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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

Penta Gold Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: September 27, 2024, 6:34 pm

Market Cap 11.6 Cr.
Current Price 9.15
High / Low/
Stock P/E
Book Value 23.1
Dividend Yield0.00 %
ROCE1.27 %
ROE21.2 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Penta Gold Ltd

Competitors of Penta Gold Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thangamayil Jewellery Ltd 5,467 Cr. 1,9932,650/1,14057.3 1880.50 %20.3 %28.0 % 10.0
Silgo Retail Ltd 70.0 Cr. 37.853.4/19.919.5 30.10.00 %10.1 %7.43 % 10.0
Shubhlaxmi Jewel Art Ltd 21.9 Cr. 24.993.9/24.018.0 25.70.00 %9.44 %6.31 % 10.0
Renaissance Global Ltd 1,681 Cr. 174196/87.422.7 1240.00 %8.25 %6.51 % 2.00
Rajesh Exports Ltd 6,912 Cr. 234403/231181 5260.00 %3.23 %2.24 % 1.00
Industry Average4,184.60 Cr348.73191.93125.500.06%7.25%11.62%7.88

All Competitor Stocks of Penta Gold Ltd

Quarterly Result

MonthMar 2017
Sales66.54
Expenses66.31
Operating Profit0.23
OPM %0.35%
Other Income2.61
Interest1.38
Depreciation0.04
Profit before tax1.42
Tax %40.14%
Net Profit0.85
EPS in Rs0.93

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Sales241.95225.79239.90367.11556.89153.120.11
Expenses236.62221.62232.70359.62556.06150.412.45
Operating Profit5.334.177.207.490.832.71-2.34
OPM %2.20%1.85%3.00%2.04%0.15%1.77%-2,127.27%
Other Income1.292.881.082.7211.812.310.39
Interest3.634.245.235.167.434.505.62
Depreciation0.180.140.130.100.100.090.08
Profit before tax2.812.672.924.955.110.43-7.65
Tax %36.65%36.70%43.49%39.80%25.05%72.09%-4.97%
Net Profit1.781.691.672.993.830.12-8.02
EPS in Rs3.901.851.832.353.010.09-6.30
Dividend Payout %0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-2022
YoY Net Profit Growth (%)-5.06%-1.18%79.04%28.09%-96.87%-6783.33%
Change in YoY Net Profit Growth (%)0.00%3.87%80.23%-50.95%-124.96%-6686.47%

Penta Gold Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2016-2017 to 2021-2022.

Growth

Compounded Sales Growth
10 Years:%
5 Years:-78%
3 Years:-93%
TTM:-100%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-6269%
Stock Price CAGR
10 Years:%
5 Years:-21%
3 Years:-56%
1 Year:0%
Return on Equity
10 Years:%
5 Years:0%
3 Years:-4%
Last Year:-21%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Equity Capital4.569.139.1312.7312.7312.73
Reserves9.516.768.4321.1324.9725.09
Borrowings33.6446.4850.3665.15128.09121.54
Other Liabilities16.1114.105.3036.94272.11269.88
Total Liabilities63.8276.4773.22135.95437.90429.24
Fixed Assets1.221.080.960.880.790.71
CWIP0.000.000.000.000.000.00
Investments0.000.000.000.000.000.20
Other Assets62.6075.3972.26135.07437.11428.33
Total Assets63.8276.4773.22135.95437.90429.24

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Cash from Operating Activity +6.032.503.032.19-7.34-0.32
Cash from Investing Activity +0.190.170.192.160.160.04
Cash from Financing Activity +-3.03-4.138.83-6.41-4.31-2.54
Net Cash Flow3.19-1.4612.05-2.05-11.48-2.82

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Free Cash Flow-28.31-42.31-43.16-57.66-127.26-118.83-2.34

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Debtor Days52.0557.3630.3839.7198.64385.02
Inventory Days38.3256.4575.3179.32180.09638.24
Days Payable23.6522.506.6035.97179.44648.63
Cash Conversion Cycle66.7291.3199.0983.0699.29374.63
Working Capital Days65.8888.7295.0281.1098.24369.98
ROCE %12.55%12.56%12.11%9.41%3.04%

Financial Efficiency Indicators Chart

No data available for the Shareholding

No data available for the Shareholding Pattern chart.

No data available for the No. of Shareholders chart.

