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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

Subros Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:02 pm

Market Cap 3,955 Cr.
Current Price 606
High / Low827/420
Stock P/E30.7
Book Value 156
Dividend Yield0.30 %
ROCE16.3 %
ROE10.6 %
Face Value 2.00
PEG Ratio10.78

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

View Share Price Target for Subros Ltd

Competitors of Subros 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 Subros Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales660480529548681709695655748693813732832
Expenses596454495508634665655621697646743673755
Operating Profit64273540474340345147706077
OPM %10%6%7%7%7%6%6%5%7%7%9%8%9%
Other Income3520224862374
Interest3342212222344
Depreciation24242626272728282827292832
Profit before tax405812211815122620423445
Tax %34%36%34%35%20%34%33%33%31%32%36%21%32%
Net Profit2635817121081814272730
EPS in Rs4.020.510.761.162.551.791.491.272.802.084.104.124.66

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
Sales1,2671,1671,1921,2981,5351,9132,1241,9931,7962,2392,8063,071
Expenses1,1451,0351,0551,1461,3671,7031,8961,8041,6422,0892,6382,816
Operating Profit122132137152168210229189154149168254
OPM %10%11%11%12%11%11%11%9%9%7%6%8%
Other Income11212-2466621192015
Interest36373942484142361611712
Depreciation737779878892799092102110117
Profit before tax24202026882114124564571141
Tax %17%-5%0%9%-63%26%33%32%16%28%32%31%
Net Profit202120241361768547324898
EPS in Rs3.383.473.343.992.2010.1011.6913.007.264.987.3514.96
Dividend Payout %21%20%21%20%23%11%11%6%10%14%14%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)5.00%-4.76%20.00%-45.83%369.23%24.59%11.84%-44.71%-31.91%50.00%104.17%
Change in YoY Net Profit Growth (%)0.00%-9.76%24.76%-65.83%415.06%-344.64%-12.75%-56.55%12.79%81.91%54.17%

Subros Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:8%
3 Years:20%
TTM:10%
Compounded Profit Growth
10 Years:17%
5 Years:4%
3 Years:27%
TTM:92%
Stock Price CAGR
10 Years:24%
5 Years:20%
3 Years:22%
1 Year:41%
Return on Equity
10 Years:8%
5 Years:7%
3 Years:7%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121213131313131313
Reserves2742903053233353926677397828118549431,002
Borrowings350414420390404385244155523319516
Other Liabilities245214236276373508456482602648657690753
Total Liabilities8819299731,0011,1251,2971,3801,3881,4491,5051,5431,6511,784
Fixed Assets446484537563497670690765745726723745769
CWIP10710388541499086665461868037
Investments000012215525530
Other Assets328342348384477536603555646712709821948
Total Assets8819299731,0011,1251,2971,3801,3881,4491,5051,5431,6511,784

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17796141151111315100239154151141165
Cash from Investing Activity +-135-109-94-69-75-231-126-93-58-100-145-91
Cash from Financing Activity +-4214-48-82-35-7217-148-68-534-65
Net Cash Flow-01-1-0113-8-328-1-18

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-228.00-282.00-283.00-238.00-236.00-175.00-15.0034.00102.00116.00149.00249.00

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 Days131924283131293542372734
Inventory Days778078737066616180705760
Days Payable5750495482112961001301078381
Cash Conversion Cycle3350524719-16-6-4-9-1213
Working Capital Days150-2-7-21-7-7-12-7-47
ROCE %10%8%8%9%12%16%19%13%8%7%9%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters36.79%36.79%36.79%36.79%36.79%36.79%36.79%36.79%36.79%36.79%36.79%36.79%
FIIs0.57%0.60%0.70%0.72%0.73%0.62%32.62%32.59%32.74%33.35%32.83%33.22%
DIIs11.69%12.24%12.40%12.76%13.00%13.15%13.30%12.46%10.96%9.48%9.96%10.40%
Public50.95%50.38%50.11%49.73%49.48%49.43%17.28%18.15%19.51%20.38%20.42%19.60%
No. of Shareholders25,97624,23025,48723,35122,52122,57722,38132,36938,40248,33753,98146,567

