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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ganesha Ecosphere Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:11 pm

Market Cap 5,729 Cr.
Current Price 2,258
High / Low2,470/900
Stock P/E68.2
Book Value 432
Dividend Yield0.13 %
ROCE8.03 %
ROE4.82 %
Face Value 10.0
PEG Ratio-8.90

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

View Share Price Target for Ganesha Ecosphere Ltd

Competitors of Ganesha Ecosphere Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Ganesha Ecosphere Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales235249198248288287293313273302254278285
Expenses203216176221257254266278241268229253245
Operating Profit32332327313327353234262540
OPM %14%13%11%11%11%11%9%11%12%11%10%9%14%
Other Income41-2321271274334
Interest2232323347111213
Depreciation7777777779121212
Profit before tax2624-11202350182728225419
Tax %24%26%-22%30%28%12%28%26%25%29%29%38%33%
Net Profit2018-13141644132021153313
EPS in Rs9.218.15-5.886.537.5320.216.089.029.677.051.581.285.83

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8897511,0211,1801,107
Expenses7776669071,052990
Operating Profit11285114128117
OPM %13%11%11%11%11%
Other Income7971317
Interest89101734
Depreciation2827282940
Profit before tax8358839559
Tax %24%25%25%27%
Net Profit6444626943
EPS in Rs29.1719.9428.3931.8219.58
Dividend Payout %7%10%7%6%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2020-20212021-20222022-2023
YoY Net Profit Growth (%)-31.25%40.91%11.29%
Change in YoY Net Profit Growth (%)0.00%72.16%-29.62%

Ganesha Ecosphere Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 3 years from 2020-2021 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:14%
TTM:19%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:-2%
TTM:97%
Stock Price CAGR
10 Years:31%
5 Years:56%
3 Years:66%
1 Year:131%
Return on Equity
10 Years:%
5 Years:%
3 Years:9%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:30 am

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital222222222525
Reserves4564955526169891,070
Borrowings92127358505399486
Other Liabilities96103163179211187
Total Liabilities6667471,0951,3231,6251,768
Fixed Assets303311300523780813
CWIP21727623571119
Investments837269553350
Other Assets277346449510740787
Total Assets6667471,0951,3231,6251,768

Reserves and Borrowings Chart

Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8027652043
Cash from Investing Activity +-72-49-253-166-227
Cash from Financing Activity +-2323208128223
Net Cash Flow-15120-1839

Free Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow20.00-42.00-244.00-377.00

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 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4051423645
Inventory Days97132109131159
Days Payable2327363439
Cash Conversion Cycle114157115132165
Working Capital Days7511288103135
ROCE %11%12%11%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.24%42.31%42.31%42.31%42.32%42.32%42.32%42.32%42.32%42.32%36.44%36.44%
FIIs0.05%0.09%2.02%1.69%1.29%1.42%1.58%1.75%1.67%0.89%9.93%9.79%
DIIs15.80%15.81%16.07%16.68%16.61%16.70%16.61%18.53%19.78%19.94%21.29%21.62%
Public41.91%41.70%39.51%39.18%39.60%39.37%39.32%37.24%36.06%36.69%32.19%31.99%
Others0.00%0.09%0.09%0.13%0.18%0.18%0.18%0.18%0.18%0.18%0.15%0.15%
No. of Shareholders15,72816,32917,07320,70723,19425,66327,32330,23637,34540,51442,72847,713

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Large & Midcap Fund930,7760.5281.22157,1862024-11-21492.15%
DSP Equity & Bond Fund928,3001.0181.01157,1862024-11-21490.57%
DSP Flexi Cap Fund837,1620.8273.05157,1862024-11-21432.59%
SBI Consumption Opportunities Fund257,2291.3622.45157,1862024-11-2163.65%
SBI Equity Savings Fund206,1580.5917.99157,1862024-11-2131.16%
ITI Small Cap Fund157,1860.8313.72157,1862024-11-210%
Franklin India Opportunities Fund112,3550.669.8157,1862024-11-21-28.52%
ITI Multi Cap Fund66,9980.895.85157,1862024-11-21-57.38%
ITI Flexi Cap Fund50,5801.084.41157,1862024-11-21-67.82%
ITI Focused Equity Fund45,4241.683.96157,1862024-11-21-71.1%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.1531.8228.3919.9429.17
Diluted EPS (Rs.)18.1531.8228.3919.9429.17
Cash EPS (Rs.)35.2145.1741.4032.3842.02
Book Value[Excl.RevalReserv]/Share (Rs.)415.08292.21262.77236.82218.73
Book Value[Incl.RevalReserv]/Share (Rs.)415.08292.21262.77236.82218.73
Revenue From Operations / Share (Rs.)443.02540.39467.92344.09407.17
PBDIT / Share (Rs.)60.1664.6255.3543.0354.56
PBIT / Share (Rs.)40.9551.2742.3430.5841.71
PBT / Share (Rs.)23.2443.5137.8726.5538.15
Net Profit / Share (Rs.)16.0131.8228.3919.9429.17
NP After MI And SOA / Share (Rs.)16.0131.8228.3919.9429.17
PBDIT Margin (%)13.5711.9511.8212.5013.39
PBIT Margin (%)9.249.489.048.8810.24
PBT Margin (%)5.248.058.097.719.36
Net Profit Margin (%)3.615.886.065.797.16
NP After MI And SOA Margin (%)3.615.886.065.797.16
Return on Networth / Equity (%)3.8510.8810.808.4113.33
Return on Capital Employeed (%)7.0711.3010.8711.5416.30
Return On Assets (%)2.495.255.665.829.56
Long Term Debt / Equity (X)0.350.480.410.060.10
Total Debt / Equity (X)0.370.790.620.230.17
Asset Turnover Ratio (%)0.760.971.271.060.00
Current Ratio (X)4.641.581.892.323.23
Quick Ratio (X)2.720.731.091.301.88
Inventory Turnover Ratio (X)2.393.133.622.900.00
Dividend Payout Ratio (NP) (%)10.746.277.0410.036.85
Dividend Payout Ratio (CP) (%)4.884.424.836.174.75
Earning Retention Ratio (%)89.2693.7392.9689.9793.15
Cash Earning Retention Ratio (%)95.1295.5895.1793.8395.25
Interest Coverage Ratio (X)3.408.3312.3810.6615.32
Interest Coverage Ratio (Post Tax) (X)1.905.107.355.949.19
Enterprise Value (Cr.)2726.312347.751924.621386.44444.07
EV / Net Operating Revenue (X)2.431.991.881.850.49
EV / EBITDA (X)17.8816.6415.9314.763.73
MarketCap / Net Operating Revenue (X)2.211.571.561.710.41
Retention Ratios (%)89.2593.7292.9589.9693.14
Price / BV (X)2.362.902.772.480.76
Price / Net Operating Revenue (X)2.211.571.561.710.41
EarningsYield0.010.030.030.030.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ganesha Ecosphere Ltd as of November 22, 2024 is: 1,421.93

