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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531144 | NSE: ELFORGE

EL Forge Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 13, 2024, 8:30 pm

Market Cap 63.7 Cr.
Current Price 31.3
High / Low35.2/9.15
Stock P/E25.8
Book Value 11.6
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 10.0
PEG Ratio0.24

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

View Share Price Target for EL Forge Ltd

Competitors of EL Forge Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Happy Forgings Ltd 10,611 Cr. 1,1261,300/81341.0 1820.35 %22.7 %18.7 % 2.00
EL Forge Ltd 63.7 Cr. 31.335.2/9.1525.8 11.60.00 %%% 10.0
CIE Automotive India Ltd 18,092 Cr. 476628/40122.1 1631.05 %18.3 %20.3 % 10.0
Amforge Industries Ltd 20.0 Cr. 13.917.2/6.80 8.830.00 %3.55 %3.17 % 2.00
Tirupati Forge Ltd 562 Cr. 54.255.4/11.669.4 4.810.00 %18.3 %15.0 % 2.00
Industry Average14,335.25 Cr421.7550.99142.470.31%12.37%15.20%5.92

All Competitor Stocks of EL Forge Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales10.429.2511.2612.4812.8214.9218.2418.2317.7115.0517.3317.0220.53
Expenses10.459.0610.5111.9712.4014.1016.1316.6416.5214.0516.1316.0119.51
Operating Profit-0.030.190.750.510.420.822.111.591.191.001.201.011.02
OPM %-0.29%2.05%6.66%4.09%3.28%5.50%11.57%8.72%6.72%6.64%6.92%5.93%4.97%
Other Income1.700.08-0.210.010.02-0.19-0.72-0.53-0.22-0.1469.360.040.26
Interest0.120.110.090.100.100.100.090.120.120.120.120.120.12
Depreciation1.531.531.581.211.211.211.270.460.460.460.470.470.43
Profit before tax0.02-1.37-1.13-0.79-0.87-0.680.030.480.390.2869.970.460.73
Tax %0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit0.02-1.37-1.12-0.79-0.87-0.670.030.480.400.2869.960.460.73
EPS in Rs0.01-0.67-0.55-0.39-0.43-0.330.010.240.200.1434.420.230.36

Last Updated: November 6, 2024, 6:50 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthJun 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales75665439334250332740586867
Expenses88646043354549353839556363
Operating Profit-133-6-4-3-31-2-111454
OPM %-17%4%-11%-10%-9%-6%2%-7%-39%3%7%7%7%
Other Income1-5-1-1-213010152-16869
Interest14211331000000
Depreciation871010877766522
Profit before tax-34-11-18-16-16-12231-2-4-27171
Tax %0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit-34-11-18-16-16-12231-2-4-27171
EPS in Rs-16.64-5.59-8.74-7.91-7.86-5.7211.440.30-1.12-1.95-1.1434.9934.99
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-63.64%11.11%0.00%25.00%291.67%-95.65%-300.00%-100.00%50.00%3650.00%
Change in YoY Net Profit Growth (%)0.00%74.75%-11.11%25.00%266.67%-387.32%-204.35%200.00%150.00%3600.00%

EL Forge Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:0%
5 Years:7%
3 Years:36%
TTM:1%
Compounded Profit Growth
10 Years:10%
5 Years:20%
3 Years:30%
TTM:19%
Stock Price CAGR
10 Years:15%
5 Years:%
3 Years:%
1 Year:156%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:34 pm

MonthJun 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital20202020202020202020202020
Reserves-25-37-55-71-85-96-73-73-75-79-8123
Borrowings146150154152140133422212121200
Other Liabilities51473941443694928383861516
Total Liabilities1921811581431209384614037373839
Fixed Assets1041009078564741353227232221
CWIP3333333300000
Investments5444444400000
Other Assets8174625857393620810141618
Total Assets1921811581431209384614037373839

Reserves and Borrowings Chart

Cash Flow

MonthJun 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17-5-21615-1136216032
Cash from Investing Activity +0112032-1-0-01-2-0
Cash from Financing Activity +-19-719-7-1810-35-21-5-0-0-0
Net Cash Flow-1-0-0-0000-01111

Free Cash Flow

MonthJun 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-159.00-147.00-160.00-156.00-143.00-136.00-41.00-24.00-23.00-11.00-8.005.00

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

MonthJun 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days11413110212417139343618182429
Inventory Days21827127730435721419027791724836
Days Payable3123403113925853551,0501,64780418780
Cash Conversion Cycle20616735-57-103-825-1,3332949-15-15
Working Capital Days-75-112-40-147-8521-437-814-132-13
ROCE %-13%-2%-12%-9%-12%-14%-25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters40.71%40.71%40.71%40.71%40.71%40.71%40.71%40.71%40.81%40.81%40.81%40.81%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public59.28%59.28%59.28%59.28%59.28%59.28%59.28%59.28%59.18%59.17%59.16%59.17%
No. of Shareholders9,5339,5319,5349,5299,5299,5399,5599,4509,4619,5299,59210,174

