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Gujarat Lease Financing
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Gujarat Lease Financing (GLFL) was formed in Jul.'83 as a wholly-owned subsidiary of the Gujarat Industrial Investment Corporation (GIIC) to provide financial services for all-round development of industries in and around Gujarat. The company commenced operations in 1985 and went public in 1990, reducing GIIC's stake to 51%. In 1994, GIIC entered into a joint-sector agreement with the Torrent group and reduced its stake to 26%, with the Torrent group holding 25%.
GLFL also undertakes investment banking and securities-related credit. With a plan to diversify, during 1991-92, the merchant banking division became operational and the company was registered as a category-I merchant banker with the SEBI. GLFL has also entered housing finance with the launch of GLFL Housing Finance in Mar.'93 and got it recognised by the National Housing Board.
GLFL Securities, a fully-owned subsidiary of GLFL, has the corporate membership of the BSE and the NSE in the debt as well as capital market segments and also trades on the Ahmedabad Stock Exchange.
To venture into real estate development, GLFL Realities was incorporated in 1995. GLFL International was also established in the same year to set up branches in Singapore and Dubai. In 1995-96, the retail finance division started a scheme for financing commercial vehicles.
During the year 2004-05, the Scheme of Compromise and Arrangement to discharge the liability of the banks was sanctioned by the Hon'ble High Court of Gujarat. The Company released payment as per the Court order. As per the Court's order, the income received pertaining to assigned assets after July, 2004 was transferred to the Consortium of Banks. Subsequent to the Court's order, GLFL recovered Rs.344 lacs till date from the charged assets and deposited with the member banks. As a result of this, the Company had no external debts at the end of the year.
During the year 2018-19, three wholly owned subsidiary companies, GLFL Housing Finance Ltd., GLFL Securities Ltd and GLFL International Ltd. were amalgamated with the Company through the Scheme of Amalgamation effective from 1st April, 2017. As per the Scheme, all the business undertakings of three subsidiary Companies got transferred in the Holding Company.
Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing is valued compared to its competitors.
Gujarat Lease Financing PE ratio helps investors understand what is the market value of each stock compared to Gujarat Lease Financing '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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing helps investors get an insight into when they can enter or exit the stock. Key components of Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing ’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 Gujarat Lease Financing 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 Gujarat Lease Financing 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 Gujarat Lease Financing .
The balance sheet presents a snapshot of Gujarat Lease Financing ’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.
Gujarat Lease Financing Net Interest Margin (NIM) tells about the profitability earned by all NBFCs and financial institutions. It represents the income generated by the bank from the difference between the interest earned on loans and the interest paid on public deposits. Net Interest Margin (NIM) is a metric that monitors the profitability generated from a bank's lending activities.
Non-Performing Assets (NPA) indicate the ratio of a bank's loans that are classified as non-performing. A lower NPA ratio reflects stronger asset quality and more effective risk management.
Capital Adequacy Ratio (CAR) is a metric to measure the bank's ability to absorb losses and still remain financially stable. A higher CAR shows that the bank is financially sound and can absorb potential losses.
Gross NPA is the percentage of total non-performing loans before provisioning, while net NPA is the percentage after provisioning. Lower gross and net NPA ratios indicate better loan quality.
Net NPA is the actual losses a bank has incurred due to NPA accounts. Lower the NPA, better the banks can maintain stable income from interest on loans.
CASA ratio tells how much of a bank's total deposits are in both current and savings accounts.
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