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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 509557 | NSE: GARFIBRES

Garware Technical Fibres Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:46 pm

Market Cap 9,134 Cr.
Current Price 4,601
High / Low4,785/3,116
Stock P/E40.5
Book Value 566
Dividend Yield0.07 %
ROCE23.1 %
ROE18.5 %
Face Value 10.0
PEG Ratio6.35

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

View Share Price Target for Garware Technical Fibres Ltd

Competitors of Garware Technical Fibres Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IGC Industries Ltd 85.2 Cr. 24.524.8/10.3 0.260.00 %1.19 %16.6 % 10.0
Hindoostan Mills Ltd 35.3 Cr. 213411/195 2610.00 %4.73 %5.74 % 10.0
Gokak Textiles Ltd 114 Cr. 175276/88.4 44.50.00 %1.31 %% 10.0
Globus Power Generation Ltd 172 Cr. 17.443.0/13.8 0.480.00 %25.8 %25.8 % 10.0
Gaekwar Mills Ltd 2.63 Cr. 13.113.1/12.5 3620.00 %66.6 %% 10.0
Industry Average1,968.00 Cr277.5238.2493.280.06%12.12%34.68%8.35

All Competitor Stocks of Garware Technical Fibres Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales243282308356304356275370326328289382336
Expenses200231253283264294227291267260236291272
Operating Profit43515673416247805869539164
OPM %18%18%18%21%13%17%17%22%18%21%18%24%19%
Other Income610555888910111311
Interest2341333344366
Depreciation5555556666777
Profit before tax41535171376147785768559162
Tax %23%23%25%24%24%22%22%24%25%23%21%24%25%
Net Profit32413854284837604352437047
EPS in Rs15.4919.8318.4626.1413.6723.1717.9529.2821.0825.7521.2334.1323.56

Last Updated: September 12, 2024, 5:18 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 12, 2024, 5:18 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales5996857828258468851,0189531,0351,1891,3061,3261,336
Expenses5416227037227107248267758309661,0761,0541,058
Operating Profit586279103136161192178204223230272278
OPM %10%9%10%13%16%18%19%19%20%19%18%21%21%
Other Income644681821323525284344
Interest141310971014121011121719
Depreciation16141213141517192121222626
Profit before tax33396187123153182179208216223272277
Tax %26%32%29%29%32%31%31%21%24%24%23%23%
Net Profit2527436284105126141158165172208212
EPS in Rs10.4311.7519.7128.2938.5548.0657.4464.2276.8379.9284.50102.16104.67
Dividend Payout %24%22%15%12%13%9%9%26%3%9%4%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)8.00%59.26%44.19%35.48%25.00%20.00%11.90%12.06%4.43%4.24%20.93%
Change in YoY Net Profit Growth (%)0.00%51.26%-15.07%-8.70%-10.48%-5.00%-8.10%0.15%-7.63%-0.19%16.69%

Garware Technical Fibres 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:7%
5 Years:5%
3 Years:9%
TTM:10%
Compounded Profit Growth
10 Years:23%
5 Years:12%
3 Years:10%
TTM:18%
Stock Price CAGR
10 Years:39%
5 Years:32%
3 Years:10%
1 Year:38%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:18%
Last Year:19%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital24222222222222222121202020
Reserves2432542893444245156287177909509961,2131,103
Borrowings1107140458613810813310280134123146
Other Liabilities185253349412309310319319406365343414402
Total Liabilities5635996998228429851,0781,1911,3191,4151,4931,7711,672
Fixed Assets154153166199203221227244247240246262267
CWIP0770000000001
Investments9999111244330376467521617689614
Other Assets399430517613528519521570605654630820790
Total Assets5635996998228429851,0781,1911,3191,4151,4931,7711,672

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3479741431202813311022864189219
Cash from Investing Activity +2-20-25-37-147-53-78-47-1208-102-73
Cash from Financing Activity +-38-70-48-362729-56-37-135-38-85-39
Net Cash Flow-3-1127014-125-27343108

