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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Gravita India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:13 pm

Market Cap 14,430 Cr.
Current Price 2,091
High / Low2,700/730
Stock P/E53.7
Book Value 134
Dividend Yield0.25 %
ROCE27.9 %
ROE33.7 %
Face Value 2.00
PEG Ratio1.16

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

View Share Price Target for Gravita India Ltd

Competitors of Gravita India Ltd

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

All Competitor Stocks of Gravita India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales374438446546557666580683789749703836758
Expenses341396409496503597564624712686645764677
Operating Profit33423750547016597863587380
OPM %9%10%8%9%10%10%3%9%10%8%8%9%11%
Other Income-1-5144-1507-523231415
Interest77577141110910131113
Depreciation5555555667899
Profit before tax19252842464950505870616774
Tax %13%6%19%7%10%7%11%10%12%8%14%12%17%
Net Profit17232339414645455064535961
EPS in Rs2.283.093.155.355.705.996.166.467.279.247.548.388.73

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
Sales2693985165014306551,0171,2421,3481,4102,2162,8013,078
Expenses2493634724804125969261,1801,2391,2881,9982,5942,815
Operating Profit2036442018599262109121217207263
OPM %7%9%9%4%4%9%9%5%8%9%10%7%9%
Other Income33-343125-12168864
Interest39101191120263131384442
Depreciation2266769121820212429
Profit before tax192725764464304771165228256
Tax %18%14%12%-33%8%19%26%34%22%20%10%10%
Net Profit1624221053548193757148204226
EPS in Rs2.212.793.130.970.644.786.422.254.817.6020.1929.1332.43
Dividend Payout %36%29%26%21%31%13%11%13%15%14%15%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%-8.33%-54.55%-50.00%600.00%37.14%-60.42%94.74%54.05%159.65%37.84%
Change in YoY Net Profit Growth (%)0.00%-58.33%-46.21%4.55%650.00%-562.86%-97.56%155.15%-40.68%105.60%-121.81%

Gravita India 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:20%
5 Years:21%
3 Years:31%
TTM:12%
Compounded Profit Growth
10 Years:25%
5 Years:73%
3 Years:61%
TTM:20%
Stock Price CAGR
10 Years:40%
5 Years:119%
3 Years:119%
1 Year:87%
Return on Equity
10 Years:29%
5 Years:34%
3 Years:38%
Last Year:34%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital14141414141414141414141414
Reserves8698102105136176186211255373575824913
Borrowings758210399166233250279261392348548559
Other Liabilities422631223970123110196219268217313
Total Liabilities2162202502403554925736147269981,2051,6021,800
Fixed Assets4461545468109137182172191273348373
CWIP136615322446151342464332
Investments90000000001167
Other Assets1501531901702553593904185407648851,1941,388
Total Assets2162202502403554925736147269981,2051,6021,800

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1918-0291-38934771020042
Cash from Investing Activity +-11-8-2-10-49-42-66-14-19-69-105-158
Cash from Financing Activity +-10-106-174940-17-21-5772-87121
Net Cash Flow-2-0322-46-211275

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow20.00-39.00-38.00-83.00-81.00-107.00-141.00-188.00-170.00-140.00-175.00-141.00

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 Days403019253441281815181831
Inventory Days80578177777264751151079596
Days Payable257128102135294471410
Cash Conversion Cycle948088941019158658711999117
Working Capital Days8980103113103946674868677100
ROCE %22%21%9%7%20%23%13%19%21%31%32%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.00%73.00%73.00%73.00%73.00%73.00%73.00%66.48%66.48%66.48%66.48%63.37%
FIIs0.86%1.38%1.21%1.13%0.79%3.48%3.08%9.32%9.99%10.58%11.08%13.40%
DIIs0.00%0.15%0.15%0.00%0.19%0.21%0.25%0.39%0.42%0.43%0.43%2.61%
Public24.14%23.47%23.64%23.87%24.02%21.29%21.66%21.81%21.66%21.06%20.56%19.18%
Others2.00%2.00%2.00%2.00%2.00%2.00%2.00%1.98%1.45%1.45%1.45%1.45%
No. of Shareholders34,40438,13643,75143,82644,11847,71553,19062,91676,24281,52475,33575,740

