NSEI:GMDCLTD

Stock Analysis Report

Gujarat Mineral Development

Executive Summary

Gujarat Mineral Development Corporation Limited engages in mining business in India.

Snowflake

Fundamentals

Flawless balance sheet, undervalued and pays a dividend.


Similar Companies

Share Price & News

How has Gujarat Mineral Development's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.6%

GMDCLTD

3.7%

IN Oil and Gas

2.3%

IN Market


1 Year Return

-39.7%

GMDCLTD

6.4%

IN Oil and Gas

0.3%

IN Market

Return vs Industry: GMDCLTD underperformed the Indian Oil and Gas industry which returned 6.4% over the past year.

Return vs Market: GMDCLTD underperformed the Indian Market which returned 0.3% over the past year.


Shareholder returns

GMDCLTDIndustryMarket
7 Day-0.6%3.7%2.3%
30 Day-15.9%9.5%2.2%
90 Day-19.3%2.7%-2.7%
1 Year-37.9%-39.7%9.4%6.4%2.3%0.3%
3 Year-40.0%-44.4%46.4%31.4%20.7%14.7%
5 Year-55.9%-62.1%65.3%39.1%41.4%28.2%

Price Volatility Vs. Market

How volatile is Gujarat Mineral Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gujarat Mineral Development undervalued compared to its fair value and its price relative to the market?

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: GMDCLTD (₹57.75) is trading below our estimate of fair value (₹67.64)

Significantly Undervalued: GMDCLTD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GMDCLTD is good value based on its PE Ratio (8.3x) compared to the Oil and Gas industry average (12x).

PE vs Market: GMDCLTD is good value based on its PE Ratio (8.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: GMDCLTD is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: GMDCLTD is good value based on its PB Ratio (0.4x) compared to the IN Oil and Gas industry average (1.2x).


Next Steps

Future Growth

How is Gujarat Mineral Development forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMDCLTD's forecast earnings growth (30% per year) is above the savings rate (7.6%).

Earnings vs Market: GMDCLTD's earnings (30% per year) are forecast to grow faster than the Indian market (18.2% per year).

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

Revenue vs Market: GMDCLTD's revenue (4.2% per year) is forecast to grow slower than the Indian market (11.4% per year).

High Growth Revenue: GMDCLTD's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GMDCLTD's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Gujarat Mineral Development performed over the past 5 years?

-12.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GMDCLTD's earnings have declined by -12.1% per year over the past 5 years.

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

Earnings vs Industry: GMDCLTD had negative earnings growth (-36.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (10.3%).


Return on Equity

High ROE: GMDCLTD's Return on Equity (5.1%) is considered low.


Return on Assets

ROA vs Industry: GMDCLTD's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: GMDCLTD has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Gujarat Mineral Development's financial position?


Financial Position Analysis

Short Term Liabilities: GMDCLTD's short term assets (₹15.0B) exceeds its short term liabilities (₹2.5B)

Long Term Liabilities: GMDCLTD's short term assets (15.0B) exceeds its long term liabilities (6.4B)


Debt to Equity History and Analysis

Debt Level: GMDCLTD is debt free.

Reducing Debt: GMDCLTD has no debt compared to 5 years ago when its debt to equity ratio was 0.07%.

Debt Coverage: GMDCLTD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GMDCLTD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

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


Next Steps

Dividend

What is Gujarat Mineral Development's current dividend yield, its reliability and sustainability?

3.47%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%0.6%markettop25%2.5%industryaverage2.5%forecastin3Years3.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: GMDCLTD's dividend (3.47%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: GMDCLTD's dividend (3.47%) is in the top 25% of dividend payers in the Indian market (2.5%)

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

Growing Dividend: GMDCLTD's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.9%), GMDCLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMDCLTD's dividends in 3 years are forecast to be thoroughly covered by earnings (14.9% payout ratio).


Next Steps

Management

What is the CEO of Gujarat Mineral Development's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average board tenure


CEO

Arunkumar Solanki 0

3.3yrs

Tenure

₹3,189,079

Compensation

Mr. Arunkumar Mohanbhai Solanki, IAS has been Managing Director and Director at Gujarat Mineral Development Corporation Limited since July 02, 2016. Mr. Solanki joined Gujarat Mineral Development Corporati ...


CEO Compensation Analysis

Compensation vs. Market: Arunkumar's total compensation ($USD44.61K) is too low to compare against companies of similar size in the Indian market ($USD293.09K).

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


Board Age and Tenure

3.8yrs

Average Tenure

64yo

Average Age

Experienced Board: GMDCLTD's board of directors are considered experienced (3.8 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


Management Team

  • Lavanya Kulshrestha

    Chief GM & CFO

    • Tenure: 0yrs
  • Joel Evans

    Company Secretary & Compliance Officer

    • Tenure: 0yrs
  • Dilipkumar Vyas

    General Manager of Geology & Tech

    • Tenure: 0yrs
  • Ajaykumar Thakor

    Chief General Manager

    • Tenure: 0yrs
  • Pawan Bhootra

    General Manager of Accounts

    • Tenure: 0yrs
  • Amishkumar Makadia

    General Manager of Sales

    • Tenure: 0yrs
  • Arunkumar Solanki

    MD & Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.19m

Board Members

  • Gauri Kumar (64yo)

    Additional Woman Independent Director

    • Tenure: 0.3yrs
  • Nitin Shukla (67yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹15.00k
  • Satyanarayan Dangayach (67yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: ₹37.50k
  • Manoj Das (53yo)

    Chairman of the Board

    • Tenure: 2.4yrs
    • Compensation: ₹37.50k
  • Sonal Mishra

    Non-Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹30.00k
  • Shailesh Gandhi (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: ₹22.50k
  • Arunkumar Solanki

    MD & Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: ₹3.19m

Company Information

Gujarat Mineral Development Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gujarat Mineral Development Corporation Limited
  • Ticker: GMDCLTD
  • Exchange: NSEI
  • Founded: 1963
  • Industry: Coal and Consumable Fuels
  • Sector: Energy
  • Market Cap: ₹18.380b
  • Shares outstanding: 318.00m
  • Website: https://www.gmdcltd.com

Location

  • Gujarat Mineral Development Corporation Limited
  • Khanij Bhavan
  • 132 Feet Ring Road
  • Ahmedabad
  • Gujarat
  • 380052
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532181BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1998
GMDCLTDNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1998

Biography

Gujarat Mineral Development Corporation Limited engages in mining business in India. It operates in two segments, Mining and Power. The company explores for lignite, bauxite, fluorspar, manganese, silica s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:43
End of Day Share Price2019/10/15 00:00
Earnings2019/03/31
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.