BSE:531608

Stock Analysis Report

Executive Summary

Gorani Industries Limited manufactures and exports kitchen and home appliances in India.


Snowflake Analysis

Undervalued with solid track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 531608's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.8%

531608

1.8%

IN Consumer Durables

-1.5%

IN Market


1 Year Return

-24.8%

531608

37.4%

IN Consumer Durables

10.7%

IN Market

Return vs Industry: 531608 underperformed the Indian Consumer Durables industry which returned 36.5% over the past year.

Return vs Market: 531608 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

531608IndustryMarket
7 Day-3.8%1.8%-1.5%
30 Day65.4%6.0%-2.7%
90 Day17.3%13.9%1.3%
1 Year-24.8%-24.8%38.5%37.4%12.7%10.7%
3 Year9.8%9.8%48.6%46.1%22.0%15.1%
5 Year2.1%2.1%100.6%95.1%34.5%22.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Gorani Industries 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: 531608 (₹12.9) is trading below our estimate of fair value (₹81.14)

Significantly Below Fair Value: 531608 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 531608 is good value based on its PE Ratio (9.2x) compared to the Consumer Durables industry average (22.9x).

PE vs Market: 531608 is good value based on its PE Ratio (9.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531608's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531608 is good value based on its PB Ratio (1.3x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

23.6%

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 Gorani Industries 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 Gorani Industries performed over the past 5 years?

30.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531608 has high quality earnings.

Growing Profit Margin: 531608's current net profit margins (3.1%) are higher than last year (2.6%).


Past Earnings Growth Analysis

Earnings Trend: 531608's earnings have grown significantly by 30.5% per year over the past 5 years.

Accelerating Growth: 531608's earnings growth over the past year (38.9%) exceeds its 5-year average (30.5% per year).

Earnings vs Industry: 531608 earnings growth over the past year (38.9%) exceeded the Consumer Durables industry 13.9%.


Return on Equity

High ROE: 531608's Return on Equity (14.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gorani Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 531608's short term assets (₹95.0M) exceed its short term liabilities (₹72.4M).

Long Term Liabilities: 531608's short term assets (₹95.0M) exceed its long term liabilities (₹3.7M).


Debt to Equity History and Analysis

Debt Level: 531608's debt to equity ratio (63.5%) is considered high.

Reducing Debt: 531608's debt to equity ratio has reduced from 193.7% to 63.5% over the past 5 years.

Debt Coverage: 531608's debt is well covered by operating cash flow (100.6%).

Interest Coverage: 531608's interest payments on its debt are well covered by EBIT (6x coverage).


Balance Sheet

Inventory Level: 531608 has a high level of physical assets or inventory.

Debt Coverage by Assets: 531608's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 531608's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 531608'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 531608's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 531608'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 531608's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

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

8.7yrs

Average management tenure


CEO

Sanjay Gorani (54yo)

14.1yrs

Tenure

₹1,800,000

Compensation

Mr. Sanjay Gorani has been the Managing Director at Gorani Industries Ltd since 2006. Mr. Gorani served as Chairman of Gorani Industries Ltd. and has been its Director since March 14, 1995. 


CEO Compensation Analysis

Compensation vs Market: Sanjay's total compensation ($USD25.23K) is below average for companies of similar size in the Indian market ($USD50.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anil Gorani
Chairman0yrs₹1.20m11.35% 7.5m
Sanjay Gorani
MD & Executive Director14.1yrs₹1.80m34.48% 22.7m
Chandra Sharma
Chief Financial Officer20.5yrs₹210.00kno data
Neerja Mandiya
Company Secretary & Compliance Officer2.2yrs₹177.00kno data
Nakul Gorani
Whole Time Director6.9yrs₹1.20mno data
Abhay Sharma
Manager of Accounts3.3yrsno datano data

8.7yrs

Average Tenure

47yo

Average Age

Experienced Management: 531608's management team is seasoned and experienced (8.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anil Gorani
Chairman0yrs₹1.20m11.35% 7.5m
Sanjay Gorani
MD & Executive Director14.1yrs₹1.80m34.48% 22.7m
Nakul Gorani
Whole Time Director6.9yrs₹1.20mno data
Komal Motwani
Independent Woman Director4.3yrsno datano data
Vikram Khandelwal
Additional Director1.3yrsno datano data
Raina Goyal
Additional Non-Executive Director1.1yrsno datano data

4.3yrs

Average Tenure

41.5yo

Average Age

Experienced Board: 531608's board of directors are considered experienced (4.3 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Gorani Industries Limited
  • Ticker: 531608
  • Exchange: BSE
  • Founded: 1995
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹65.814m
  • Shares outstanding: 4.88m
  • Website: https://www.goraniindustries.com

Number of Employees


Location

  • Gorani Industries Limited
  • B 15, Pologround
  • 1st Floor
  • Indore
  • Madhya Pradesh
  • 452015
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531608BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2010

Biography

Gorani Industries Limited manufactures and exports kitchen and home appliances in India. It provides NUTAN kerosene wick stoves; glass cooktops, water heaters, kitchen chimneys, anti-scratch hobs, and brush finish hobs with safety devices; and LPG stoves, steel frames, induction cookers, rangehood chimneys, gas geysers, etc. under the Blowhot and Online brands. The company operates through a network of dealers and distributors. Gorani Industries Limited was incorporated in 1995 and is based in Indore, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 13:06
End of Day Share Price2020/02/18 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.