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 Fund21,2230.462.11492024-11-2043212.24%
Groww Nifty Total Market Index Fund490.020492024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)34.8829.7220.607.724.82
Diluted EPS (Rs.)34.8829.7220.607.724.82
Cash EPS (Rs.)40.5933.0324.4811.177.93
Book Value[Excl.RevalReserv]/Share (Rs.)123.1887.1458.0540.2633.37
Book Value[Incl.RevalReserv]/Share (Rs.)123.1887.1458.0540.2633.37
Revenue From Operations / Share (Rs.)457.75405.59320.91204.20195.23
PBDIT / Share (Rs.)52.3342.1031.6817.2514.26
PBIT / Share (Rs.)46.8338.6328.7014.3111.64
PBT / Share (Rs.)39.7032.9623.8410.276.80
Net Profit / Share (Rs.)35.0929.5621.508.235.30
NP After MI And SOA / Share (Rs.)34.6429.1220.197.604.81
PBDIT Margin (%)11.4310.379.878.447.30
PBIT Margin (%)10.239.528.947.005.96
PBT Margin (%)8.678.127.435.033.48
Net Profit Margin (%)7.667.286.694.032.71
NP After MI And SOA Margin (%)7.567.186.293.722.46
Return on Networth / Equity (%)28.5634.1436.0319.5114.73
Return on Capital Employeed (%)29.0837.3937.4629.0928.21
Return On Assets (%)14.9216.6813.977.225.40
Long Term Debt / Equity (X)0.290.150.280.190.19
Total Debt / Equity (X)0.650.581.000.841.13
Asset Turnover Ratio (%)2.252.742.552.042.23
Current Ratio (X)2.401.761.611.371.24
Quick Ratio (X)1.020.540.500.440.56
Inventory Turnover Ratio (X)4.033.944.034.135.29
Dividend Payout Ratio (NP) (%)12.330.0017.0914.180.00
Dividend Payout Ratio (CP) (%)10.640.0014.8910.220.00
Earning Retention Ratio (%)87.670.0082.9185.820.00
Cash Earning Retention Ratio (%)89.360.0085.1189.780.00
Interest Coverage Ratio (X)7.347.436.524.273.50
Interest Coverage Ratio (Post Tax) (X)5.926.215.423.042.48
Enterprise Value (Cr.)7350.023663.552574.70840.52474.11
EV / Net Operating Revenue (X)2.331.311.160.590.35
EV / EBITDA (X)20.3412.6011.777.064.81
MarketCap / Net Operating Revenue (X)2.181.190.990.440.17
Retention Ratios (%)87.660.0082.9085.810.00
Price / BV (X)8.235.685.702.321.04
Price / Net Operating Revenue (X)2.181.190.990.440.17
EarningsYield0.030.060.060.080.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gravita India Ltd as of November 23, 2024 is: 2,431.05

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 23, 2024, Gravita India Ltd is Undervalued by 16.26% compared to the current share price 2,091.00

Intrinsic Value of Gravita India Ltd as of November 23, 2024 is: 3,560.85

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 23, 2024, Gravita India Ltd is Undervalued by 70.29% compared to the current share price 2,091.00

Last 5 Year EPS CAGR: 46.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.50%, which is a positive sign.
  2. The company has higher reserves (310.77 cr) compared to borrowings (261.15 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (213.85 cr) and profit (76.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 89.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 91.08, 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 Gravita India Ltd:
    1. Net Profit Margin: 7.66%
      • 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: 29.08% (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%: 28.56% (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): 5.92
      • 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: 1.02
      • 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: 53.7 (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: 0.65
      • 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

Gravita India Ltd. is a Public Limited Listed company incorporated on 04/08/1992 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L29308RJ1992PLC006870 and registration number is 006870. Currently Company is involved in the business activities of Manufacturing of lead, zinc and tin products and alloys. Company’s Total Operating Revenue is Rs. 1894.18 Cr. and Equity Capital is Rs. 13.81 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Mining/MineralsSaurabh, Chittora Road, Jaipur Rajasthan 303904companysecretary@gravitaindia.com
http://www.gravitaindia.com
Management
NamePosition Held
Dr. Mahavir Prasad AgarwalChairman & Wholetime Director
Mr. Rajat AgrawalManaging Director
Mr. Yogesh MalhotraWholeTime Director & CEO
Mrs. Chanchal Chadha PhadnisIndependent Director
Mr. Ashok JainIndependent Director
Mr. Satish Kumar AgrawalIndependent Director

FAQ

What is the latest intrinsic value of Gravita India Ltd?

The latest intrinsic value of Gravita India Ltd as on 23 November 2024 is ₹2431.05, which is 16.26% higher than the current market price of ₹2,091.00.

What is the Market Cap of Gravita India Ltd?

The Market Cap of Gravita India Ltd is 14,430 Cr..

What is the current Stock Price of Gravita India Ltd as on 23 November 2024?

The current stock price of Gravita India Ltd as on 23 November 2024 is 2,091.

What is the High / Low of Gravita India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gravita India Ltd stocks is 2,700/730.

What is the Stock P/E of Gravita India Ltd?

The Stock P/E of Gravita India Ltd is 53.7.

What is the Book Value of Gravita India Ltd?

The Book Value of Gravita India Ltd is 134.

What is the Dividend Yield of Gravita India Ltd?

The Dividend Yield of Gravita India Ltd is 0.25 %.

What is the ROCE of Gravita India Ltd?

The ROCE of Gravita India Ltd is 27.9 %.

What is the ROE of Gravita India Ltd?

The ROE of Gravita India Ltd is 33.7 %.

What is the Face Value of Gravita India Ltd?

The Face Value of Gravita India Ltd is 2.00.

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 Gravita India 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