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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500655 | NSE: GRWRHITECH

Garware Hi Tech Films Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:47 pm

Market Cap 9,934 Cr.
Current Price 4,276
High / Low4,421/1,298
Stock P/E32.4
Book Value 960
Dividend Yield0.23 %
ROCE14.0 %
ROE10.4 %
Face Value 10.0
PEG Ratio2.23

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

View Share Price Target for Garware Hi Tech Films Ltd

Competitors of Garware Hi Tech Films Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Tin Works Ltd 176 Cr. 169249/13212.4 2010.71 %11.1 %8.65 % 10.0
HCP Plastene Bulkpack Ltd 181 Cr. 170294/14747.8 49.40.00 %5.83 %0.30 % 10.0
Gujarat Containers Ltd 93.6 Cr. 166200/14210.9 83.60.90 %22.7 %22.9 % 10.0
Goblin India Ltd 48.2 Cr. 34.882.4/29.212.4 31.80.00 %8.18 %6.90 % 10.0
G K P Printing & Packaging Ltd 19.2 Cr. 8.7516.6/7.53 9.980.00 %5.50 %7.89 % 10.0
Industry Average2,702.25 Cr414.1936.02182.070.26%12.94%38.23%7.42

All Competitor Stocks of Garware Hi Tech Films Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales306340334324370395324349380397454447474
Expenses247280269268308328279296316332379368356
Operating Profit595965556267455364657578119
OPM %19%17%19%17%17%17%14%15%17%16%17%18%25%
Other Income710815897179991211
Interest4555444544222
Depreciation7777788101010101010
Profit before tax555760595964405659617378118
Tax %35%24%29%23%25%25%25%23%25%24%23%26%25%
Net Profit36434345454830434446565888
EPS in Rs15.4218.6518.4619.4219.1720.7213.0918.5418.8119.7624.0524.8838.03

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales7778438968578748339489259891,3031,4381,6771,772
Expenses7097748367768017508047637701,0651,2111,3951,435
Operating Profit696960817383144162219238227282337
OPM %9%8%7%9%8%10%15%17%22%18%16%17%19%
Other Income1416276859121539423941
Interest3037444433251918201817129
Depreciation39341517141414202428323940
Profit before tax131427273450120135190231220270329
Tax %-113%26%35%38%33%34%32%36%34%28%24%25%
Net Profit2810181622338286126167166203248
EPS in Rs12.154.417.647.089.6614.2635.1437.0354.2171.9671.5187.50106.72
Dividend Payout %0%0%0%0%10%14%28%27%18%14%14%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-64.29%80.00%-11.11%37.50%50.00%148.48%4.88%46.51%32.54%-0.60%22.29%
Change in YoY Net Profit Growth (%)0.00%144.29%-91.11%48.61%12.50%98.48%-143.61%41.63%-13.97%-33.14%22.89%

Garware Hi Tech Films 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:7%
5 Years:12%
3 Years:19%
TTM:38%
Compounded Profit Growth
10 Years:40%
5 Years:20%
3 Years:18%
TTM:88%
Stock Price CAGR
10 Years:40%
5 Years:80%
3 Years:72%
1 Year:198%
Return on Equity
10 Years:7%
5 Years:9%
3 Years:10%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 1:31 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital232323232323232323232323
Reserves5195305455621,2311,2691,3491,3801,5401,6881,8332,022
Borrowings3514403683153121711491471381821410
Other Liabilities829610511987107125128167240218279
Total Liabilities9751,0891,0421,0201,6531,5701,6461,6791,8682,1332,2142,324
Fixed Assets5555626496481,2311,2261,2381,2791,3291,3411,4671,450
CWIP398611581011201196102
Investments11112936120116226274393363
Other Assets380441381366386298277264302423344508
Total Assets9751,0891,0421,0201,6531,5701,6461,6791,8682,1332,2142,324

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4822911017713414199199172218172
Cash from Investing Activity +-42-78-20-5-12-5-101-44-126-141-16846
Cash from Financing Activity +3250-107-96-40-172-49-64-366-89-169
Net Cash Flow39-6-36025-43-8-93837-3948

