NSEI:GANDHITUBE

Stock Analysis Report

Executive Summary

Gandhi Special Tubes Limited manufactures and markets welded and seamless steel tubes in India.


Snowflake Analysis

Flawless balance sheet established dividend payer.

Share Price & News

How has Gandhi Special Tubes's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

GANDHITUBE

0.5%

IN Metals and Mining

-1.1%

IN Market


1 Year Return

-24.8%

GANDHITUBE

-18.9%

IN Metals and Mining

2.9%

IN Market

Return vs Industry: GANDHITUBE underperformed the Indian Metals and Mining industry which returned -18.9% over the past year.

Return vs Market: GANDHITUBE underperformed the Indian Market which returned 2.9% over the past year.


Shareholder returns

GANDHITUBEIndustryMarket
7 Day-2.4%0.5%-1.1%
30 Day-4.6%-1.0%-0.8%
90 Day-6.2%4.2%6.0%
1 Year-23.0%-24.8%-17.6%-18.9%4.9%2.9%
3 Year0.6%-6.7%1.2%-10.3%32.7%25.7%
5 Year35.9%18.3%21.1%1.5%41.2%28.5%

Price Volatility Vs. Market

How volatile is Gandhi Special Tubes's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gandhi Special Tubes undervalued compared to its fair value and its price relative to the market?

13.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GANDHITUBE (₹280.85) is trading above our estimate of fair value (₹276.15)

Significantly Below Fair Value: GANDHITUBE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GANDHITUBE is poor value based on its PE Ratio (13.1x) compared to the Metals and Mining industry average (8.7x).

PE vs Market: GANDHITUBE is poor value based on its PE Ratio (13.1x) compared to the Indian market (12.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GANDHITUBE is overvalued based on its PB Ratio (2x) compared to the IN Metals and Mining industry average (0.8x).


Next Steps

Future Growth

How is Gandhi Special Tubes forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.3%

Forecasted Materials 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 Gandhi Special Tubes 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 Gandhi Special Tubes performed over the past 5 years?

19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GANDHITUBE has high quality earnings.

Growing Profit Margin: GANDHITUBE's current net profit margins (31.8%) are higher than last year (29.3%).


Past Earnings Growth Analysis

Earnings Trend: GANDHITUBE's earnings have grown by 19.8% per year over the past 5 years.

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

Earnings vs Industry: GANDHITUBE had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (0.6%).


Return on Equity

High ROE: GANDHITUBE's Return on Equity (15%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gandhi Special Tubes's financial position?


Financial Position Analysis

Short Term Liabilities: GANDHITUBE's short term assets (₹1.1B) exceed its short term liabilities (₹61.0M).

Long Term Liabilities: GANDHITUBE's short term assets (₹1.1B) exceed its long term liabilities (₹94.6M).


Debt to Equity History and Analysis

Debt Level: GANDHITUBE is debt free.

Reducing Debt: GANDHITUBE has not had any debt for past 5 years.

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

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


Balance Sheet

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

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


Next Steps

Dividend

What is Gandhi Special Tubes's current dividend yield, its reliability and sustainability?

3.19%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%0.6%markettop25%2.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GANDHITUBE's dividend (3.19%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: GANDHITUBE's dividend (3.19%) is in the top 25% of dividend payers in the Indian market (2.55%)


Stability and Growth of Payments

Stable Dividend: GANDHITUBE's dividends per share have been stable in the past 10 years.

Growing Dividend: GANDHITUBE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.8%), GANDHITUBE's dividend payments are well 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

What is the CEO of Gandhi Special Tubes's salary, the management and board of directors tenure and is there insider trading?

20.1yrs

Average management tenure


CEO

Manhar Gandhi 0

34.7yrs

Tenure

₹20,500,000

Compensation

Mr. Manhar G. Gandhi has been Managing Director of Gandhi Special Tubes Ltd. since April 22, 1985 and its Director since January 1, 2010. Mr. Gandhi serves as the chairman of Gandhi Finance Company Pvt Ltd ...


CEO Compensation Analysis

Compensation vs Market: Manhar's total compensation ($USD290.20K) is above average for companies of similar size in the Indian market ($USD50.88K).

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


Management Age and Tenure

20.1yrs

Average Tenure

Experienced Management: GANDHITUBE's management team is seasoned and experienced (20.1 years average tenure).


Board Age and Tenure

16.8yrs

Average Tenure

68.5yo

Average Age

Experienced Board: GANDHITUBE's board of directors are seasoned and experienced ( 16.8 years average tenure).


Insider Trading

Insider Buying: GANDHITUBE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹186,02713 Nov 19
Kavas Warden
EntityIndividual
Role
Member of the Board of Directors
Non-Executive & Independent Director
Shares621
Max Price₹299.56

Ownership Breakdown

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


Management Team

  • Manhar Gandhi

    Chairman & MD

    • Tenure: 34.7yrs
    • Compensation: ₹20.50m
  • Bhupatrai Gandhi (80yo)

    Joint MD & Executive Director

    • Tenure: 9.9yrs
    • Compensation: ₹20.50m
  • Shobhana Vartak

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: ₹1.43m
  • Jeegeesha Shroff

    Compliance Officer & Company Secretary

    • Tenure: 2.6yrs
    • Compensation: ₹419.00k

Board Members

  • Dhirajlal Shah (78yo)

    Non-Executive & Independent Director

    • Tenure: 34.5yrs
    • Compensation: ₹119.00k
  • Kavas Warden (84yo)

    Non-Executive & Independent Director

    • Tenure: 21.5yrs
    • Compensation: ₹90.00k
  • Manhar Gandhi

    Chairman & MD

    • Tenure: 34.7yrs
    • Compensation: ₹20.50m
  • Jayesh Gandhi (54yo)

    Non-Executive Director

    • Tenure: 21.6yrs
    • Compensation: ₹88.00k
  • Bhupatrai Gandhi (80yo)

    Joint MD & Executive Director

    • Tenure: 9.9yrs
    • Compensation: ₹20.50m
  • Dharmen Shah (59yo)

    Non Executive & Independent Director

    • Tenure: 12.2yrs
    • Compensation: ₹109.00k
  • Bhavi Koradia (36yo)

    Non Executive & Independent Director

    • Tenure: 5.2yrs
    • Compensation: ₹109.00k

Company Information

Gandhi Special Tubes Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gandhi Special Tubes Limited
  • Ticker: GANDHITUBE
  • Exchange: NSEI
  • Founded: 1985
  • Industry: Steel
  • Sector: Materials
  • Market Cap: ₹3.646b
  • Shares outstanding: 12.92m
  • Website: https://www.gandhispecialtubes.com

Number of Employees


Location

  • Gandhi Special Tubes Limited
  • 201-204, Plaza
  • 2nd Floor
  • Mumbai
  • Maharashtra
  • 400007
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
513108BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
GANDHITUBENSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Gandhi Special Tubes Limited manufactures and markets welded and seamless steel tubes in India. The company offers cold drawn bright annealed seamless steel tubes; precision electric resistance welded stee ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 12:47
End of Day Share Price2019/12/12 00:00
Earnings2019/09/30
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.