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Gayatri Projects Ltd. Stock Analysis

Small Cap
Evaluated by 642 users | BSE: 532767 | NSE: GAYAPROJ |
Engineering - Construction
Gayatri Projects was incorporated as a Private Limited company on September 15, 1989, under the Companies Act, 1956 as Andhra Costal Construction Private Limited in the state of Andhra Pradesh. The name of the company was changed to Gayatri Projects Private Limited with effect from March 31,...

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.
Gayatri Projects Ltd. has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 5.19%3.77%4.41%3.23%2.2%2.44%3%6.4%9.95%11.39%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,2751,2062,2001,9711,5941,5011,7262,1152,9123,463
Y-o-Y Gr. Rt.--5.4%82.4%-10.4%-19.1%-5.9%15%22.5%37.7%18.9%
Adjusted EPS (Rs.) 8.874.615.191.92-1.13-2-1.560.594.278.58
Y-o-Y Gr. Rt.--48%12.6%-63%-158.9%NANANA623.7%100.9%
Book Value per Share (Rs.) 53.7466.4148.7844.1942.1748.4131.0228.8553.9662.29
Adjusted Net Profit 57.732.362.129.1-17.1-30.2-27.610.580161
Net Op. Cash Flow (Rs. Cr.) -44.1134-1551,246600-23.5470234213516
Debt to Cash Flow from Ops -3922.44-31.885.2415.7-181.158.149.3910.844.3
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.
Gayatri Projects Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 11.8%16.8%26.1%18.9%
Adjusted EPS -0.4%NANA100.9%
Book Value per Share 1.78.126.215.4
Share Price -3.6% -29% -54.2% -83.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 17.887.8911.614.57-2.62-4.41-4.311.9710.5114.76
Operating Profit Margin (%) 11.7618.0917.8521.9725.0522.9111.9815.2716.6815.73
Net Profit Margin (%) 4.341.462.20.64-1.86-3.07-0.851.194.35.15
Debt to Equity 4.926.458.479.7714.795.836.964.32.291.9
Working Capital Days 247376307457613628518449391395
Cash Conversion Cycle 28423150283563424751
Entity Percentage Holding
Promoters 45.18%
Institutions 34.38%
Non-Institutions 20.44%
Pledged *93.6493.6493.6493.6493.6497.6297.6299.9997.8997.29
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Gayatri Projects and arrived at the following conclusion:

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

The 5-year analysis of Gayatri Projects's performance infers:

Gayatri Projects earnings have grown by 0%, whereas share price has depreciated -29% 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 Gayatri Projects share prices over the last 10 years. Here is what we found out:

Gayatri Projects share price has depreciated -12.5% annually over the past ten years.

Gayatri Projects was incorporated as a Private Limited company on September 15, 1989, under the Companies Act, 1956 as Andhra Costal Construction Private Limited in the state of Andhra Pradesh. The name of the company was changed to Gayatri Projects Private Limited with effect from March 31, 1994 and it was converted into a Public limited company with effect from December 2, 1994.

Gayatri Projects Limited (GPL), an ISO 9001 – 2000 company, is one of the fastest growing construction

Gayatri Projects was incorporated as a Private Limited company on September 15, 1989, under the Companies Act, 1956 as Andhra Costal Construction Private Limited in the state of Andhra Pradesh. The name of the company was changed to Gayatri Projects Private Limited with effect from March 31, 1994 and it was converted into a Public limited company with effect from December 2, 1994.

Gayatri Projects Limited (GPL), an ISO 9001 – 2000 company, is one of the fastest growing construction company in India executing major civil works including construction of concrete/masonry dams, earthen dams, national highways, bridges, canals, aqueducts, airports, ports, etc.

The company owns a fleet of construction equipments comprising of heavy earth moving machines such as hydraulic excavators, loaders, dozers, earth compacters, concreting plants such as batching plants, concrete mixers, transit mixers, concrete pavers, road equipment such as vibratory tandem rollers, electric paver finishers, mechanical paver finishers, hot mix plants, static rollers, truck mounted pressure bitumen sprayer, integrated stone crushing plants, quarry equipments like wagon drills, jack hammers, air compressors, transportation equipments such as cars and jeeps, tippers, tractors, water tankers, trailers, fabrication and erection plant such as welding generators, gas cuttings sets, work shop equipments, cranes, generators and other miscellaneous equipments.

