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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
Stock Ticker - BSE: 509820 | NSE: HUHTAMAKI

Huhtamaki India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:44 pm

Market Cap 2,028 Cr.
Current Price 269
High / Low452/259
Stock P/E23.1
Book Value 156
Dividend Yield1.86 %
ROCE12.5 %
ROE13.0 %
Face Value 2.00
PEG Ratio0.67

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

View Share Price Target for Huhtamaki India Ltd

Competitors of Huhtamaki India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Huhtamaki India Ltd 2,028 Cr. 269452/25923.1 1561.86 %12.5 %13.0 % 2.00
Industry Average2,028.00 Cr269.0023.10156.001.86%12.50%13.00%2.00

All Competitor Stocks of Huhtamaki India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales663669662729793769693662622662604610639
Expenses640638651678758746644610582617546569607
Operating Profit23311151342349514046584132
OPM %3%5%2%7%4%3%7%8%6%7%10%7%5%
Other Income2-3021362-36-03376836
Interest67878997108655
Depreciation24232322222121161211111012
Profit before tax-5-29-183411-5163518304163551
Tax %-24%-24%-25%28%23%-101%-5%-1%22%-6%21%26%24%
Net Profit-4-22-142580173514323272639
EPS in Rs-0.46-2.89-1.793.261.080.012.234.701.914.2743.353.455.10

Last Updated: October 18, 2024, 1:39 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 18, 2024, 1:39 pm

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales8901,0061,1351,1512,1812,1312,3692,5992,4632,6252,9832,5492,516
Expenses8029071,0331,0301,9311,9112,1462,3052,2282,5152,8252,3542,339
Operating Profit88100102121251220223294235110158195176
OPM %10%10%9%11%11%10%9%11%10%4%5%8%7%
Other Income8121613151317178-2217385423
Interest11126393341232728333124
Depreciation35343639938585879892864943
Profit before tax61778168133115114202118-3256500532
Tax %27%29%21%28%39%45%69%16%18%-28%11%18%
Net Profit4555654982643517096-2350410424
EPS in Rs7.188.708.896.7511.218.424.6222.5212.71-3.006.5754.2456.17
Dividend Payout %36%32%32%41%27%36%65%13%24%-33%30%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:1%
3 Years:1%
TTM:-5%
Compounded Profit Growth
10 Years:10%
5 Years:33%
3 Years:10%
TTM:-13%
Stock Price CAGR
10 Years:4%
5 Years:1%
3 Years:5%
1 Year:-14%
Return on Equity
10 Years:11%
5 Years:11%
3 Years:7%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:33 pm

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital13131515151515151515151515
Reserves3423775495724955345416827507007421,1351,162
Borrowings222119402435406403273295412410255258
Other Liabilities165187226298501480491544523680584596600
Total Liabilities5425978091,2881,4461,4351,4511,5141,5831,8071,7512,0012,036
Fixed Assets171158203186465437518486561537479483588
CWIP41163224816433513130
Investments9994225755195138216118108090
Other Assets2673353753437848589089599871,2271,2371,3071,327
Total Assets5425978091,2881,4461,4351,4511,5141,5831,8071,7512,0012,036

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +64337913616696101285169-28133274
Cash from Investing Activity +-53-11-195-482-05-29-88-73-56-9040
Cash from Financing Activity +-18-20112346-150-87-68-200-7449-32-211
Net Cash Flow-71-4-116133-322-3511102

Free Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Free Cash Flow66.0079.0083.00-281.00-184.00-186.00-180.0021.00-60.00-302.00-252.00-60.00

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

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days576770697790888779888179
Inventory Days494642384549483852685057
Days Payable6969697081938291931128098
Cash Conversion Cycle374543374246543538435137
Working Capital Days304138173149524248565542
ROCE %17%18%15%12%18%16%15%22%14%2%7%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.73%67.73%67.73%67.73%67.73%67.73%67.73%67.73%67.73%67.73%67.73%67.73%
FIIs4.30%4.23%3.85%1.30%1.03%1.12%1.52%1.43%0.89%1.21%1.39%1.40%
DIIs0.90%0.43%0.44%0.50%0.50%0.50%1.53%1.25%1.32%1.30%1.04%1.40%
Public27.07%27.60%27.98%30.46%30.72%30.64%29.22%29.58%30.06%29.76%29.83%29.47%
No. of Shareholders34,55633,92734,37833,00031,36230,25627,61426,83026,54431,02633,30234,825

