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GTL Ltd Stock Analysis

Small Cap
Evaluated by 738 users | BSE: 500160 | NSE: GTL |
Telecommunication - Service Provider
GTL, incorporated in 1987, is amongst the leading network services company. Being part of Global Group, the company offers a complete solution in Network Life cycle starting from planning and design to deployment, to operations and maintenance and enhancement and evolutions.The...

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
 Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 10.55%-2.07%-3.22%-2.61%-12.36%278.59%8.02%17.57%2.91%2.51%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 2,4662,0092,1722,2652,0691,2421,221995219215
Y-o-Y Gr. Rt.--18.5%8.1%4.3%-8.6%-40%-1.7%-18.5%-78%-1.7%
Adjusted EPS (Rs.) 11.63-55.85-34.53-31.62-45.69-76.97-40.91-55.17-12.38-11.23
Y-o-Y Gr. Rt.--580.2%NANANANANANANANA
Book Value per Share (Rs.) 105.61122.6441.211.3-39.64-194.18-234.25-401.28-416.83-431.51
Adjusted Net Profit 113-543-542-497-719-1,211-643-868-195-177
Net Op. Cash Flow (Rs. Cr.) 261-2,32282.945232410810112891.1102
Debt to Cash Flow from Ops 12.14-2.3446.86.967.171.061.261.11.721.7
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.
GTL Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -23.7%-36.4%-43.9%-1.7%
Adjusted EPS -199.6%NANANA
Book Value per Share -216.9000
Share Price -16.1% -9% -5.3% 591.2%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Jun'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 11.65-37.36-49.44-46.82-168.2579.9619.117.363.032.65
Operating Profit Margin (%) 16.135.576.335.3-7.02-4.1-6.07-8.82-78.43-65.82
Net Profit Margin (%) 4.59-27.04-24.96-21.96-34.73-97.5-52.7-87.18-88.92-82.03
Debt to Equity 3.094.562.993.887.74-0.04-0.03-0.02-0.02-0.03
Working Capital Days 2728416855213984623091927673
Cash Conversion Cycle -20291249024-12-2-9-92-153
Entity Percentage Holding
Promoters 32.41%
Institutions 21.69%
Non-Institutions 45.90%
Pledged *99.3199.0699.0699.0699.0699.0699.0699.0699.0699.06
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of GTL Ltd's performance infers:

GTL Ltd earnings have grown by 0%, whereas share price has depreciated -9% 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 GTL Ltd share prices over the last 10 years. Here is what we found out:

GTL Ltd share price has depreciated -33.5% annually over the past ten years.

GTL, incorporated in 1987, is amongst the leading network services company. Being part of Global Group, the company offers a complete solution in Network Life cycle starting from planning and design to deployment, to operations and maintenance and enhancement and evolutions.

The company’s services are widely used by WiMax, CDMA, GSM, fixed line telecom carrier, OEMs and leading corporates across the world. 

Presently, the company has completed various projects in over 36

GTL, incorporated in 1987, is amongst the leading network services company. Being part of Global Group, the company offers a complete solution in Network Life cycle starting from planning and design to deployment, to operations and maintenance and enhancement and evolutions.

The company’s services are widely used by WiMax, CDMA, GSM, fixed line telecom carrier, OEMs and leading corporates across the world. 

Presently, the company has completed various projects in over 36 countries, has built over 45 cellular networks, installed and established over 36000 cell sites that have led to connect over 36 million subscribers. 

Headquartered at Mumbai, GTL has worldwide offices spread across 36 countries located in Africa, Asia- Pacific, Middle East, North America, South Asia and Western Europe.

The company has employee strength of 5,647 professionals. GTL has received various certifications such as Six Sigma, PCMM, ISO 9000:2001 and ISO 14000 for its quality management.

The company shares business relationships with major companies like Alcatel-Lucent, Ericsson, Huawei, Motorola, Nokia-Siemens, Nortel and ZTE, among others.

In India, GTL's client list includes Aircel, Bharti, BPL, BSNL, Idea, MTNL, Railtel, Reliance, Spice, TTSL and VSNL. Globally the company caters its services to customers namely Celltel (Sri Lanka), Nokia (Sweden), Cingular (USA) , T-Mobile (USA), Waridel (Bangladesh), MTML (Mauritius), Talkpool ( Carribbean), UT Starcom and many more.