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-52.00-9.0039.0058.0050.0023.0084.0045.00102.00143.0096.00149.00

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 Days857685948590879085796572
Inventory Days168146138145176206186250235234187256
Days Payable797467186247257215241308220169227
Cash Conversion Cycle1741481565314405899129383102
Working Capital Days1148874604981769260857269
ROCE %12%14%20%25%28%26%26%23%24%23%21%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters52.62%52.62%52.62%52.61%52.70%52.70%52.70%52.70%52.70%52.70%53.00%53.00%
FIIs7.88%7.42%7.39%8.33%8.46%8.57%8.62%8.58%8.77%9.34%9.55%9.82%
DIIs4.35%5.48%5.93%6.62%6.98%7.59%8.76%9.62%10.19%10.02%10.39%10.44%
Public35.15%34.48%34.07%32.44%31.85%31.12%29.90%29.09%28.33%27.95%27.06%26.74%
No. of Shareholders41,79742,92845,01944,51844,34642,85942,62541,18538,11192,44537,16436,832

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Small Cap Fund - Regular Plan882,1581.93338.28662,8152024-11-2333.09%
SBI Magnum Global Fund662,8153.7254.17662,8152024-11-230%
Kotak ELSS Tax Saver Fund70,5450.4327.05662,8152024-11-23-89.36%
SBI Conservative Hybrid Fund43,0000.1615.67662,8152024-11-23-93.51%
SBI Conservative Hybrid Fund - Div (Annual)43,0000.1615.67662,8152024-11-23-93.51%
SBI Conservative Hybrid Fund - Div (Monthly)43,0000.1615.67662,8152024-11-23-93.51%
SBI Magnum Children Benefit Plan4,4001.361.6662,8152024-11-23-99.34%
SBI Tax Advantage Fund - Series III2,6732.920.97662,8152024-11-23-99.6%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)102.1683.5479.9274.6464.22
Diluted EPS (Rs.)102.1683.5479.9274.6464.22
Cash EPS (Rs.)114.8695.4590.3386.8473.02
Book Value[Excl.RevalReserv]/Share (Rs.)605.48498.77470.74393.39337.77
Book Value[Incl.RevalReserv]/Share (Rs.)605.48498.77470.74393.39337.78
Revenue From Operations / Share (Rs.)650.50640.66576.87501.77435.56
PBDIT / Share (Rs.)154.48126.33120.50115.9395.83
PBIT / Share (Rs.)141.78115.38110.09105.9287.03
PBT / Share (Rs.)133.34109.52104.96100.9181.74
Net Profit / Share (Rs.)102.1684.5079.9276.8264.22
NP After MI And SOA / Share (Rs.)102.1684.5079.9276.8264.22
PBDIT Margin (%)23.7419.7120.8823.1022.00
PBIT Margin (%)21.7918.0119.0821.1019.98
PBT Margin (%)20.4917.0918.1920.1118.76
Net Profit Margin (%)15.7013.1813.8515.3114.74
NP After MI And SOA Margin (%)15.7013.1813.8515.3114.74
Return on Networth / Equity (%)16.8716.9416.9719.5219.01
Return on Capital Employeed (%)22.4322.1322.2925.4224.37
Return On Assets (%)11.7511.5311.6412.0111.80
Total Debt / Equity (X)0.090.130.080.120.17
Asset Turnover Ratio (%)0.810.860.850.800.82
Current Ratio (X)1.921.422.051.791.58
Quick Ratio (X)1.390.911.491.381.11
Inventory Turnover Ratio (X)1.571.701.761.331.41
Dividend Payout Ratio (NP) (%)3.428.383.120.0034.25
Dividend Payout Ratio (CP) (%)3.047.422.760.0030.12
Earning Retention Ratio (%)96.5891.6296.880.0065.75
Cash Earning Retention Ratio (%)96.9692.5897.240.0069.88
Interest Coverage Ratio (X)18.2921.5423.5023.1618.12
Interest Coverage Ratio (Post Tax) (X)13.1015.4116.5816.3513.15
Enterprise Value (Cr.)6717.256011.095877.565341.332432.83
EV / Net Operating Revenue (X)5.074.604.945.162.55
EV / EBITDA (X)21.3423.3523.6622.3511.60
MarketCap / Net Operating Revenue (X)5.114.544.915.122.45
Retention Ratios (%)96.5791.6196.870.0065.74
Price / BV (X)5.495.836.026.533.16
Price / Net Operating Revenue (X)5.114.544.915.122.45
EarningsYield0.030.020.020.020.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Garware Technical Fibres Ltd as of November 24, 2024 is: 4,243.72

