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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

Kirloskar Electric Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 10, 2024, 10:55 pm

Market Cap 1,209 Cr.
Current Price 182
High / Low255/96.4
Stock P/E302
Book Value 17.7
Dividend Yield0.00 %
ROCE18.3 %
ROE16.1 %
Face Value 10.0
PEG Ratio-21.75

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

View Share Price Target for Kirloskar Electric Company Ltd

Competitors of Kirloskar Electric Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Evans Electric Ltd 93.3 Cr. 340504/16133.0 74.60.88 %36.4 %28.0 % 10.0
Epic Energy Ltd 69.3 Cr. 96.196.1/5.9792.4 10.00.00 %5.03 %5.49 % 10.0
Edvenswa Enterprises Ltd 227 Cr. 61.599.8/42.426.3 18.70.00 %23.6 %15.4 % 10.0
Cospower Engineering Ltd 109 Cr. 725740/200989 48.10.00 %8.12 %1.54 % 10.0
Continental Controls Ltd 6.76 Cr. 11.018.5/5.80338 3.430.00 %7.82 %14.0 % 10.0
Industry Average16,547.05 Cr647.24179.3470.690.11%16.28%19.86%6.12

All Competitor Stocks of Kirloskar Electric Company Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales77.1388.7661.5985.8882.10105.10102.26110.49115.75145.05117.57145.18126.07
Expenses80.8290.1770.2690.5284.20105.39102.3298.54108.10128.28109.83132.80120.37
Operating Profit-3.69-1.41-8.67-4.64-2.10-0.29-0.0611.957.6516.777.7412.385.70
OPM %-4.78%-1.59%-14.08%-5.40%-2.56%-0.28%-0.06%10.82%6.61%11.56%6.58%8.53%4.52%
Other Income1.524.830.441.830.50116.252.3715.822.911.151.221.003.49
Interest7.546.836.787.137.958.875.795.005.955.745.876.786.46
Depreciation1.563.651.281.301.321.301.231.251.231.291.261.281.22
Profit before tax-11.27-7.06-16.29-11.24-10.87105.79-4.7121.523.3810.891.835.321.51
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 Profit-11.27-7.06-16.29-11.24-10.87105.79-4.7121.523.3810.891.835.321.51
EPS in Rs-1.70-1.06-2.45-1.69-1.6415.93-0.713.240.511.640.280.800.23

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
Sales1,0911,073991510548572370295314278335474524
Expenses1,0271,0691,048588552583409330315295350437479
Operating Profit644-57-77-4-11-39-36-0-17-163645
OPM %6%0%-6%-15%-1%-2%-10%-12%-0%-6%-5%8%9%
Other Income101229-1052517765958119226
Interest46414945494543494330312224
Depreciation25242012121212978555
Profit before tax3-49-97-240-39-52-87-2845-48673121
Tax %2%-5%1%0%0%0%0%0%0%0%0%0%
Net Profit3-51-97-240-39-52-87-2845-48673121
EPS in Rs0.66-9.64-18.65-45.19-7.09-7.88-13.12-4.216.82-7.2410.154.683.23
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-1800.00%-90.20%-147.42%83.75%-33.33%-67.31%67.82%260.71%-206.67%239.58%-53.73%
Change in YoY Net Profit Growth (%)0.00%1709.80%-57.23%231.17%-117.08%-33.97%135.12%192.90%-467.38%446.25%-293.31%

Kirloskar Electric Company 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:-6%
5 Years:14%
3 Years:26%
TTM:13%
Compounded Profit Growth
10 Years:8%
5 Years:17%
3 Years:31%
TTM:-81%
Stock Price CAGR
10 Years:19%
5 Years:74%
3 Years:94%
1 Year:45%
Return on Equity
10 Years:%
5 Years:%
3 Years:2%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 9:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital51515356666666666666666666
Reserves13472-222-2565-81-158-114-3310251651
Borrowings293333283332296309266188179142133126113
Other Liabilities434488318310366320303347415397388433400
Total Liabilities912942432441733614478487628616614641630
Fixed Assets3143379892416405327322481442439438437
CWIP4220000001111
Investments2211111122222
Other Assets592601331348316207149164145171172201191
Total Assets912942432441733614478487628616614641630