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 22, 2024, Ganesha Ecosphere Ltd is Overvalued by 37.03% compared to the current share price 2,258.00

Intrinsic Value of Ganesha Ecosphere Ltd as of November 22, 2024 is: 1,312.97

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 22, 2024, Ganesha Ecosphere Ltd is Overvalued by 41.85% compared to the current share price 2,258.00

Last 5 Year EPS CAGR: -7.66%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (696.33 cr) compared to borrowings (327.83 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (328.60 cr) and profit (75.60 cr) over the years.
  1. The stock has a low average ROCE of 8.40%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 102.60, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 136.60, 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 Ganesha Ecosphere Ltd:
    1. Net Profit Margin: 3.61%
      • 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: 7.07% (Industry Average ROCE: 0.59%)
      • 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%: 3.85% (Industry Average ROE: 0.49%)
      • 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): 1.9
      • 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: 2.72
      • 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: 68.2 (Industry average Stock P/E: 0)
      • 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: 0.37
      • 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

Ganesha Ecosphere Ltd. is a Public Limited Listed company incorporated on 30/10/1987 and has its registered office in the State of Uttar Pradesh, India. Company’s Corporate Identification Number(CIN) is L51109UP1987PLC009090 and registration number is 009090. Currently Company is involved in the business activities of Preparation and spinning of man-made fiber including blended* man-made fiber. Company’s Total Operating Revenue is Rs. 1022.35 Cr. and Equity Capital is Rs. 21.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Processing/TexturisingRaipur, (Rania), Kalpi Road, Kanpur Dehat Dist. Uttar Pradesh 209304secretarial@ganeshaecosphere.com
http://www.ganeshaecosphere.com
Management
NamePosition Held
Mr. Shyam Sunder SharmmaChairman
Mr. Vishnu Dutt KhandelwalExecutive Vice Chairman
Mr. Sharad SharmaManaging Director & CEO
Mr. Rajesh SharmaJoint Managing Director
Mr. Narayanan SubramaniamIndependent Director
Mr. Abhilash LalIndependent Director
Dr. Shobha ChaturvediIndependent Director
Mr. Pradeep Kumar GoenkaIndependent Director

FAQ

What is the latest intrinsic value of Ganesha Ecosphere Ltd?

The latest intrinsic value of Ganesha Ecosphere Ltd as on 21 November 2024 is ₹1421.93, which is 37.03% lower than the current market price of ₹2,258.00.

What is the Market Cap of Ganesha Ecosphere Ltd?

The Market Cap of Ganesha Ecosphere Ltd is 5,729 Cr..

What is the current Stock Price of Ganesha Ecosphere Ltd as on 21 November 2024?

The current stock price of Ganesha Ecosphere Ltd as on 21 November 2024 is ₹2,258.

What is the High / Low of Ganesha Ecosphere Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ganesha Ecosphere Ltd stocks is 2,470/900.

What is the Stock P/E of Ganesha Ecosphere Ltd?

The Stock P/E of Ganesha Ecosphere Ltd is 68.2.

What is the Book Value of Ganesha Ecosphere Ltd?

The Book Value of Ganesha Ecosphere Ltd is 432.

What is the Dividend Yield of Ganesha Ecosphere Ltd?

The Dividend Yield of Ganesha Ecosphere Ltd is 0.13 %.

What is the ROCE of Ganesha Ecosphere Ltd?

The ROCE of Ganesha Ecosphere Ltd is 8.03 %.

What is the ROE of Ganesha Ecosphere Ltd?

The ROE of Ganesha Ecosphere Ltd is 4.82 %.

What is the Face Value of Ganesha Ecosphere Ltd?

The Face Value of Ganesha Ecosphere 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 Ganesha Ecosphere 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