Friday, June 5, 2009

Geodesic ratio analysis using Excel Macro

Finally, I created Excel macro using VBA coding for ratio analysis of company's financials. I am going to add some ratios very soon. Though my current knowledge of macro VBA programming is sufficient, it is still preliminary. I need to build up upon what I already know.
I used the macro for analysis of Geodesic stock & compared my results with those given in DNA Money dated 25 May,09. All results are matching with the exception of Net Worth. I should take a look at it again, I think. Here are some observations:

Sales, EBITDA & PAT growth rates are 103%, 93% & 90% respectively which are very good taking into account the current slowdown in major economies around the world.
Net Profit Margin is 44%. It is good, because it means almost half of what you are selling is your PAT. & that is expected to grow at the rate as high as mentioned above.

P/E ratio is 3.88.
Market price to book value ratio is 2.31.
So, stock is undervalued.

Only ratio that makes me worry is debt/equity ratio. It is as high as 1.06 .
But, PAT of 282 Cr & debt of 506 Cr. makes me feel that if the business flourishes the debt will be taken care of.
Other thing is that I bought equity at comparitively high price of Rs. 126. It then touched a low of Rs.111 & currently howering around Rs. 126. I hope that it will perform good in long term.

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