Detailed Analysis on Geekay Wires Ltd.



Market Cap : 583 Cr

Current Price (28-04-2024) : 112

Sector : Steel

NSE  : GEEKAYWIRE


About :

Geekay Wires Limited is an ISO 9001:2008 certified company, located at Hyderabad manufacturer of niche quality Galvanized Steel Wires, Collated Nails, Bulk Nails, Stainless Steel Fasteners & many other specialty products. having a wide range of products for industrial, Power Transmission, Cable & Conductor, Commercial Construction, Automotive industries, Marine & Mine Industries, Wind & Solar Power Energy & agriculture applications.

Geekay Wires Limited was incorporated as a private limited company with the name 'Geekay Wires Private Limited' on July 25, 1989. The Company was taken over by the Kandoi Family in 2012. The Status of the company was changed to public limited company and the name of the company was changed to Geekay Wires Limited on January 13, 2017. 

Financial Metrics :

(source : screener.in)

  • Market Cap : 583 Cr
  • Current Price : 112.00
  • High / Low : 126 / 31.50
  • Book Value : 19.00
  • EPS : 7.86
  • Promoter Holding : 59.30 %
  • Pledged Percentage : 0.00 %
  • P/E Ratio : 14.20 (Industry PE : 25.40)
  • PEG Ratio : 0.14
  • Operating Profit Margin : 9.44 %
  • Return on capital employed (ROCE) : 27.10 %
  • Return on equity (ROE) : 42.20 %
  • Return on assets (ROA) : 12.60 %
  • Sales Growth 5Yr : 26.40 %
  • Profit Growth 5Yr : 100 %
  • Dividend Last Year : 2.70
  • Dividend Yield : 0.48 %
  • Debt : 57.40 Cr
  • Debt to Equity : 0.58
  • Debtor Days FY23 : 68
  • Current Assets : 124 Cr
  • Current Liabilities : 80.40 Cr
  • Free Cash Flow : 33.80 Cr
  • Net Cash Flow : -2.52 Cr

Please refer to this article for detailed explanation on above mentioned financial metrics


Earnings :

(source : screener.in)

Quarterly


Yearly


Good sales growth 
  • Over the last 5 years sales has grown at a yearly rate of  26 %
  • Over the last 3 years sales has grown at a yearly rate of  28 %
Good net profit growth
  • Over the last 5 years net profit has grown at a yearly rate of  100 %
  • Over the last 3 years net profit has grown at a yearly rate of  59 %
Good return on equity
  • ROE last year  42.20 %
  • Over the last 5 years ROE has grown at a yearly rate of  23 %
  • Over the last 3 years ROE has grown at a yearly rate of  27 %
Good return on capital employed
  • ROCE last year  27.10 %
  • Over the last 5 years ROCE has grown at a yearly rate of  16.60 %
  • Over the last 3 years ROCE has grown at a yearly rate of  18.10 %
Operating profit margin
  • Last Year OPM  7 %
  • 2022 OPM  4 %
  • 2021 OPM  7 %
Manufacturing Facility :









The company has an installed capacity of 60000 MTS p.a. at Medak district, Telangana. unit 1 is located at Isnapur Village, Medak district. unit 2 is located at Shankarampet Village, Medak district.
Today with robust infrastructure & testing facilities they are in the preferred-vendor list of PGCIL (Power Grid Corporation of India Ltd) and in almost all State Transmission & Distribution Companies, Electrical Contractors, corporate engaged in turnkey business of creating infrastructure for Power Transmission & Distribution, Cable & Conductor Manufacturing, etc. 
company's manufacturing process is fully integrated starting from storage of raw material to shipment under one roof. this helps them to reduce the lead time and provides effective control. there in-house quality lab is well equipped to test surface finish, tensile strength, torsion, braking load, zinc coating, dip (adhesion) test, salt spray, surface hardness & two-dimension test on profile projector.

manufacturing facilities include:
  • Lab Facility
  • Tool room
  • Wire rod drawing
  • Wire rod stock
  • Bolt forging machine
  • Nuts forging machine
  • Heat treatment
  • Polishing machine
  • Inspection & Packaging
Products :

Collated Fasteners
  1. Plastic Strip Round Head Nails
  2. Wire Weld Coil Nails
  3. Paper Tape Clipped Head Nails
  4. Paper Tape Offset Round Head Nails
  5. Paper Tape Joist Hanger Nails
Bulk Nails
  1. Box Nail
  2. Common Nail
  3. Duplex Nail
  4. Joist Hanger Nail
  5. Siding Nail
  6. PC Cup Head Drywall Nail
  7. Sinkers Nail
  8. Polebarn Nail
  9. Drywall Nail
  10. Tile Nail
  11. Roofing Nail
  12. Casing Nail
  13. Deck Nail
SS Fasteners Bolt / Screw
  1. Hexagon Head Bolt
  2. Hexagon Head Screw
  3. Round Head Square Neck Bolt
  4. Hexagon Wood Screw
  5. Hexagon Socket Button Head Screw
  6. Hexagon Socket Counter Sunk Head Cap Screw - Full & Half Thread
  7. Hexagon Socket Head Cap Screw - Full/Half Thread
  8. Hexagon Socket Button Flange Screw
  9. Hexagon Flange Bolt - Full/Half Thread
SS Fasteners Nut
  1. Hexagon Nut
  2. Hexagon Thin Nut
  3. Square Nut
  4. Square Weld Nut
  5. Hexagon Weld Nut
  6. Hexagon Flange Nut
  7. Thick Nyloc Nut
Steel Wire
  1. Galvanized Wire
  2. Stay Wire
  3. Binding Wire
  4. Black Annealed Wire
  5. Spring Wire
  6. HTGS Earth Wire
  7. ACSR Wire
  8. CA Wire
Specialty Products
  1. Tie Wire
  2. Hanger Wire
  3. Masonry Nail
  4. Flooring Cut Nail
  5. Machine Quality Pallet Nail
These products are used in various industries such as Power industry, Infrastructure industry, Cable & Conductor, General Engineering, Commercial Construction, Automotive industries, Marine & Mine Industries, Wind & Solar Power Energy & Agriculture applications.

The company is also exporting there product across the globe to various countries including USA, Canada, UK, Australia, Saudi Arabia & Germany.

The company's key clients include godrej industries ltd, mahavitaran, power grid corporation of india, KPTCL, vidyut vitran nigam ltd, larsen and turbo, PSTCL, APEPDCL, BHEL etc..

On 23rd October 2023 Geekay Wires Ltd stock split in 1:5 ratio.

PROS :
  1. Good promoter holding and zero promoter pledge.
  2. Generating good ROCE, ROE, ROA.
  3. Maintaining healthy dividend payout.
  4. Last 5 years profit  growth of 100% CAGR.
  5. Stock PE is less than Industry PE.
  6. Positive Free cash flow.
  7. Debtor Days have improved
CONS :
  1. Negative Net cash flow.
  2. Company has a low operating profit margin.
This is not a buy/sell advice I am not SEBI registered, just providing basic details regarding this company from various sources available online, please do your own research or consult a SEBI registered investment advisor before taking any investment decision.

Thank You for reading this article if you liked this one please visit next week again for analysis on another new stock.

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