BSE:526729

Stock Analysis Report

Executive Summary

Goldiam International Limited, together with its subsidiaries, manufactures, markets, and distributes diamond studded gold and silver jewelry in India.

Rewards

Trading at 77.5% below its fair value

Revenue is forecast to grow 10.46% per year

Earnings grew by 45.3% over the past year

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (₹4B)



Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Uday Jewellery Industries

BSE:539518

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 526729 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.1%

526729

0.6%

IN Luxury

-1.1%

IN Market


1 Year Return

84.5%

526729

11.9%

IN Luxury

7.3%

IN Market

Return vs Industry: 526729 exceeded the Indian Luxury industry which returned 8.4% over the past year.

Return vs Market: 526729 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

526729IndustryMarket
7 Day-0.1%0.6%-1.1%
30 Day7.0%3.7%1.5%
90 Day17.5%-1.1%5.1%
1 Year94.7%84.5%12.7%11.9%9.3%7.3%
3 Year127.8%106.1%54.0%52.1%28.9%22.0%
5 Year573.0%459.3%92.4%89.3%33.1%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Goldiam International 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: 526729 (₹153.45) is trading below our estimate of fair value (₹683.18)

Significantly Below Fair Value: 526729 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 526729 is good value based on its PE Ratio (8x) compared to the Luxury industry average (11.2x).

PE vs Market: 526729 is good value based on its PE Ratio (8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 526729's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 526729 is overvalued based on its PB Ratio (0.9x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is Goldiam International forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 526729's forecast earnings growth is above the savings rate (6.5%).

Earnings vs Market: Insufficient data to determine if 526729's earnings are forecast to grow faster than the Indian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 526729's revenue (10.5% per year) is forecast to grow faster than the Indian market (8.6% per year).

High Growth Revenue: 526729's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 526729's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Goldiam International performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526729 has high quality earnings.

Growing Profit Margin: 526729's current net profit margins (9.9%) are higher than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 526729's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: 526729's earnings growth over the past year (45.3%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: 526729 earnings growth over the past year (45.3%) exceeded the Luxury industry 1.2%.


Return on Equity

High ROE: 526729's Return on Equity (11.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Goldiam International's financial position?


Financial Position Analysis

Short Term Liabilities: 526729's short term assets (₹4.2B) exceed its short term liabilities (₹988.1M).

Long Term Liabilities: 526729 has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 526729's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: 526729's debt to equity ratio has reduced from 27.6% to 3.8% over the past 5 years.

Debt Coverage: 526729's debt is well covered by operating cash flow (364.4%).

Interest Coverage: 526729's interest payments on its debt are well covered by EBIT (126x coverage).


Balance Sheet

Inventory Level: 526729 has a high level of physical assets or inventory.

Debt Coverage by Assets: 526729's debt is covered by short term assets (assets are 26.7x debt).


Next Steps

Dividend

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

1.31%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 526729's dividend (1.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 526729's dividend (1.3%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: 526729 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 526729'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 (5.2%), 526729'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 Goldiam International's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average board tenure


CEO

Rashesh Bhansali (51yo)

0yrs

Tenure

₹14,609,373

Compensation

Mr. Rashesh Manharbhai Bhansali serves as Managing Director of Goldiam Jewellery Ltd. Mr. Bhansali serves as the Managing Director of Goldiam International Limited. Mr. Bhansali has been the Executive Chai ...


CEO Compensation Analysis

Compensation vs Market: Rashesh's total compensation ($USD206.16K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Rashesh's compensation has increased by more than 20% in the past year.


Board Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Board: 526729's board of directors are considered experienced (3.3 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

  • Rashesh Bhansali (51yo)

    Executive Chairman & MD

    • Compensation: ₹14.61m
  • Milan Mehta

    Managing Director of Diagold Designs Ltd

    • Pankaj Parkhiya (31yo)

      Company Secretary & Compliance Officer

      • Tenure: 4.4yrs
      • Compensation: ₹947.00k
    • Faldu Patel (31yo)

      Chief Financial Officer

      • Tenure: 7yrs
      • Compensation: ₹1.19m
    • Anmol Bhansali (24yo)

      Whole-Time Director

      • Tenure: 2.2yrs
      • Compensation: ₹2.99m

    Board Members

    • Raghavachari Srinivasan (88yo)

      Independent Non-Executive Director

      • Tenure: 17.7yrs
      • Compensation: ₹210.00k
    • Ajay Khatlawala (65yo)

      Independent Non-Executive Director

      • Tenure: 9.7yrs
      • Compensation: ₹210.00k
    • Rashesh Bhansali (51yo)

      Executive Chairman & MD

      • Compensation: ₹14.61m
    • Tulsi Gupta (27yo)

      Non-Executive Non-Independent Director

      • Tenure: 3.4yrs
      • Compensation: ₹80.00k
    • Pannkaj Ghadiali (61yo)

      Independent-Non-Executive Director

      • Tenure: 3.2yrs
      • Compensation: ₹210.00k
    • Anmol Bhansali (24yo)

      Whole-Time Director

      • Tenure: 2.2yrs
      • Compensation: ₹2.99m

    Company Information

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


    Key Information

    • Name: Goldiam International Limited
    • Ticker: 526729
    • Exchange: BSE
    • Founded: 1986
    • Industry: Apparel, Accessories and Luxury Goods
    • Sector: Consumer Durables
    • Market Cap: ₹3.501b
    • Shares outstanding: 22.97m
    • Website: https://www.goldiam.com

    Location

    • Goldiam International Limited
    • Gems & Jewellery Complex
    • M.I.D.C.
    • Mumbai
    • Maharashtra
    • 400096
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    526729BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1996
    GOLDIAMNSEI (National Stock Exchange of India)YesEquity SharesININROct 1996

    Biography

    Goldiam International Limited, together with its subsidiaries, manufactures, markets, and distributes diamond studded gold and silver jewelry in India. The company operates in two segments, Jewellery Manufacturing Activity and Investment Activity. Its products include engagement rings, wedding bands, anniversary rings, bridal sets, earrings, pendants, and necklaces. The company also exports its products to the United States, Europe, and other countries. Goldiam International Limited was incorporated in 1986 and is headquartered in Mumbai, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/22 12:39
    End of Day Share Price2020/01/22 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.