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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Narmada Agrobase Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:44 pm

Market Cap 59.5 Cr.
Current Price 15.9
High / Low26.5/13.8
Stock P/E19.5
Book Value 5.06
Dividend Yield0.00 %
ROCE8.79 %
ROE6.22 %
Face Value 10.0
PEG Ratio-3.36

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

View Share Price Target for Narmada Agrobase Ltd

Competitors of Narmada Agrobase Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Narmada Agrobase Ltd 59.5 Cr. 15.926.5/13.819.5 5.060.00 %8.79 %6.22 % 10.0
Godrej Agrovet Ltd 13,740 Cr. 716878/47637.4 1231.40 %13.7 %14.9 % 10.0
Avanti Feeds Ltd 8,101 Cr. 594793/38719.4 1851.14 %20.0 %15.1 % 1.00
Ajooni Biotech Ltd 128 Cr. 7.4210.3/4.1552.4 5.000.00 %7.76 %5.12 % 2.00
Industry Average7,323.00 Cr333.3332.1879.520.64%12.56%10.34%5.75

All Competitor Stocks of Narmada Agrobase Ltd

Quarterly Result

MonthJun 2017Sep 2017Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales0.0017.377.218.7212.687.9113.2410.6218.267.9511.4112.22
Expenses0.0016.596.868.1512.017.5212.6110.0617.817.5010.9411.77
Operating Profit0.000.780.350.570.670.390.630.560.450.450.470.45
OPM %4.49%4.85%6.54%5.28%4.93%4.76%5.27%2.46%5.66%4.12%3.68%
Other Income0.000.030.020.010.010.010.010.010.010.010.030.02
Interest0.000.410.190.230.210.200.190.220.250.230.230.23
Depreciation0.000.140.090.090.090.080.080.080.080.070.070.07
Profit before tax0.000.260.090.260.380.120.370.270.130.160.200.17
Tax %15.38%33.33%30.77%31.58%33.33%27.03%25.93%23.08%31.25%15.00%23.53%
Net Profit0.000.210.060.180.260.080.270.200.100.110.170.13
EPS in Rs0.000.450.040.130.190.060.200.150.070.080.130.10

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales21.9730.5334.4537.0047.5061.4658.1434.6149.4848.24
Expenses21.1229.3533.0235.4345.8759.0055.9032.6147.4646.31
Operating Profit0.851.181.431.571.632.462.242.002.021.93
OPM %3.87%3.87%4.15%4.24%3.43%4.00%3.85%5.78%4.08%4.00%
Other Income0.020.020.020.070.280.030.040.060.050.06
Interest0.430.700.750.820.701.030.850.820.860.93
Depreciation0.270.270.300.280.540.400.420.370.320.30
Profit before tax0.170.230.400.540.671.061.010.870.890.76
Tax %17.65%21.74%25.00%25.93%25.37%25.47%32.67%31.03%26.97%
Net Profit0.140.190.300.400.500.790.680.610.650.58
EPS in Rs0.610.580.910.430.370.580.500.450.480.43
Dividend Payout %0.00%0.00%0.00%0.00%15.06%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)35.71%57.89%33.33%25.00%58.00%-13.92%-10.29%6.56%
Change in YoY Net Profit Growth (%)0.00%22.18%-24.56%-8.33%33.00%-71.92%3.63%16.85%

Narmada Agrobase Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:1%
3 Years:-5%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:15%
3 Years:13%
TTM:426%
Stock Price CAGR
10 Years:%
5 Years:7%
3 Years:16%
1 Year:9%
Return on Equity
10 Years:%
5 Years:5%
3 Years:5%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:00 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital1.251.831.835.197.5313.5513.5513.5513.5513.5513.55
Reserves0.110.300.640.426.040.711.391.682.333.355.66
Borrowings6.717.9310.227.399.138.448.699.7210.079.6810.75
Other Liabilities0.890.670.981.440.881.573.291.551.371.383.94
Total Liabilities8.9610.7313.6714.4423.5824.2726.9226.5027.3227.9633.90
Fixed Assets2.382.712.662.744.663.893.503.753.443.183.07
CWIP0.000.000.000.000.000.000.000.000.000.000.00
Investments0.210.210.430.470.610.000.000.000.000.000.00
Other Assets6.377.8110.5811.2318.3120.3823.4222.7523.8824.7830.83
Total Assets8.9610.7313.6714.4423.5824.2726.9226.5027.3227.9633.90