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 24, 2024, Garware Technical Fibres Ltd is Overvalued by 7.77% compared to the current share price 4,601.00

Intrinsic Value of Garware Technical Fibres Ltd as of November 24, 2024 is: 4,514.45

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 24, 2024, Garware Technical Fibres Ltd is Overvalued by 1.88% compared to the current share price 4,601.00

Last 5 Year EPS CAGR: 6.38%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.08%, which is a positive sign.
  2. The company has higher reserves (651.23 cr) compared to borrowings (101.23 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (429.31 cr) and profit (157.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 76.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 86.00, 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 Garware Technical Fibres Ltd:
    1. Net Profit Margin: 15.7%
      • 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: 22.43% (Industry Average ROCE: 12.12%)
      • 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%: 16.87% (Industry Average ROE: 34.68%)
      • 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): 13.1
      • 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: 1.39
      • 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: 40.5 (Industry average Stock P/E: 38.24)
      • 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: 0.09
      • 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

Garware Technical Fibres Ltd. is a Public Limited Listed company incorporated on 01/04/1976 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L25209MH1976PLC018939 and registration number is 018939. Currently Company is involved in the business activities of Non-specialized wholesale trade. Company’s Total Operating Revenue is Rs. 1176.05 Cr. and Equity Capital is Rs. 20.62 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - GeneralPlot No. 11, Block D-1, Pune Maharashtra 411019secretarial@garwarefibres.com
http://www.garwarefibres.com
Management
NamePosition Held
Ms. M V GarwareDirector
Mr. A S WagleDirector
Mr. Ashish GoelDirector
Mr. B D GarwareFounder & Chairman
Mr. R B GarwareChairman Emeritus
Mr. V R GarwareChairman & Managing Director
Mr. S P KulkarniDirector
Mr. S S RajpathakDirector
Ms. Mallika SagarDirector

FAQ

What is the latest intrinsic value of Garware Technical Fibres Ltd?

The latest intrinsic value of Garware Technical Fibres Ltd as on 24 November 2024 is ₹4243.72, which is 7.77% lower than the current market price of ₹4,601.00.

What is the Market Cap of Garware Technical Fibres Ltd?

The Market Cap of Garware Technical Fibres Ltd is 9,134 Cr..

What is the current Stock Price of Garware Technical Fibres Ltd as on 24 November 2024?

The current stock price of Garware Technical Fibres Ltd as on 24 November 2024 is 4,601.

What is the High / Low of Garware Technical Fibres Ltd stocks in FY 2024?

In FY 2024, the High / Low of Garware Technical Fibres Ltd stocks is 4,785/3,116.

What is the Stock P/E of Garware Technical Fibres Ltd?

The Stock P/E of Garware Technical Fibres Ltd is 40.5.

What is the Book Value of Garware Technical Fibres Ltd?

The Book Value of Garware Technical Fibres Ltd is 566.

What is the Dividend Yield of Garware Technical Fibres Ltd?

The Dividend Yield of Garware Technical Fibres Ltd is 0.07 %.

What is the ROCE of Garware Technical Fibres Ltd?

The ROCE of Garware Technical Fibres Ltd is 23.1 %.

What is the ROE of Garware Technical Fibres Ltd?

The ROE of Garware Technical Fibres Ltd is 18.5 %.

What is the Face Value of Garware Technical Fibres Ltd?

The Face Value of Garware Technical Fibres 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 Garware Technical Fibres 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