Best Stocks Below Rs.50 – Gokul Refoils and Solvent Ltd

Our 11th company in the Series of Best Stocks Below Rs. 50 is Gokul Refoils and Solvent Ltd.

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: 1.39%

ROCE: 1.68%

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

2017 1,874.862.41

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021 2020 2019 2018

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

2021 2020 2019 2018

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 HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 2021 72.09% 0.00%0.00% 1.01%26.90%
Mar 202172.09%0.00% 0.00% 1.01%26.90%
Dec 202072.09%0.00% 0.00%1.01%24.26%
Sep 202072.09%0.00%0.00%1.01%24.26%

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

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.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

Leave a Reply

Your email address will not be published.

You May Also Like