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1.251.21-5.100.490.30-0.080.051.23
Cash from Investing Activity +-0.44-0.34-2.320.460.040.060.370.35
Cash from Financing Activity +1.52-0.828.52-1.94-0.400.22-0.52-1.35
Net Cash Flow-0.170.051.11-1.00-0.070.20-0.100.23

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-5.86-6.75-8.79-5.82-7.50-5.98-6.45-7.72-8.05

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days30.0726.6631.8931.0758.0267.41101.83151.9797.5297.74
Inventory Days73.6054.4370.8875.6270.3337.8128.8377.6675.9584.67
Days Payable10.546.978.6311.983.544.0215.9210.037.256.35
Cash Conversion Cycle93.1374.1194.1494.71124.80101.19114.74219.59166.22176.06
Working Capital Days82.7472.6988.8984.15120.7297.16108.48206.91157.71164.37
ROCE %10.26%10.11%10.59%7.68%9.21%8.20%6.96%6.88%8.79%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.91%68.70%67.69%67.05%66.47%66.47%66.47%66.47%66.47%63.94%63.57%57.66%
Public31.09%31.31%32.32%32.95%33.53%33.53%33.54%33.53%33.54%36.07%36.43%42.33%
No. of Shareholders1721711631561598811,8702,6663,4664,6017,0097,091

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.)0.750.480.410.560.98
Diluted EPS (Rs.)0.750.480.410.560.98
Cash EPS (Rs.)0.950.710.670.860.87
Book Value[Excl.RevalReserv]/Share (Rs.)12.4711.7211.4311.0310.52
Book Value[Incl.RevalReserv]/Share (Rs.)12.4711.7211.4311.0310.52
Revenue From Operations / Share (Rs.)37.1436.9225.8143.0045.45
PBDIT / Share (Rs.)1.911.531.461.681.83
PBIT / Share (Rs.)1.711.291.191.371.54
PBT / Share (Rs.)0.990.650.580.740.77
Net Profit / Share (Rs.)0.750.480.400.550.58
PBDIT Margin (%)5.144.135.643.914.03
PBIT Margin (%)4.593.504.593.193.37
PBT Margin (%)2.681.772.271.731.71
Net Profit Margin (%)2.021.301.571.291.28
Return on Networth / Equity (%)6.034.103.555.045.52
Return on Capital Employeed (%)13.6010.6510.2911.6713.61
Return On Assets (%)3.642.382.042.803.29
Long Term Debt / Equity (X)0.010.030.000.050.06
Total Debt / Equity (X)0.570.630.620.530.58
Asset Turnover Ratio (%)1.821.851.302.292.59
Current Ratio (X)2.242.141.971.962.09
Quick Ratio (X)1.331.311.411.591.42
Inventory Turnover Ratio (X)4.585.675.7210.227.85
Dividend Payout Ratio (NP) (%)0.000.000.000.009.54
Dividend Payout Ratio (CP) (%)0.000.000.000.006.32
Earning Retention Ratio (%)0.000.000.000.0090.46
Cash Earning Retention Ratio (%)0.000.000.000.0093.68
Interest Coverage Ratio (X)2.702.402.432.672.42
Interest Coverage Ratio (Post Tax) (X)2.061.761.681.881.77
Enterprise Value (Cr.)36.4540.5936.0421.2524.04
EV / Net Operating Revenue (X)0.720.811.030.360.39
EV / EBITDA (X)14.0819.6218.269.319.68
MarketCap / Net Operating Revenue (X)0.540.620.770.230.25
Retention Ratios (%)0.000.000.000.0090.45
Price / BV (X)1.631.961.740.921.12
Price / Net Operating Revenue (X)0.540.620.770.230.25
EarningsYield0.030.020.020.050.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Narmada Agrobase Ltd as of November 22, 2024 is: 6.26

