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Last Updated on: 18 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Bharat Rasayan Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 17, 2024, 12:01 am

Market Cap 4,845 Cr.
Current Price 11,659
High / Low14,284/8,333
Stock P/E36.8
Book Value 2,377
Dividend Yield0.01 %
ROCE12.6 %
ROE10.0 %
Face Value 10.0
PEG Ratio-2.09

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Bharat Rasayan Ltd

Competitors of Bharat Rasayan Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Epigral Ltd 9,156 Cr. 2,2042,408/87236.6 3020.23 %17.5 %16.9 % 10.0
Dharmaj Crop Guard Ltd 1,130 Cr. 333390/19726.6 1060.00 %14.5 %13.2 % 10.0
Bhaskar Agrochemicals Ltd 33.9 Cr. 65.0122/37.017.0 26.50.00 %14.7 %13.4 % 10.0
Bhagiradha Chemicals & Industries Ltd 4,562 Cr. 366448/117180 31.90.03 %9.69 %6.27 % 1.00
Best Agrolife Ltd 1,442 Cr. 6171,105/45438.9 2740.49 %16.5 %18.1 % 10.0
Industry Average10,559.97N/A38.52N/AN/A13.8015.51N/A

All Competitor Stocks of Bharat Rasayan Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales222270252269335445327292309306239263233
Expenses171205194229265359276256260249234250207
Operating Profit5165584070865136495761326
OPM %23%24%23%15%21%19%16%12%16%19%2%5%11%
Other Income0333-07836-3944
Interest-1211232121011
Depreciation7766776776667
Profit before tax4560533661835131464681022
Tax %22%23%26%26%25%23%26%26%27%34%8%39%29%
Net Profit354739264665382334307615
EPS in Rs82.66110.1395.0163.70110.41155.3490.6355.1881.2772.8017.0614.4436.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9891,2131,0911,3011,2341,041
Expenses8029838521,0501,043940
Operating Profit188230240250191101
OPM %19%19%22%19%16%10%
Other Income1146161513
Interest16164763
Depreciation172226252626
Profit before tax15520521523417485
Tax %28%23%24%25%28%
Net Profit11215816417612559
EPS in Rs262.48371.03385.69423.51299.88141.14
Dividend Payout %1%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)41.07%3.80%7.32%-28.98%
Change in YoY Net Profit Growth (%)0.00%-37.27%3.52%-36.29%

Bharat Rasayan Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 4 years from 2019-2020 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:-1%
TTM:-5%
Compounded Profit Growth
10 Years:%
5 Years:-4%
3 Years:-17%
TTM:34%
Stock Price CAGR
10 Years:33%
5 Years:13%
3 Years:-1%
1 Year:26%
Return on Equity
10 Years:%
5 Years:20%
3 Years:16%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444
Reserves405560723766889984
Borrowings24794581742880
Other Liabilities10094122142152129
Total Liabilities7567529081,0861,0741,197
Fixed Assets150203191228225230
CWIP35181811116
Investments091504367143
Other Assets570522549803771818
Total Assets7567529081,0861,0741,197

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -52263170-6521341
Cash from Investing Activity -46-53-14964-43-76
Cash from Financing Activity 102-169-40-25-15249
Net Cash Flow440-19-261814

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-59.00136.00182.0076.00163.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days103759913096138
Inventory Days1127090120141135
Days Payable241733303337
Cash Conversion Cycle191128156221204236
Working Capital Days173116134185173227
ROCE %34%31%28%20%13%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters75.05%75.05%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%74.99%
FIIs0.00%0.00%0.00%0.00%0.53%0.39%0.34%0.35%0.35%0.34%0.34%0.35%
DIIs2.12%2.28%2.84%2.89%2.57%2.60%2.57%2.57%2.57%2.57%2.57%2.59%
Public22.82%22.67%22.17%22.11%21.91%22.02%22.10%22.09%22.09%22.09%22.09%22.07%
No. of Shareholders18,50319,31716,74717,38416,37517,30417,23416,36116,05915,39814,66715,156

