Gayatri Projects Ltd

Gayatri Projects Ltd. shows a concerning trend in financial performance. Sales growth has deteriorated significantly, with TTM sales declining by -65%. Profit growth is alarming, with a TTM compounded profit growth of -202%. Quarterly results show consistent net losses, with a -71% YOY sales growth in Dec 2022 and a net loss of ₹ -292 Cr.. The operating profit margin (OPM) is deeply negative, reaching -100% in Dec 2022.

Gayatri Projects Ltd. exhibits poor capital efficiency and returns. The current Return on Capital Employed (ROCE) is -20.10%, and the Return on Equity (ROE) is -172.10%. These negative values indicate that the company is not effectively utilizing its capital or shareholder funds to generate profits. The negative ROCE over the past decade indicates a long-term struggle with profitability.

The financial health and prudence of Gayatri Projects Ltd. are weak, characterized by high debt levels. The company's borrowings are significant, with total liabilities of ₹ 4,518 Cr as of Sep 2022. Although the debt-to-equity ratio cannot be calculated due to negative book value, the substantial borrowings relative to the small market cap (₹ 166 Cr.) indicate high leverage. The company has not been paying dividends, reflecting its inability to share profits with shareholders.

Gayatri Projects Ltd. shows a concerning trend in its shareholding pattern. Promoter holding has decreased significantly over time, from 47.48% in Mar 2017 to a mere 3.94% in Mar 2025. This substantial reduction indicates a lack of confidence among the promoters. While FII holding was significant in the past (34.68% in Mar 2017), it has also decreased sharply to 1.91% in Mar 2025. DII holding remains low. The increasing public holding suggests a shift in ownership away from informed investors.

The accounting quality of Gayatri Projects Ltd. raises concerns due to several factors. The company has reported significant exceptional items, with ₹ -140.51 Cr in Mar 2022. The negative book value (₹ -35.5) and inconsistent profitability raise questions about the reliability of financial reporting. The frequent use of exceptional items suggests potential issues with transparency.

Gayatri Projects Ltd. experiences significant volatility in its segment performance, as evident in its quarterly results. YOY sales growth fluctuates dramatically, ranging from -71% to 49%. Profit growth is even more erratic, with values ranging from -210,556% to 1,136%. The operating profit margin (OPM) also varies widely, from -97% to 13%. This variability indicates a lack of stability in the company's operations.

There is no specific data available on regulatory compliance cost trends.

There is no specific data available on Contingent liability evaluation, it is difficult to assess the risk impact on Gayatri Projects Ltd.