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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 509162 | NSE: INDAG

Indag Rubber Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 8:23 pm

Market Cap 495 Cr.
Current Price 189
High / Low308/128
Stock P/E46.8
Book Value 87.6
Dividend Yield1.59 %
ROCE%
ROE%
Face Value 2.00
PEG Ratio-17.76

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

View Share Price Target for Indag Rubber Ltd

Competitors of Indag Rubber Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Indag Rubber Ltd 495 Cr. 189308/12846.8 87.61.59 %%% 2.00
Eastern Treads Ltd 23.4 Cr. 44.851.4/31.0 22.80.00 %0.62 %% 10.0
Dolfin Rubbers Ltd 199 Cr. 198290/11637.6 31.10.00 %19.1 %17.9 % 10.0
Vikas Ecotech Ltd 571 Cr. 3.225.65/3.0036.2 3.100.00 %4.53 %2.07 % 1.00
Modi Rubber Ltd 318 Cr. 127157/79.114.6 2790.00 %3.72 %1.97 % 10.0
Industry Average826.57 Cr553.3840.55114.930.41%8.91%8.07%6.88

All Competitor Stocks of Indag Rubber Ltd

Quarterly Result

MonthJun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales26.7045.8952.5845.7431.3045.4745.9344.2364.1762.3361.3255.5762.09
Expenses26.5940.9443.9643.0032.2444.6245.8944.0759.5058.3958.2054.6660.64
Operating Profit0.114.958.622.74-0.940.850.040.164.673.943.120.911.45
OPM %0.41%10.79%16.39%5.99%-3.00%1.87%0.09%0.36%7.28%6.32%5.09%1.64%2.34%
Other Income0.662.26-12.090.400.630.793.631.692.342.352.512.374.16
Interest0.370.060.080.060.050.050.040.030.140.250.170.250.25
Depreciation0.930.850.880.820.780.811.571.031.291.351.381.621.66
Profit before tax-0.536.30-4.432.26-1.140.782.060.795.584.694.081.413.70
Tax %-33.96%24.92%-26.19%25.66%-30.70%58.97%7.77%25.32%22.40%25.37%26.23%30.50%16.22%
Net Profit-0.354.74-3.271.69-0.780.341.900.604.343.503.000.983.10
EPS in Rs-0.171.80-1.270.60-0.340.190.710.231.781.361.220.561.34

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2024TTM
Sales185168173187170167251241
Expenses155148158171154167234232
Operating Profit30211516160179
OPM %16%12%9%9%9%0%7%4%
Other Income6755-971011
Interest12200011
Depreciation34443456
Profit before tax32221417432014
Tax %31%27%22%20%21%18%24%
Net Profit22161114321611
EPS in Rs8.336.014.105.120.970.796.154.48
Dividend Payout %29%40%59%47%248%304%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-2022
YoY Net Profit Growth (%)-27.27%-31.25%27.27%-78.57%-33.33%
Change in YoY Net Profit Growth (%)0.00%-3.98%58.52%-105.84%45.24%

Indag Rubber Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2017-2018 to 2021-2022.

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:14%
TTM:%
Compounded Profit Growth
10 Years:%
5 Years:8%
3 Years:12%
TTM:%
Stock Price CAGR
10 Years:2%
5 Years:19%
3 Years:33%
1 Year:35%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2024Sep 2024
Equity Capital55555555
Reserves171182186182192201221225
Borrowings15131211001010
Other Liabilities3529272839273534
Total Liabilities226228230226237234271275
Fixed Assets4946444125456462
CWIP0011019100
Investments90104967991112122129
Other Assets87788995101758583
Total Assets226228230226237234271275

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2024
Cash from Operating Activity +81701015818
Cash from Investing Activity +-15-8103-9-3-11
Cash from Financing Activity +9-10-10-15-5-7-4
Net Cash Flow2-1-1-21-13

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2024
Free Cash Flow15.008.003.005.0016.000.007.00

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 2024
Debtor Days58637374634937
Inventory Days14011112111112211988
Days Payable62494648525645
Cash Conversion Cycle13612514713713411380
Working Capital Days10010612712612810372
ROCE %12%8%9%9%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters73.34%73.34%73.34%73.34%73.34%73.34%73.34%73.34%73.34%73.34%73.34%73.34%
FIIs2.48%2.48%2.48%2.48%2.36%2.36%2.08%1.21%1.21%1.00%0.64%0.00%
DIIs0.58%0.58%0.58%0.58%0.58%1.14%1.14%1.14%0.00%0.00%0.00%0.00%
Public23.60%23.60%23.60%23.59%23.72%23.16%23.44%24.31%25.45%25.66%26.01%26.65%
No. of Shareholders6,7536,8866,9757,0127,1016,7297,0157,1357,4347,7908,58913,013