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
PGIM India Midcap Opportunities Fund63,9640.5857.6716,0632024-10-16298.21%
PGIM India Small Cap Fund26,9311.6624.2816,0632024-10-1667.66%
Quant Small Cap Fund16,0630.0914.4816,0632024-10-160%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)229.86299.89423.52385.70371.03
Diluted EPS (Rs.)229.86299.89423.52385.70371.03
Cash EPS (Rs.)258.47377.50486.31447.73422.68
Book Value[Excl.RevalReserv]/Share (Rs.)2377.472149.861853.141711.781327.74
Book Value[Incl.RevalReserv]/Share (Rs.)2377.472149.861853.141711.781327.74
Revenue From Operations / Share (Rs.)2514.032970.603131.392570.202859.82
PBDIT / Share (Rs.)332.52521.37651.03580.53578.93
PBIT / Share (Rs.)270.46458.73591.01519.90527.29
PBT / Share (Rs.)263.33433.75565.14508.26482.96
Net Profit / Share (Rs.)196.40314.86426.29387.10371.04
NP After MI And SOA / Share (Rs.)229.86299.89423.53385.70371.04
PBDIT Margin (%)13.2217.5520.7922.5820.24
PBIT Margin (%)10.7515.4418.8720.2218.43
PBT Margin (%)10.4714.6018.0419.7716.88
Net Profit Margin (%)7.8110.5913.6115.0612.97
NP After MI And SOA Margin (%)9.1410.0913.5215.0012.97
Return on Networth / Equity (%)9.6613.9422.8522.5327.94
Return on Capital Employeed (%)11.2321.1031.4329.9437.43
Return On Assets (%)7.9711.6016.1418.0420.96
Long Term Debt / Equity (X)0.000.000.000.000.03
Total Debt / Equity (X)0.080.030.220.080.16
Asset Turnover Ratio (%)0.911.141.301.321.61
Current Ratio (X)4.604.642.593.823.38
Quick Ratio (X)3.252.741.702.832.33
Inventory Turnover Ratio (X)2.302.854.164.044.26
Dividend Payout Ratio (NP) (%)0.000.500.000.380.40
Dividend Payout Ratio (CP) (%)0.000.410.000.330.35
Earning Retention Ratio (%)0.0099.500.0099.6299.60
Cash Earning Retention Ratio (%)0.0099.590.0099.6799.65
Interest Coverage Ratio (X)46.6837.3139.6867.0215.75
Interest Coverage Ratio (Post Tax) (X)28.5724.3227.5646.0311.30
Enterprise Value (Cr.)3562.693772.425228.044021.852256.45
EV / Net Operating Revenue (X)3.413.064.023.681.86
EV / EBITDA (X)25.7817.4119.3316.319.17
MarketCap / Net Operating Revenue (X)3.383.063.893.661.82
Retention Ratios (%)0.0099.490.0099.6199.59
Price / BV (X)3.574.236.575.493.92
Price / Net Operating Revenue (X)3.383.063.893.661.82
EarningsYield0.020.030.030.040.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bharat Rasayan Ltd as of October 18, 2024 is: ₹8,748.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 18, 2024, Bharat Rasayan Ltd is Overvalued by 24.97% compared to the current share price ₹11,659.00

Intrinsic Value of Bharat Rasayan Ltd as of October 18, 2024 is: ₹7,210.55

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 18, 2024, Bharat Rasayan Ltd is Overvalued by 38.15% compared to the current share price ₹11,659.00

Last 5 Year EPS CAGR: -17.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.00%, which is a positive sign.
  2. The company has higher reserves (721.17 cr) compared to borrowings (113.50 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (165.67 cr) and profit (178.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 168.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 189.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharat Rasayan Ltd:
    1. Net Profit Margin: 7.81%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 11.23% (Industry Average ROCE: 13.8%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 9.66% (Industry Average ROE: 15.51%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 28.57
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.25
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 36.8 (Industry average Stock P/E: 38.52)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.08
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Bharat Rasayan Ltd. is a Public Limited Listed company incorporated on 15/05/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L24119DL1989PLC036264 and registration number is 036264. Currently Company is involved in the business activities of Manufacture of insecticides, rodenticides, fungicides, herbicides. Company’s Total Operating Revenue is Rs. 1301.16 Cr. and Equity Capital is Rs. 4.16 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Agro Chemicals/Pesticides1501, Vikram Tower, Rajendra Place, New Delhi Delhi 110008investors.brl@bharatgroup.co.in
http://www.bharatgroup.co.in
Management
NamePosition Held
Mr. Sat Narain GuptaChairman & Managing Director
Mr. Mahabir Prasad GuptaWhole Time Director
Mr. Rajender Prasad GuptaWholeTime Director & CEO
Mr. Ajay GuptaExecutive Director
Mr. Kamleshwar Prasad UniyalExecutive Director
Mrs. Sujata AgarwalInd. Non-Executive Director
Mr. Suresh Kumar GargInd. Non-Executive Director
Mr. Ankit AggarwalInd. Non-Executive Director
Mr. Pankaj GuptaInd. Non-Executive Director
Mr. Ram KanwarInd. Non-Executive Director

FAQ

What is the latest fair value of Bharat Rasayan Ltd?

The latest fair value of Bharat Rasayan Ltd is ₹8748.23.

What is the Market Cap of Bharat Rasayan Ltd?

The Market Cap of Bharat Rasayan Ltd is 4,845 Cr..

What is the current Stock Price of Bharat Rasayan Ltd as on 18 October 2024?

The current stock price of Bharat Rasayan Ltd as on 18 October 2024 is ₹11,659.

What is the High / Low of Bharat Rasayan Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Rasayan Ltd stocks is 14,284/8,333.

What is the Stock P/E of Bharat Rasayan Ltd?

The Stock P/E of Bharat Rasayan Ltd is 36.8.

What is the Book Value of Bharat Rasayan Ltd?

The Book Value of Bharat Rasayan Ltd is 2,377.

What is the Dividend Yield of Bharat Rasayan Ltd?

The Dividend Yield of Bharat Rasayan Ltd is 0.01 %.

What is the ROCE of Bharat Rasayan Ltd?

The ROCE of Bharat Rasayan Ltd is 12.6 %.

What is the ROE of Bharat Rasayan Ltd?

The ROE of Bharat Rasayan Ltd is 10.0 %.

What is the Face Value of Bharat Rasayan Ltd?

The Face Value of Bharat Rasayan Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharat Rasayan Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE