NSEI:GRPLTD

Stock Analysis Report

Executive Summary

GRP Limited manufactures and sells reclaim rubber sheets for tire and non-tire rubber goods industries in India and internationally.

Snowflake

Proven track record with adequate balance sheet.

Share Price & News

How has GRP's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GRPLTD has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.4%

GRPLTD

-1.2%

IN Auto Components

-0.6%

IN Market


1 Year Return

-26.3%

GRPLTD

-20.7%

IN Auto Components

5.0%

IN Market

Return vs Industry: GRPLTD underperformed the Indian Auto Components industry which returned -20.7% over the past year.

Return vs Market: GRPLTD underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

GRPLTDIndustryMarket
7 Day-5.4%-1.2%-0.6%
30 Day-5.7%11.0%5.9%
90 Day-4.5%13.7%8.2%
1 Year-25.6%-26.3%-19.9%-20.7%7.0%5.0%
3 Year-40.8%-41.8%5.2%2.8%36.1%29.2%
5 Yearn/a20.1%15.6%38.6%25.8%

Price Volatility Vs. Market

How volatile is GRP's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is GRP undervalued compared to its fair value and its price relative to the market?

11.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRPLTD (₹850) is trading above our estimate of fair value (₹44.99)

Significantly Below Fair Value: GRPLTD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRPLTD is good value based on its PE Ratio (11.8x) compared to the Auto Components industry average (14.7x).

PE vs Market: GRPLTD is good value based on its PE Ratio (11.8x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GRPLTD's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GRPLTD is good value based on its PB Ratio (0.9x) compared to the IN Auto Components industry average (1.5x).


Next Steps

Future Growth

How is GRP forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRPLTD's forecast earnings growth (16% per year) is above the savings rate (7.6%).

Earnings vs Market: GRPLTD's earnings (16% per year) are forecast to grow slower than the Indian market (19% per year).

High Growth Earnings: GRPLTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if GRPLTD's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if GRPLTD's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GRPLTD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has GRP performed over the past 5 years?

-9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRPLTD has high quality earnings.

Growing Profit Margin: GRPLTD's current net profit margins (2.6%) are higher than last year (0.2%).


Past Earnings Growth Analysis

Earnings Trend: GRPLTD's earnings have declined by -9.2% per year over the past 5 years.

Accelerating Growth: GRPLTD's earnings growth over the past year (1143.2%) exceeds its 5-year average (-9.2% per year).

Earnings vs Industry: GRPLTD earnings growth over the past year (1143.2%) exceeded the Auto Components industry -10.7%.


Return on Equity

High ROE: GRPLTD's Return on Equity (7.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GRP's financial position?


Financial Position Analysis

Short Term Liabilities: GRPLTD's short term assets (₹1.2B) exceeds its short term liabilities (₹920.5M)

Long Term Liabilities: GRPLTD's short term assets (1.2B) exceeds its long term liabilities (249.2M)


Debt to Equity History and Analysis

Debt Level: GRPLTD's debt to equity ratio (49.8%) is considered high

Reducing Debt: GRPLTD's debt to equity ratio has reduced from 74.8% to 49.8% over the past 5 years.

Debt Coverage: GRPLTD's debt is not well covered by operating cash flow (15%).

Interest Coverage: GRPLTD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GRPLTD has a high level of physical assets or inventory.

Debt Coverage by Assets: GRPLTD's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is GRP's current dividend yield, its reliability and sustainability?

0.95%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%0.6%markettop25%2.4%industryaverage0.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GRPLTD's dividend (0.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: GRPLTD's dividend (0.95%) is low compared to the top 25% of dividend payers in the Indian market (2.36%).


Stability and Growth of Payments

Stable Dividend: GRPLTD's dividend payments have been volatile in the past 10 years.

Growing Dividend: GRPLTD's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (11.2%), GRPLTD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of GRP's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Rajendra Gandhi (70yo)

0yrs

Tenure

₹10,036,400

Compensation

Mr. Rajendra V. Gandhi has been the Managing Director of GRP Limited since August 1, 2007 and its Executive Director since August 01, 2013. Mr. Gandhi serves as Chairman of GRIP Polymers Ltd. He is an Inde ...


CEO Compensation Analysis

Compensation vs Market: Rajendra's total compensation ($USD140.19K) is above average for companies of similar size in the Indian market ($USD33.52K).

Compensation vs Earnings: Rajendra's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.8yrs

Average Tenure

50yo

Average Age

Experienced Management: GRPLTD's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

6.1yrs

Average Tenure

69yo

Average Age

Experienced Board: GRPLTD's board of directors are considered experienced (6.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell₹1,14129 Mar 19
Jagdish Desai
EntityIndividual
Shares1
Max Price₹1,141.00
Sell₹372,09313 Mar 19
Jagdish Desai
EntityIndividual
Shares350
Max Price₹1,097.26
Sell₹73,08408 Mar 19
Jagdish Desai
EntityIndividual
Shares70
Max Price₹1,044.06
Sell₹109,23003 Jan 19
Jagdish Desai
EntityIndividual
Shares100
Max Price₹1,092.30
Sell₹52,27519 Dec 18
Jagdish Desai
EntityIndividual
Shares47
Max Price₹1,112.23

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hemant Kaul (50yo)

    President of Marketing & Business Development

    • Tenure: 0yrs
  • Rajendra Gandhi (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹10.04m
  • Harsh Gandhi (42yo)

    Joint MD & Director

    • Tenure: 10.4yrs
    • Compensation: ₹14.75m
  • Ganesh Ghangurde (60yo)

    President & Chief Compliance Officer

    • Tenure: 0yrs
    • Compensation: ₹9.84m
  • Shilpa Mehta

    Chief Financial Officer

    • Tenure: 1.3yrs
    • Compensation: ₹3.73m
  • Abhijeet Sawant

    Company Secretary

    • Tenure: 0.8yrs
    • Compensation: ₹1.18m
  • Sanjeeb Lahiri (47yo)

    Head of HR & Administration

    • Tenure: 0yrs
  • Kiran Shetty (41yo)

    General Manager of Sales

    • Tenure: 0yrs
  • Rajen Doshi (53yo)

    President & Chief Operating Officer

    • Tenure: 0yrs

Board Members

  • Kandathil Philip

    Chairman Emeritus

    • Tenure: 6.1yrs
    • Compensation: ₹15.00k
  • Peter Philip (76yo)

    Chairperson

    • Tenure: 4yrs
    • Compensation: ₹154.00k
  • Rajendra Gandhi (70yo)

    MD & Executive Director

    • Tenure: 0yrs
    • Compensation: ₹10.04m
  • Mahesh Gandhi (75yo)

    Non Executive Director

    • Tenure: 45.4yrs
    • Compensation: ₹75.00k
  • Harsh Gandhi (42yo)

    Joint MD & Director

    • Tenure: 10.4yrs
    • Compensation: ₹14.75m
  • Rajeev Pandia (70yo)

    Non-Executive & Independent Director

    • Tenure: 9yrs
    • Compensation: ₹1.33m
  • Nayna Gandhi (68yo)

    Non Executive & Non Independent Director

    • Tenure: 4.5yrs
    • Compensation: ₹75.00k
  • Alpana Shah (56yo)

    Non-Executive Independent Director

    • Tenure: 3.5yrs
  • Saurabh Shah (54yo)

    Non-Executive Independent Director

    • Tenure: 2.2yrs
    • Compensation: ₹217.00k

Company Information

GRP Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GRP Limited
  • Ticker: GRPLTD
  • Exchange: NSEI
  • Founded: 1974
  • Industry: Tires and Rubber
  • Sector: Automobiles
  • Market Cap: ₹1.126b
  • Shares outstanding: 1.33m
  • Website: https://www.grpweb.com

Location

  • GRP Limited
  • 510, A Wing
  • Kohinoor City Commercial I
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
509152BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
GRPLTDNSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

Biography

GRP Limited manufactures and sells reclaim rubber sheets for tire and non-tire rubber goods industries in India and internationally. The company offers reclaim rubber products, such as natural rubber recla ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 12:49
End of Day Share Price2019/11/11 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.