Gautam Gems (BSE:540936) - Share price, News & Analysis

540936 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	2/6
Financial Health	3/6
Dividends	0/6

540936 Stock Overview

Gautam Gems Limited manufactures and trades in rough and polished diamonds in India.

Rewards

Price-To-Earnings ratio (16.3x) is below the Indian market (22.1x)

Earnings have grown 18.7% per year over the past 5 years

Trading at good value vs. industry average Price-To-Earnings ratio

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (₹113M)

Gautam Gems Competitors

Subhash Silk Mills

BSE:530231

₹132.5m

Sovereign Diamonds

BSE:523826

₹95.2m

Veekayem Fashion And Apparels

NSEI:VEEKAYEM

₹235.0m

Swasti Vinayaka Art and Heritage

BSE:512257

₹236.7m

Price History & Performance

Summary of all time highs, changes and price drops for Gautam Gems
Historical stock prices
Current Share Price	₹11.21
52 Week High	₹20.10
52 Week Low	₹9.11
Beta	0.28
1 Month Change	-17.45%
3 Month Change	-3.78%
1 Year Change	-2.52%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-40.60%

Shareholder Returns

	540936	IN Luxury	IN Market
7D	-7.4%	1.4%	-1.1%
1Y	-2.5%	19.7%	0.5%

Return vs Industry: 540936 underperformed the Indian Luxury industry which returned 19.7% over the past year.

Return vs Market: 540936 underperformed the Indian Market which returned 0.5% over the past year.

Price Volatility

Is 540936's price volatile compared to industry and market?
540936 volatility
540936 Average Weekly Movement	9.8%
Luxury Industry Average Movement	6.1%
Market Average Movement	5.8%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	3.7%

Stable Share Price: 540936 is more volatile than 90% of Indian stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: 540936's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

Founded	Employees	CEO	Website
2014	23	Gautam Sheth	https://www.gautamgems.com

Gautam Gems Limited manufactures and trades in rough and polished diamonds in India. The company offers polished diamonds to jewelry manufacturers, jewelry wholesalers, jewelry retailers, jewelry traders, diamond wholesalers, and diamond retailers; and rough diamonds to rough diamond traders and diamond manufacturers. Gautam Gems Limited was incorporated in 2014 and is based in Surat, India.

Gautam Gems Fundamentals Summary

How do Gautam Gems's earnings and revenue compare to its market cap?
540936 fundamental statistics
Market Cap	₹112.85m
Earnings (TTM)	₹6.93m
Revenue (TTM)	₹1.74b

16.3x

P/E Ratio

0.1x

P/S Ratio

Is 540936 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
540936 income statement (TTM)
Revenue	₹1.74b
Cost of Revenue	₹1.72b
Gross Profit	₹20.88m
Other Expenses	₹13.95m
Earnings	₹6.93m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.69
Gross Margin	1.20%
Net Profit Margin	0.40%
Debt/Equity Ratio	57.0%

How did 540936 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is 540936 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 540936?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for 540936. This is calculated by dividing 540936's market cap by their current preferred multiple.
What is 540936's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹112.85m

540936 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.1x
Enterprise Value/EBITDA	12.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does 540936's PE Ratio compare to its peers?

540936 PE Ratio vs Peers

The above table shows the PE ratio for 540936 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	39.7x
530231 Subhash Silk Mills	69.6x	n/a	₹132.5m
523826 Sovereign Diamonds	3.9x	n/a	₹95.2m
VEEKAYEM Veekayem Fashion And Apparels	74.8x	n/a	₹235.0m
512257 Swasti Vinayaka Art and Heritage	10.6x	n/a	₹236.7m
540936 Gautam Gems	16.3x	n/a	₹112.9m

Price-To-Earnings vs Peers: 540936 is good value based on its Price-To-Earnings Ratio (16.3x) compared to the peer average (39.7x).

Price to Earnings Ratio vs Industry

How does 540936's PE Ratio compare vs other companies in the IN Luxury Industry?

Price-To-Earnings vs Industry: 540936 is expensive based on its Price-To-Earnings Ratio (16.3x) compared to the Indian Luxury industry average (14.3x)

Price to Earnings Ratio vs Fair Ratio

What is 540936's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

540936 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 540936's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of 540936 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate 540936's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate 540936's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

20.3%

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 Gautam Gems 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.

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Take a look at our analysis of 540936’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Gautam Gems competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Gautam Gems performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 540936 has high quality earnings.

Growing Profit Margin: 540936's current net profit margins (0.4%) are lower than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: 540936's earnings have grown by 18.7% per year over the past 5 years.

Accelerating Growth: 540936's earnings growth over the past year (15.8%) is below its 5-year average (18.7% per year).

