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Golkonda Aluminium Extrusions
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Golkonda Aluminium Extrusions Limited was originally incorporated on 22nd August, 1988 under the name of Progressive Aluminium Limited to produce extrusions and went into production in 1991. In December, 1993, the Management of the Company was taken over by Pennar Group of Hyderabad through which, its name changed to Pennar Profiles Limited. With effect from Mar.'94, the name of the Company was changed from Progressive Aluminium Limited to Pennar Profiles Limited (PPL).
During the year 1995-96, the company has completed modernisation & expansion. 900 Tonne extrusion press was installed & the capacity of connected handling equipment was increased from 350 TPM to 500 TPM. It also made a Rights issue of 4,07,000 non-convertible debentures of Rs 100 each for cash at par with detachable equity warrants in the ratio of 1:1 to be exchanged with equity shares of Rs 10 each at a premium of Rs 5 per share.
During 1996-97, the company has been accredited with ISO 9002 certification by KPMG Peat Marwick LLP, USA.
Due to continued financial difficulties and incurred losses in the year 1998-99, the Company was declared as a Sick Company by BIFR and appointed Industrial Finance Corporation of India Limited (IFCI) as the Operating Agency for rehabilitation.
The company's proposal to obtain financial assistance through External Commercial Borrowing (ECB), due to its high export performance in the international market, did not materialise due to non-availability of lender's guarantee. Subsequently, O & S Metallhandel, GmbH, (OSMG), a German company active in trade of aluminium extrusions, showed interest in the revival of the company and has offered to undertake exports of aluminium extrusions manufactured by the company upto 400 tonnes per month.
The rehabilitation scheme prepared by IFCI, approved by the Board and submitted to BIFR recommends induction of OSMG, which is part of the group whose flagship company is Danmetal A/S (Denmark), as a co-promoter and waiver of entire outstanding interest dues payable to Financial institutions and banks through reliefs and concessions. Pending BIFR sanction, other measures are one time settlement of dues towards FIs and banks, amounting to Rs.164 million, payable in three annual instalments including upfront payment, reduction in equity share capital, part conversion of loan into equity. It has also recommended investment by OSMG and their associates to the tune of Rs.59.8 (US$ 1.30) million of which Rs.32.2 million will be towards equity and the balance as unsecured loan which has been agreed to by OSMG.
During the year 2005, Alumeco Group, Denmark along with IFU Denmark (an Industrial Fund for Developing Countries) took over the Company and its Management and the name of the Company was changed to Alumeco India Extrusion Limited (AIEL). Thereafter, in 2015, the name was again changed to Golkonda Aluminium Extrusions Limited.
In May 2016, the Company got into an Asset Purchase Agreement with Sagar Asia Private Limited for the sale of the whole of assets of the Company. In July 2017, Mrs. Utpal Agrawal & Mr. H. P. Agrawal (the Acquirers) got into Share Purchase Agreement with Alumeco Group, Denmark (the existing promoters of the Company) for purchasing their entire shareholding in the Company and taking control over the Company, after complying with Takeover Regulations.
Golkonda Aluminium Extrusions share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Golkonda Aluminium Extrusions indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Golkonda Aluminium Extrusions is valued compared to its competitors.
Golkonda Aluminium Extrusions PE ratio helps investors understand what is the market value of each stock compared to Golkonda Aluminium Extrusions 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Golkonda Aluminium Extrusions evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Golkonda Aluminium Extrusions generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Golkonda Aluminium Extrusions in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Golkonda Aluminium Extrusions shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Golkonda Aluminium Extrusions compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Golkonda Aluminium Extrusions over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Golkonda Aluminium Extrusions helps investors get an insight into when they can enter or exit the stock. Key components of Golkonda Aluminium Extrusions Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Golkonda Aluminium Extrusions shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Golkonda Aluminium Extrusions ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Golkonda Aluminium Extrusions provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Golkonda Aluminium Extrusions highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Golkonda Aluminium Extrusions .
The balance sheet presents a snapshot of Golkonda Aluminium Extrusions ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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