Milestones

1985 – 1987- GTL Tele-Systems, a private limited company was incorporated. GTL Telecom a partnership firm was formed.

1988 – 1989- The company launched products such as single line push button phones, servicing of telecom products, distribution of Apple Computers and Desktop Publishing Systems. GTL commissioned a new customer services division- GTL Care

1990- GTL plans to develop pan-India distribution network and established 3 offices.

1991- The company forms its first major international tie-up with Murata, Japan. It establishes a Networking and Engineering Services division

1992- GTL goes public with an Initial Public Offer (IPO) issue of Rs 1.80 crore, which was oversubscribed by 53.17 times. The company submits an application to Department of Telecommunications (DoT) in order to facilitate data related services.

1993- GTL develops Interactive Response System, Instant Voice Access System, Message Switching and starts turnkey execution of projects for Voice and Data Networks and projects on wireless networks. The company establishes a group company, GTL Electronic Commerce Services (GECS), to provide value added services. The same year the company receives licence from DoT for data related services.

1994- GTL develops fibre optics and V-SAT networks for transmission of voice, data and multimedia communication.   

1995- The company completes commissioning of the largest private nationwide data network in India covering nine cities at a cost of over Rs. 100 crores. GTL achieves turnover of Rs 200 crore. It also expands its service network to 26 locations across India. 

1996- The company starts data network services such as Enhanced Fax, Electronic Messaging and E-Commerce through EDI technology (GECS)   

1997- In order to start call management company in India, GTL forms joint venture with Broadsystem Multimedia, Australia.

1998- The company plans to cease its product businesses 

1999- GTL received ISO 9002 certification. It also sets up an Oracle Competence centre and Nortel CISCO Labs

2000- The company develop B2B service applications – GTL E-enterprise – an Enterprise Resources Planning (ERP) package for small and medium enterprises. It exits from its Subscriber End Terminal Division.

2001- The company merges with group company – GECS. The same year it acquires two software companies Fine Infotech (FIL) and Thermax Systems & Software (TSSL). The company sets up call centre spread across in 1,20,000 sq. ft. of area in Navi Mumbai.  In order to develop Security Solutions for enterprises was starts 51% subsidiary, GTL E-Secure. The company is rechristened as 'GTL”. GTL ranked amongst ‘Best 200 Small firms’ by Forbes Magazine

2002- The company strengthens its international presence with over 100 employees and 11 offices. It is being assessed at SEI-CMM Level 4 for Enterprise Solutions – Software Development.

2003- The company sets up IGTL Saudi Arabia to execute the Saudi Telecom Project.

2006- GTL acquired UK Based Genesis Consultancy. Listing of GTL Infrastructure, a spin off from GTL as part of the restructuring process. Company opens office in Thailand. The company received its first project in Africa 

2007- The company sold its Enterprise Networks and Managed Services business to Orange Business Services, an arm of France Telecom. GTL formed a strategic alliance with Ericsson UK, to offer Managed Network Infrastrucutre Services to customers in UK and Ireland. GTL International 100% subsidiary of GTL acquires SCS, a Network Deployment Company in USA and ADA Cellworks, a leading Network Planning and Optimization player in Asia Pacific.

2008- The company enters a strategic alliance with Vanu Inc to Conduct Shared Active Infrastructure Field Trials in India.

Awards

GTL has received Golden Peacock Global Award for Corporate Governance in 2007.

The company received Business for Social Responsibility Award from BSE and ITM.

GTL also received Amity Business Award for Social Responsibility in 2008.

Global Group

Global Group has 5 operating companies, out which 2 are listed on the Indian stock exchanges. The group has operational presence in 36 countries. It has employee strength of 19246 professional from 22 nationalities. The company offers expertise in wireless communications. It offers complete life-cycle solutions under network services namely network planning and design, network deployment, network operations and maintenance, infrastructure management, energy management and professional services.

Future Strategy

In future, GTL will focus on opportunities in Energy Management, Jointly bid with Major OEMs for Domestic and International MNS contracts and focus on targets in International markets with positive cash-flows.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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