NSEI:GOLDTECH

Stock Analysis Report

Goldstone Technologies

Executive Summary

Goldstone Technologies Limited provides information technology (IT) and IT enabled services in India and internationally.


Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

How has Goldstone Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.7%

GOLDTECH

4.8%

IN IT

9.3%

IN Market


1 Year Return

-39.9%

GOLDTECH

-16.9%

IN IT

-24.1%

IN Market

Return vs Industry: GOLDTECH underperformed the Indian IT industry which returned -19.4% over the past year.

Return vs Market: GOLDTECH underperformed the Indian Market which returned -26.5% over the past year.


Shareholder returns

GOLDTECHIndustryMarket
7 Day6.7%4.8%9.3%
30 Day13.5%-11.9%-12.6%
90 Day-15.3%-19.8%-24.1%
1 Year-39.9%-39.9%-14.3%-16.9%-22.6%-24.1%
3 Year-33.1%-33.1%43.0%34.2%-10.9%-15.8%
5 Year31.1%31.1%29.3%16.8%0.3%-4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Goldstone Technologies 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: GOLDTECH (₹8) is trading below our estimate of fair value (₹34.02)

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


Price To Earnings Ratio

PE vs Industry: GOLDTECH is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: GOLDTECH is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GOLDTECH is good value based on its PB Ratio (0.4x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

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

7.3%

Forecasted Software 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 Goldstone Technologies 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 Goldstone Technologies performed over the past 5 years?

25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GOLDTECH is currently unprofitable.

Growing Profit Margin: GOLDTECH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GOLDTECH is unprofitable, but has reduced losses over the past 5 years at a rate of 25.5% per year.

Accelerating Growth: Unable to compare GOLDTECH's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GOLDTECH is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (7.2%).


Return on Equity

High ROE: GOLDTECH has a negative Return on Equity (-3.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is Goldstone Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: GOLDTECH's short term assets (₹363.1M) exceed its short term liabilities (₹77.8M).

Long Term Liabilities: GOLDTECH's short term assets (₹363.1M) exceed its long term liabilities (₹53.2M).


Debt to Equity History and Analysis

Debt Level: GOLDTECH's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: GOLDTECH's debt to equity ratio has increased from 0.8% to 4.6% over the past 5 years.


Balance Sheet


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: Whilst unprofitable GOLDTECH has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: GOLDTECH is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -22.9% per year.


Next Steps

Dividend

What is Goldstone Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.2yrs

Average management tenure


CEO

Pavan Chavali (39yo)

0.92

Tenure

Mr. Pavan Chavali has been Whole Time Director of Goldstone Technologies Limited since May 23, 2019 and served as its Vice President of Operations & Strategy until May 2019. Mr. Chavali served as Assistant ...


Leadership Team

NamePositionTenureCompensationOwnership
Pavan Chavali
Whole-Time Director0.92yrno datano data
Vithal Popuri
Chief Financial Officer5.92yrs₹2.82mno data
Thirumalesh Tumma
Company Secretary & Compliance Officer2.17yrs₹1.34mno data

2.2yrs

Average Tenure

Experienced Management: GOLDTECH's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Pavan Chavali
Whole-Time Director0.92yrno datano data
Lam Sashikumar
Non-Executive Director12.5yrs₹90.00k0.0040% 6.6k
Clinton Caddell
Non-Executive Director7.92yrsno datano data
Kambhampati Sarma
Independent Director13yrs₹165.00kno data
Venkata Ramana Vedula
Independent Director13yrs₹165.00kno data
Sukhjinder Kaur
Independent Director2.58yrs₹150.00kno data

10.2yrs

Average Tenure

65.5yo

Average Age

Experienced Board: GOLDTECH's board of directors are seasoned and experienced ( 10.2 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 been diluted in the past year, with total shares outstanding growing by 8.3%.


Top Shareholders

Company Information

Goldstone Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Goldstone Technologies Limited
  • Ticker: GOLDTECH
  • Exchange: NSEI
  • Founded: 1994
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹163.592m
  • Shares outstanding: 18.78m
  • Website: https://www.goldstonetech.com

Location

  • Goldstone Technologies Limited
  • GNR’s Insignia Building
  • 2nd Floor
  • Hyderabad
  • Andhra Pradesh
  • 500081
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531439BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2001
GOLDTECHNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2001

Biography

Goldstone Technologies Limited provides information technology (IT) and IT enabled services in India and internationally. The company operates in two segments, Information Technology/Software Services and Software License Resale. It offers business intelligence and analytics solutions, such as Tableau, an analytics software platform; managed IT services; and IT staff augmentation services. The company was founded in 1994 and is based in Hyderabad, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 13:50
End of Day Share Price2020/04/09 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.