Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500670 | NSE: GNFC

Gujarat Narmada Valley Fertilizers & Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:06 pm

Market Cap 8,162 Cr.
Current Price 556
High / Low815/524
Stock P/E18.6
Book Value 562
Dividend Yield2.97 %
ROCE7.71 %
ROE5.63 %
Face Value 10.0
PEG Ratio-3.75

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

View Share Price Target for Gujarat Narmada Valley Fertilizers & Chemicals Ltd

Competitors of Gujarat Narmada Valley Fertilizers & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizers & Chemicals Ltd 7,594 Cr. 190322/18014.4 3372.10 %5.77 %4.55 % 2.00
Bharat Agri Fert & Realty Ltd 389 Cr. 73.5132/73.0 9.970.07 %6.14 %14.8 % 1.00
Basant Agro Tech (India) Ltd 162 Cr. 17.828.9/17.519.5 19.50.28 %5.65 %1.30 % 1.00
Zuari Agro Chemicals Ltd 880 Cr. 210260/1514.91 4220.00 %8.50 %3.44 % 10.0
Southern Petrochemicals Industries Corporation Ltd (SPIC) 1,441 Cr. 70.7108/64.49.30 56.42.12 %17.8 %14.4 % 10.0
Industry Average9,553.14 Cr340.8444.87166.020.69%21.98%10.61%7.35

All Competitor Stocks of Gujarat Narmada Valley Fertilizers & Chemicals Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,3942,0962,3802,7722,6962,5872,6732,2711,6522,0802,0882,1102,021
Expenses1,0011,6651,7061,8871,9332,2782,2351,9021,5471,9112,0041,9651,868
Operating Profit39343167488576330943836910516984145153
OPM %28%21%28%32%28%12%16%16%6%8%4%7%8%
Other Income435848617685771238815212110899
Interest11102111117417
Depreciation70717675767776747678767878
Profit before tax366417645871761316438417116242122171157
Tax %34%32%16%26%25%25%26%20%27%26%22%26%27%
Net Profit2402825396435692373243348517895127115
EPS in Rs15.4318.1634.6841.3736.6115.2520.8521.495.4711.456.478.647.83

Last Updated: September 16, 2024, 1:17 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 16, 2024, 1:17 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4,2534,8474,6424,5524,5895,8375,8965,1625,1298,64210,2277,9308,299
Expenses3,6594,2314,6623,9893,9364,4455,0224,6214,1256,2598,3487,4287,748
Operating Profit593616-215636531,3928745421,0032,3841,879502551
OPM %14%13%-0%12%14%24%15%10%20%28%18%6%7%
Other Income404552252517140215153237209361469480
Interest63922742972031006520351329
Depreciation149145209251251270263264272292303308310
Profit before tax422424-4522687151,1628194259482,2981,932651692
Tax %35%31%0%35%27%32%10%-17%27%26%24%26%
Net Profit273292-4521735217907414996891,7041,464485515
EPS in Rs17.5718.81-29.0911.1133.5450.8047.6932.1044.35109.6294.2032.9934.39
Dividend Payout %20%19%0%18%15%15%15%16%18%9%32%50%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)6.96%-254.79%138.27%201.16%51.63%-6.20%-32.66%38.08%147.31%-14.08%-66.87%
Change in YoY Net Profit Growth (%)0.00%-261.75%393.07%62.88%-149.52%-57.83%-26.46%70.73%109.24%-161.40%-52.79%

Gujarat Narmada Valley Fertilizers & Chemicals 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:5%
5 Years:6%
3 Years:16%
TTM:-6%
Compounded Profit Growth
10 Years:5%
5 Years:-8%
3 Years:-11%
TTM:-52%
Stock Price CAGR
10 Years:20%
5 Years:24%
3 Years:12%
1 Year:-20%
Return on Equity
10 Years:12%
5 Years:14%
3 Years:15%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:37 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital155155155155155155155155155155155147147
Reserves2,5622,7902,3253,1223,6464,3034,8425,0675,8287,7438,8518,0518,107
Borrowings3,1963,9043,8443,1011,959303208860422379
Other Liabilities1,1092,4202,1642,1302,1422,4112,3372,2612,3212,7642,6132,4052,396
Total Liabilities7,0229,2708,4888,5097,9037,1727,5428,3448,30910,66411,62110,60610,729
Fixed Assets1,8074,8734,4684,3674,4424,1613,9593,8103,7203,5783,3813,2383,215
CWIP2,7522313914142582161138187289266
Investments1301321457297627267325968531,2223,1062,9192,674
Other Assets2,3324,2413,8613,4042,6832,2712,8263,8563,5755,7274,9464,1604,574
Total Assets7,0229,2708,4888,5097,9037,1727,5428,3448,30910,66411,62110,60610,729

