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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

Innovative Tyres & Tubes Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:03 pm

Market Cap 10.2 Cr.
Current Price 5.65
High / Low10.2/4.75
Stock P/E
Book Value 9.21
Dividend Yield0.00 %
ROCE26.6 %
ROE%
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Innovative Tyres & Tubes Ltd

Competitors of Innovative Tyres & Tubes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodyear India Ltd 2,333 Cr. 1,0111,440/1,00039.9 2551.48 %22.0 %16.0 % 10.0
TVS Srichakra Ltd 2,744 Cr. 3,5835,097/3,47039.7 1,4041.32 %11.1 %10.6 % 10.0
JK Tyre & Industries Ltd 9,898 Cr. 361554/33713.0 1721.25 %19.3 %20.6 % 2.00
Innovative Tyres & Tubes Ltd 10.2 Cr. 5.6510.2/4.75 9.210.00 %26.6 %% 10.0
CEAT Ltd 11,506 Cr. 2,8453,263/2,08019.4 1,0381.05 %20.4 %18.1 % 10.0
Industry Average18,569.33 Cr1,581.0927.58512.740.98%19.06%16.02%6.43

All Competitor Stocks of Innovative Tyres & Tubes Ltd

Quarterly Result

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales836663764110100
Expenses8266667152503521
Operating Profit1-1-24-10-40-2-52-1
OPM %1%-1%-4%6%-25%-394%-128%-15,670%
Other Income1001020038
Interest112221000
Depreciation444443442
Profit before tax-3-6-8-1-16-43-6-5635
Tax %-10%-4%3%-26%2%-0%3%15%0%
Net Profit-4-6-8-1-16-43-6-4735
EPS in Rs-2.11-3.36-4.41-0.51-8.82-23.94-3.10-26.3319.34

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
Sales871021261291241311401721491395220
Expenses81931171191141181261641491371025553
Operating Profit69910101314702-50-53-53
OPM %7%9%7%8%8%10%10%4%0%2%-98%-3,295%-16,079%
Other Income01112212212039
Interest3645543234300
Depreciation2223445688886
Profit before tax22353661-9-9-59-61-21
Tax %71%65%34%12%41%21%30%-9%-6%0%0%14%
Net Profit01242541-10-9-59-53-13
EPS in Rs0.600.992.424.411.975.102.450.55-5.46-4.91-32.76-29.42-6.99
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)100.00%100.00%-50.00%150.00%-20.00%-75.00%-1100.00%10.00%-555.56%10.17%
Change in YoY Net Profit Growth (%)0.00%0.00%-150.00%200.00%-170.00%-55.00%-1025.00%1110.00%-565.56%565.73%

Innovative Tyres & Tubes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-20%
5 Years:-39%
3 Years:-53%
TTM:10109%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:17%
TTM:82%
Stock Price CAGR
10 Years:%
5 Years:-16%
3 Years:-18%
1 Year:9%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 10:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital899101018181818181818
Reserves171927273667685850-9-62-18
Borrowings252422232813222237383835
Other Liabilities53577766665969745751428
Total Liabilities102109136126139156178172161983642
Fixed Assets61616060658810810497903236
CWIP5814131510101000
Investments000000000000
Other Assets364063535958696863846
Total Assets102109136126139156178172161983642

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +13.2812.968.128.573.228.974.502.903.40-2.950.46-7.42
Cash from Investing Activity +-7.83-4.73-5.98-3.84-3.90-22.80-16.710.16-1.221.600.07-0.01
Cash from Financing Activity +-7.28-7.79-1.86-4.801.0817.487.82-3.40-1.29-2.430.416.28
Net Cash Flow-1.830.440.28-0.070.403.64-4.39-0.340.89-3.780.94-1.15

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow6.00-16.00-15.00-12.00-13.00-15.001.00-15.00-22.00-35.00-88.00-91.00

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 Days172357464029274437142317
Inventory Days1279012410214812212013614312080
Days Payable10693164138130947392121137158
Cash Conversion Cycle382017115857738858-11223-60
Working Capital Days172520295243505326-266-9,377-91
ROCE %14%15%17%14%16%11%2%-7%-6%-75%-306%-27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Sep 2023Mar 2024Sep 2024
Promoters14.00%14.00%14.00%94.55%
Public86.01%86.00%86.00%5.45%
No. of Shareholders1,7671,7951,9812,033

