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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523708 | NSE: EIMCOELECO

Eimco Elecon (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:26 pm

Market Cap 1,379 Cr.
Current Price 2,391
High / Low3,499/1,268
Stock P/E27.5
Book Value 713
Dividend Yield0.21 %
ROCE13.5 %
ROE10.8 %
Face Value 10.0
PEG Ratio0.81

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

View Share Price Target for Eimco Elecon (India) Ltd

Competitors of Eimco Elecon (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HLE Glascoat Ltd 2,548 Cr. 373582/35085.3 63.20.29 %13.1 %8.62 % 2.00
Harish Textile Engineers Ltd 30.4 Cr. 91.3102/42.7 27.80.00 %10.8 %2.98 % 10.0
Disa India Ltd 2,626 Cr. 18,05720,900/12,65256.4 1,7801.11 %25.9 %19.2 % 10.0
Cranex Ltd 86.2 Cr. 144190/47.045.9 19.50.00 %10.1 %14.9 % 10.0
Concord Control Systems Ltd 1,037 Cr. 1,7342,062/53868.8 91.10.00 %72.8 %60.3 % 10.0
Industry Average12,595.17 Cr1,938.6558.75259.200.26%20.32%16.23%5.59

All Competitor Stocks of Eimco Elecon (India) Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales38151123363337386444514884
Expenses37141020313531325141384068
Operating Profit11135-16613213817
OPM %4%4%9%14%13%-4%17%16%21%6%25%16%20%
Other Income1232305325445
Interest0000000000000
Depreciation2222222222222
Profit before tax11235-397146151019
Tax %74%-188%29%31%24%60%19%28%28%-4%22%23%22%
Net Profit02124-17510612815
EPS in Rs0.402.952.133.146.55-2.2212.988.4816.9410.7820.4613.0925.73

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales17219319614017114018510812684173228
Expenses15016416711714912515910211575148187
Operating Profit2229292322152561192440
OPM %13%15%15%16%13%11%14%5%9%11%14%18%
Other Income4458131011111191018
Interest000001111001
Depreciation554655567887
Profit before tax202830243019301014102650
Tax %25%28%28%26%16%15%24%8%21%14%21%19%
Net Profit1520221725162391192140
EPS in Rs26.2534.9737.3130.2743.5028.5040.2516.3119.5214.7736.1870.05
Dividend Payout %15%11%13%17%12%18%17%31%26%17%14%7%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)33.33%10.00%-22.73%47.06%-36.00%43.75%-60.87%22.22%-18.18%133.33%90.48%
Change in YoY Net Profit Growth (%)0.00%-23.33%-32.73%69.79%-83.06%79.75%-104.62%83.09%-40.40%151.52%-42.86%

Eimco Elecon (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:2%
5 Years:4%
3 Years:22%
TTM:36%
Compounded Profit Growth
10 Years:8%
5 Years:11%
3 Years:52%
TTM:54%
Stock Price CAGR
10 Years:22%
5 Years:51%
3 Years:86%
1 Year:56%
Return on Equity
10 Years:6%
5 Years:5%
3 Years:7%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6666666666666
Reserves164182199251273286306310318324343380405
Borrowings0000012320101
Other Liabilities25373940324337324132376461
Total Liabilities195225244297311335350350367362387450473
Fixed Assets17172865687774788781767372
CWIP21000191100101
Investments627175126143142149153155153165180202
Other Assets114136141106100115117109125128146197198
Total Assets195225244297311335350350367362387450473

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +13121942191010113-10712
Cash from Investing Activity +-11-9-16-42-15-5-8-338-5-2
Cash from Financing Activity +-3-3-3-3-3-3-3-5-3-5-2-4
Net Cash Flow-100-312-033-6-05

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow22.0029.0029.0023.0022.0014.0023.003.009.009.0023.0040.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days103181164135104157120104178169112150
Inventory Days22087105211139199147349204705320270
Days Payable66839312856124731131061687486
Cash Conversion Cycle257184177218187232194340276706357335
Working Capital Days181175172181151189158245241428231207
ROCE %13%15%14%9%11%7%10%3%5%3%8%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%74.06%
FIIs0.00%0.00%0.00%0.02%0.00%0.02%0.00%0.01%0.00%0.00%0.20%0.10%
DIIs0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.36%
Public25.94%25.94%25.94%25.92%25.95%25.93%25.96%25.93%25.94%25.95%25.74%25.47%
No. of Shareholders8,4969,0098,8068,6918,1107,7557,6747,4316,7648,9068,3489,935

