NSEI:GAMMNINFRA

Stock Analysis Report

Gammon Infrastructure Projects

Executive Summary

Gammon Infrastructure Projects Limited develops various infrastructure projects on a public-private partnership basis in India.

Rewards

Trading at 94.9% below its fair value

Risk Analysis

Earnings have declined by -30.2% per year over past 5 years

Does not have a meaningful market cap (₹396M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Fair value with imperfect balance sheet.


Similar Companies

Share Price & News

How has Gammon Infrastructure Projects's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GAMMNINFRA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-18.2%

GAMMNINFRA

1.2%

IN Construction

0.2%

IN Market


1 Year Return

-30.8%

GAMMNINFRA

-9.5%

IN Construction

3.1%

IN Market

Return vs Industry: GAMMNINFRA underperformed the Indian Construction industry which returned -9.5% over the past year.

Return vs Market: GAMMNINFRA underperformed the Indian Market which returned 3.1% over the past year.


Shareholder returns

GAMMNINFRAIndustryMarket
7 Day-18.2%1.2%0.2%
30 Day50.0%-5.9%0.1%
90 Day28.6%-5.3%6.5%
1 Year-30.8%-30.8%-8.3%-9.5%5.1%3.1%
3 Year-88.2%-88.2%24.1%19.7%33.6%26.5%
5 Year-96.9%-96.9%23.6%16.7%41.1%28.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Gammon Infrastructure Projects undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GAMMNINFRA (₹0.45) is trading below our estimate of fair value (₹8.88)

Significantly Below Fair Value: GAMMNINFRA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GAMMNINFRA is unprofitable, so we can't compare its PE Ratio to the Construction industry average.

PE vs Market: GAMMNINFRA is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GAMMNINFRA is good value based on its PB Ratio (0.2x) compared to the IN Construction industry average (0.7x).


Next Steps

Future Growth

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

18.0%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Gammon Infrastructure Projects has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Gammon Infrastructure Projects performed over the past 5 years?

-30.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GAMMNINFRA is currently unprofitable.

Growing Profit Margin: GAMMNINFRA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GAMMNINFRA is unprofitable, and losses have increased over the past 5 years at a rate of -30.2% per year.

Accelerating Growth: Unable to compare GAMMNINFRA's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GAMMNINFRA is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (6.5%).


Return on Equity

High ROE: GAMMNINFRA has a negative Return on Equity (-163.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gammon Infrastructure Projects's financial position?


Financial Position Analysis

Short Term Liabilities: GAMMNINFRA's short term assets (₹5.8B) do not cover its short term liabilities (₹27.9B).

Long Term Liabilities: GAMMNINFRA's short term assets (₹5.8B) do not cover its long term liabilities (₹20.2B).


Debt to Equity History and Analysis

Debt Level: GAMMNINFRA's debt to equity ratio (830.7%) is considered high.

Reducing Debt: GAMMNINFRA's debt to equity ratio has increased from 351.9% to 830.7% over the past 5 years.


Balance Sheet

Inventory Level: GAMMNINFRA has a low level of unsold assets or inventory.

Debt Coverage by Assets: GAMMNINFRA's debt is not covered by short term assets (assets are 0.4x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable GAMMNINFRA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GAMMNINFRA is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 21.9% per year.


Next Steps

Dividend

What is Gammon Infrastructure Projects's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GAMMNINFRA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GAMMNINFRA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GAMMNINFRA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GAMMNINFRA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GAMMNINFRA's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Kishore Mohanty (62yo)

8.7yrs

Tenure

₹24,428,210

Compensation

Mr. Kishore Kumar Mohanty, B.Tech, MBA serves as Managing Director of Gammon Infrastructure Projects Limited since April 12, 2011 and serves as its Director since February 11, 2011. Mr. Mohanty has more th ...


CEO Compensation Analysis

Compensation vs Market: Kishore's total compensation ($USD345.81K) is above average for companies of similar size in the Indian market ($USD50.96K).

Compensation vs Earnings: Kishore's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

7.2yrs

Average Tenure

51yo

Average Age

Experienced Management: GAMMNINFRA's management team is seasoned and experienced (7.2 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

65yo

Average Age

Experienced Board: GAMMNINFRA's board of directors are considered experienced (4.8 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.


Ownership Breakdown

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


Management Team

  • Kishore Mohanty (62yo)

    MD & Director

    • Tenure: 8.7yrs
    • Compensation: ₹24.43m
  • Kaushik Chaudhuri (51yo)

    Head of Risk & Internal Audit

    • Tenure: 7.9yrs
    • Compensation: ₹7.23m
  • Naresh Sasanwar (51yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: ₹4.76m
  • Prakash Naik

    Head of Legal Department

    • Tenure: 7.8yrs
  • Atulesh Sharma

    General Manager of Technical

    • Tenure: 0yrs
  • Pavneet Sethi

    Chief Operating Officer of Operation

    • Tenure: 6.7yrs
  • M. Ramanamurthy

    Head of Operations - Road Business

    • Tenure: 0yrs
  • Kaushal Shah

    Compliance Officer & Company Secretary

    • Tenure: 2.1yrs
    • Compensation: ₹1.58m
  • Prakash R.

    President of Roads

    • Tenure: 0yrs
  • Manu Trivedi

    President

    • Tenure: 0yrs

Board Members

  • Homai Daruwalla (71yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: ₹500.00k
  • Kishore Mohanty (62yo)

    MD & Director

    • Tenure: 8.7yrs
    • Compensation: ₹24.43m
  • Chayan Bhattacharjee (68yo)

    Non-Executive Director

    • Tenure: 1.5yrs
    • Compensation: ₹300.00k
  • Mahendra Agrawala (62yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: ₹100.00k

Company Information

Gammon Infrastructure Projects Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gammon Infrastructure Projects Limited
  • Ticker: GAMMNINFRA
  • Exchange: NSEI
  • Founded: 2001
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹395.569m
  • Shares outstanding: 941.83m
  • Website: https://www.gammoninfra.com

Location

  • Gammon Infrastructure Projects Limited
  • Orbit Plaza Co-operative Housing Society Limited
  • 5th Floor
  • Mumbai
  • Maharashtra
  • 400025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532959BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2008
GAMMNINFRANSEI (National Stock Exchange of India)YesEquity SharesININRApr 2008

Biography

Gammon Infrastructure Projects Limited develops various infrastructure projects on a public-private partnership basis in India. The company undertakes and develops road and expressway, port, hydro power, u ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 12:49
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.