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 22, 2024, Narmada Agrobase Ltd is Overvalued by 60.63% compared to the current share price 15.90

Intrinsic Value of Narmada Agrobase Ltd as of November 22, 2024 is: 5.90

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 22, 2024, Narmada Agrobase Ltd is Overvalued by 62.89% compared to the current share price 15.90

Last 5 Year EPS CAGR: -5.81%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (42.34 cr) and profit (0.66 cr) over the years.
  1. The stock has a low average ROCE of 7.87%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 118.38, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 125.87, which may not be favorable.
  4. The company has higher borrowings (8.98) compared to reserves (2.06), 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 Narmada Agrobase Ltd:
    1. Net Profit Margin: 2.02%
      • 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: 13.6% (Industry Average ROCE: 12.56%)
      • 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%: 6.03% (Industry Average ROE: 10.34%)
      • 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): 2.06
      • 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: 1.33
      • 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: 19.5 (Industry average Stock P/E: 32.18)
      • 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: 0.57
      • 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

Narmada Agrobase Ltd. is a Public Limited Listed company incorporated on 29/01/2013 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L15494GJ2013PLC073468 and registration number is 073468. Currently Company is involved in the business activities of Manufacture of cattle feed. Company’s Total Operating Revenue is Rs. 34.97 Cr. and Equity Capital is Rs. 13.55 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Animal/Shrimp Feed613/P-1 IJ, Pura (Jethaji) Dhanpura Road, Mehsana Gujarat 384421infonarmadaagrobase@gmail.com
http://www.narmadaagrobase.com
Management
NamePosition Held
Mr. Neerajkumar Sureshchandra AgrawalManaging Director
Mr. Suresh Chandra GuptaWhole Time Director
Ms. Pooja AidasaniInd. Non-Executive Director
Mr. Ganesh Bhavarlal PrajapatiInd. Non-Executive Director
Mrs. Nidhi Dineshbhai PatelInd. Non-Executive Director
Mr. Gaurav Dineshkumar AgarwalInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Narmada Agrobase Ltd?

The latest intrinsic value of Narmada Agrobase Ltd as on 22 November 2024 is ₹6.26, which is 60.63% lower than the current market price of ₹15.90.

What is the Market Cap of Narmada Agrobase Ltd?

The Market Cap of Narmada Agrobase Ltd is 59.5 Cr..

What is the current Stock Price of Narmada Agrobase Ltd as on 22 November 2024?

The current stock price of Narmada Agrobase Ltd as on 22 November 2024 is ₹15.9.

What is the High / Low of Narmada Agrobase Ltd stocks in FY 2024?

In FY 2024, the High / Low of Narmada Agrobase Ltd stocks is 26.5/13.8.

What is the Stock P/E of Narmada Agrobase Ltd?

The Stock P/E of Narmada Agrobase Ltd is 19.5.

What is the Book Value of Narmada Agrobase Ltd?

The Book Value of Narmada Agrobase Ltd is 5.06.

What is the Dividend Yield of Narmada Agrobase Ltd?

The Dividend Yield of Narmada Agrobase Ltd is 0.00 %.

What is the ROCE of Narmada Agrobase Ltd?

The ROCE of Narmada Agrobase Ltd is 8.79 %.

What is the ROE of Narmada Agrobase Ltd?

The ROE of Narmada Agrobase Ltd is 6.22 %.

What is the Face Value of Narmada Agrobase Ltd?

The Face Value of Narmada Agrobase 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 Narmada Agrobase 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