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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: 540743 | NSE: GODREJAGRO

Godrej Agrovet Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:14 pm

Market Cap 14,008 Cr.
Current Price 727
High / Low878/476
Stock P/E38.1
Book Value 123
Dividend Yield1.37 %
ROCE13.7 %
ROE14.9 %
Face Value 10.0
PEG Ratio8.64

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

View Share Price Target for Godrej Agrovet Ltd

Competitors of Godrej Agrovet Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Narmada Agrobase Ltd 60.1 Cr. 15.826.5/13.819.7 5.060.00 %8.79 %6.22 % 10.0
Godrej Agrovet Ltd 14,008 Cr. 727878/47638.1 1231.37 %13.7 %14.9 % 10.0
Avanti Feeds Ltd 8,115 Cr. 596793/38719.4 1851.13 %20.0 %15.1 % 1.00
Ajooni Biotech Ltd 134 Cr. 7.7910.3/4.1955.0 5.000.00 %7.76 %5.12 % 2.00
Industry Average7,419.00 Cr336.6533.0579.520.63%12.56%10.34%5.75

All Competitor Stocks of Godrej Agrovet Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,9932,1542,0782,0812,5102,4452,3242,0952,5102,5712,3452,1342,351
Expenses1,8231,9641,9421,9122,3482,2952,1872,0202,3172,3692,1861,9862,125
Operating Profit17019013616916215013675193201159148226
OPM %9%9%7%8%6%6%6%4%8%8%7%7%10%
Other Income2217569201384233220212025
Interest13161618222625272928252530
Depreciation41424446454647485353535655
Profit before tax13715080174116921482314214110287166
Tax %24%25%22%20%24%24%23%-4%25%26%19%25%21%
Net Profit105112621408870115231071048365132
EPS in Rs5.525.693.396.374.303.736.061.615.485.484.782.977.03

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,7613,1023,3123,7504,9115,1865,9186,9646,2678,3069,3749,5619,401
Expenses2,5672,8633,0433,5794,4714,7415,4626,4755,7037,6378,8518,8568,666
Operating Profit194240269171440445456489564669523704735
OPM %7%8%8%5%9%9%8%7%9%8%6%7%8%
Other Income1136104315955815449901091399086
Interest4940659886453442466399108109
Depreciation19283752758698148154173185214216
Profit before tax137207271336375372477349453542378473496
Tax %29%24%22%22%27%32%27%14%23%23%22%24%
Net Profit97157210261273251349301348419295359384
EPS in Rs73.04118.3622.6928.1913.4411.9417.1315.9416.3320.9615.7118.7120.26
Dividend Payout %26%23%114%16%33%38%26%34%49%45%60%53%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)61.86%33.76%24.29%4.60%-8.06%39.04%-13.75%15.61%20.40%-29.59%21.69%
Change in YoY Net Profit Growth (%)0.00%-28.10%-9.47%-19.69%-12.66%47.10%-52.80%29.37%4.79%-50.00%51.29%

Godrej Agrovet 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:12%
5 Years:10%
3 Years:15%
TTM:-2%
Compounded Profit Growth
10 Years:9%
5 Years:8%
3 Years:5%
TTM:6%
Stock Price CAGR
10 Years:%
5 Years:9%
3 Years:8%
1 Year:46%
Return on Equity
10 Years:17%
5 Years:16%
3 Years:15%
Last Year:15%

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 Capital13139393185192192192192192192192192
Reserves4005055486908241,2191,4571,6461,8592,0762,1452,3242,178
Borrowings4796206851,3726644103986511,0241,5991,4331,4161,923
Other Liabilities3204354179571,5351,7142,1832,1831,7051,6891,6731,7341,692
Total Liabilities1,2121,5731,7423,1113,2083,5354,2304,6724,7795,5565,4445,6675,985
Fixed Assets4305946931,5071,4731,4922,0512,1562,2812,4072,5682,8062,972
CWIP1251491386450190941531419020419232
Investments003759175195117129124160158177203
Other Assets6578308731,4811,5091,6571,9692,2332,2342,9002,5132,4922,778
Total Assets1,2121,5731,7423,1113,2083,5354,2304,6724,7795,5565,4445,6675,985