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-282.00-371.00-308.00-234.00-239.00-88.00-5.0015.0081.0056.0086.00282.00

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 Days202520172617222116988
Inventory Days8010793111908270100128145109132
Days Payable273030363954686289765773
Cash Conversion Cycle7410282917744245854796067
Working Capital Days4970555049257199262336
ROCE %5%5%7%8%5%5%9%10%13%13%12%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.72%60.72%60.72%60.72%60.73%60.73%60.73%60.73%60.73%60.73%60.73%60.73%
FIIs0.10%0.11%0.10%0.07%0.12%0.08%0.18%0.12%0.14%0.12%0.31%0.52%
DIIs3.20%3.24%3.26%3.22%2.03%2.39%2.19%2.35%3.49%3.77%4.21%4.76%
Public35.98%35.93%35.92%36.00%37.13%36.80%36.91%36.81%35.65%35.38%34.75%34.00%
No. of Shareholders29,41230,59930,83731,08631,17331,92432,02231,58030,41038,09239,31642,191

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
LIC MF Large & Mid Cap Fund201,3121.5950.2410,6432024-11-151791.5%
LIC MF Multi Cap Fund115,2342.2328.7610,6432024-11-15982.72%
LIC MF Infrastructure Fund74,5913.0118.6210,6432024-11-15600.85%
LIC MF Small Cap Fund40,1513.1510.0210,6432024-11-15277.25%
LIC MF Balanced Advantage Fund32,9690.948.2310,6432024-11-15209.77%
Motilal Oswal Nifty Microcap 250 Index Fund16,3380.34.0810,6432024-11-1553.51%
LIC MF Dividend Yield Fund12,0470.913.0110,6432024-11-1513.19%
LIC MF Value Fund10,6432.152.6610,6432024-11-150%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)87.5071.5171.9654.2137.03
Diluted EPS (Rs.)87.5071.5171.9654.2137.03
Cash EPS (Rs.)104.3185.4684.0964.5345.76
Book Value[Excl.RevalReserv]/Share (Rs.)880.24798.81736.42673.01604.21
Book Value[Incl.RevalReserv]/Share (Rs.)880.24798.81736.42673.01604.21
Revenue From Operations / Share (Rs.)721.92618.97560.70425.71398.08
PBDIT / Share (Rs.)138.20115.94119.44100.5774.67
PBIT / Share (Rs.)121.41101.99107.3190.2565.93
PBT / Share (Rs.)116.3494.6799.4681.8257.99
Net Profit / Share (Rs.)87.5171.5171.9654.2137.02
NP After MI And SOA / Share (Rs.)87.5171.5171.9654.2137.02
PBDIT Margin (%)19.1418.7321.3023.6218.75
PBIT Margin (%)16.8116.4719.1321.2016.56
PBT Margin (%)16.1115.2917.7319.2114.56
Net Profit Margin (%)12.1211.5512.8312.739.30
NP After MI And SOA Margin (%)12.1211.5512.8312.739.30
Return on Networth / Equity (%)9.948.959.778.056.12
Return on Capital Employeed (%)13.4111.9813.3112.429.95
Return On Assets (%)8.747.507.836.745.12
Long Term Debt / Equity (X)0.000.040.060.060.08
Total Debt / Equity (X)0.000.070.100.060.08
Asset Turnover Ratio (%)0.730.600.630.540.53
Current Ratio (X)3.492.742.292.402.16
Quick Ratio (X)2.181.901.481.711.42
Inventory Turnover Ratio (X)3.363.284.153.514.28
Dividend Payout Ratio (NP) (%)0.0013.9813.890.0061.95
Dividend Payout Ratio (CP) (%)0.0011.7011.890.0050.12
Earning Retention Ratio (%)0.0086.0286.110.0038.05
Cash Earning Retention Ratio (%)0.0088.3088.110.0049.88
Interest Coverage Ratio (X)27.2515.8515.2111.939.40
Interest Coverage Ratio (Post Tax) (X)18.2610.7810.167.435.66
Enterprise Value (Cr.)3944.101285.741693.991651.93473.27
EV / Net Operating Revenue (X)2.350.891.301.670.51
EV / EBITDA (X)12.294.776.107.072.73
MarketCap / Net Operating Revenue (X)2.420.841.241.640.41
Retention Ratios (%)0.0086.0186.100.0038.04
Price / BV (X)1.980.650.941.040.27
Price / Net Operating Revenue (X)2.420.841.241.640.41
EarningsYield0.050.130.100.070.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Garware Hi Tech Films Ltd as of November 17, 2024 is: 3,242.26