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE / ROE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)6.150.790.975.134.09
Diluted EPS (Rs.)6.150.790.975.134.09
Cash EPS (Rs.)7.962.562.526.985.71
Book Value[Excl.RevalReserv]/Share (Rs.)87.4678.6876.7172.6273.88
Book Value[Incl.RevalReserv]/Share (Rs.)87.4678.6876.7172.6273.88
Revenue From Operations / Share (Rs.)95.6963.5964.7072.7765.92
PBDIT / Share (Rs.)10.082.707.738.917.54
PBIT / Share (Rs.)8.061.116.487.206.06
PBT / Share (Rs.)7.791.041.336.615.43
Net Profit / Share (Rs.)5.940.961.275.274.23
NP After MI And SOA / Share (Rs.)6.150.780.965.134.09
PBDIT Margin (%)10.534.2411.9412.2311.43
PBIT Margin (%)8.421.7310.019.889.19
PBT Margin (%)8.141.632.059.088.23
Net Profit Margin (%)6.201.511.967.236.41
NP After MI And SOA Margin (%)6.431.241.497.046.20
Return on Networth / Equity (%)7.141.001.287.185.63
Return on Capital Employeed (%)8.691.378.299.277.61
Return On Assets (%)5.940.881.075.954.67
Long Term Debt / Equity (X)0.000.000.000.050.05
Total Debt / Equity (X)0.000.000.000.050.05
Asset Turnover Ratio (%)0.000.700.750.840.76
Current Ratio (X)3.524.333.244.394.61
Quick Ratio (X)2.092.612.092.712.77
Inventory Turnover Ratio (X)0.003.232.763.373.34
Dividend Payout Ratio (NP) (%)38.99304.0293.4991.7058.62
Dividend Payout Ratio (CP) (%)29.36100.7240.7368.7643.05
Earning Retention Ratio (%)61.01-204.026.518.3041.38
Cash Earning Retention Ratio (%)70.64-0.7259.2731.2456.95
Interest Coverage Ratio (X)37.4442.1076.3315.3011.91
Interest Coverage Ratio (Post Tax) (X)23.0614.5761.0910.057.68
Enterprise Value (Cr.)352.97160.58236.00146.66287.81
EV / Net Operating Revenue (X)1.410.961.390.761.66
EV / EBITDA (X)13.3422.6611.636.2714.54
MarketCap / Net Operating Revenue (X)1.420.971.390.721.62
Retention Ratios (%)61.00-204.026.508.2941.37
Price / BV (X)1.570.781.190.731.47
Price / Net Operating Revenue (X)1.420.971.390.721.62
EarningsYield0.040.010.010.090.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Indag Rubber Ltd as of November 23, 2024 is: 624.73

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 23, 2024, Indag Rubber Ltd is Undervalued by 230.54% compared to the current share price 189.00

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

Intrinsic Value of Indag Rubber Ltd as of November 23, 2024 is: 608.27

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 23, 2024, Indag Rubber Ltd is Undervalued by 221.84% compared to the current share price 189.00

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

Last 5 Year EPS CAGR: -2.64%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (195.00 cr) compared to borrowings (8.88 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (192.75 cr) and profit (15.75 cr) over the years.
  1. The stock has a low average ROCE of 5.57%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 108.86, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 124.57, 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 Indag Rubber Ltd:
    1. Net Profit Margin: 6.2%
      • 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: 8.69% (Industry Average ROCE: 8.91%)
      • 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%: 7.14% (Industry Average ROE: 8.07%)
      • 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): 23.06
      • 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: 2.09
      • 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: 46.8 (Industry average Stock P/E: 40.55)
      • 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

Indag Rubber Ltd. is a Public Limited Listed company incorporated on 02/06/1978 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1978PLC009038 and registration number is 009038. Currently Company is involved in the business activities of Manufacture of rubber plates, sheets, strips, rods, tubes, pipes, hoses and profile -shapes etc.. Company’s Total Operating Revenue is Rs. 166.93 Cr. and Equity Capital is Rs. 5.25 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rubber Processing/Rubber Products11, Khemka House, Community Centre, New Delhi Delhi 110017info@indagrubber.com
http://www.indagrubber.com
Management
NamePosition Held
Mr. Nand Lal KhemkaChairman & Managing Director
Mr. Vijay ShrinivasWholeTime Director & CEO
Mr. Nikhil KhannaDirector
Mr. Raj Kumar AgrawalDirector
Ms. Ranjana AgarwalDirector
Mr. Shiv Vikram KhemkaDirector
Mr. Sushil Kumar DalmiaDirector
Mr. Uday Harsh KhemkaDirector

FAQ

What is the latest intrinsic value of Indag Rubber Ltd?

The latest intrinsic value of Indag Rubber Ltd as on 23 November 2024 is ₹624.73, which is 230.54% higher than the current market price of ₹189.00.

What is the Market Cap of Indag Rubber Ltd?

The Market Cap of Indag Rubber Ltd is 495 Cr..

What is the current Stock Price of Indag Rubber Ltd as on 23 November 2024?

The current stock price of Indag Rubber Ltd as on 23 November 2024 is 189.

What is the High / Low of Indag Rubber Ltd stocks in FY 2024?

In FY 2024, the High / Low of Indag Rubber Ltd stocks is 308/128.

What is the Stock P/E of Indag Rubber Ltd?

The Stock P/E of Indag Rubber Ltd is 46.8.

What is the Book Value of Indag Rubber Ltd?

The Book Value of Indag Rubber Ltd is 87.6.

What is the Dividend Yield of Indag Rubber Ltd?

The Dividend Yield of Indag Rubber Ltd is 1.59 %.

What is the ROCE of Indag Rubber Ltd?

The ROCE of Indag Rubber Ltd is %.

What is the ROE of Indag Rubber Ltd?

The ROE of Indag Rubber Ltd is %.

What is the Face Value of Indag Rubber Ltd?

The Face Value of Indag Rubber Ltd is 2.00.

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 Indag Rubber 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