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2242-45-2331231343035737
Cash from Investing Activity +-7-4-21925626961032-2
Cash from Financing Activity +-25-10108-40-27-66-107-34-109-33-31
Net Cash Flow-928-373-7-0-2-4129-244

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow64.00-289.00-390.00-360.00-336.00-307.00-348.00-302.00-188.00-196.00-158.00-97.00

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 Days83741181129167536363424256
Inventory Days11112184876470788675716146
Days Payable138161171164170189200216252227187174
Cash Conversion Cycle57343236-15-52-69-66-114-114-84-71
Working Capital Days21-3-11-10-79-193-298-233-313-247-138-112
ROCE %-2%-13%-27%-10%-4%-14%-17%1%-13%-1%21%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters49.51%49.51%49.51%49.51%49.51%49.51%49.51%49.51%49.51%49.51%49.51%49.51%
FIIs0.71%0.71%0.71%4.02%4.30%4.29%4.16%3.83%3.83%3.85%4.17%4.03%
DIIs3.39%2.41%1.77%1.63%1.62%1.64%1.55%2.25%2.11%1.73%1.61%1.43%
Public46.39%47.37%48.01%44.84%44.57%44.55%44.78%44.41%44.54%44.90%44.71%45.03%
No. of Shareholders57,35857,90158,39360,22761,24362,21265,23867,45472,76680,24883,87688,712

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.)2.124.6810.15-7.246.82
Diluted EPS (Rs.)2.124.6810.15-7.246.82
Cash EPS (Rs.)2.885.4310.93-5.997.82
Book Value[Excl.RevalReserv]/Share (Rs.)12.4013.8311.455.05-7.13
Book Value[Incl.RevalReserv]/Share (Rs.)12.4013.8311.455.05-7.13
Revenue From Operations / Share (Rs.)83.9271.3050.3941.8047.34
PBDIT / Share (Rs.)6.748.8215.56-1.4612.76
PBIT / Share (Rs.)5.988.0614.77-2.7211.77
PBT / Share (Rs.)2.124.6810.15-7.246.82
Net Profit / Share (Rs.)2.124.6810.15-7.246.82
NP After MI And SOA / Share (Rs.)2.124.6810.15-7.246.82
PBDIT Margin (%)8.0212.3630.87-3.4926.96
PBIT Margin (%)7.1211.3129.31-6.5024.86
PBT Margin (%)2.526.5620.13-17.3314.41
Net Profit Margin (%)2.526.5620.13-17.3314.41
NP After MI And SOA Margin (%)2.526.5620.13-17.3314.41
Return on Networth / Equity (%)17.0933.8388.69-143.59-95.59
Return on Capital Employeed (%)20.4429.7765.78-13.28173.39
Return On Assets (%)2.195.0710.96-7.679.32
Long Term Debt / Equity (X)0.000.000.000.69-0.94
Total Debt / Equity (X)1.541.451.874.65-3.62
Asset Turnover Ratio (%)0.880.760.530.490.60
Current Ratio (X)0.390.330.300.230.29
Quick Ratio (X)0.280.210.200.150.18
Inventory Turnover Ratio (X)7.736.555.864.304.47
Interest Coverage Ratio (X)1.742.603.36-0.321.99
Interest Coverage Ratio (Post Tax) (X)1.552.383.19-0.601.83
Enterprise Value (Cr.)790.23561.36268.34219.71203.74
EV / Net Operating Revenue (X)1.421.190.800.790.64
EV / EBITDA (X)17.669.592.60-22.662.40
MarketCap / Net Operating Revenue (X)1.240.950.510.290.16
Price / BV (X)8.424.932.292.45-1.08
Price / Net Operating Revenue (X)1.240.950.510.290.16
EarningsYield0.020.060.38-0.580.88