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
LIC MF Small Cap Fund87,1271.462.4687,1272024-11-240%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 16Dec 15Dec 14Dec 13Dec 12
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)11.6310.5810.048.977.19
Diluted EPS (Rs.)11.6310.5810.048.977.19
Cash EPS (Rs.)24.7123.2815.4515.9212.88
Book Value[Excl.RevalReserv]/Share (Rs.)96.8987.9880.6965.1159.57
Book Value[Incl.RevalReserv]/Share (Rs.)96.8988.3681.0765.5559.57
Revenue From Operations / Share (Rs.)299.56280.18168.51173.15143.65
PBDIT / Share (Rs.)36.3733.9017.6419.0615.63
PBIT / Share (Rs.)23.8621.4511.6112.359.94
PBT / Share (Rs.)19.2815.9011.1912.889.85
Net Profit / Share (Rs.)12.2010.839.429.227.20
NP After MI And SOA / Share (Rs.)11.6310.589.168.977.19
PBDIT Margin (%)12.1412.1010.4711.0010.87
PBIT Margin (%)7.967.656.897.136.91
PBT Margin (%)6.435.676.637.436.85
Net Profit Margin (%)4.073.865.595.325.01
NP After MI And SOA Margin (%)3.883.775.435.175.00
Return on Networth / Equity (%)12.4912.4911.7914.4812.69
Return on Capital Employeed (%)15.4413.8713.3617.0915.20
Return On Assets (%)5.114.667.568.487.46
Long Term Debt / Equity (X)0.600.700.060.100.09
Total Debt / Equity (X)0.600.790.060.100.13
Asset Turnover Ratio (%)1.321.061.541.680.00
Current Ratio (X)1.741.622.311.901.76
Quick Ratio (X)1.391.321.911.461.30
Inventory Turnover Ratio (X)8.708.828.847.970.00
Dividend Payout Ratio (NP) (%)0.0026.4630.5631.2236.15
Dividend Payout Ratio (CP) (%)0.0012.1518.4317.8620.18
Earning Retention Ratio (%)0.0073.5469.4468.7863.85
Cash Earning Retention Ratio (%)0.0087.8581.5782.1479.82
Interest Coverage Ratio (X)7.946.1141.3731.86165.89
Interest Coverage Ratio (Post Tax) (X)3.662.9521.0714.5477.40
Enterprise Value (Cr.)2164.142238.241362.09512.51505.66
EV / Net Operating Revenue (X)0.991.101.110.470.56
EV / EBITDA (X)8.189.0810.624.295.16
MarketCap / Net Operating Revenue (X)0.800.851.070.430.50
Retention Ratios (%)0.0073.5369.4368.7763.84
Price / BV (X)2.602.832.331.211.28
Price / Net Operating Revenue (X)0.800.851.070.430.50
EarningsYield0.040.040.050.120.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Huhtamaki India Ltd as of November 25, 2024 is: 477.18

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, Huhtamaki India Ltd is Undervalued by 77.39% compared to the current share price 269.00

Intrinsic Value of Huhtamaki India Ltd as of November 25, 2024 is: 642.32

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, Huhtamaki India Ltd is Undervalued by 138.78% compared to the current share price 269.00

Last 5 Year EPS CAGR: 34.61%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (660.08 cr) compared to borrowings (277.77 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (70.08 cr) and profit (155.77 cr) over the years.
  1. The stock has a low average ROCE of 14.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 41.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 42.33, 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 Huhtamaki India Ltd:
    1. Net Profit Margin: 4.07%
      • 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: 15.44% (Industry Average ROCE: 12.5%)
      • 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%: 12.49% (Industry Average ROE: 13%)
      • 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): 3.66
      • 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: 1.39
      • 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: 23.1 (Industry average Stock P/E: 23.1)
      • 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: 0.6
      • 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

Huhtamaki India Ltd. is a Public Limited Listed company incorporated on 19/08/1944 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L21011MH1950FLC145537 and registration number is 145537. Currently company belongs to the Industry of Packaging & Containers. Company’s Total Operating Revenue is Rs. 2625.28 Cr. and Equity Capital is Rs. 15.11 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Packaging & ContainersA-802, Crescenzo, Mumbai Maharashtra 400051investor.communication@huhtamaki.com
http://www.flexibles.huhtamaki.in
Management
NamePosition Held
Mr. Murali SivaramanChairman & Ind.Director
Mr. Dhananjay SalunkheManaging Director
Mr. Jagdish AgarwalExecutive Director & CFO
Mr. Marco HiltyNon Executive Director
Mr. Stefan LotzNon Executive Director
Mr. Sami PauniNon Executive Director
Ms. Seema ModiIndependent Director
Mr. Ashok Kumar BaratIndependent Director

FAQ

What is the latest intrinsic value of Huhtamaki India Ltd?

The latest intrinsic value of Huhtamaki India Ltd as on 25 November 2024 is ₹477.18, which is 77.39% higher than the current market price of ₹269.00.

What is the Market Cap of Huhtamaki India Ltd?

The Market Cap of Huhtamaki India Ltd is 2,028 Cr..

What is the current Stock Price of Huhtamaki India Ltd as on 25 November 2024?

The current stock price of Huhtamaki India Ltd as on 25 November 2024 is 269.

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

In FY 2024, the High / Low of Huhtamaki India Ltd stocks is 452/259.

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

The Stock P/E of Huhtamaki India Ltd is 23.1.

What is the Book Value of Huhtamaki India Ltd?

The Book Value of Huhtamaki India Ltd is 156.

What is the Dividend Yield of Huhtamaki India Ltd?

The Dividend Yield of Huhtamaki India Ltd is 1.86 %.

What is the ROCE of Huhtamaki India Ltd?

The ROCE of Huhtamaki India Ltd is 12.5 %.

What is the ROE of Huhtamaki India Ltd?

The ROE of Huhtamaki India Ltd is 13.0 %.

What is the Face Value of Huhtamaki India Ltd?

The Face Value of Huhtamaki 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 Huhtamaki 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