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)19.17-29.42-32.76-4.91-5.46
Diluted EPS (Rs.)19.17-29.42-32.76-4.91-5.46
Cash EPS (Rs.)21.63-24.87-28.42-0.26-0.86
Book Value[Excl.RevalReserv]/Share (Rs.)-5.41-28.630.7933.5538.47
Book Value[Incl.RevalReserv]/Share (Rs.)-5.41-24.584.8437.6042.52
Revenue From Operations / Share (Rs.)7.880.9028.6677.3582.74
PBDIT / Share (Rs.)0.36-29.53-26.811.741.02
PBIT / Share (Rs.)-2.10-34.08-31.15-2.91-3.58
PBT / Share (Rs.)19.16-34.13-32.85-4.93-5.15
Net Profit / Share (Rs.)19.17-29.42-32.76-4.91-5.46
PBDIT Margin (%)4.57-3271.20-93.542.251.22
PBIT Margin (%)-26.63-3774.96-108.67-3.76-4.32
PBT Margin (%)243.12-3780.36-114.62-6.37-6.22
Net Profit Margin (%)243.31-3258.83-114.29-6.35-6.60
Return on Networth / Equity (%)-354.740.00-4120.82-14.64-14.19
Return on Capital Employeed (%)-20.51138.66-326.17-4.80-5.55
Return On Assets (%)81.88-146.90-60.38-5.47-5.70
Long Term Debt / Equity (X)-1.920.000.000.100.06
Total Debt / Equity (X)-3.58-0.7326.290.330.29
Asset Turnover Ratio (%)0.360.020.390.830.84
Current Ratio (X)0.170.020.071.151.15
Quick Ratio (X)0.050.020.030.400.41
Inventory Turnover Ratio (X)9.020.782.312.432.69
Interest Coverage Ratio (X)30.73-605.90-15.740.860.64
Interest Coverage Ratio (Post Tax) (X)-177.64-602.61-18.23-1.43-2.49
Enterprise Value (Cr.)45.1541.0047.2931.2028.89
EV / Net Operating Revenue (X)3.1825.240.910.220.19
EV / EBITDA (X)69.63-0.77-0.989.9515.78
MarketCap / Net Operating Revenue (X)0.732.600.190.100.07
Price / BV (X)-1.07-0.086.990.250.16
Price / Net Operating Revenue (X)0.732.610.190.100.07
EarningsYield3.31-12.52-5.90-0.57-0.86

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Innovative Tyres & Tubes Ltd as of November 25, 2024 is: 21.14

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, Innovative Tyres & Tubes Ltd is Undervalued by 274.16% compared to the current share price 5.65

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value of Innovative Tyres & Tubes Ltd as of November 25, 2024 is: 17.56

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, Innovative Tyres & Tubes Ltd is Undervalued by 210.80% compared to the current share price 5.65

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: -16.94%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -4.25, which is a positive sign.
  1. The stock has a low average ROCE of -27.67%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 22.58, which may not be favorable.
  3. The company has higher borrowings (27.25) compared to reserves (23.33), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (104.08) and profit (-10.08).

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 Innovative Tyres & Tubes Ltd:
    1. Net Profit Margin: 243.31%
      • 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: -20.51% (Industry Average ROCE: 19.06%)
      • 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%: -354.74% (Industry Average ROE: 16.02%)
      • 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): -177.64
      • 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: 0.05
      • 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: 0 (Industry average Stock P/E: 27.58)
      • 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: -3.58
      • 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

Innovative Tyres & Tubes Ltd. is a Public Limited Listed company incorporated on 28/11/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L25112GJ1995PLC086579 and registration number is 086579. Currently Company is involved in the business activities of Manufacture of rubber and plastics products. Company’s Total Operating Revenue is Rs. 51.57 Cr. and Equity Capital is Rs. 17.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & Tubes1201, 1202, 1203 GIDC Halol, Panchmahal Gujarat 389350investors@innovativetyres.co.in
http://www.innovativetyres.com
Management
NamePosition Held
Mr. Munish ChawlaManaging Director
Mr. Robin ChawlaDirector & CFO
Dr. Ramesh Chander ChawlaDirector
Mrs. Roshni ChawlaDirector
Mr. Umesh VedIndependent Director
Mr. Jasmin DoshiIndependent Director

FAQ

What is the latest intrinsic value of Innovative Tyres & Tubes Ltd?

The latest intrinsic value of Innovative Tyres & Tubes Ltd as on 20 November 2024 is ₹21.14, which is 274.16% higher than the current market price of ₹5.65.

What is the Market Cap of Innovative Tyres & Tubes Ltd?

The Market Cap of Innovative Tyres & Tubes Ltd is 10.2 Cr..

What is the current Stock Price of Innovative Tyres & Tubes Ltd as on 20 November 2024?

The current stock price of Innovative Tyres & Tubes Ltd as on 20 November 2024 is ₹5.65.

What is the High / Low of Innovative Tyres & Tubes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Innovative Tyres & Tubes Ltd stocks is 10.2/4.75.

What is the Stock P/E of Innovative Tyres & Tubes Ltd?

The Stock P/E of Innovative Tyres & Tubes Ltd is .

What is the Book Value of Innovative Tyres & Tubes Ltd?

The Book Value of Innovative Tyres & Tubes Ltd is 9.21.

What is the Dividend Yield of Innovative Tyres & Tubes Ltd?

The Dividend Yield of Innovative Tyres & Tubes Ltd is 0.00 %.

What is the ROCE of Innovative Tyres & Tubes Ltd?

The ROCE of Innovative Tyres & Tubes Ltd is 26.6 %.

What is the ROE of Innovative Tyres & Tubes Ltd?

The ROE of Innovative Tyres & Tubes Ltd is %.

What is the Face Value of Innovative Tyres & Tubes Ltd?

The Face Value of Innovative Tyres & Tubes 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 Innovative Tyres & Tubes 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