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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

Rossell India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:10 pm

Market Cap 474 Cr.
Current Price 76.0
High / Low187/70.6
Stock P/E20.5
Book Value 33.4
Dividend Yield0.39 %
ROCE6.42 %
ROE4.58 %
Face Value 2.00
PEG Ratio-2.90

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

View Share Price Target for Rossell India Ltd

Competitors of Rossell India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Goodricke Group Ltd 639 Cr. 296357/159 1450.00 %14.8 %25.0 % 10.0
Diana Tea Company Ltd 57.6 Cr. 38.453.8/23.5 48.90.00 %3.15 %0.32 % 5.00
Bengal Tea & Fabrics Ltd 159 Cr. 177227/80.2 1220.56 %1.98 %2.13 % 10.0
Bansisons Tea Industries Ltd 3.55 Cr. 5.618.90/3.34 9.350.00 %2.66 %2.66 % 10.0
B&A Ltd 162 Cr. 523734/29711.8 4960.00 %8.52 %5.55 % 10.0
Industry Average8,778.67 Cr440.4428.79254.140.30%8.63%12.47%6.84

All Competitor Stocks of Rossell India Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales67659584557011997687011811168
Expenses825461726758729180638310380
Operating Profit-16113312-1212476-128358-12
OPM %-24%17%35%14%-21%17%40%6%-18%11%30%7%-18%
Other Income1711201111112
Interest3333233323433
Depreciation3333334334433
Profit before tax-2113286-146420-171293-17
Tax %-7%10%11%13%13%11%13%13%15%11%15%27%15%
Net Profit-2311256-125360-141242-14
EPS in Rs-6.233.086.851.54-3.371.439.880.09-3.840.356.480.50-3.83

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales106141140161163198249309322299354367
Expenses77104120137159185228260253254301328
Operating Profit29372024413215069455338
OPM %28%26%14%15%2%7%8%16%22%15%15%10%
Other Income154353203-01145
Interest297767111216101214
Depreciation34101091010912121414
Profit before tax3929612-8-203241333116
Tax %22%29%30%21%83%115%-46%42%20%10%12%16%
Net Profit3020410-1011933302713
EPS in Rs8.255.561.092.61-0.360.070.165.058.978.117.263.50
Dividend Payout %6%9%46%19%-56%0%0%4%3%4%6%9%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-33.33%-80.00%150.00%-110.00%100.00%1800.00%73.68%-9.09%-10.00%-51.85%
Change in YoY Net Profit Growth (%)0.00%-46.67%230.00%-260.00%210.00%1700.00%-1726.32%-82.78%-0.91%-41.85%

Rossell India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:8%
3 Years:4%
TTM:-2%
Compounded Profit Growth
10 Years:-3%
5 Years:87%
3 Years:-27%
TTM:236%
Stock Price CAGR
10 Years:11%
5 Years:27%
3 Years:27%
1 Year:-41%
Return on Equity
10 Years:6%
5 Years:10%
3 Years:8%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:45 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7777777777888
Reserves187205203211162161162179209239279289201
Borrowings585855728110013019517715316219434
Other Liabilities18242629262939524349668125
Total Liabilities271294292318277298338433436448514572268
Fixed Assets181197199212174176172166242234250243139
CWIP02126815921195144
Investments61684946211819191919344455
Other Assets29284357779613215616418622427070
Total Assets271294292318277298338433436448514572268

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2124-27-4-3-5283534255
Cash from Investing Activity +-74-247-185-8-13-82-4-0-40-24
Cash from Financing Activity +48-3-512191953-33-331420
Net Cash Flow-5-3-022-31-0-11-11

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-29.00-21.00-35.00-48.00-77.00-87.00-109.00-145.00-108.00-108.00-109.00-156.00

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 Days24946464127273133404963
Inventory Days607557514421489604582546
Days Payable99110939745116106133
Cash Conversion Cycle2494646549474448354478528526475
Working Capital Days-17-2710265482106103135161162187
ROCE %13%13%4%6%-2%2%4%13%15%9%10%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.91%74.91%74.91%74.91%74.80%74.80%74.80%74.80%74.80%74.80%74.80%74.81%
FIIs0.47%1.46%1.51%1.61%1.48%1.49%1.48%1.47%1.48%1.49%1.48%1.52%
DIIs0.24%1.24%1.77%1.77%2.29%2.57%3.06%3.15%3.15%3.15%3.15%2.73%
Public24.37%22.39%21.81%21.72%21.42%21.15%20.67%20.58%20.58%20.56%20.57%20.96%
No. of Shareholders16,97514,42812,79913,43714,56314,37613,42613,93316,54416,07416,34619,259

