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
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
GKW. This is due to cash flow or dividend data being
unavailable. The share price is
₹703.3.
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
GKW's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.
Price based on past earnings
Are
GKW's earnings available for a low price, and how does
this compare to other companies in the same industry?
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 GKW 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 Simply Wall St do have past financial data. You can see them here.
Show me the analysis anyway
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.
Future estimates come from
professional analysts. Just like forecasting the weather, they don’t always get
it right!
16%
Expected Commercial Services industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is
GKW
expected to grow at an
attractive
rate?
Unable to compare GKW's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
Unable to compare GKW's earnings growth to the India market average as no estimate data is available.
Unable to compare GKW's revenue growth to the India market average as no estimate data is available.
Unable to determine if GKW is high growth as no earnings estimate data is available.
Unable to determine if GKW 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.
NSEI:GKWLIMITED Past and Future Earnings per Share
Data Point
Source
Value
Past Financials
Company Filings (2 months ago)
See Below
Future Estimates
Average of up to 0 Analyst Estimates (S&P Global)
See Below
All data from GKW Company Filings, last reported 2 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
NSEI:GKWLIMITED Past Financials Data
Date (Data in INR Millions)
EPS *
2019-09-30
46.30
2019-06-30
35.03
2019-03-31
33.32
2018-12-31
25.14
2018-09-30
17.04
2018-06-30
11.84
2018-03-31
13.89
2017-03-31
6.19
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
Unable to establish if GKW will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Next steps:
Check out GKW's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.
Is the annual earnings growth rate expected to beat the low risk savings rate, plus a
premium to keep pace with inflation?
Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Asia market? (1 check)
Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Asia market? (1 check)
Is the annual earnings growth rate expected to be above 20%? (1 check)
Is the annual revenue growth rate expected to be above 20%? (1 check)
Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making
in the relevant year.
GKW
has a total score of
0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Below we compare
GKW's growth in the last year to its industry (Commercial Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it
has maintained that growth in the year.
GKW has delivered over 20% year on year earnings growth in the past 5 years.
GKW's 1-year earnings growth exceeds its 5-year average (171.5% vs 44.9%)
GKW's earnings growth has exceeded the IN Commercial Services industry average in the past year (171.5% vs 11.7%).
Earnings and Revenue History
GKW's
revenue
and
profit
over the past 5 years is shown below, any years where they have experienced a
loss will show up in red.
All data from GKW Company Filings, last reported 2 months ago, and in
Trailing twelve months (TTM)
annual period rather than quarterly.
NSEI:GKWLIMITED Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions)
Revenue
Net Income *
G+A Expenses
R&D Expenses
2019-09-30
386.93
276.25
4.85
2019-06-30
318.56
209.08
4.85
2019-03-31
304.23
198.81
4.85
2018-12-31
250.88
149.96
4.84
2018-09-30
197.36
101.73
4.84
2018-06-30
164.91
70.74
4.84
2018-03-31
178.05
82.88
4.84
2017-03-31
140.60
36.95
4.57
2016-03-31
119.80
20.35
4.52
2015-03-31
39.55
14.06
7.63
2014-03-31
115.33
37.05
64.17
2013-03-31
167.19
122.66
86.75
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
GKW has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
GKW used its assets more efficiently than the IN Commercial Services industry average last year based on Return on Assets.
GKW has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
We assess
GKW'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
Commercial Services
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.
GKW
has a total score of
5/6, 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
(assets)
and owe
(liabilities).
The boxes below represent the relative size of what makes up
GKW's finances.
The net worth of a company is the difference between its assets and liabilities.
Net Worth
GKW is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
GKW's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of
GKW'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
checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
GKW has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
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.
Are short term assets greater than short term liabilities? (1 check)
Are short term assets greater than long term liabilities? (1 check)
Has the debt to equity ratio increased in the past 5 years? (1 check)
Is the debt to equity ratio over 40%? (1 check)
Is the debt covered by operating cash flow? (1 check)
Are earnings greater than 5x the interest on debt (if company pays interest
at all)? (1 check)
GKW
has a total score of
6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
0%
Current annual income from
GKW
dividends.
If you bought
₹2,000 of
GKW
shares you are expected to receive
₹0
in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you
can get in a
savings account?
It is up there with the
best dividend paying companies?
Unable to evaluate GKW's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
Unable to evaluate GKW's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.
We also check to see if the dividend has increased in the past 10 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.
CEO
AbhijitDas
AGE
48
TENURE AS CEO
0.9 years
CEO Bio
Mr. Abhijit Das has been Manager at GKW Limited since 2019. He served as Chief Executive of Projects at GKW Limited until 2019. Mr. Abhijit Das joined GKW Limited on February 04, 2018.
CEO Compensation
Insufficient data for Abhijit to compare compensation growth.
Insufficient data for Abhijit to establish whether their remuneration is reasonable compared to companies of similar size in India.