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Kirloskar Electric Company Ltd as of November 14, 2024 is: 877.82

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, Kirloskar Electric Company Ltd is Undervalued by 382.32% compared to the current share price 182.00

Intrinsic Value of Kirloskar Electric Company Ltd as of November 14, 2024 is: 755.94

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, Kirloskar Electric Company Ltd is Undervalued by 315.35% compared to the current share price 182.00

Last 5 Year EPS CAGR: -13.88%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -134.67, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -35.50, which is a positive sign.
  1. The stock has a low average ROCE of -5.08%, which may not be favorable.
  2. The company has higher borrowings (230.23) compared to reserves (-42.38), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (401.00) and profit (-36.38).

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 Kirloskar Electric Company Ltd:
    1. Net Profit Margin: 2.52%
      • 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: 20.44% (Industry Average ROCE: 16.28%)
      • 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%: 17.09% (Industry Average ROE: 19.86%)
      • 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): 1.55
      • 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: 0.28
      • 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: 302 (Industry average Stock P/E: 179.34)
      • 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: 1.54
      • 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

Kirloskar Electric Company Ltd. is a Public Limited Listed company incorporated on 26/07/1946 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L31100KA1946PLC000415 and registration number is 000415. Currently Company is involved in the business activities of Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus. Company’s Total Operating Revenue is Rs. 334.67 Cr. and Equity Capital is Rs. 66.41 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electric Equipment - GeneralNo. 19, 2nd Main Road, Bengaluru Karnataka 560058investors@kirloskarelectric.com
https://kirloskarelectric.com
Management
NamePosition Held
Mr. Vijay Ravindra KirloskarExecutive Chairman
Mr. Anand Balaramacharya HunnurManaging Director
Mr. Sanjeev Kumar ShivappaDirector - Finance & CFO
Mrs. Meena KirloskarNon Executive Director
Mr. Satyanarayan AgarwalIndependent Director
Mr. Anil Kumar BhandariIndependent Director
Mr. Kamlesh Suresh GandhiIndependent Director
Mr. Ashok MisraIndependent Director
Mr. Suresh KumarIndependent Director
Mr. Ravi GhaiIndependent Director
Mr. K N Shanth KumarAddnl. & Ind.Director
Mr. Mohammed Saad Bin JungAddnl. & Ind.Director
Dr. Pangal Ranganath NayakAddnl. & Ind.Director
Ms. Rukmini KirloskarAdditional Director

FAQ

What is the latest intrinsic value of Kirloskar Electric Company Ltd?

The latest intrinsic value of Kirloskar Electric Company Ltd as on 14 November 2024 is ₹877.82, which is 382.32% higher than the current market price of ₹182.00.

What is the Market Cap of Kirloskar Electric Company Ltd?

The Market Cap of Kirloskar Electric Company Ltd is 1,209 Cr..

What is the current Stock Price of Kirloskar Electric Company Ltd as on 14 November 2024?

The current stock price of Kirloskar Electric Company Ltd as on 14 November 2024 is ₹182.

What is the High / Low of Kirloskar Electric Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Kirloskar Electric Company Ltd stocks is 255/96.4.

What is the Stock P/E of Kirloskar Electric Company Ltd?

The Stock P/E of Kirloskar Electric Company Ltd is 302.

What is the Book Value of Kirloskar Electric Company Ltd?

The Book Value of Kirloskar Electric Company Ltd is 17.7.

What is the Dividend Yield of Kirloskar Electric Company Ltd?

The Dividend Yield of Kirloskar Electric Company Ltd is 0.00 %.

What is the ROCE of Kirloskar Electric Company Ltd?

The ROCE of Kirloskar Electric Company Ltd is 18.3 %.

What is the ROE of Kirloskar Electric Company Ltd?

The ROE of Kirloskar Electric Company Ltd is 16.1 %.

What is the Face Value of Kirloskar Electric Company Ltd?

The Face Value of Kirloskar Electric Company 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 Kirloskar Electric Company 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