Godawari Power & Ispat Analysis

dividend

Pros

Cons

• Unable to calculate sustainability of dividends as Godawari Power & Ispat has not reported any payouts.
• Unable to evaluate Godawari Power & Ispat's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
• Unable to evaluate Godawari Power & Ispat's dividend against the top 25% market benchmark as the company has not reported any payouts.

health

Pros

• Godawari Power & Ispat is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Godawari Power & Ispat is profitable, therefore cash runway is not a concern.
• Godawari Power & Ispat is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (32.3%, greater than 20% of total debt).
• The level of debt compared to net worth has been reduced over the past 5 years (186.7% vs 124.3% today).

Cons

• Debt is not covered by short term assets, assets are 0.5x debt.
• Godawari Power & Ispat's long term commitments exceed its cash and other short term assets.
• Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
• Godawari Power & Ispat's level of debt (124.3%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the Godawari Power & Ispat board of directors is about average.
• Bajrang's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by Godawari Power & Ispat individual insiders in the past 3 months.

Cons

• Bajrang's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• Godawari Power & Ispat is not covered by any analysts.
• Godawari Power & Ispat has significant price volatility in the past 3 months.

past

Pros

• Godawari Power & Ispat has delivered over 20% year on year earnings growth in the past 5 years.
• Godawari Power & Ispat used its assets more efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
• Godawari Power & Ispat has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

• Godawari Power & Ispat's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Godawari Power & Ispat has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Godawari Power & Ispat's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

value

Pros

• Godawari Power & Ispat's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Godawari Power & Ispat's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Godawari Power & Ispat is good value based on assets compared to the IN Metals and Mining industry average.
• Godawari Power & Ispat is good value based on earnings compared to the IN Metals and Mining industry average.
• Godawari Power & Ispat is good value based on earnings compared to the India market.
• GPIL outperformed the Metals and Mining industry which returned -28.6% over the past year.
• NSEI:GPIL is up 41% outperforming the Metals and Mining industry which returned 7.5% over the past month.
• NSEI:GPIL is up 41% outperforming the market in India which returned 8% over the past month.

Cons

• GPIL underperformed the Market in India which returned -14.5% over the past year.