Management Team
Arnab Bhattacharya
TITLE
President
AGE
74
Amitabha Chakrabarti
TITLE
CFO & Senior VP of Finance
COMPENSATION
₹3M
AGE
63
A. Ghosh
TITLE
General Manager of Construction & Admin
AGE
47
J. Ghosh
TITLE
VP, Compliance Officer & Company Secretary
COMPENSATION
₹2M
AGE
65
Ravi Bahl
TITLE
Deputy Company Secretary
AGE
59
TENURE
3.7 yrs
Abhijit Das
TITLE
AGE
48
TENURE
0.9 yrs
S. Wagh
TITLE
Manager of Accounts
AGE
61
Varun Saggi
TITLE
Deputy Manager of Sales & Administration
AGE
34
Umesh Sinha
TITLE
President of Screws & Fasteners Division
Board of Directors Tenure
Average tenure and age of the
GKW
board of directors in years:
13
Average Tenure
77
Average Age
The average tenure for the GKW board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Jemi Curravala
TITLE
Non Executive Chairman
COMPENSATION
₹11M
AGE
80
TENURE
0.3 yrs
M. Lahoti
TITLE
Non-Executive Independent Director
COMPENSATION
₹285K
AGE
84
TENURE
16.3 yrs
Gopal Srinivasan
TITLE
Non-Executive Director
COMPENSATION
₹45K
AGE
75
TENURE
22.3 yrs
N. Navalakha
TITLE
Non-Executive Independent Director
COMPENSATION
₹285K
AGE
76
TENURE
15.5 yrs
P. Lodha
TITLE
Non-Executive Independent Director
COMPENSATION
₹285K
AGE
78
TENURE
10.5 yrs
Kusum Dadoo
TITLE
Additional Director
COMPENSATION
₹30K
AGE
66
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Is GKW Limited's (NSE:GKWLIMITED) High P/E Ratio A Problem For Investors?
The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for GKW: P/E of 19.6 = ₹686.65 ÷ ₹35.03 (Based on the year to June 2019.) Is A High P/E Ratio Good? … A higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. … In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.
Should GKW Limited’s (NSE:GKWLIMITED) Weak Investment Returns Worry You?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Author Edwin Whiting says to be careful when comparing the ROCE of different businesses, since 'No two businesses are exactly alike.' How Do You Calculate Return On Capital Employed? … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for GKW: 0.074 = ₹212m ÷ (₹3.0b - ₹160m) (Based on the trailing twelve months to June 2019.) So, GKW has an ROCE of 7.4%.
Does GKW Limited's (NSE:GKWLIMITED) CEO Salary Compare Well With Others?
This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … At the time of writing our data says that GKW Limited has a market cap of ₹3.7b, and is paying total annual CEO compensation of ₹11m. … Given the total loss of 0.9% over three years, many shareholders in GKW Limited are probably rather dissatisfied, to say the least.
Taking A Look At GKW Limited's (NSE:GKWLIMITED) ROE
The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for GKW: 6.9% = ₹199m ÷ ₹2.9b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … A company that can achieve a high return on equity without debt could be considered a high quality business.
If You Had Bought GKW (NSE:GKWLIMITED) Stock Five Years Ago, You Could Pocket A 73% Gain Today
One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, GKW managed to grow its earnings per share at 32% a year. … Before deciding if you like the current share price, check how GKW scores on these 3 valuation metrics.
Despite Its High P/E Ratio, Is GKW Limited (NSE:GKWLIMITED) Still Undervalued?
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, GKW has a P/E ratio of 29.32. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Why GKW Limited’s (NSE:GKWLIMITED) Return On Capital Employed Might Be A Concern
In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Return On Capital Employed (ROCE): What is it? … Analysts use this formula to calculate return on capital employed:
Is GKW Limited (NSE:GKWLIMITED) Overpaying Its CEO?
This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Jemi Curravala's Compensation Compare With Similar Sized Companies. … According to our data, GKW Limited has a market capitalization of ₹5.4b, and pays its CEO total annual compensation worth ₹10.0m.
Is GKW Limited's (NSE:GKWLIMITED) 3.5% ROE Worse Than Average?
This article is for those who would like to learn about Return On Equity (ROE). … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.035 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Why GKW Limited's (NSE:GKWLIMITED) High P/E Ratio Isn't Necessarily A Bad Thing
This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … GKW has a price to earnings ratio of 52.07, based on the last twelve months. … How Do I Calculate A Price To Earnings Ratio
GKW Limited provides warehousing services in India. The company operates through two segments, Warehousing and Investment and Treasury. It leases warehousing facilities; and investment in bank deposits, equity instruments, bonds, fixed deposits, and mutual funds. The company was formerly known as Guest Keen Williams Limited. The company was incorporated in 1931 and is based in Mumbai, India. GKW Limited is a subsidiary of Matrix Commercial Private Limited.
GKW Limited
Wakefield House,
Sprott Road,
Mumbai,
Maharashtra, 400038,
India
Listings
Exchange Symbol
Ticker Symbol
Security
Exchange
Country
Currency
Listed on
NSEI
GKWLIMITED
Equity Shares
National Stock Exchange of India
IN
INR
28. Jul 1995
Number of employees
Current staff
15
GKW
employees.
Industry
Diversified Support Services
Commercial Services
Company Analysis and Financial Data Status
Area
Date (UTC time)
Company Analysis updated:
2019/12/10 12:51
End of day share price update:
2019/12/10 00:00
Last earnings filing:
2019/11/12
Last earnings reported:
2019/09/30
Last annual earnings reported:
2019/03/31
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.