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +45210109168897354448240-10-120874678
Cash from Investing Activity +-167-190-131-428-63-253-233-255-179-208-284-327
Cash from Financing Activity +12573-79278-812-125-21736189311-594-328
Net Cash Flow293-1011822-24-221-0-17-523

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-285.00-380.00-416.00170.00-224.0035.0058.00-162.00563.00668.00522.00703.00

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 Days242730443944454548422220
Inventory Days454754837170726078836670
Days Payable303330428182998762403532
Cash Conversion Cycle404054852931181764845458
Working Capital Days353349722220172357734641
ROCE %24%24%17%19%20%18%15%16%16%10%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters71.64%71.64%71.64%73.70%74.07%74.07%74.06%74.04%74.05%74.05%74.05%74.03%
FIIs2.88%2.86%2.43%1.48%1.64%9.73%9.70%9.70%9.55%9.44%9.43%9.48%
DIIs1.47%1.37%1.61%2.89%5.17%5.19%5.01%5.04%5.09%5.49%5.09%4.34%
Public24.01%24.13%24.33%21.92%19.12%11.01%11.23%11.21%11.31%11.04%11.44%12.14%
No. of Shareholders1,00,4741,00,7671,03,4761,08,4151,12,1231,11,8721,12,5111,10,0201,08,6411,02,8991,02,65399,674

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India Small Cap Fund2,240,8620.32190.812,240,8622024-11-210%
Motilal Oswal Small Cap Fund429,2291.7136.552,240,8622024-11-21-80.85%
Motilal Oswal Nifty Microcap 250 Index Fund60,4890.385.152,240,8622024-11-21-97.3%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.7115.7120.9616.3415.94
Diluted EPS (Rs.)18.7115.7120.9516.3315.94
Cash EPS (Rs.)27.1423.3628.2323.5022.69
Book Value[Excl.RevalReserv]/Share (Rs.)151.97142.78139.96128.15115.63
Book Value[Incl.RevalReserv]/Share (Rs.)151.97142.78139.96128.15115.63
Revenue From Operations / Share (Rs.)497.40487.81432.36326.27362.63
PBDIT / Share (Rs.)38.6432.8038.7831.4127.87
PBIT / Share (Rs.)27.4923.1529.7623.3920.16
PBT / Share (Rs.)21.8817.9925.5820.9717.48
Net Profit / Share (Rs.)15.9913.7119.2015.4814.98
NP After MI And SOA / Share (Rs.)18.7115.7120.9616.3315.94
PBDIT Margin (%)7.766.728.979.627.68
PBIT Margin (%)5.524.746.887.175.56
PBT Margin (%)4.393.685.916.424.82
Net Profit Margin (%)3.212.804.444.744.13
NP After MI And SOA Margin (%)3.763.224.845.004.39
Return on Networth / Equity (%)14.2912.9117.7415.2916.65
Return on Capital Employeed (%)15.0514.3119.3915.8915.55
Return On Assets (%)6.305.507.206.536.51
Long Term Debt / Equity (X)0.110.020.020.070.02
Total Debt / Equity (X)0.510.560.690.450.33
Asset Turnover Ratio (%)1.711.691.601.111.37
Current Ratio (X)1.040.961.061.080.96
Quick Ratio (X)0.370.360.480.550.53
Inventory Turnover Ratio (X)4.904.914.873.884.89
Dividend Payout Ratio (NP) (%)50.7660.4638.1733.6728.22
Dividend Payout Ratio (CP) (%)31.8137.4526.6822.5819.02
Earning Retention Ratio (%)49.2439.5461.8366.3371.78
Cash Earning Retention Ratio (%)68.1962.5573.3277.4280.98
Interest Coverage Ratio (X)6.896.3611.8112.9812.86
Interest Coverage Ratio (Post Tax) (X)3.853.667.127.408.15
Enterprise Value (Cr.)11014.009629.4310447.6611375.238023.91
EV / Net Operating Revenue (X)1.151.031.261.821.15
EV / EBITDA (X)14.8315.2814.0218.8514.99
MarketCap / Net Operating Revenue (X)0.970.841.021.611.02
Retention Ratios (%)49.2339.5361.8266.3271.77
Price / BV (X)3.723.393.754.913.85
Price / Net Operating Revenue (X)0.970.841.021.611.02
EarningsYield0.030.030.040.030.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Godrej Agrovet Ltd as of November 24, 2024 is: 707.82

