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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: 542851 | NSE: GENSOL

Gensol Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 8:08 pm

Market Cap 3,077 Cr.
Current Price 812
High / Low1,377/709
Stock P/E37.8
Book Value 155
Dividend Yield0.00 %
ROCE14.3 %
ROE20.1 %
Face Value 10.0
PEG Ratio0.47

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

View Share Price Target for Gensol Engineering Ltd

Competitors of Gensol Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.032.8/19.9 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 3,077 Cr. 8121,377/70937.8 1550.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 1,859 Cr. 185675/161 2510.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average4,512.36 Cr231.11161.59108.530.26%21.63%72.28%9.42

All Competitor Stocks of Gensol Engineering Ltd

Quarterly Result

MonthMar 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales45341271028151164145305220399362346
Expenses4130111876435135108258157320287240
Operating Profit4415151715293747637975107
OPM %9%11%12%15%21%30%18%25%15%29%20%21%31%
Other Income0011013007110
Interest10524612101532273676
Depreciation10145710130202426
Profit before tax3311109411143217293825
Tax %14%24%22%0%10%151%30%31%44%31%31%31%8%
Net Profit229108-27101812202723
EPS in Rs0.700.712.683.042.15-0.521.992.794.833.376.418.457.76

Last Updated: November 6, 2024, 6:39 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:23 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales62698381641603989631,114
Expenses6062747758141320733835
Operating Profit279461978230279
OPM %3%10%11%5%10%12%20%24%25%
Other Income01131253315
Interest00122624110116
Depreciation000111257488
Profit before tax2793414337890
Tax %28%28%28%35%15%23%30%31%
Net Profit1572311235358
EPS in Rs2.730.670.973.386.3715.7218.23
Dividend Payout %0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)400.00%40.00%-71.43%50.00%266.67%109.09%130.43%
Change in YoY Net Profit Growth (%)0.00%-360.00%-111.43%121.43%216.67%-157.58%21.34%

Gensol Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:63%
3 Years:147%
TTM:100%
Compounded Profit Growth
10 Years:%
5 Years:52%
3 Years:156%
TTM:146%
Stock Price CAGR
10 Years:%
5 Years:108%
3 Years:223%
1 Year:7%
Return on Equity
10 Years:%
5 Years:19%
3 Years:20%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 3:31 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.010.0168811123838
Reserves177252836195288551
Borrowings0191311825981,5101,372
Other Liabilities81922282379261489591
Total Liabilities10264374702081,0662,3242,552
Fixed Assets0188755293723257
CWIP0000004188171
Investments000000777
Other Assets10263566631527251,5062,117
Total Assets10264374702081,0662,3242,552

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +023-156-50115-98
Cash from Investing Activity +-1-1-8-0-1-60-706-668
Cash from Financing Activity +00620-4109709859
Net Cash Flow-01151-111893

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow2.006.000.00-9.00-5.00-63.00-520.00229.00

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 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days388797119102806886
Inventory Days000135130221157
Days Payable17579464749
Cash Conversion Cycle388797791522553544
Working Capital Days4203813618722994185
ROCE %165%68%16%12%23%12%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters70.86%71.03%71.17%71.34%71.36%64.67%64.67%64.67%64.67%62.60%62.63%62.77%
FIIs0.00%0.00%0.00%0.00%0.84%1.84%1.83%1.94%2.57%2.94%2.39%1.98%
DIIs0.00%0.00%0.00%0.00%0.47%0.42%0.66%0.66%0.75%0.84%0.09%0.00%
Public29.14%28.97%28.83%28.66%27.32%33.07%32.85%32.72%32.01%33.62%34.88%35.25%
No. of Shareholders1542094086058971,7352,2992,99610,67520,38960,73569,500

