Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Gujarat Craft Industries. This is due to cash flow or dividend data being
unavailable. The share price is
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Gujarat Craft Industries's
is considered below, and whether this is a fair price.
Price based on past earnings
Gujarat Craft Industries's earnings available for a low price, and how does
this compare to other companies in the same industry?
Gujarat Craft Industries's earnings are expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Unable to determine if Gujarat Craft Industries is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Gujarat Craft Industries's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Gujarat Craft Industries
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Gujarat Craft Industries's finances.
The net worth of a company is the difference between its assets and liabilities.
Gujarat Craft Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Gujarat Craft Industries's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Gujarat Craft Industries's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 1.8x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Ashok Ratanchand Kumar Chhajer has been Managing Director of Gujarat Craft Industries Ltd. since October 1, 2009 and served as its Chairman of the Board. Mr. Chhajer serves as a Managing Director of Typhoon Financial Services Limited and has been its Executive Director since November 14, 1995. He served as Compliance Officer of Gujarat Craft Industries Ltd., until August 21, 2018. Mr. Chhajer has been a Director of Gujarat Craft Industries Ltd. since October 1, 2004. He serves as Director of APA Finance Ltd.; Indian Agrotech Ltd.; Woodlands Consultancy Services Pvt. Ltd.; Flora Commerce Pvt. Ltd.; Technomod Properties Pvt. Ltd.; Rishabh Business Pvt. Ltd.; Ethnic Apparels Pvt. Ltd.; Worldwide Impex Pvt. Ltd.; Castle Housing Development Pvt. Ltd. and Bosco Chemtex Pvt. Ltd. Mr. Chhajer served as a Director of Gujarat Raffia Industries Ltd. until April 1, 2006. He is a Commerce Graduate.
Ashok Ratanchand's compensation has increased by more than 20% in the past year.
Management Team Tenure
Average tenure and age of the
Gujarat Craft Industries
management team in years:
The average tenure for the Gujarat Craft Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
Gujarat Craft Industries and Betex India are two of the stocks I have identified as undervalued. … Gujarat Craft Industries Limited (BSE:526965) Gujarat Craft Industries Limited manufactures and sells coated woven products in India and internationally. … 539400's stock is currently trading at -52% lower than its actual value of INR565.63, at the market price of INR271, based on my discounted cash flow model.
Gujarat Craft Industries Limited manufactures, imports, exports, and sells packing material. The company offers HDPE/PP woven fabrics, sacks, and PE tarpaulin. It also provides liner bags, FIBC bags, HDPE pipes, vermi beds, woven sacks, woven fabric rolls, HDPE geomembranes, waterproof tarpaulins, and jumbo asbestos bags, as well as jumbo bags, buffle bags, asbestos bags, tarpaulin, and truck tarpaulin. The company has operations primarily in India, Australia, New Zealand, the Caribbean, East/Middle Africa, North Africa, South/West Africa, East Europe, East Asia, Central America, North Europe, the Middle East, South America, South/West Europe, South East Asia, and North America. Gujarat Craft Industries Limited was founded in 1984 and is headquartered in Gandhinagar, India.
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