In This Article:
Gayatri Projects Limited’s (NSEI:GAYAPROJ): Gayatri Projects Limited operates as an infrastructure company in India. The ₹37.26B market-cap company announced a latest loss of -₹2.99M on 31 March 2017 for its most recent financial year result. As path to profitability is the topic on GAYAPROJ’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for GAYAPROJ’s growth and when analysts expect the company to become profitable.
Check out our latest analysis for Gayatri Projects
GAYAPROJ is bordering on breakeven, according to analysts. They anticipate the company to incur a final loss in 2018, before generating positive profits of ₹2.29B in 2019. Therefore, GAYAPROJ is expected to breakeven roughly a couple of months from now! In order to meet this breakeven date, I calculated the rate at which GAYAPROJ must grow year-on-year. It turns out an average annual growth rate of 48.27% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, GAYAPROJ may become profitable much later than analysts predict.
I’m not going to go through company-specific developments for GAYAPROJ given that this is a high-level summary, but, keep in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I would like to bring into light with GAYAPROJ is its debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, which in GAYAPROJ’s case, it has significantly overshot. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
Next Steps:
This article is not intended to be a comprehensive analysis on GAYAPROJ, so if you are interested in understanding the company at a deeper level, take a look at GAYAPROJ’s company page on Simply Wall St. I’ve also compiled a list of relevant factors you should further examine:
-
Historical Track Record: What has GAYAPROJ’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
-
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Gayatri Projects’s board and the CEO’s back ground.
-
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.