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)66.8333.8515.0419.5516.45
Diluted EPS (Rs.)66.8333.8515.0419.5516.45
Cash EPS (Rs.)79.7447.2328.8032.1726.42
Book Value[Excl.RevalReserv]/Share (Rs.)669.46608.02577.01567.42552.89
Book Value[Incl.RevalReserv]/Share (Rs.)669.46608.02577.01567.42552.89
Revenue From Operations / Share (Rs.)394.39299.38146.39218.15187.07
PBDIT / Share (Rs.)97.9157.8331.9038.4828.69
PBIT / Share (Rs.)84.9744.3117.8625.8218.57
PBT / Share (Rs.)83.3343.4417.1224.7417.68
Net Profit / Share (Rs.)66.8033.7014.7719.5116.31
NP After MI And SOA / Share (Rs.)66.8333.8515.0419.5516.45
PBDIT Margin (%)24.8219.3121.7817.6315.33
PBIT Margin (%)21.5414.8012.2011.839.92
PBT Margin (%)21.1214.5011.6911.339.45
Net Profit Margin (%)16.9311.2510.088.948.71
NP After MI And SOA Margin (%)16.9411.3010.278.958.79
Return on Networth / Equity (%)9.985.562.603.442.97
Return on Capital Employeed (%)12.517.173.034.393.23
Return On Assets (%)8.555.022.373.052.68
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.540.450.230.340.30
Current Ratio (X)3.444.427.714.114.99
Quick Ratio (X)1.982.004.932.912.59
Inventory Turnover Ratio (X)1.050.620.760.661.00
Dividend Payout Ratio (NP) (%)7.487.3833.2325.5842.55
Dividend Payout Ratio (CP) (%)6.265.2717.1915.5226.34
Earning Retention Ratio (%)92.5292.6266.7774.4257.45
Cash Earning Retention Ratio (%)93.7494.7382.8184.4873.66
Interest Coverage Ratio (X)59.8766.5843.0335.5832.48
Interest Coverage Ratio (Post Tax) (X)41.8439.7920.9219.0519.46
Enterprise Value (Cr.)869.99202.98176.35185.34107.91
EV / Net Operating Revenue (X)3.821.182.091.470.99
EV / EBITDA (X)15.406.089.588.356.52
MarketCap / Net Operating Revenue (X)3.861.192.131.541.04
Retention Ratios (%)92.5192.6166.7674.4157.44
Price / BV (X)2.270.580.530.590.35
Price / Net Operating Revenue (X)3.861.192.131.541.04
EarningsYield0.040.090.040.050.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Eimco Elecon (India) Ltd as of November 18, 2024 is: 2,122.06

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 November 18, 2024, Eimco Elecon (India) Ltd is Overvalued by 11.25% compared to the current share price 2,391.00

Intrinsic Value of Eimco Elecon (India) Ltd as of November 18, 2024 is: 2,840.20

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 November 18, 2024, Eimco Elecon (India) Ltd is Undervalued by 18.79% compared to the current share price 2,391.00

Last 5 Year EPS CAGR: 33.84%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (287.77 cr) compared to borrowings (0.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (159.67 cr) and profit (24.25 cr) over the years.
  1. The stock has a low average ROCE of 9.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 213.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 288.58, 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 Eimco Elecon (India) Ltd:
    1. Net Profit Margin: 16.93%
      • 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: 12.51% (Industry Average ROCE: 20.32%)
      • 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%: 9.98% (Industry Average ROE: 16.23%)
      • 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): 41.84
      • 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: 1.98
      • 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: 27.5 (Industry average Stock P/E: 58.75)
      • 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
      • 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

Eimco Elecon (India) Ltd. is a Public Limited Listed company incorporated on 31/07/1974 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29199GJ1974PLC002574 and registration number is 002574. Currently Company is involved in the business activities of Manufacture of machinery for mining, quarrying and construction. Company’s Total Operating Revenue is Rs. 84.44 Cr. and Equity Capital is Rs. 5.77 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyAnand-Sojitra Road, Vallabh Vidyanagar, Anand Dist. Gujarat 388120investor@eimcoelecon.in
http://www.eimcoelecon.in
Management
NamePosition Held
Mr. Pradip M PatelChairman & Non-Exe.Director
Mr. Prayasvin B PatelExecutive Director
Mr. Mukulnarayan DwivediExecutive Director
Mr. Venkatraman SrinivasanIndependent Director
Mrs. Manjuladevi P ShroffIndependent Director
Ms. Reena P BhagwatiIndependent Director
Mr. Jai S DiwanjiIndependent Director
Mr. Prashant C AminNominee Director

FAQ

What is the latest intrinsic value of Eimco Elecon (India) Ltd?

The latest intrinsic value of Eimco Elecon (India) Ltd as on 18 November 2024 is ₹2122.06, which is 11.25% lower than the current market price of ₹2,391.00.

What is the Market Cap of Eimco Elecon (India) Ltd?

The Market Cap of Eimco Elecon (India) Ltd is 1,379 Cr..

What is the current Stock Price of Eimco Elecon (India) Ltd as on 18 November 2024?

The current stock price of Eimco Elecon (India) Ltd as on 18 November 2024 is ₹2,391.

What is the High / Low of Eimco Elecon (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Eimco Elecon (India) Ltd stocks is 3,499/1,268.

What is the Stock P/E of Eimco Elecon (India) Ltd?

The Stock P/E of Eimco Elecon (India) Ltd is 27.5.

What is the Book Value of Eimco Elecon (India) Ltd?

The Book Value of Eimco Elecon (India) Ltd is 713.

What is the Dividend Yield of Eimco Elecon (India) Ltd?

The Dividend Yield of Eimco Elecon (India) Ltd is 0.21 %.

What is the ROCE of Eimco Elecon (India) Ltd?

The ROCE of Eimco Elecon (India) Ltd is 13.5 %.

What is the ROE of Eimco Elecon (India) Ltd?

The ROE of Eimco Elecon (India) Ltd is 10.8 %.

What is the Face Value of Eimco Elecon (India) Ltd?

The Face Value of Eimco Elecon (India) 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 Eimco Elecon (India) 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