Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of GHCL Ltd
Stock Name
Market Cap
Current Price
High / Low
Stock P/E
Book Value
Dividend Yield
ROCE
ROE
Face Value
Industry Average
0 Cr
0
0
0
0%
0%
0%
0
Quarterly Result
Month
Sep 2020
Dec 2020
Mar 2021
Jun 2021
Sep 2021
Dec 2021
Mar 2022
Jun 2022
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Sales
807
708
721
698
803
1,005
1,053
1,148
1,381
1,102
1,119
1,017
805
Expenses
647
527
530
540
634
756
723
789
947
735
771
719
592
Operating Profit
159
180
191
158
169
249
330
359
434
367
348
298
213
OPM %
20%
26%
26%
23%
21%
25%
31%
31%
31%
33%
31%
29%
26%
Other Income
10
18
5
19
20
12
54
128
1
4
-2
232
11
Interest
24
16
16
15
15
15
15
10
11
10
10
8
7
Depreciation
33
29
28
28
29
30
22
22
32
22
27
24
26
Profit before tax
112
154
152
134
144
216
348
455
392
339
309
497
191
Tax %
25%
23%
27%
23%
24%
25%
22%
19%
25%
26%
27%
14%
25%
Net Profit
84
118
111
103
110
163
272
369
293
252
227
426
143
EPS in Rs
8.89
12.38
11.70
10.80
11.53
17.07
28.52
38.56
30.60
26.38
23.70
44.60
14.94
Last Updated: August 9, 2024, 6:41 pm
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: August 9, 2024, 6:41 pm
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
TTM
Sales
1,958
2,254
2,201
2,356
2,531
2,784
2,919
3,341
3,305
2,491
3,052
4,545
4,043
Expenses
1,602
1,847
1,767
1,828
1,901
2,103
2,313
2,582
2,576
1,886
2,322
3,048
2,817
Operating Profit
356
407
434
528
629
681
607
759
729
605
730
1,497
1,226
OPM %
18%
18%
20%
22%
25%
24%
21%
23%
22%
24%
24%
33%
30%
Other Income
9
-50
-26
-15
-3
37
38
16
16
18
211
124
245
Interest
213
179
183
171
165
137
127
127
120
74
51
39
35
Depreciation
106
82
82
85
82
86
110
117
131
111
87
94
99
Profit before tax
46
96
143
257
380
495
407
531
495
437
802
1,489
1,337
Tax %
3%
26%
24%
29%
32%
23%
13%
34%
20%
25%
19%
23%
Net Profit
44
71
109
182
258
380
356
351
397
326
650
1,142
1,048
EPS in Rs
4.45
7.14
10.85
18.19
25.78
38.04
36.59
35.77
41.75
34.33
68.14
119.41
109.62
Dividend Payout %
45%
28%
18%
12%
0%
13%
14%
14%
7%
16%
22%
15%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
YoY Net Profit Growth (%)
61.36%
53.52%
66.97%
41.76%
47.29%
-6.32%
-1.40%
13.11%
-17.88%
99.39%
75.69%
Change in YoY Net Profit Growth (%)
0.00%
-7.84%
13.45%
-25.21%
5.53%
-53.60%
4.91%
14.51%
-30.99%
117.27%
-23.69%
Growth
Compounded Sales Growth
10 Years:
5%
5 Years:
1%
3 Years:
11%
TTM:
-30%
Compounded Profit Growth
10 Years:
16%
5 Years:
11%
3 Years:
22%
TTM:
-50%
Stock Price CAGR
10 Years:
22%
5 Years:
31%
3 Years:
26%
1 Year:
15%
Return on Equity
10 Years:
23%
5 Years:
22%
3 Years:
24%
Last Year:
17%
Last Updated: August 30, 2024, 6:14 pm
Balance Sheet
Last Updated: August 9, 2024, 6:41 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
100
100
100
100
99
97
98
95
95
95
96
96
Reserves
467
487
670
936
1,247
1,513
1,827
2,054
2,389
2,852
3,860
2,883
Borrowings
1,558
1,486
1,324
1,365
1,463
1,322
1,302
1,254
782
788
361
210
Other Liabilities
755
941
758
548
694
695
767
766
712
1,261
816
581
Total Liabilities
2,880
3,014
2,851
2,949
3,504
3,628
3,995
4,169
3,978
4,995
5,133
3,770
Fixed Assets
1,875
1,869
1,934
2,049
2,410
2,502
2,591
2,664
2,675
2,474
1,731
1,842
CWIP
32
12
7
37
26
74
117
122
81
213
109
55
Investments
5
7
2
15
9
10
12
9
15
17
380
420
Other Assets
967
1,125
909
848
1,059
1,043
1,275
1,375
1,207
2,292
2,914
1,453
Total Assets
2,880
3,014
2,851
2,949
3,504
3,628
3,995
4,169
3,978
4,995
5,133
3,770
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
484
452
416
509
458
590
530
624
621
643
856
797
Cash from Investing ActivityÂ
-175
-117
-127
-249
-375
-279
-271
-206
-109
-337
-409
-571
Cash from Financing ActivityÂ
-315
-323
-296
-252
-113
-308
-258
-339
-569
-98
-530
-338
Net Cash Flow
-6
13
-8
8
-30
2
1
80
-57
209
-83
-112
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
356.00
406.00
433.00
527.00
628.00
680.00
606.00
758.00
728.00
-177.00
-58.00
-360.00
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.
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.
Undervalued: 1.06% compared to the current price ₹656.00
Intrinsic Value: 804.11
Calculation basis:
Fair 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.
Undervalued: 22.58% compared to the current price ₹656.00
Last 5 Year EPS CAGR: 21.30%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 21.17%, which is a positive sign.
The company has higher reserves (1,765.42 cr) compared to borrowings (1,101.25 cr), indicating strong financial stability.
The company has shown consistent growth in sales (2.46 cr) and profit (314.69 cr) over the years.
The stock has a high average Working Capital Days of 54.42, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 116.58, 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 GHCL Ltd:
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.
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.
ROE%: 26.65% (Industry Average ROE: 0%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 12.1 (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.
Total Debt / Equity: 0.06
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
GHCL Ltd. is a Public Limited Listed company incorporated on 14/10/1983 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24100GJ1983PLC006513 and registration number is 006513. Currently Company is involved in the business activities of Manufacture of basic chemicals, fertilizer and nitrogen compounds, plastics and synthetic rubber in primary forms. Company’s Total Operating Revenue is Rs. 3778.36 Cr. and Equity Capital is Rs. 95.35 Cr. for the Year ended 31/03/2022.
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 GHCL 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
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