This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Gokul Refoils and Solvent Limited is engaged primarily in the business of processing and refining of crude oil for edible use.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹388cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 18.96
Sector PE Ratio: 46.46
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.40
Sector PB Ratio : 8.59
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 0.22
Sector Dividend Yield : 1.83%
Dividend Yield of this company is low than Sector. Dividend of this company is Below Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 426.87 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: Gokul Refoils and Solvent’s net debt to equity ratio (68.7%) is considered high.
Reducing Debt: Gokul Refoils and Solvent’s debt to equity ratio has reduced from 148.9% to 99.9% over the past 5 years.
Debt Coverage: Gokul Refoils and Solvent’s debt is not well covered by operating cash flow (11.4%).
Interest Coverage: Gokul Refoils and Solvent’s interest payments on its debt are well covered by EBIT (6.4x coverage).
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 72.09% in June 2021. FIIs invested in June 2021 with 0.00% and retail investor is 26.90%.
Now We’ll check the return of the company, This company started from Rs. 35.09 at 04 June 2008. This company given 138.30% returns in last 1 year from 2020 to 14 Dec 2021.
Investment Checklist for Gokul Refoils and Solvent Ltd.
- The company is currently profitable
- Does not have a meaningful market cap (₹4B)
- Highly volatile share price over the past 3 months
- Debt is not well covered by operating cash flow
- Earnings have grown by 41.9% per year over past 5 years
- They do not pay a dividend
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹27B)
- Gokul Refoils and Solvent Ltd does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Entry Buying Zone : 26 to 30
Target: 45 ( 70% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
Hope you liked Our 11th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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