BSE:523676

Stock Analysis Report

Golkunda Diamonds & Jewellery

Executive Summary

Golkunda Diamonds & Jewellery Limited manufactures and sells diamond studded gold jewelry in India.


Snowflake Analysis

Undervalued with excellent balance sheet.

Share Price & News

How has Golkunda Diamonds & Jewellery's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 523676's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.6%

523676

1.1%

IN Luxury

-0.8%

IN Market


1 Year Return

41.7%

523676

18.4%

IN Luxury

11.1%

IN Market

Return vs Industry: 523676 exceeded the Indian Luxury industry which returned 16.6% over the past year.

Return vs Market: 523676 exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

523676IndustryMarket
7 Day-2.6%1.1%-0.8%
30 Day27.9%3.3%-2.3%
90 Day31.1%9.6%2.1%
1 Year52.7%41.7%19.2%18.4%13.1%11.1%
3 Year-6.6%-15.0%54.9%51.5%22.9%16.2%
5 Year13.0%-3.4%106.1%99.4%34.9%22.6%

Price Volatility Vs. Market

How volatile is Golkunda Diamonds & Jewellery's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Golkunda Diamonds & Jewellery 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: 523676 (₹17) is trading below our estimate of fair value (₹64.09)

Significantly Below Fair Value: 523676 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 523676 is good value based on its PE Ratio (5.2x) compared to the Luxury industry average (11.1x).

PE vs Market: 523676 is good value based on its PE Ratio (5.2x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 523676's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 523676 is good value based on its PB Ratio (0.4x) compared to the IN Luxury industry average (0.5x).


Next Steps

Future Growth

How is Golkunda Diamonds & Jewellery forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

19.8%

Forecasted Consumer Durables 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 Golkunda Diamonds & Jewellery 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 Golkunda Diamonds & Jewellery performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 523676 has a large one-off gain of ₹7.2M impacting its December 31 2019 financial results.

Growing Profit Margin: 523676's current net profit margins (1.7%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 523676's earnings have declined by -18.1% per year over the past 5 years.

Accelerating Growth: 523676's earnings growth over the past year (71.6%) exceeds its 5-year average (-18.1% per year).

Earnings vs Industry: 523676 earnings growth over the past year (71.6%) exceeded the Luxury industry 2.5%.


Return on Equity

High ROE: 523676's Return on Equity (8.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Golkunda Diamonds & Jewellery's financial position?


Financial Position Analysis

Short Term Liabilities: 523676's short term assets (₹570.9M) exceed its short term liabilities (₹340.3M).

Long Term Liabilities: 523676's short term assets (₹570.9M) exceed its long term liabilities (₹7.1M).


Debt to Equity History and Analysis

Debt Level: 523676's debt to equity ratio (93.6%) is considered high.

Reducing Debt: 523676's debt to equity ratio has reduced from 167.3% to 93.6% over the past 5 years.

Debt Coverage: 523676's debt is well covered by operating cash flow (21%).

Interest Coverage: 523676's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet

Inventory Level: 523676 has a high level of physical assets or inventory.

Debt Coverage by Assets: 523676's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is Golkunda Diamonds & Jewellery's current dividend yield, its reliability and sustainability?

4.71%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%0.6%markettop25%2.5%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 523676's dividend (4.71%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 523676's dividend (4.71%) is in the top 25% of dividend payers in the Indian market (2.52%)


Stability and Growth of Payments

Stable Dividend: 523676 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 523676's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.3%), 523676's dividend payments are well 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

How experienced are the management team and are they aligned to shareholders interests?

16.3yrs

Average board tenure


CEO

Kanti Dadha (71yo)

₹2,341,382

Compensation

Mr. Kanti Kumar Dadha is a Promoter at Golkunda Diamonds & Jewellery Limited and serves as its Chairman, Chief Executive Officer and Managing Director. Mr. Dadha has the knowledge and experience in the Dia ...


CEO Compensation Analysis

Compensation vs Market: Kanti's total compensation ($USD32.74K) is below average for companies of similar size in the Indian market ($USD50.21K).

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


Board Members

NamePositionTenureCompensationOwnership
Kanti Dadha
Chairman0yrs₹2.34m8.51% 10.0m
Arvind Kanti Dadha
Whole Time Director20.3yrs₹2.06m6.69% 7.8m
Karan Baid
Whole Time Director29.3yrs₹2.00m0.075% 88.3k
Ashok Kumar Bekal
Independent Non-Executive Director16.3yrsno datano data
Rajani Poddar
Independent Non-Executive Director3.5yrs₹20.00kno data
Vinod Kankariya
Additional Independent Director1.5yrs₹10.00kno data

16.3yrs

Average Tenure

65yo

Average Age

Experienced Board: 523676's board of directors are seasoned and experienced ( 16.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Golkunda Diamonds & Jewellery Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golkunda Diamonds & Jewellery Limited
  • Ticker: 523676
  • Exchange: BSE
  • Founded: 1990
  • Industry: Apparel, Accessories and Luxury Goods
  • Sector: Consumer Durables
  • Market Cap: ₹116.997m
  • Shares outstanding: 6.96m
  • Website: https://www.golkunda.com

Number of Employees


Location

  • Golkunda Diamonds & Jewellery Limited
  • G-30, Gems & Jewellery Complex - III
  • Seepz
  • Mumbai
  • Maharashtra
  • 400096
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
523676BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

Golkunda Diamonds & Jewellery Limited manufactures and sells diamond studded gold jewelry in India. Its products include rings, earrings, necklaces, bracelets, bangles, and pendants. The company also exports its products. The company was incorporated in 1990 and is based in Mumbai, India. Golkunda Diamonds & Jewellery Limited is a subsidiary of Neverloose Properties and Investment Private Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:34
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
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.