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 17, 2024, Garware Hi Tech Films Ltd is Overvalued by 24.18% compared to the current share price 4,276.00

Intrinsic Value of Garware Hi Tech Films Ltd as of November 17, 2024 is: 3,712.63

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 17, 2024, Garware Hi Tech Films Ltd is Overvalued by 13.18% compared to the current share price 4,276.00

Last 5 Year EPS CAGR: 14.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,205.67 cr) compared to borrowings (226.17 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (611.23 cr) and profit (127.69 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 34.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.67, 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 Garware Hi Tech Films Ltd:
    1. Net Profit Margin: 12.12%
      • 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: 13.41% (Industry Average ROCE: 12.94%)
      • 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%: 9.94% (Industry Average ROE: 38.23%)
      • 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): 18.26
      • 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: 2.18
      • 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: 32.4 (Industry average Stock P/E: 36.02)
      • 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

Garware Hi-Tech Films Ltd. is a Public Limited Listed company incorporated on 06/06/1957 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L10889MH1957PLC010889 and registration number is 010889. Currently company belongs to the Industry of Packaging & Containers. Company’s Total Operating Revenue is Rs. 1263.97 Cr. and Equity Capital is Rs. 23.23 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Packaging & ContainersNaigaon, Aurangabad Maharashtra 431133cs@garwarehitech.com
http://www.garwarehitechfilms.com
Management
NamePosition Held
Dr. S B GarwareChairman & Managing Director
Ms. Monika GarwareVice Chairperson & Jt.Managing Director
Mrs. Sarita Garware RamsayJoint Managing Director
Mr. Mohan S AdsulWhole Time Director
Ms. Sonia GarwareNon Exe.Non Ind.Director
Ms. Devanshi H NanavatiIndependent Director
Mr. Vivekanand Heroor KamathIndependent Director
Mr. Nilesh R DoshiIndependent Director
Mr. Deepak N ChawlaIndependent Director
Mr. Manoj K SonawalaIndependent Director
Dr. Nayan J RawalIndependent Director

FAQ

What is the latest intrinsic value of Garware Hi Tech Films Ltd?

The latest intrinsic value of Garware Hi Tech Films Ltd as on 17 November 2024 is ₹3242.26, which is 24.18% lower than the current market price of ₹4,276.00.

What is the Market Cap of Garware Hi Tech Films Ltd?

The Market Cap of Garware Hi Tech Films Ltd is 9,934 Cr..

What is the current Stock Price of Garware Hi Tech Films Ltd as on 17 November 2024?

The current stock price of Garware Hi Tech Films Ltd as on 17 November 2024 is ₹4,276.

What is the High / Low of Garware Hi Tech Films Ltd stocks in FY 2024?

In FY 2024, the High / Low of Garware Hi Tech Films Ltd stocks is 4,421/1,298.

What is the Stock P/E of Garware Hi Tech Films Ltd?

The Stock P/E of Garware Hi Tech Films Ltd is 32.4.

What is the Book Value of Garware Hi Tech Films Ltd?

The Book Value of Garware Hi Tech Films Ltd is 960.

What is the Dividend Yield of Garware Hi Tech Films Ltd?

The Dividend Yield of Garware Hi Tech Films Ltd is 0.23 %.

What is the ROCE of Garware Hi Tech Films Ltd?

The ROCE of Garware Hi Tech Films Ltd is 14.0 %.

What is the ROE of Garware Hi Tech Films Ltd?

The ROE of Garware Hi Tech Films Ltd is 10.4 %.

What is the Face Value of Garware Hi Tech Films Ltd?

The Face Value of Garware Hi Tech Films 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 Garware Hi Tech Films 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