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Gayatri Bio Organics Ltd. Stock Analysis

Small Cap
Evaluated by 117 users | BSE: 524564 | NSE: |
Consumer Food
Gayatri BioOrganics, previously known as Gayatri Starchkem, was established in 1993. It is one of the largest manufacturing units of starch, liquid glucose, sorbitol and allied products in south India with a wide distribution network across the country. The company is located at Nandi kandi...

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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Capital Employed 5.13%7.71%2.95%7.19%7.95%10.9%-30.97%-97.33%-105.12%31.75%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 61.787.113115221525713879.7173155
Y-o-Y Gr. Rt.-41.3%50.3%16%41.4%19.5%-46.2%-42.3%117.6%-10.3%
Adjusted EPS (Rs.) 0.340.56-0.550.180.270.63-6.35-8.99-2.43-1.97
Y-o-Y Gr. Rt.-64.7%-198.2%NA50%133.3%-1107.9%NANANA
Book Value per Share (Rs.) -0.851.310.760.941.21.98-2.88-10.3-13-14.84
Adjusted Net Profit 1.52.9-2.80.91.43.2-39.3-70.9-19.1-15.5
Net Op. Cash Flow (Rs. Cr.) 0.3-6.90.910.314.21.1-26.5-13.8-2.6-0.6
Debt to Cash Flow from Ops 27.92-7.2753.024.93.1553.36-3.61-8.17-40.92-59.59
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 Bio Organics Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 10.8%-6.3%4%-10.3%
Adjusted EPS -221.6%-248.8%NANA
Book Value per Share 0-265.400
Share Price 2.4% -7% 0.9% 372.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19
Return on Equity (%) 4.47.95-7.762.553.738.27-182.03179.520.8614.14
Operating Profit Margin (%) 7.5510.486.537.825.995.97-17.96-61.76-13.76-2.33
Net Profit Margin (%) 2.423.3-2.140.590.631.26-28.41-88.9-11.04-9.97
Debt to Equity 0.261.331.441.411.211.443.47-1.39-1.05-0.3
Working Capital Days 102105107129154145231326153195
Cash Conversion Cycle 43627369474814168-38-228
Entity Percentage Holding
Promoters 68.40%
Institutions 24.14%
Non-Institutions 7.46%
Pledged *38.9741.7541.7527.8427.8427.8427.8427.8427.8427.84
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Gayatri Bio Organics earnings have declined by -248.8%, whereas share price has depreciated -7% 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 Gayatri Bio Organics share prices over the last 10 years. Here is what we found out:

Gayatri Bio Organics share price has depreciated -4.6% annually over the past ten years.

Gayatri BioOrganics, previously known as Gayatri Starchkem, was established in 1993. It is one of the largest manufacturing units of starch, liquid glucose, sorbitol and allied products in south India with a wide distribution network across the country.

The company is located at Nandi kandi village in Medak District of Andhra Pradesh, 65 km from Read More

Gayatri BioOrganics, previously known as Gayatri Starchkem, was established in 1993. It is one of the largest manufacturing units of starch, liquid glucose, sorbitol and allied products in south India with a wide distribution network across the country.

The company is located at Nandi kandi village in Medak District of Andhra Pradesh, 65 km from Hyderabad. The plant's current capacity is 8,550 mtpa. In 1998, Gayatri BioOrganics chose to integrate backwards and started 150 mtpd of maize crushing plant.

Gayatri BioOrganics expanded its capacities of sorbitol from 8,550 tpa to 17,000 tpa and maize crushing from 54,000 mtpa to 1,80,000 mtpa. The company is planning to set up a co-gen power plant having a capacity of 6MW for inhouse use.

It came out with a public issue in April 1994 to part-finance the project to manufacture 8,550 tpa of sorbitol.

The company formed a new alliance with Fursa Alternative Strategies, which had acquired 42.63% equity in Gayatri Bio-organics for Rs 18.5 crore.

Product Range:

  • Sorbitol - A hexavalent sugar alcohol, common constituent in many edible fruits. Although known since many decades, it could not find any commercial applications, as its extraction from fruits was very expensive. Its importance was recognized later only after the large scale economical manufacture of sorbitol from the commercially available glucose became possible by catalic reactions with hydrogen.
  • Starch - Maize starch is basically a carbohydrate, which is in white powder form. Maize starch has various direct and indirect uses in many industries. Maize starch has a low ash and protein. The maize starch is extracted from hybrid corn varieties which are available near the company’s plant. Maize starch is used in food, paper, pharma and textile industries.
  • Liquid Glucose - It is also known as corn syrup or glucose syrup and is one of the maize extracts. Liquid glucose is obtained by the enzymatic conversion of starch at 105o C of temperature. The alternative processes are also there which may vary in the percentage of other sugar form levels in the resultant.
  • Gluten - It is a byproduct of maize and has rich protein content. This is mainly used as poultry feed as it has higher protein content and is easily digestible. Corn gluten is rich in amino acids and vitamins which help in the good growth of the poultry. It can also be used in the foodstuffs industry by extracting sodium glutamines.
  • Corn Fiber - It is a corn byproduct with less protein content. Corn fibre is mainly rich in cellulose and mineral matters, also used in cattle feed as an ingredient as it is rich with vitamins and fats.
  • Germ - Germs are one of the demanded byproducts of maize for richness in oil (45 - 50 %). It has excellent properties as a cooking media. As it has good essential oil level and Vitamin E is comparable with other edible oils. With its less fat content it reduces the level of coronary diseases. The cake after oil extract is also used in cattle feed as it increases the productiveness in animals.

Achievements:

In 1998-99, Gayatri BioOrganics was awarded the ISO 9002 Certificate for Sorbitol division. The company is also in process of implementing ISO 9002 standards for its starch division.

Future plan:

Additional Rs 35 crore will be invested in Gayatri BioOrganics for the expansion and modernization of the existing production facilities and to add new product lines.

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

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