BSE:500151

Stock Analysis Report

Executive Summary

Golden Tobacco Limited engages in manufacturing, purchasing, processing, selling, and marketing tobacco and tobacco related products in India.


Snowflake Analysis

Good value with questionable track record.

Share Price & News

How has Golden Tobacco's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500151's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.7%

500151

-6.9%

IN Tobacco

-2.9%

IN Market


1 Year Return

-58.3%

500151

-40.8%

IN Tobacco

-29.3%

IN Market

Return vs Industry: 500151 underperformed the Indian Tobacco industry which returned -40.8% over the past year.

Return vs Market: 500151 underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

500151IndustryMarket
7 Day-5.7%-6.9%-2.9%
30 Day-22.0%-11.7%-23.7%
90 Day-33.5%-24.0%-28.6%
1 Year-58.3%-58.3%-38.5%-40.8%-27.9%-29.3%
3 Year-75.5%-75.5%-37.0%-43.2%-15.4%-20.0%
5 Year-52.5%-52.5%-26.3%-37.7%-3.3%-8.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Golden Tobacco 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: 500151 (₹18.25) is trading below our estimate of fair value (₹229.8)

Significantly Below Fair Value: 500151 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500151 is good value based on its PE Ratio (2.5x) compared to the Tobacco industry average (13.4x).

PE vs Market: 500151 is good value based on its PE Ratio (2.5x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500151's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500151 has negative assets, so we can't compare its PB Ratio to the IN Tobacco industry average.


Next Steps

Future Growth

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

3.8%

Forecasted Food, Beverage & Tobacco 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 Golden Tobacco 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 Golden Tobacco performed over the past 5 years?

57.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500151 has a large one-off gain of ₹401.3M impacting its December 31 2019 financial results.

Growing Profit Margin: 500151's current net profit margins (50.2%) are higher than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: 500151 has become profitable over the past 5 years, growing earnings by 57.1% per year.

Accelerating Growth: 500151's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500151 had negative earnings growth (-29.5%) over the past year, making it difficult to compare to the Tobacco industry average (-1.9%).


Return on Equity

High ROE: 500151's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is Golden Tobacco's financial position?


Financial Position Analysis

Short Term Liabilities: 500151 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 500151 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 500151 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 500151's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 500151 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 500151 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 500151 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 500151 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Golden Tobacco's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 500151's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500151'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 500151's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500151'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 500151'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?

0.4yrs

Average management tenure


CEO

Jaskaran Khurana (47yo)

0.42

Tenure

₹5,631,000

Compensation

Mr. Jaskaran S. Khurana, MBA serves as Managing Director of Golden Tobacco Limited since December 31, 2019. He was its Acting Managing Director since October 14, 2019 until December 31, 2019. He has been a ...


CEO Compensation Analysis

Compensation vs Market: Jaskaran's total compensation ($USD74.71K) is above average for companies of similar size in the Indian market ($USD48.15K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jaskaran Khurana
MD, Director of Production & Exports and Executive Director0.42yr₹5.63mno data
Pawan Malsaria
Chief Financial Officer4.08yrsno datano data
Ashok Joshi
Whole Time Director16.42yrs₹7.78mno data
Harish Punwani
Company Secretary & Compliance Officer0.083yrno datano data
Sudhee Ranjan
Senior Vice President of Sales & Marketingno data₹4.18mno data
Abhijit De
Senior Vice President of Research & Developmentno data₹5.87mno data
G. Prasad
General Manager of TPDno data₹1.65mno data
N. Bangera
Deputy General Manager of Financeno data₹2.48mno data
S. Makhija
Vice President of Commercialno datano datano data
T. Krishnamurthy
Senior General Manager of Technicalno data₹2.12mno data

0.4yrs

Average Tenure

65.5yo

Average Age

Experienced Management: 500151's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Jaskaran Khurana
MD, Director of Production & Exports and Executive Director0.42yr₹5.63mno data
Ashok Joshi
Whole Time Director16.42yrs₹7.78mno data
Kokila Panchal
Non Executive Independent Director5yrs₹170.00kno data
Vinod Bhatia
Non-Executive Independent Director1.5yrs₹80.00kno data
Rajnikant Patel
Additional Non-Executive & Independent Director0.17yrno datano data

3.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: 500151's board of directors are considered experienced (3.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Golden Tobacco Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Golden Tobacco Limited
  • Ticker: 500151
  • Exchange: BSE
  • Founded: 1930
  • Industry: Tobacco
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹321.361m
  • Shares outstanding: 17.61m
  • Website: https://www.goldentobacco.in

Number of Employees


Location

  • Golden Tobacco Limited
  • At DarjiPura
  • Post Amliyara
  • Vadodara
  • Gujarat
  • 390022
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500151BSE (Mumbai Stock Exchange)YesEquity SharesININRDec 2001
GOLDENTOBCNSEI (National Stock Exchange of India)YesEquity SharesININRDec 2001

Biography

Golden Tobacco Limited engages in manufacturing, purchasing, processing, selling, and marketing tobacco and tobacco related products in India. The company offers cigarettes, slim/super slim cigarettes, cigars, and cigarillos products, as well as packed type cigarettes. It provides its products under the Panama, Chancellor, Golden's, Steel, Style, Esquire, Flair, June, and Just Black brand names, as well as other private labels. The company exports its products to the United States, Europe, Russia, Singapore, Cambodia, Japan, the Middle East, etc. It also develops and sells real estate properties. Golden Tobacco Limited was founded in 1930 and is based in Vadodara, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 12:46
End of Day Share Price2020/03/27 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.