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.)15.8021.5010.143.893.12
Diluted EPS (Rs.)15.8021.5010.143.893.12
Cash EPS (Rs.)33.7229.5711.365.534.39
Book Value[Excl.RevalReserv]/Share (Rs.)82.66171.8242.4944.3442.76
Book Value[Incl.RevalReserv]/Share (Rs.)82.66171.8242.4944.3442.76
Revenue From Operations / Share (Rs.)254.32321.32146.6377.9898.73
PBDIT / Share (Rs.)68.7650.5819.218.538.34
PBIT / Share (Rs.)49.1541.2918.026.896.64
PBT / Share (Rs.)20.5728.3313.144.584.18
Net Profit / Share (Rs.)14.1220.2910.163.892.70
NP After MI And SOA / Share (Rs.)15.7220.3810.143.892.69
PBDIT Margin (%)27.0315.7413.1010.948.44
PBIT Margin (%)19.3212.8512.288.836.72
PBT Margin (%)8.088.818.955.864.23
Net Profit Margin (%)5.556.316.934.982.73
NP After MI And SOA Margin (%)6.186.346.914.982.72
Return on Networth / Equity (%)18.2811.8923.878.766.65
Return on Capital Employeed (%)12.416.1014.7513.2012.48
Return On Assets (%)2.552.505.344.562.98
Long Term Debt / Equity (X)2.632.140.840.090.16
Total Debt / Equity (X)4.292.501.770.200.23
Asset Turnover Ratio (%)0.570.651.140.881.39
Current Ratio (X)1.362.861.932.302.08
Quick Ratio (X)1.342.801.121.901.84
Interest Coverage Ratio (X)2.413.903.943.693.39
Interest Coverage Ratio (Post Tax) (X)1.502.563.082.682.10
Enterprise Value (Cr.)4340.011596.68395.6660.0074.05
EV / Net Operating Revenue (X)4.514.072.470.930.91
EV / EBITDA (X)16.6725.8318.828.5710.82
MarketCap / Net Operating Revenue (X)3.463.462.020.960.85
Price / BV (X)10.246.496.981.702.08
Price / Net Operating Revenue (X)3.463.462.020.960.85
EarningsYield0.010.010.030.050.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gensol Engineering Ltd as of November 25, 2024 is: 1,201.21

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, Gensol Engineering Ltd is Undervalued by 47.93% compared to the current share price 812.00

Intrinsic Value of Gensol Engineering Ltd as of November 25, 2024 is: 2,159.84

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, Gensol Engineering Ltd is Undervalued by 165.99% compared to the current share price 812.00

Last 5 Year EPS CAGR: 79.81%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 38.50%, which is a positive sign.
  2. The company has shown consistent growth in sales (209.00 cr) and profit (26.67 cr) over the years.
  1. The stock has a high average Working Capital Days of 111.63, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 98.38, which may not be favorable.
  3. The company has higher borrowings (399.56) compared to reserves (126.44), 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 Gensol Engineering Ltd:
    1. Net Profit Margin: 5.55%
      • 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: 12.41% (Industry Average ROCE: 21.63%)
      • 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%: 18.28% (Industry Average ROE: 72.28%)
      • 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): 1.5
      • 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: 1.34
      • 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: 37.8 (Industry average Stock P/E: 161.59)
      • 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: 4.29
      • 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

Gensol Engineering Ltd. is a Public Limited Listed company incorporated on 25/09/2012 and has its registered office in the State of Chandigarh, India. Company’s Corporate Identification Number(CIN) is L74210GJ2012PLC129176 and registration number is 034105. Currently company belongs to the Industry of Project Consultancy/Turnkey. Company’s Total Operating Revenue is Rs. 153.51 Cr. and Equity Capital is Rs. 10.94 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Non Conventional Energy - Generation/Support Equip15th Floor, A Block, Westgate Business Bay, Ahmedabad Gujarat 380051cs@gensol.in
http://www.gensol.in
Management
NamePosition Held
Mr. Anmol Singh JaggiChairman & Managing Director
Mr. Puneet Singh JaggiWhole Time Director
Ms. Vibhuti Patthak PatelNon Exe. Women Independent Director
Mr. Arun MenonInd. Non-Executive Director
Mr. Rajesh JainInd. Non-Executive Director
Mr. Ali Imran NaqviExecutive Director
Mr. Kuljit Singh PopliInd. Non-Executive Director
Mr. Harsh SinghInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Gensol Engineering Ltd?

The latest intrinsic value of Gensol Engineering Ltd as on 24 November 2024 is ₹1201.21, which is 47.93% higher than the current market price of ₹812.00.

What is the Market Cap of Gensol Engineering Ltd?

The Market Cap of Gensol Engineering Ltd is 3,077 Cr..

What is the current Stock Price of Gensol Engineering Ltd as on 24 November 2024?

The current stock price of Gensol Engineering Ltd as on 24 November 2024 is 812.

What is the High / Low of Gensol Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gensol Engineering Ltd stocks is 1,377/709.

What is the Stock P/E of Gensol Engineering Ltd?

The Stock P/E of Gensol Engineering Ltd is 37.8.

What is the Book Value of Gensol Engineering Ltd?

The Book Value of Gensol Engineering Ltd is 155.

What is the Dividend Yield of Gensol Engineering Ltd?

The Dividend Yield of Gensol Engineering Ltd is 0.00 %.

What is the ROCE of Gensol Engineering Ltd?

The ROCE of Gensol Engineering Ltd is 14.3 %.

What is the ROE of Gensol Engineering Ltd?

The ROE of Gensol Engineering Ltd is 20.1 %.

What is the Face Value of Gensol Engineering Ltd?

The Face Value of Gensol Engineering 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 Gensol Engineering 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