Gala Global Products Analysis

dividend

Pros

Cons

• Unable to evaluate Gala Global Products's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Gala Global Products's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Gala Global Products is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Gala Global Products is profitable, therefore cash runway is not a concern.
• Gala Global Products is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 4.3x debt.
• Gala Global Products's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (46.6% vs 27.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 3.7x coverage).
• Gala Global Products's level of debt (27.7%) compared to net worth is satisfactory (less than 40%).
• Low level of unsold assets.

Cons

• Debt is not well covered by operating cash flow (19.2%, less than 20% of total debt).

management

Pros

• Vishal's remuneration is lower than average for companies of similar size in India.
• The tenure for the Gala Global Products management team is about average.

Cons

• The average tenure for the Gala Global Products board of directors is less than 3 years, this suggests a new board.
• Vishal's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.

misc

Pros

Cons

• Gala Global Products is not covered by any analysts.
• Gala Global Products has significant price volatility in the past 3 months.

past

Pros

• Gala Global Products has delivered over 20% year on year earnings growth in the past 5 years.
• Gala Global Products used its assets more efficiently than the IN Commercial Services industry average last year based on Return on Assets.

Cons

• Gala Global Products's 1-year earnings growth is less than its 5-year average (20.4% vs 56.3%)
• Gala Global Products's use of capital has not improved over the past 3 years (Return on Capital Employed).
• Gala Global Products has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Gala Global Products's earnings growth has not exceeded the IN Commercial Services industry average in the past year (20.4% vs 35.9%).

value

Pros

Cons

• Gala Global Products's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Gala Global Products's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Gala Global Products is overvalued based on assets compared to the IN Commercial Services industry average.
• Gala Global Products is overvalued based on earnings compared to the IN Commercial Services industry average.
• Gala Global Products is overvalued based on earnings compared to the India market.
• 539228 underperformed the Commercial Services industry which returned -31.6% over the past year.
• 539228 underperformed the Market in India which returned -14.5% over the past year.
• BSE:539228 is flat (-1%) underperforming the Commercial Services industry which returned 5.9% over the past month.
• BSE:539228 is flat (-1%) underperforming the market in India which returned 8% over the past month.