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-160114909961,4451,8197012861,8841,9671,37331
Cash from Investing Activity +-808-394-28436-5349-310-901-856-1,899-1,2291,235
Cash from Financing Activity +889334-363-1,037-1,073-1,400-185546-934-130-160-1,281
Net Cash Flow-79-48-156-5320468206-6995-62-16-14

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow590.00613.00-24.00560.00652.00-302.00666.00-318.00-3.000.00-1.00499.00

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 Days10111010711988707710036261329
Inventory Days93999810711098106125129918494
Days Payable323539405761506863594242
Cash Conversion Cycle162173166186142107132156103585581
Working Capital Days73119139122112718917868974658
ROCE %9%8%-3%9%10%24%17%8%16%33%23%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters41.18%41.18%41.18%41.18%41.18%41.18%41.18%41.18%41.18%41.30%41.30%41.30%
FIIs13.75%17.27%22.39%22.64%22.39%20.47%20.01%19.67%18.63%20.11%19.40%19.18%
DIIs7.31%6.61%5.24%5.34%4.97%4.77%4.97%4.11%6.24%7.58%9.30%6.58%
Public37.76%34.93%31.19%30.83%31.45%33.58%33.83%35.03%33.93%31.00%29.99%32.93%
No. of Shareholders2,31,0622,25,7272,31,5932,44,7942,56,8192,75,2122,79,9092,76,0302,76,1282,57,3622,53,0032,63,160

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Smallcap Fund1,895,6131.48129.57689,2002024-11-20175.05%
ICICI Prudential Multi Asset Fund1,371,6610.1993.75689,2002024-11-2099.02%
ICICI Prudential Multicap Fund1,092,5570.5274.68689,2002024-11-2058.53%
HSBC Value Fund689,2000.3447.11689,2002024-11-200%
Kotak Equity Arbitrage Fund - Regular Plan681,2000.0946.56689,2002024-11-20-1.16%
ICICI Prudential Manufacturing Fund622,7450.6342.56689,2002024-11-20-9.64%
SBI Arbitrage Opportunities Fund520,0000.1135.54689,2002024-11-20-24.55%
Invesco India Arbitrage Fund432,9000.1729.59689,2002024-11-20-37.19%
Aditya Birla Sun Life Arbitrage Fund405,6000.2127.72689,2002024-11-20-41.15%
HSBC Arbitrage Fund387,4001.0626.48689,2002024-11-20-43.79%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)32.4794.68110.0544.8432.69
Diluted EPS (Rs.)32.4794.68110.0544.8432.69
Cash EPS (Rs.)53.92113.69128.3961.8749.11
Book Value[Excl.RevalReserv]/Share (Rs.)565.45585.84514.09390.44340.96
Book Value[Incl.RevalReserv]/Share (Rs.)565.45585.84514.09390.44340.96
Revenue From Operations / Share (Rs.)539.66658.02556.06329.99332.16
PBDIT / Share (Rs.)66.09144.11166.8579.8244.68
PBIT / Share (Rs.)45.16124.62148.0862.3027.67
PBT / Share (Rs.)44.31124.28147.8661.0227.33
Net Profit / Share (Rs.)32.9994.19109.6244.3432.10
NP After MI And SOA / Share (Rs.)33.8394.68110.0544.8432.69
PBDIT Margin (%)12.2421.9030.0024.1813.45
PBIT Margin (%)8.3618.9326.6318.878.33
PBT Margin (%)8.2118.8826.5918.498.22
Net Profit Margin (%)6.1114.3119.7113.439.66
NP After MI And SOA Margin (%)6.2614.3819.7913.589.84
Return on Networth / Equity (%)5.9816.1621.4011.489.58
Return on Capital Employeed (%)6.9118.6124.5713.046.49
Return On Assets (%)4.6512.5815.958.316.03
Total Debt / Equity (X)0.000.000.000.000.16
Asset Turnover Ratio (%)0.700.910.900.610.64
Current Ratio (X)4.143.773.613.572.03
Quick Ratio (X)3.112.902.892.731.51
Inventory Turnover Ratio (X)5.256.665.603.434.05
Dividend Payout Ratio (NP) (%)93.8010.567.2611.1521.41
Dividend Payout Ratio (CP) (%)57.948.756.218.0114.08
Earning Retention Ratio (%)6.2089.4492.7488.8578.59
Cash Earning Retention Ratio (%)42.0691.2593.7991.9985.92
Interest Coverage Ratio (X)77.57425.81749.4862.18131.77
Interest Coverage Ratio (Post Tax) (X)39.72279.32493.4135.5595.67
Enterprise Value (Cr.)7652.475923.1911944.133224.132452.31
EV / Net Operating Revenue (X)0.960.571.380.620.47
EV / EBITDA (X)7.882.644.612.603.53
MarketCap / Net Operating Revenue (X)1.160.771.520.910.34
Retention Ratios (%)6.1989.4392.7388.8478.58
Price / BV (X)1.100.861.640.770.33
Price / Net Operating Revenue (X)1.160.771.520.910.34
EarningsYield0.050.180.130.140.28

