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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Globus Spirits Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:45 pm

Market Cap 2,352 Cr.
Current Price 815
High / Low1,373/656
Stock P/E37.4
Book Value 340
Dividend Yield0.43 %
ROCE9.56 %
ROE10.4 %
Face Value 10.0
PEG Ratio2.66

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

View Share Price Target for Globus Spirits Ltd

Competitors of Globus Spirits Ltd

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

All Competitor Stocks of Globus Spirits Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales316357371382347479495480592541570567687
Expenses249268272294289395427435534468498530647
Operating Profit67889888588469455973723840
OPM %21%25%26%23%17%18%14%9%10%14%13%7%6%
Other Income1112222213243
Interest5442232357677
Depreciation10111010101112131516161617
Profit before tax54758577487256324053521720
Tax %29%29%34%31%36%33%33%30%33%32%25%25%-128%
Net Profit38535653314937222736391345
EPS in Rs13.2518.4319.3218.2310.5916.8712.947.699.3612.4413.464.5315.46

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5055024965867077748539851,1611,2241,5792,1032,271
Expenses4314314515376377187848911,0289691,2551,8572,029
Operating Profit7470454970566994133255324246242
OPM %15%14%9%8%10%7%8%10%11%21%21%12%11%
Other Income05-344558571189
Interest561014171827262419111726
Depreciation12162829422736363841435663
Profit before tax58523101516124077202281180162
Tax %29%35%-31%31%15%-1%39%23%22%29%33%32%
Net Profit413447131673159144187122115
EPS in Rs17.7814.871.862.454.355.602.4410.6120.5950.0065.0142.4339.78
Dividend Payout %7%8%0%0%0%0%0%0%5%4%5%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-17.07%-88.24%75.00%85.71%23.08%-56.25%342.86%90.32%144.07%29.86%-34.76%
Change in YoY Net Profit Growth (%)0.00%-71.16%163.24%10.71%-62.64%-79.33%399.11%-252.53%53.75%-114.21%-64.62%

Globus Spirits Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:20%
3 Years:25%
TTM:13%
Compounded Profit Growth
10 Years:67%
5 Years:26%
3 Years:-12%
TTM:-45%
Stock Price CAGR
10 Years:28%
5 Years:42%
3 Years:-11%
1 Year:-3%
Return on Equity
10 Years:13%
5 Years:18%
3 Years:17%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:40 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital23232929292929292929292929
Reserves254255326335344351381440562744858943953
Borrowings157172144253272252230180187180291329416
Other Liabilities159147145133155146140169216285413466546
Total Liabilities5945976457497997777808189941,2371,5901,7671,944
Fixed Assets4154154604346326095745695796708269561,035
CWIP2129311310012304898999046
Investments000055527-0-0-046
Other Assets157153153184162163189193367470665717857
Total Assets5945976457497997777808189941,2371,5901,7671,944

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +79346175715661154142219102172
Cash from Investing Activity +-112-58-95-166-77-10-14-59-98-218-211-166
Cash from Financing Activity +57-034930-47-47-77-15-2485-6
Net Cash Flow24-2503-5-1-01829-23-24-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow74.00-87.00-127.00-95.00-183.00-216.00-183.00-136.00-47.0068.00144.00-45.00

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 Days45352419172118926273742
Inventory Days625452375343435058484742
Days Payable1459481648168575466606470
Cash Conversion Cycle-38-5-5-8-11-54517152014
Working Capital Days-191-10-10-16-10-0-1125283127
ROCE %15%4%5%6%5%6%10%15%31%34%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters50.90%51.01%51.01%51.01%51.01%51.01%51.01%51.02%50.98%50.98%50.90%50.90%
FIIs4.88%4.86%4.83%4.75%4.83%4.76%4.76%5.72%4.65%4.89%4.76%5.56%
DIIs1.40%2.12%1.60%1.68%2.94%5.48%8.93%3.87%1.63%0.98%1.11%5.95%
Public42.81%42.01%42.56%42.56%41.22%38.75%35.29%39.39%42.73%43.15%43.24%37.59%
No. of Shareholders71,94978,53486,35094,30191,89888,04978,45488,8331,00,30998,69594,02879,592