Earnings vs Industry: 540936 earnings growth over the past year (15.8%) underperformed the Luxury industry 50.1%.

Return on Equity

High ROE: 540936's Return on Equity (4.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Gautam Gems's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 540936's short term assets (₹473.8M) exceed its short term liabilities (₹351.4M).

Long Term Liabilities: 540936's short term assets (₹473.8M) exceed its long term liabilities (₹783.3K).

Debt to Equity History and Analysis

Debt Level: 540936's net debt to equity ratio (54.2%) is considered high.

Reducing Debt: 540936's debt to equity ratio has increased from 1% to 57% over the past 5 years.

Debt Coverage: 540936's debt is not well covered by operating cash flow (5.8%).

Interest Coverage: 540936's interest payments on its debt are well covered by EBIT (4.7x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate 540936's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 540936's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 540936's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 540936's dividend payments have been increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as 540936 has not reported any payouts.

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Management

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

3.2yrs

Average management tenure

CEO

Gautam Sheth (40 yo)

5.08yrs

Tenure

₹300,000

Compensation

Mr. Gautam Pravinchandra Sheth serves as Managing Director of Gautam Gems Limited since August 25, 2017 and has been its Director since February 18, 2014. He serves as its Compliance Officer until July1, 2...

CEO Compensation Analysis

Gautam Sheth's Compensation vs Gautam Gems Earnings

How has Gautam Sheth's remuneration changed compared to Gautam Gems's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	₹7m
Mar 31 2022	₹300k	n/a	₹5m
Dec 31 2021	n/a	n/a	-₹6m
Sep 30 2021	n/a	n/a	₹14m
Jun 30 2021	n/a	n/a	₹6m
Mar 31 2021	₹300k	n/a	₹3m
Dec 31 2020	n/a	n/a	₹23m
Sep 30 2020	n/a	n/a	₹4m
Jun 30 2020	n/a	n/a	₹5m
Mar 31 2020	₹300k	₹300k	₹6m
Dec 31 2019	n/a	n/a	₹5m
Sep 30 2019	n/a	n/a	₹4m
Jun 30 2019	n/a	n/a	₹3m
Mar 31 2019	₹300k	₹300k	₹2m
Mar 31 2018	₹300k	₹300k	₹798k

Compensation vs Market: Gautam's total compensation ($USD3.70K) is below average for companies of similar size in the Indian market ($USD40.31K).

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

Leadership Team

Experienced Management: 540936's management team is considered experienced (3.2 years average tenure).

Board Members

Experienced Board: 540936's board of directors are considered experienced (5.1 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

What is the ownership structure of 540936?
Owner Type	Number of Shares	Ownership Percentage
Private Companies	101,000	1.0%
Public Companies	169,404	1.7%
Institutions	1,741,640	17.3%
General Public	3,060,189	30.4%
Individual Insiders	4,994,826	49.6%

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

Top Shareholders

Top 20 shareholders own 69.6% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
18.37%	Gautam Sheth	1,848,870	₹20.7m	0%	no data
17.3%	Ahmedabad Stock Exchange Limited, Asset Management Arm	1,741,640	₹19.5m	0%	26.06%
4.97%	Manish Kumar	500,000	₹5.6m	0%	no data
4.27%	Arpit Shah	429,785	₹4.8m	0%	no data
3.65%	Kalpesh Zinzuvadia	367,486	₹4.1m	0%	no data
2.37%	Birju Sanghvi	238,631	₹2.7m	0%	no data
2.33%	Mahesh Malkani	234,372	₹2.6m	0%	no data
1.68%	Vivid Mercantile Limited	169,404	₹1.9m	17.31%	no data
1.67%	Aiyub Yacoobali	168,287	₹1.9m	0%	no data
1.64%	Dixit Borisa	165,000	₹1.8m	0%	no data
1.53%	Kanchanben Sheth	154,000	₹1.7m	0%	no data
1.51%	Nidhi Sheth	151,947	₹1.7m	0%	no data
1.42%	Dineshbhai Thakkar	143,000	₹1.6m	0%	no data
1.39%	Ashokkumar Chavd	139,733	₹1.6m	0%	no data
1.2%	Chirag Shah	121,000	₹1.4m	0%	no data
1.18%	Kinjalben Modi	118,467	₹1.3m	0%	no data
1.09%	Mithun Sardar	110,000	₹1.2m	0%	no data
1.03%	Rimmi Shah	103,734	₹1.2m	0%	no data
1%	Highgrowth Vincom Pvt Ltd.	101,000	₹1.1m	0%	no data
0.0051%	Reshma Virwadia	514	₹5.8k	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/09/26 00:00
End of Day Share Price	2022/09/26 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31