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 22Mar 21Mar 20
FaceValue10.0010.0010.00
Basic EPS (Rs.)-6.390.063.01
Diluted EPS (Rs.)-6.390.063.01
Cash EPS (Rs.)-1.970.123.09
Book Value[Excl.RevalReserv]/Share (Rs.)23.0029.6829.62
Book Value[Incl.RevalReserv]/Share (Rs.)23.0029.6829.62
Revenue From Operations / Share (Rs.)0.08120.33437.66
PBDIT / Share (Rs.)-1.613.819.70
PBIT / Share (Rs.)-6.033.749.62
PBT / Share (Rs.)-6.090.303.95
Net Profit / Share (Rs.)-6.390.053.01
NP After MI And SOA / Share (Rs.)-6.390.053.01
PBDIT Margin (%)-1948.783.162.21
PBIT Margin (%)-7305.393.102.19
PBT Margin (%)-7382.790.250.90
Net Profit Margin (%)-7741.210.040.68
NP After MI And SOA Margin (%)-7741.210.040.68
Return on Networth / Equity (%)-27.770.1910.17
Return on Capital Employeed (%)-24.7512.0331.15
Return On Assets (%)-1.890.010.87
Long Term Debt / Equity (X)0.050.040.04
Total Debt / Equity (X)4.173.213.38
Asset Turnover Ratio (%)0.000.350.00
Current Ratio (X)1.081.101.10
Quick Ratio (X)0.410.420.41
Inventory Turnover Ratio (X)0.000.530.00
Interest Coverage Ratio (X)-25.181.111.71
Interest Coverage Ratio (Post Tax) (X)-99.021.021.52
Enterprise Value (Cr.)414.69237.82153.59
EV / Net Operating Revenue (X)3949.351.550.27
EV / EBITDA (X)-202.6649.0212.45
MarketCap / Net Operating Revenue (X)2787.330.780.07
Price / BV (X)10.003.161.08
Price / Net Operating Revenue (X)2804.880.780.07
EarningsYield-0.020.000.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Penta Gold Ltd as of November 22, 2024 is: 74.93

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, Penta Gold Ltd is Undervalued by 718.91% compared to the current share price 9.15

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Penta Gold Ltd as of November 22, 2024 is: 48.15

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, Penta Gold Ltd is Undervalued by 426.23% compared to the current share price 9.15

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -35.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (254.98 cr) and profit (1.61 cr) over the years.
  1. The stock has a low average ROCE of 7.10%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 114.13, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 116.30, which may not be favorable.
  4. The company has higher borrowings (63.61) compared to reserves (13.70), 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 Penta Gold Ltd:
    1. Net Profit Margin: -7741.21%
      • 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: -24.75% (Industry Average ROCE: 7.25%)
      • 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%: -27.77% (Industry Average ROE: 11.62%)
      • 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): -99.02
      • 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: 0.41
      • 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: 0 (Industry average Stock P/E: 191.93)
      • 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: 4.17
      • 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

Penta Gold Ltd. is a Public Limited Listed company incorporated on 12/03/2012 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51109GJ2012PLC069352 and registration number is 069352. Currently Company is involved in the business activities of Manufacture of jewellery and related articles. Company’s Total Operating Revenue is Rs. 0.11 Cr. and Equity Capital is Rs. 12.73 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Gems, Jewellery & Precious MetalsPenta House, 2224, Ahmedabad Gujarat 380001info@pentagold.in
http://www.pentagold.in
Management
NamePosition Held
Mr. Ketan M ShroffChairman & Managing Director
Mr. Anand B ChaturvediIndependent Director
Mr. Dilip R PatodiaIndependent Director
Ms. Minakshi I SinghIndependent Director

FAQ

What is the latest intrinsic value of Penta Gold Ltd?

The latest intrinsic value of Penta Gold Ltd as on 15 November 2024 is ₹74.93, which is 718.91% higher than the current market price of ₹9.15.

What is the Market Cap of Penta Gold Ltd?

The Market Cap of Penta Gold Ltd is 11.6 Cr..

What is the current Stock Price of Penta Gold Ltd as on 15 November 2024?

The current stock price of Penta Gold Ltd as on 15 November 2024 is ₹9.15.

What is the High / Low of Penta Gold Ltd stocks in FY 2024?

In FY 2024, the High / Low of Penta Gold Ltd stocks is /.

What is the Stock P/E of Penta Gold Ltd?

The Stock P/E of Penta Gold Ltd is .

What is the Book Value of Penta Gold Ltd?

The Book Value of Penta Gold Ltd is 23.1.

What is the Dividend Yield of Penta Gold Ltd?

The Dividend Yield of Penta Gold Ltd is 0.00 %.

What is the ROCE of Penta Gold Ltd?

The ROCE of Penta Gold Ltd is 1.27 %.

What is the ROE of Penta Gold Ltd?

The ROE of Penta Gold Ltd is 21.2 %.

What is the Face Value of Penta Gold Ltd?

The Face Value of Penta Gold 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 Penta Gold 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