but can lay claim for the largest number of bridges

Gammon India company was incorporated way back in 1922 as a private limited company, founded by John C. Gammon and was converted into a public Ltd. company on April 31, 1962. The company provides engineering services and construction of services. It operates in plan, design and undertakes construction of roads, highways, bridges and other projects.

Gammon India is not only the largest civil engineering construction company in India, but can lay claim for the largest number of bridges built in the whole of Commonwealth. With over seventy years of tradition in the field of construction. Gammon is a name that is inextricably woven into the fabric of India.

As builders to the nation, Gammon has made concrete contributions by designing and constructing bridges, ports, harbours, thermal and nuclear power stations, dams, high-rise structures, chemical and fertilizer complexes environmental structures, cross country water, oil and gas pipelines. Gammon has accomplished this by fusing tremendous engineering knowledge with innovative skills, harnessing men and materials to build structures.

The project services of the Group include transportation engineering, energy projects and high rise structures, hydraulic works and irrigation projects, tunnel engineering, marine structures, water projects, pipeline projects and road projects.

This insatiable quest has led Gammon to pioneer Reinforced and Prestressed Concrete, Long span bridges, Under water concreting using the Colcrete process, Thin shell structures, Non-Shrinking concrete, Aluminium trusses for launching precast, prestressed beams and many more.’

Current projects of the company:

  • Vadape-Gonde Road (99.5km) Nh-3
  • Parbati Hydroelectric Project -Lot PB3
  • Rampur Hydroelectric Project - Package 1 & 2
  • West Bengal Corridor Project
  • Bramhaputra Bridge
  • Contract- BC- 12 & BC- 13
  • Gorakhpur By Pass
  • Kosi Bridge
  • Dahej Uran Pipeline Project Spread -3
  • Gandikota -Package 2, Andhra Pradesh Irrigation Works
  • Kalwakurthy Lift Irrigation Scheme

Landmark projects of the company:

  • The first precast reinforced concrete piling job in India - The Construction of foundations of the Gateway of India, Mumbai in 1919. 
  • The Longest River Bridge then in the World across the Mighty Ganges at Patna. 
  • India's first Cable Stayed Bridge at Akkar, Sikkim  
  • The Longest span Cantilever Bridge in India across river Jadukata, is an example of an innovative and aesthetically beautiful bridge. 
  • Construction of the longest Railway Tunnel in Asia for Konkan Railway at Ratnagiri  Terminal Building for Sharjah International Airport. 
  • The first 500 MW Thermal Power Station at Trombay. 
  • The Tallest Cooling Tower at Panipat.  
  • Longest Urban Flyover : 5.3 Km in length at Hebbal for Bangalore Development Authority 
  • Elevated Viaducts for Delhi Metro Rail Corporation 
  • The first Extradosed Elevated Structure (viaduct) at Barakhamba - Indraprastha section on Line-3 for Delhi Metro Rail Corporation

Clientele:

  • Delhi Metro Rail Corporation Limited
  • GAIL India Limited
  • Godrej Properties
  • Gorakhpur Infrastructure Company Limited
  • Government of Andhra Pradesh
  • Government of West Bengal
  • Kosi Bridge Infrastructure Company Limited
  • Ministry of Housing, Electricity and Water, Sultanate of Oman
  • Municipal Corporation of Amritsar
  • National Highway Authority of India
  • National Hydroelectric Power Corporation Limited
  • Nuclear Power Corporation of India
  • Sabarmati River Front Development Corporation Limited
  • Satluj Jal Vidhyut Nigam Limited

Subsidiaries of the company:

  • Gammon Infrastructure Projects Ltd. GIPL
  • Gammon Cooling Towers Ltd.
  • Gammon and Billimoria Ltd.
  • Rajahmundry Expressway Ltd. (REL)
  • Andhra Expressway Ltd. (AEL)
  • Cochin Bridge Infrastructure Co. Ltd. (CBICL)
  • Mumbai Nasik Expressway Ltd. (MNEL)
  • Sikkim Hydro Power Ventures Ltd. (SHVPL)
  • Gammon Project Developers Ltd. (GDPL)
  • Gammon Realty Limited (GRL)
  • Kosi Bridge Infrastructure Company Ltd. (KBICL)
  • Gorakhpur Infrastructure Company Ltf. (GICL)
  • Marine Projects Services Ltd.

Awards/Achievements

  • MSRDC Award for J.J. Hospital to Palton Road by J.J. Hospital - 2002 
  • ACCE-L&T Endowment Award for Excellence in construction of Haldia Induced Draught Cooling Towers - Induced Draught Cooling Towers at  Haldia  - 2001 
  • IIBE -7th Annual Award Nite for Flyover at Doveton Jn.Chennai by Doveton Jn. Chennai - 2001 
  • IIBE-7th Annual Award Nite for Noida Bridge at Delhi by Noida Bridge at Delhi - 2001 
  • ACCE-L&T Endowment Award for Excellence in construction of Industrial Structure, Raichur Natural Draft Cooling Towers by Raichur Multiflue Chimney - 2000 
  • ICI-MC-Bauchemie Award for the Most Outstanding Bridge, Kaladan Bridge by Kaladan Bridge - 2000 
  • ICI-MC-Bauchemie Award for the Most Outstanding Bridge, Jadukata Bridge by Jadukata Bridge -1999 
  • ACCE-Sarvamangala Award for Excellence in Construction of Karbude Tunnel by Konkan Railway Tunnel and Viaduct - 1999 
  • ACCE-L&T Endowment Award for Excellence in Construction of Industrial Structure, Kothgudem, Natural Draft R.C Cooling Towers by Kothgudem Coolling Tower -1998 
  • IIBE- Most Outstanding Bridge National Award, For CMLR Vashi Flyover by CMLR Vashi Flyover -1998 
  • IIBE- Most Outstanding National Award TO P.V.Raj Memorial. P.V.Raj Memorial  1995 
  • Certificate of Merit for Akkar Bridge  by Akkar Bridge - 1988 
  • The Arch of Europe Gold Award by Ganga Bridge -1987 
  • IFAWPCA Certificate for Sindhri Horizontal Silos by Sindhri Horizontal Silos - 1971 
  • IFAWPCA Certificate for Thane Creek Bridge by Thane Creek Bridge -1971 
  • IFAWPCA Builders Award to Gammon India LTD - 1970 
  • Award By Gujarat Electricity Board by Gujarat Electricity Board in 1965

Recent Development:

  • November 2010 - Gammon India acquired 84.16% of equity capital in Metropolitan Infrahousing. Consequently, Metropolitan Infrahousing has become a subsidiary of the company. The company already had 13 subsidiaries before this acquisition.
  • September 2010 - Gammon India announced that Gammon Group companies won Rs 310 crore worth of order for supply of 1 x 150 megawatt (MW) steam turbine and boiler for Nagai Power plant.
  • March 2010 - Gammon India won Rs 631.81 crore order from Delhi Tourism and Transportation Development Corporation (DTTDC). The order is for construction of bridge which approaches over river Yamuna at Wazirabad, Delhi.
  • February 2010 - Gammon India has bagged a contract form the International Society for Krishna Consciousness (ISKCON) worth Rs 137.28 crore. The order comprises construction of Sri Chaitanya Chandrodaya Mandir and Indian Educational & Cultural Centre at Sri Mayapur, Dist: Nadia, West Bengal.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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