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, Godrej Agrovet Ltd is Overvalued by 2.64% compared to the current share price 727.00

Intrinsic Value of Godrej Agrovet Ltd as of November 24, 2024 is: 739.02

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, Godrej Agrovet Ltd is Undervalued by 1.65% compared to the current share price 727.00

Last 5 Year EPS CAGR: 4.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.08%, which is a positive sign.
  2. The company has higher reserves (1,374.69 cr) compared to borrowings (974.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (5.54 cr) and profit (374.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 40.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 47.83, 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 Godrej Agrovet Ltd:
    1. Net Profit Margin: 3.21%
      • 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: 15.05% (Industry Average ROCE: 12.56%)
      • 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%: 14.29% (Industry Average ROE: 10.34%)
      • 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): 3.85
      • 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: 0.37
      • 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: 38.1 (Industry average Stock P/E: 33.05)
      • 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: 0.51
      • 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

Godrej Agrovet Ltd. is a Public Limited Listed company incorporated on 25/11/1991 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L15410MH1991PLC135359 and registration number is 135359. Currently company belongs to the Industry of Food Processing - Bakery/Dairy/Fruits/Others. Company’s Total Operating Revenue is Rs. 6182.60 Cr. and Equity Capital is Rs. 192.11 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Animal/Shrimp FeedGodrej One, 3rd Floor, Mumbai Maharashtra 400079gavlinvestors@godrejagrovet.com
http://www.godrejagrovet.com
Management
NamePosition Held
Mr. Nadir B GodrejChairman & Non-Exe.Director
Mr. Balram S YadavManaging Director
Mr. Burjis GodrejExecutive Director
Ms. Tanya A DubashNon Executive Director
Ms. Nisaba GodrejNon Executive Director
Mr. Pirojsha A GodrejNon Executive Director
Mr. Kannan SitaramIndependent Director
Ms. Ritu VermaIndependent Director
Dr. Ashok GulatiIndependent Director
Ms. Roopa PurushothamanIndependent Director
Ms. Aditi Kothari DesaiIndependent Director
Dr. Ritu AnandIndependent Director
Mr. Natarajan SrinivasanIndependent Director

FAQ

What is the latest intrinsic value of Godrej Agrovet Ltd?

The latest intrinsic value of Godrej Agrovet Ltd as on 24 November 2024 is ₹707.82, which is 2.64% lower than the current market price of ₹727.00.

What is the Market Cap of Godrej Agrovet Ltd?

The Market Cap of Godrej Agrovet Ltd is 14,008 Cr..

What is the current Stock Price of Godrej Agrovet Ltd as on 24 November 2024?

The current stock price of Godrej Agrovet Ltd as on 24 November 2024 is 727.

What is the High / Low of Godrej Agrovet Ltd stocks in FY 2024?

In FY 2024, the High / Low of Godrej Agrovet Ltd stocks is 878/476.

What is the Stock P/E of Godrej Agrovet Ltd?

The Stock P/E of Godrej Agrovet Ltd is 38.1.

What is the Book Value of Godrej Agrovet Ltd?

The Book Value of Godrej Agrovet Ltd is 123.

What is the Dividend Yield of Godrej Agrovet Ltd?

The Dividend Yield of Godrej Agrovet Ltd is 1.37 %.

What is the ROCE of Godrej Agrovet Ltd?

The ROCE of Godrej Agrovet Ltd is 13.7 %.

What is the ROE of Godrej Agrovet Ltd?

The ROE of Godrej Agrovet Ltd is 14.9 %.

What is the Face Value of Godrej Agrovet Ltd?

The Face Value of Godrej Agrovet 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 Godrej Agrovet 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