BSE:530709

Stock Analysis Report

Executive Summary

Gowra Leasing and Finance Limited, a non-banking financial company, engages in the investment and financing activities in India.


Snowflake Analysis

Fair value second-rate dividend payer.

Share Price & News

How has Gowra Leasing and Finance's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 530709 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-7.3%

530709

-2.8%

IN Consumer Finance

-3.9%

IN Market


1 Year Return

6.3%

530709

49.0%

IN Consumer Finance

4.5%

IN Market

Return vs Industry: 530709 underperformed the Indian Consumer Finance industry which returned 51.3% over the past year.

Return vs Market: 530709 exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

530709IndustryMarket
7 Day-7.3%-2.8%-3.9%
30 Day7.0%9.1%-3.9%
90 Day1.3%13.8%-2.1%
1 Year14.1%6.3%50.0%49.0%6.4%4.5%
3 Year-13.2%-26.2%144.0%138.7%19.4%12.8%
5 Year52.0%14.3%257.0%241.4%28.2%16.6%

Price Volatility Vs. Market

How volatile is Gowra Leasing and Finance's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gowra Leasing and Finance undervalued compared to its fair value and its price relative to the market?

7.61x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 530709's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 530709's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 530709 is good value based on its PE Ratio (7.6x) compared to the Consumer Finance industry average (14.6x).

PE vs Market: 530709 is good value based on its PE Ratio (7.6x) compared to the Indian market (13x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 530709's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 530709 is good value based on its PB Ratio (0.4x) compared to the IN Consumer Finance industry average (0.7x).


Next Steps

Future Growth

How is Gowra Leasing and Finance forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.8%

Forecasted Diversified Financials 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 Gowra Leasing and Finance 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 Gowra Leasing and Finance performed over the past 5 years?

15.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 530709 has high quality earnings.

Growing Profit Margin: 530709's current net profit margins (47.8%) are lower than last year (78%).


Past Earnings Growth Analysis

Earnings Trend: 530709 has become profitable over the past 5 years, growing earnings by 15.4% per year.

Accelerating Growth: 530709's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 530709 had negative earnings growth (-30.4%) over the past year, making it difficult to compare to the Consumer Finance industry average (14.2%).


Return on Equity

High ROE: 530709's Return on Equity (4.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gowra Leasing and Finance's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 530709 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 530709's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 530709's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 530709 has a sufficient allowance for bad loans.

Low Risk Liabilities: 530709 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 530709 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 530709 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 530709 has an appropriate level of bad loans.


Next Steps

Dividend

What is Gowra Leasing and Finance's current dividend yield, its reliability and sustainability?

6.58%

Current Dividend Yield


Dividend Yield vs Market

company6.6%marketbottom25%0.6%markettop25%2.7%industryaverage0.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 530709's dividend (6.58%) is higher than the bottom 25% of dividend payers in the Indian market (0.61%).

High Dividend: 530709's dividend (6.58%) is in the top 25% of dividend payers in the Indian market (2.67%)


Stability and Growth of Payments

Stable Dividend: 530709's dividend payments have been volatile in the past 10 years.

Growing Dividend: 530709's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50%), 530709's dividend payments are 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?

5.5yrs

Average management tenure


CEO

Gowra Srinivas (75yo)

13.5yrs

Tenure

₹384,000

Compensation

Mr. Gowra Srinivas, M.Sc has been the Managing Director of Gowra Leasing & Finance Limited., since August 1, 2006 and has been its Executive Director since March 26, 2003. Mr. Srinivas serves as Director o ...


CEO Compensation Analysis

Compensation vs Market: Gowra's total compensation ($USD5.36K) is below average for companies of similar size in the Indian market ($USD50.10K).

Compensation vs Earnings: Gowra's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gowra Srinivas
MD & Executive Director13.5yrs₹384.00k9.56% 4.4m
Alamuru Rao
Chief Financial Officer5.5yrsno datano data
Zafar Khan
Compliance Officer & Company Secretary2.3yrsno datano data

5.5yrs

Average Tenure

Experienced Management: 530709's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gowra Srinivas
MD & Executive Director13.5yrs₹384.00k9.56% 4.4m
Tilak Shankar
Non Executive Independent Director16.9yrs₹15.00kno data
Gowra Lakshminarayana
Non-Executive Director27yrs₹20.00k3.37% 1.5m
Gowra Prasad
Non Executive Director27yrs₹10.00k0.82% 372.4k
Dwarakadas Suresh
Non-Executive Independent Chairman0yrs₹20.00kno data
Madhumathi Suresh
Non Executive Independent Director4.8yrs₹10.00kno data
Soma Sudheer
Non-Executive Director3.4yrs₹7.50k0.18% 83.6k

21.9yrs

Average Tenure

72yo

Average Age

Experienced Board: 530709's board of directors are seasoned and experienced ( 21.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gowra Leasing and Finance Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gowra Leasing and Finance Limited
  • Ticker: 530709
  • Exchange: BSE
  • Founded: 1993
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹45.605m
  • Shares outstanding: 3.00m
  • Website: https://www.gowraleasing.com

Number of Employees


Location

  • Gowra Leasing and Finance Limited
  • No. 501, Gowra Grand
  • 5th Floor
  • Secunderabad
  • Andhra Pradesh
  • 500003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
530709BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2006

Biography

Gowra Leasing and Finance Limited, a non-banking financial company, engages in the investment and financing activities in India. The company offers inter corporate deposits, mortgage loans, bill discounting services, and loans against shares to mid corporate and retail customers. It services finance to active pharmaceutical ingredients; engineering works; manufacturing and trading units; and realty, construction, IT/software, infrastructure, and medical and health sectors. The company was incorporated in 1993 and is based in Secunderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 12:31
End of Day Share Price2020/02/25 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.