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd as of November 21, 2024 is: 605.99

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 21, 2024, Gujarat Narmada Valley Fertilizers & Chemicals Ltd is Undervalued by 8.99% compared to the current share price 556.00

Intrinsic Value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd as of November 21, 2024 is: 575.93

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 21, 2024, Gujarat Narmada Valley Fertilizers & Chemicals Ltd is Undervalued by 3.58% compared to the current share price 556.00

Last 5 Year EPS CAGR: -4.96%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (5,172.08 cr) compared to borrowings (1,343.46 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (5.62 cr) and profit (378.15 cr) over the years.
  1. The stock has a low average ROCE of 13.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 97.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 126.75, 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 Gujarat Narmada Valley Fertilizers & Chemicals Ltd:
    1. Net Profit Margin: 6.11%
      • 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: 6.91% (Industry Average ROCE: 21.98%)
      • 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%: 5.98% (Industry Average ROE: 9.69%)
      • 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): 39.72
      • 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: 3.11
      • 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: 18.6 (Industry average Stock P/E: 39.02)
      • 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
      • 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

Gujarat Narmada Valley Fertilizers & Chemicals Ltd. is a Public Limited Listed company incorporated on 10/05/1976 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1976PLC002903 and registration number is 002903. Currently Company is involved in the business activities of Manufacture of urea and other organic fertilizers. Company’s Total Operating Revenue is Rs. 8642.29 Cr. and Equity Capital is Rs. 155.42 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersP.O: Narmadanagar, Bharuch District Gujarat 392015investor@gnfc.in
http://www.gnfc.in
Management
NamePosition Held
Mr. Raj KumarChairman
Mr. Pankaj JoshiManaging Director
Mrs. Mamta VermaDirector
Mr. J P GuptaDirector
Prof. Ranjan Kumar GhoshIndependent Director
Mr. Bhadresh MehtaIndependent Director
Dr. N RavichandranIndependent Director
Prof. Piyushkumar SinhaIndependent Director
Mr. Kamal DayaniDirector
Mrs. Gauri KumarIndependent Woman Director

FAQ

What is the latest intrinsic value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The latest intrinsic value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd as on 21 November 2024 is ₹605.99, which is 8.99% higher than the current market price of ₹556.00.

What is the Market Cap of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The Market Cap of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 8,162 Cr..

What is the current Stock Price of Gujarat Narmada Valley Fertilizers & Chemicals Ltd as on 21 November 2024?

The current stock price of Gujarat Narmada Valley Fertilizers & Chemicals Ltd as on 21 November 2024 is ₹556.

What is the High / Low of Gujarat Narmada Valley Fertilizers & Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gujarat Narmada Valley Fertilizers & Chemicals Ltd stocks is 815/524.

What is the Stock P/E of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The Stock P/E of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 18.6.

What is the Book Value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The Book Value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 562.

What is the Dividend Yield of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The Dividend Yield of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 2.97 %.

What is the ROCE of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The ROCE of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 7.71 %.

What is the ROE of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The ROE of Gujarat Narmada Valley Fertilizers & Chemicals Ltd is 5.63 %.

What is the Face Value of Gujarat Narmada Valley Fertilizers & Chemicals Ltd?

The Face Value of Gujarat Narmada Valley Fertilizers & Chemicals 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 Gujarat Narmada Valley Fertilizers & Chemicals 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