GPL is sincerely committed to customer satisfaction in providing consistent quality products and services in construction projects with latest engineering practices under safe ad healthy work environment with continual improvement of Quality Management System involving all employees.

GPL has established a pre-eminent position in the construction industry in India with a current order book of Rs. 2000 cr. The company has completed several projects of national importance like National Thermal Power Corporation, National Aluminium Company, South Eastern Railways, etc. Today, it is associated with clients such as Jindal Vijaynagar Steel, International Airports Authority (Calicut Airport), Kakinada Port Project, Upper Krishna Project in Karnataka, Sardar Sarovar Project in Gujarat and various irrigation projects in Maharashtra Govt. and Orissa Irrigation Department.

GPL is managed by the professional team of the board of directors ably supported by the highly qualified and experienced team of employees. Projects undertaken by the company:

The company has executed various types of civil works like Irrigation projects, national highways, mass excavation, ports, airport construction, etc. amounting to Rs.1410.13 crores during the last five years. Some of them are-

  • Construction of Indi Branch Canal from KM 0.00 to 10.00,
  • Construction of Narmada Main Canal from 168 to KM 177, KM 188 to KM 198, KM 250 to KM 263, Rehabilitation and Modernization of Distributory System of KC Package N4-11A.
  • Construction of Dam 2&3-expansion project for NALCO at Damanjodi,
  • Construction of Raw Water Pond for Jindal Vijayanagaram Steel Limited.
  • Area Grading Roads drains for NFCL phase-II, Kakinada, Site grading and construction of roads drains and ponds at Reliance Petroleum Ltd. Project site, Jamnagar, development of a garment complex at Thane, land development & allied works.
  • Civil Engineering Works in Auxiliary Shops Zone-M of Visakhapatnam Steel Plant valuing Rs.1354 lakh, civil, structural and architectural work at HPCL terminal, Vijayawada valuing Rs.1372.11 lakh.
  • Construction of New BG Railway line in 3 sections i.e. KR-51, KR-55 & KR-57 for Koraput-Rayagada Lane, construction of approach berths and back-up area at Kakinada Port Cont-C2.

The company currently has lots of ongoing projects some of them are- 4-laning from Km.93.00 to Km.60.00 of Bijni to WB Border, Rehabilitation and Upgrading of km.104.000 to Km.170.000 Jhansi, Civil Engineering works for Coal Handling Plant at Visakhapatnam, Neelachal Ispat Nigam Limited - Civil Works of Auxiliary units for Phase-II, Construction of Park Hyatt Hotel at Hyderabad, etc.

The company had entered into various joint ventures to carry on its activities, these include-

  • IJM-Gayatri JV has been formed on December 21, 1998 in the ratio of 60:40.
  • Gayatri-Ranjit JV has been formed on February 2, 2001 in the ratio of 55:45 for the purpose of preparation, submission of prequalification document and performs contract works viz. Kishangarh-Udaipur Section of NH-8 and Udaipur-Ratanpur-Gandhinagar of NH-8.
  • Simplex-Gayatri Consortium has been formed on December 4, 2001 in the ratio of 70:30 for the purpose of submitting an offer for the work of Four Laning of Satara-KolhapurJaiprakash-Gayatri JV has been formed on July 9, 2004 in the ratio of 60:40.
  • RNS-GPL Joint Venture has been formed on May 7, 2005 in the ratio of 50:50 for tendering and execution of work consisting of construction and completion of widening and strengthening of roads from Ramanathapuram to Tuticorn.
  • Gayatri-ECI JV has been formed on August 18, 2005 in the ratio of 75:25 for executing the works for widening and strengthening of existing National Highway,WB from 2-lane to 4-lane.

All of them are unincorporated joint ventures in the nature of partnership.

Awards/Achievements

The company has been awarded ISO 9001:2000 and Q9001-2000 Quality Certificate by American Quality Assurance International, LLC, USA.

2010-11 - Awarded the ISO 9001:2008 Quality Certificates by Amercian Quality Assurance International, LLC, USA.
2012 - Gayatri Projocts Ltd. Launch of New Logo and Brand Guide Lines.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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