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund13,9950.241.13322024-11-2343634.38%
Taurus Flexi Cap Fund8,2620.240.67322024-11-2325718.75%
Groww Nifty Total Market Index Fund320.010322024-11-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)33.3342.4348.9017.338.26
Diluted EPS (Rs.)33.3342.3948.9017.338.26
Cash EPS (Rs.)56.0861.9863.0130.4620.78
Book Value[Excl.RevalReserv]/Share (Rs.)338.07307.83202.92155.00137.91
Book Value[Incl.RevalReserv]/Share (Rs.)338.07307.83202.92155.00137.91
Revenue From Operations / Share (Rs.)837.77732.24427.36405.85342.34
PBDIT / Share (Rs.)63.4687.9890.7244.6133.10
PBIT / Share (Rs.)40.7068.4276.6031.4120.56
PBT / Share (Rs.)31.4762.5270.0623.2311.43
Net Profit / Share (Rs.)33.3242.4248.9017.268.24
NP After MI And SOA / Share (Rs.)33.4742.4248.9017.338.45
PBDIT Margin (%)7.5712.0121.2210.999.66
PBIT Margin (%)4.859.3417.927.736.00
PBT Margin (%)3.758.5316.395.723.33
Net Profit Margin (%)3.975.7911.444.252.40
NP After MI And SOA Margin (%)3.995.7911.444.262.46
Return on Networth / Equity (%)9.9013.7824.0611.156.11
Return on Capital Employeed (%)10.0617.4929.2414.739.95
Return On Assets (%)5.457.6814.196.243.16
Long Term Debt / Equity (X)0.090.120.180.290.42
Total Debt / Equity (X)0.320.310.220.300.50
Asset Turnover Ratio (%)1.440.001.371.471.27
Current Ratio (X)1.051.091.280.950.87
Quick Ratio (X)0.730.750.840.370.42
Inventory Turnover Ratio (X)9.610.006.378.419.15
Dividend Payout Ratio (NP) (%)17.917.072.040.000.00
Dividend Payout Ratio (CP) (%)10.664.841.580.000.00
Earning Retention Ratio (%)82.0992.9397.960.000.00
Cash Earning Retention Ratio (%)89.3495.1698.420.000.00
Interest Coverage Ratio (X)6.8814.9013.885.453.62
Interest Coverage Ratio (Post Tax) (X)4.618.188.483.111.90
Enterprise Value (Cr.)2155.982475.76989.90359.44596.45
EV / Net Operating Revenue (X)0.891.170.800.300.60
EV / EBITDA (X)11.799.773.792.806.26
MarketCap / Net Operating Revenue (X)0.791.060.740.200.40
Retention Ratios (%)82.0892.9297.950.000.00
Price / BV (X)1.972.521.560.541.00
Price / Net Operating Revenue (X)0.791.060.740.200.40
EarningsYield0.050.050.150.200.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Globus Spirits Ltd as of November 25, 2024 is: 1,328.15

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 25, 2024, Globus Spirits Ltd is Undervalued by 62.96% compared to the current share price 815.00

Intrinsic Value of Globus Spirits Ltd as of November 25, 2024 is: 1,515.13

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 25, 2024, Globus Spirits Ltd is Undervalued by 85.91% compared to the current share price 815.00

Last 5 Year EPS CAGR: 14.08%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 3.00, which is a positive sign.
  2. The company has higher reserves (518.92 cr) compared to borrowings (235.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (416.54 cr) and profit (85.23 cr) over the years.
  1. The stock has a low average ROCE of 12.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 0.25, 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 Globus Spirits Ltd:
    1. Net Profit Margin: 3.97%
      • 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: 10.06% (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%: 9.9% (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): 4.61
      • 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: 0.73
      • 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: 37.4 (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: 0.32
      • 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

Globus Spirits Ltd. is a Public Limited Listed company incorporated on 16/02/1993 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1993PLC052177 and registration number is 052177. Currently company belongs to the Industry of Beverages & Distilleries. Company’s Total Operating Revenue is Rs. 1579.17 Cr. and Equity Capital is Rs. 28.80 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Beverages & DistilleriesF-0, Ground Floor, The Mira Corporate Suites, New Delhi Delhi 110065ir@globusgroup.in
http://www.globusspirits.com
Management
NamePosition Held
Mr. Sunil ChadhaChairman & Ind.Dire (Non-Exe)
Mr. Ajay Kumar SwarupManaging Director
Mr. Shekhar SwarupJoint Managing Director
Dr. Bhaskar RoyExecutive Director
Mr. Ajay B BaligaNon Executive Director
Mr. Amit BhatianiIndependent Director
Ms. Ruchika BansalIndependent Director

FAQ

What is the latest intrinsic value of Globus Spirits Ltd?

The latest intrinsic value of Globus Spirits Ltd as on 25 November 2024 is ₹1328.15, which is 62.96% higher than the current market price of ₹815.00.

What is the Market Cap of Globus Spirits Ltd?

The Market Cap of Globus Spirits Ltd is 2,352 Cr..

What is the current Stock Price of Globus Spirits Ltd as on 25 November 2024?

The current stock price of Globus Spirits Ltd as on 25 November 2024 is 815.

What is the High / Low of Globus Spirits Ltd stocks in FY 2024?

In FY 2024, the High / Low of Globus Spirits Ltd stocks is 1,373/656.

What is the Stock P/E of Globus Spirits Ltd?

The Stock P/E of Globus Spirits Ltd is 37.4.

What is the Book Value of Globus Spirits Ltd?

The Book Value of Globus Spirits Ltd is 340.

What is the Dividend Yield of Globus Spirits Ltd?

The Dividend Yield of Globus Spirits Ltd is 0.43 %.

What is the ROCE of Globus Spirits Ltd?

The ROCE of Globus Spirits Ltd is 9.56 %.

What is the ROE of Globus Spirits Ltd?

The ROE of Globus Spirits Ltd is 10.4 %.

What is the Face Value of Globus Spirits Ltd?

The Face Value of Globus Spirits 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 Globus Spirits 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