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Quant Active Fund912,7000.6845.51912,7002024-11-210%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 18
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)3.387.488.188.970.07
Diluted EPS (Rs.)3.387.388.188.970.07
Cash EPS (Rs.)7.0310.9811.5712.222.70
Book Value[Excl.RevalReserv]/Share (Rs.)78.7576.1567.1458.8545.94
Book Value[Incl.RevalReserv]/Share (Rs.)78.7576.1567.1458.8545.94
Revenue From Operations / Share (Rs.)97.2793.8081.4987.8254.06
PBDIT / Share (Rs.)11.6115.0513.4419.204.15
PBIT / Share (Rs.)7.9611.4110.0515.951.52
PBT / Share (Rs.)4.058.297.3311.16-0.43
Net Profit / Share (Rs.)3.387.338.188.970.06
NP After MI And SOA / Share (Rs.)3.387.338.188.970.06
PBDIT Margin (%)11.9416.0416.4921.857.68
PBIT Margin (%)8.1812.1612.3318.152.80
PBT Margin (%)4.168.838.9912.70-0.81
Net Profit Margin (%)3.477.8110.0310.210.12
NP After MI And SOA Margin (%)3.477.8110.0310.210.12
Return on Networth / Equity (%)4.289.6312.1815.240.14
Return on Capital Employeed (%)9.8114.0813.4523.123.11
Return On Assets (%)2.225.386.697.540.08
Long Term Debt / Equity (X)0.010.050.100.160.05
Total Debt / Equity (X)0.650.560.620.770.55
Asset Turnover Ratio (%)0.670.730.670.000.69
Current Ratio (X)1.101.131.030.870.67
Quick Ratio (X)0.410.390.320.260.23
Inventory Turnover Ratio (X)0.680.670.570.000.84
Dividend Payout Ratio (NP) (%)11.843.983.662.220.00
Dividend Payout Ratio (CP) (%)5.682.662.591.630.00
Earning Retention Ratio (%)88.1696.0296.3497.780.00
Cash Earning Retention Ratio (%)94.3297.3497.4198.370.00
Interest Coverage Ratio (X)3.084.824.944.292.12
Interest Coverage Ratio (Post Tax) (X)1.933.353.343.071.03
Enterprise Value (Cr.)1538.011073.06866.31553.07427.13
EV / Net Operating Revenue (X)4.193.032.901.722.15
EV / EBITDA (X)35.1318.9117.567.8528.03
MarketCap / Net Operating Revenue (X)3.672.582.391.201.69
Retention Ratios (%)88.1596.0196.3397.770.00
Price / BV (X)4.543.182.901.791.99
Price / Net Operating Revenue (X)3.672.582.391.201.69
EarningsYield0.010.030.040.080.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Rossell India Ltd as of November 25, 2024 is: 31.48

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, Rossell India Ltd is Overvalued by 58.58% compared to the current share price 76.00

Intrinsic Value of Rossell India Ltd as of November 25, 2024 is: 29.25

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, Rossell India Ltd is Overvalued by 61.51% compared to the current share price 76.00

Last 5 Year EPS CAGR: -7.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (206.69 cr) compared to borrowings (113.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (234.08 cr) and profit (19.08 cr) over the years.
  1. The stock has a low average ROCE of 7.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 81.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 329.75, 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 Rossell India Ltd:
    1. Net Profit Margin: 3.47%
      • 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: 9.81% (Industry Average ROCE: 8.63%)
      • 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%: 4.28% (Industry Average ROE: 12.47%)
      • 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): 1.93
      • 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: 20.5 (Industry average Stock P/E: 28.79)
      • 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: 0.65
      • 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

Rossell India Ltd. is a Public Limited Listed company incorporated on 10/06/1994 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L01132WB1994PLC063513 and registration number is 063513. Currently Company is involved in the business activities of Processing and blending of tea including manufacture of instant tea. Company’s Total Operating Revenue is Rs. 299.03 Cr. and Equity Capital is Rs. 7.34 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aerospace & DefenseJindal Towers, Block �B�, 4th Floor, Kolkata West Bengal 700017nk.khurana@rosselltea.com
http://www.rossellindia.com
Management
NamePosition Held
Mr. H M GuptaExecutive Chairman & CEO
Mr. R M GuptaWhole Time Director
Mr. N K KhuranaDirector - Finance
Ms. N PalchoudhuriInd. Non-Executive Director
Mr. K KatyalInd. Non-Executive Director
Mr. R BhatnagarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Rossell India Ltd?

The latest intrinsic value of Rossell India Ltd as on 25 November 2024 is ₹31.48, which is 58.58% lower than the current market price of ₹76.00.

What is the Market Cap of Rossell India Ltd?

The Market Cap of Rossell India Ltd is 474 Cr..

What is the current Stock Price of Rossell India Ltd as on 25 November 2024?

The current stock price of Rossell India Ltd as on 25 November 2024 is 76.0.

What is the High / Low of Rossell India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Rossell India Ltd stocks is 187/70.6.

What is the Stock P/E of Rossell India Ltd?

The Stock P/E of Rossell India Ltd is 20.5.

What is the Book Value of Rossell India Ltd?

The Book Value of Rossell India Ltd is 33.4.

What is the Dividend Yield of Rossell India Ltd?

The Dividend Yield of Rossell India Ltd is 0.39 %.

What is the ROCE of Rossell India Ltd?

The ROCE of Rossell India Ltd is 6.42 %.

What is the ROE of Rossell India Ltd?

The ROE of Rossell India Ltd is 4.58 %.

What is the Face Value of Rossell India Ltd?

The Face Value of Rossell India 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 Rossell India 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