BSE:539725

Stock Analysis Report

Executive Summary

Gokul Agro Resources Limited manufactures and trades in edible and non-edible oils, meals, and other agro products in India, the United States, South Korea, European Union, China, Singapore, Indonesia, Malaysia, Russia, and Vietnam.

Rewards

Trading at 78.1% below its fair value

Earnings grew by 100.4% over the past year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Undervalued with solid track record.


Similar Companies

Share Price & News

How has Gokul Agro Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539725's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.4%

539725

0.7%

IN Food

-0.8%

IN Market


1 Year Return

-6.9%

539725

27.2%

IN Food

11.1%

IN Market

Return vs Industry: 539725 underperformed the Indian Food industry which returned 26.5% over the past year.

Return vs Market: 539725 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

539725IndustryMarket
7 Day-9.4%0.7%-0.8%
30 Day-5.4%2.1%-2.3%
90 Day2.1%10.8%2.1%
1 Year-6.9%-6.9%28.9%27.2%13.1%11.1%
3 Year-32.1%-32.1%80.5%75.3%22.9%16.2%
5 Yearn/a130.2%119.3%34.9%22.6%

Price Volatility Vs. Market

How volatile is Gokul Agro Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Gokul Agro Resources 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: 539725 (₹13.59) is trading below our estimate of fair value (₹62.15)

Significantly Below Fair Value: 539725 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 539725 is good value based on its PE Ratio (7.5x) compared to the Food industry average (13.5x).

PE vs Market: 539725 is good value based on its PE Ratio (7.5x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 539725's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 539725 is good value based on its PB Ratio (0.7x) compared to the IN Food industry average (0.9x).


Next Steps

Future Growth

How is Gokul Agro Resources forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.5%

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 Gokul Agro Resources 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 Gokul Agro Resources performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539725 has high quality earnings.

Growing Profit Margin: 539725's current net profit margins (0.5%) are higher than last year (0.3%).


Past Earnings Growth Analysis

Earnings Trend: 539725's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: 539725's earnings growth over the past year (100.4%) exceeds its 5-year average (19% per year).

Earnings vs Industry: 539725 earnings growth over the past year (100.4%) exceeded the Food industry 21.3%.


Return on Equity

High ROE: 539725's Return on Equity (9.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gokul Agro Resources's financial position?


Financial Position Analysis

Short Term Liabilities: 539725's short term assets (₹11.1B) exceed its short term liabilities (₹10.6B).

Long Term Liabilities: 539725's short term assets (₹11.1B) exceed its long term liabilities (₹492.7M).


Debt to Equity History and Analysis

Debt Level: 539725's debt to equity ratio (108.1%) is considered high.

Reducing Debt: Insufficient data to determine if 539725's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 539725's debt is well covered by operating cash flow (38.6%).

Interest Coverage: 539725's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: 539725 has a high level of physical assets or inventory.

Debt Coverage by Assets: 539725's debt is covered by short term assets (assets are 4.2x debt).


Next Steps

Dividend

What is Gokul Agro Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%0.6%markettop25%2.5%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 539725's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 539725'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 539725's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539725'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 539725'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?

4.1yrs

Average management tenure


CEO

Hiteshkumar Thakkar 0

4.5yrs

Tenure

₹3,928,000

Compensation

Mr. Hiteshkumar Tarachand Thakkar has been the Chief Executive Officer of Gokul Agro Resources Limited since August 08, 2015. Mr. Thakkar has been a Director at Gokul Agro Resources Limited until April 20 ...


CEO Compensation Analysis

Compensation vs Market: Hiteshkumar's total compensation ($USD54.93K) is about average for companies of similar size in the Indian market ($USD50.21K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kanubhai Thakkar
Chairman of the Board & MD0yrs₹12.00m47.63% 813.6m
Hiteshkumar Thakkar
Chief Executive Officer4.5yrs₹3.93mno data
Jayeshkumar Thakkar
Joint MD and Executive & Non-Independent Director3.7yrs₹10.44m11% 187.9m
Manish Kella
Chief Financial Officer0yrs₹3.13mno data
Chinar Jethwani
Compliance Officer0yrs₹831.00kno data
Nilesh Thakkar
Marketing Director0yrsno datano data
Ashutosh Bhambhani
Whole Time Director3.7yrs₹1.53m0.00053% 9.1k
Dipakkumar Thakkar
Director of EXIM2.8yrsno datano data

4.1yrs

Average Tenure

38.5yo

Average Age

Experienced Management: 539725's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kanubhai Thakkar
Chairman of the Board & MD0yrs₹12.00m47.63% 813.6m
Jayeshkumar Thakkar
Joint MD and Executive & Non-Independent Director3.7yrs₹10.44m11% 187.9m
Ashutosh Bhambhani
Whole Time Director3.7yrs₹1.53m0.00053% 9.1k
Keyoor Bakshi
Non-Executive & Independent Director3.7yrs₹30.00kno data
Pankaj Kotak
Non-Executive & Independent Director2.8yrs₹30.00kno data
Pooja Khakhi
Independent Director3.7yrs₹30.00kno data

3.7yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 539725's board of directors are considered experienced (3.7 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Gokul Agro Resources Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gokul Agro Resources Limited
  • Ticker: 539725
  • Exchange: BSE
  • Founded: 2014
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹1.708b
  • Shares outstanding: 131.90m
  • Website: https://www.gokulagro.com

Location

  • Gokul Agro Resources Limited
  • Office No. 801-805, Dwarkesh Business Hub
  • Survey No. 126/1
  • Ahmedabad
  • Gujarat
  • 380005
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539725BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2016
GOKULAGRONSEI (National Stock Exchange of India)YesEquity SharesININRMar 2016

Biography

Gokul Agro Resources Limited manufactures and trades in edible and non-edible oils, meals, and other agro products in India, the United States, South Korea, European Union, China, Singapore, Indonesia, Malaysia, Russia, and Vietnam. The company offers soya bean oil, cottonseed oil, palm oil, sunflower oil, groundnut oil, vanaspati, etc.; and other industrial products, such as castor oil of various grades and its derivatives. It also provides castor seed and soya bean meals; hulled, natural, and black sesame seeds; fenugreek, cumin, and ajwain seeds; and wheat, rice, barley, maize, and chick peas. The company offers its products under the Zaika, Pride, Mahek, Vitalife, Richfield, Puff Pride, and Biscopride brand names. Gokul Agro Resources Limited was incorporated in 2014 and is based in Ahmedabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:10
End of Day Share Price2020/02/17 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.