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 15Mar 14Jun 13Jun 12Jun 11
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)-8.62-5.22-16.77-3.17-11.28
Diluted EPS (Rs.)-8.62-5.22-16.77-3.17-11.28
Cash EPS (Rs.)-3.95-1.36-12.441.500.10
Book Value[Excl.RevalReserv]/Share (Rs.)-17.06-6.57-1.3915.6318.55
Book Value[Incl.RevalReserv]/Share (Rs.)-17.06-5.86-0.6416.4520.62
Revenue From Operations / Share (Rs.)26.4444.7451.1552.45142.29
PBDIT / Share (Rs.)-2.27-0.06-5.178.059.89
PBIT / Share (Rs.)-7.06-3.93-9.503.61-1.80
PBT / Share (Rs.)-8.74-5.22-16.77-2.56-11.58
Net Profit / Share (Rs.)-8.74-5.22-16.77-2.93-11.58
NP After MI And SOA / Share (Rs.)-8.62-5.22-16.77-2.93-11.58
PBDIT Margin (%)-8.58-0.15-10.0915.346.94
PBIT Margin (%)-26.70-8.78-18.586.88-1.26
PBT Margin (%)-33.06-11.66-32.79-4.87-8.13
Net Profit Margin (%)-33.06-11.66-32.79-5.59-8.13
NP After MI And SOA Margin (%)-32.61-11.66-32.79-5.59-8.13
Return on Networth / Equity (%)0.000.000.00-18.77-62.44
Return on Capital Employeed (%)-56.40-12.76-25.285.81-1.20
Return On Assets (%)-10.50-5.49-16.79-2.68-4.88
Long Term Debt / Equity (X)-1.38-4.67-23.192.546.62
Total Debt / Equity (X)-2.78-8.84-40.203.878.79
Asset Turnover Ratio (%)0.290.340.360.390.00
Current Ratio (X)0.380.450.510.780.68
Quick Ratio (X)0.290.230.270.410.42
Inventory Turnover Ratio (X)1.421.171.422.130.00
Interest Coverage Ratio (X)-2.00-0.05-0.711.290.98
Interest Coverage Ratio (Post Tax) (X)-6.23-3.05-1.310.51-0.17
Enterprise Value (Cr.)116.920.000.000.000.00
EV / Net Operating Revenue (X)2.180.000.000.000.00
EV / EBITDA (X)-25.350.000.000.000.00
MarketCap / Net Operating Revenue (X)0.160.000.000.000.00
Price / BV (X)-0.250.000.000.000.00
Price / Net Operating Revenue (X)0.160.000.000.000.00
EarningsYield-1.950.000.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of EL Forge Ltd as of November 14, 2024 is: 45.79

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 14, 2024, EL Forge Ltd is Undervalued by 46.29% compared to the current share price 31.30

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of EL Forge Ltd as of November 14, 2024 is: 94.33

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 14, 2024, EL Forge Ltd is Undervalued by 201.37% compared to the current share price 31.30

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 106.01%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -141.50, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -62.92, which is a positive sign.
  3. The company has shown consistent growth in sales (50.15 cr) and profit (3.92 cr) over the years.
  1. The stock has a low average ROCE of -7.25%, which may not be favorable.
  2. The company has higher borrowings (75.00) compared to reserves (-57.31), which may suggest financial risk.

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 EL Forge Ltd:
    1. Net Profit Margin: -33.06%
      • 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: -56.4% (Industry Average ROCE: 12.37%)
      • 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%: 0% (Industry Average ROE: 15.2%)
      • 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): -6.23
      • 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: 0.29
      • 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: 25.8 (Industry average Stock P/E: 50.99)
      • 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: -2.78
      • 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

EL Forge Ltd. is a Public Limited Listed company incorporated on 18/07/1934 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L34103TN1934PLC000669 and registration number is 000669. Currently company belongs to the Industry of Forgings. Company’s Total Operating Revenue is Rs. 40.34 Cr. and Equity Capital is Rs. 20.32 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Forgings1A, Sriperumbudur High Road, (via) Singaperumal Koil, Kancheepuram Dist. Tamil Nadu 603204edf@elforge.com
http://www.elforge.com
Management
NamePosition Held
Mr. V SrikanthChairman
Mr. K V RamachandranVice Chairman & Mng.Director
Mrs. Shubha GaneshIndependent Director
Mr. S BalakrishnanIndependent Director

FAQ

What is the latest intrinsic value of EL Forge Ltd?

The latest intrinsic value of EL Forge Ltd as on 14 November 2024 is ₹45.79, which is 46.29% higher than the current market price of ₹31.30.

What is the Market Cap of EL Forge Ltd?

The Market Cap of EL Forge Ltd is 63.7 Cr..

What is the current Stock Price of EL Forge Ltd as on 14 November 2024?

The current stock price of EL Forge Ltd as on 14 November 2024 is ₹31.3.

What is the High / Low of EL Forge Ltd stocks in FY 2024?

In FY 2024, the High / Low of EL Forge Ltd stocks is 35.2/9.15.

What is the Stock P/E of EL Forge Ltd?

The Stock P/E of EL Forge Ltd is 25.8.

What is the Book Value of EL Forge Ltd?

The Book Value of EL Forge Ltd is 11.6.

What is the Dividend Yield of EL Forge Ltd?

The Dividend Yield of EL Forge Ltd is 0.00 %.

What is the ROCE of EL Forge Ltd?

The ROCE of EL Forge Ltd is %.

What is the ROE of EL Forge Ltd?

The ROE of EL Forge Ltd is %.

What is the Face Value of EL Forge Ltd?

The Face Value of EL Forge 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 EL Forge 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