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Kotak Multicap Fund1,667,0291.1290.331,098,9262024-11-2351.7%
Canara Robeco Small Cap Fund1,098,9260.6559.551,098,9262024-11-230%
Nippon India Small Cap Fund985,0000.1253.371,098,9262024-11-23-10.37%
UTI Small Cap Fund808,2471.2143.791,098,9262024-11-23-26.45%
UTI Transportation and Logistic Fund694,2571.3737.621,098,9262024-11-23-36.82%
Kotak Multi Asset Allocation Fund353,0000.4119.131,098,9262024-11-23-67.88%
Kotak Consumption Fund155,0001.948.41,098,9262024-11-23-85.9%
Sundaram ELSS Tax Saver Fund120,6290.556.541,098,9262024-11-23-89.02%
Bandhan Transportation and Logistics Fund80,0001.124.331,098,9262024-11-23-92.72%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)14.967.354.987.2613.00
Diluted EPS (Rs.)14.967.354.987.2613.00
Cash EPS (Rs.)32.8124.2320.6321.2826.86
Book Value[Excl.RevalReserv]/Share (Rs.)146.54132.94126.27121.88115.28
Book Value[Incl.RevalReserv]/Share (Rs.)146.54132.94126.27121.88115.28
Revenue From Operations / Share (Rs.)470.69430.18343.16275.26305.48
PBDIT / Share (Rs.)41.2028.7924.2625.1532.10
PBIT / Share (Rs.)23.3411.888.5711.0318.25
PBT / Share (Rs.)21.5510.846.908.5419.01
Net Profit / Share (Rs.)14.957.334.947.1613.02
NP After MI And SOA / Share (Rs.)14.967.354.987.2613.00
PBDIT Margin (%)8.756.697.079.1310.50
PBIT Margin (%)4.952.762.494.005.97
PBT Margin (%)4.572.522.013.106.22
Net Profit Margin (%)3.171.701.432.604.26
NP After MI And SOA Margin (%)3.171.701.452.634.25
Return on Networth / Equity (%)10.215.523.945.9611.28
Return on Capital Employeed (%)14.858.396.378.4014.68
Return On Assets (%)5.913.102.153.266.11
Long Term Debt / Equity (X)0.000.010.010.030.03
Total Debt / Equity (X)0.000.010.030.030.14
Asset Turnover Ratio (%)1.921.841.521.271.44
Current Ratio (X)1.291.101.101.070.93
Quick Ratio (X)0.680.550.590.590.53
Inventory Turnover Ratio (X)6.396.525.625.065.83
Dividend Payout Ratio (NP) (%)6.689.5214.0511.019.99
Dividend Payout Ratio (CP) (%)3.042.883.383.744.84
Earning Retention Ratio (%)93.3290.4885.9588.9990.01
Cash Earning Retention Ratio (%)96.9697.1296.6296.2695.16
Interest Coverage Ratio (X)23.0327.7114.5010.105.76
Interest Coverage Ratio (Post Tax) (X)9.368.053.953.882.20
Enterprise Value (Cr.)3237.281882.722044.871917.01864.51
EV / Net Operating Revenue (X)1.050.670.911.070.43
EV / EBITDA (X)12.0510.0312.9211.684.13
MarketCap / Net Operating Revenue (X)1.090.690.951.120.42
Retention Ratios (%)93.3190.4785.9488.9890.00
Price / BV (X)3.512.262.602.531.12
Price / Net Operating Revenue (X)1.090.690.951.120.42
EarningsYield0.020.020.010.020.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Subros Ltd as of November 25, 2024 is: 509.18

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, Subros Ltd is Overvalued by 15.98% compared to the current share price 606.00

Intrinsic Value of Subros Ltd as of November 25, 2024 is: 523.68

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, Subros Ltd is Overvalued by 13.58% compared to the current share price 606.00

Last 5 Year EPS CAGR: 2.85%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -4.50, which is a positive sign.
  2. The company has higher reserves (593.62 cr) compared to borrowings (222.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.42 cr) and profit (60.92 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 15.00, 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 Subros Ltd:
    1. Net Profit Margin: 3.17%
      • 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: 14.85% (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%: 10.21% (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): 9.36
      • 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: 0.68
      • 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: 30.7 (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: 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

Subros Ltd. is a Public Limited Listed company incorporated on 14/02/1985 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1985PLC020134 and registration number is 020134. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 2238.64 Cr. and Equity Capital is Rs. 13.05 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Equipment OthersLGF, World Trade Centre, Barakhamba Lane, New Delhi Delhi 110001kamal.samtani@subros.com
http://www.subros.com
Management
NamePosition Held
Mr. Ramesh SuriChairman Emeritus
Ms. Shradha SuriChairperson & Managing Director
Mr. Parmod Kumar DuggalExecutive Director & CEO
Dr. Jyotsna SuriDirector
Mr. Tomoaki YoshimoriDirector
Mr. Arvind KapurDirector
Mr. Naohisa KuriyamaDirector
Mr. Hisashi TakeuchiDirector
Mr. Yasuhiro IidaAlternate Director
Justice Arjan Kumar SikriIndependent Director
Mr. Deepa Gopalan WadhwaIndependent Director
Mr. Asoka LavasaIndependent Director
Mr. Vanaja Narayanan SarnaIndependent Director
Mr. Smita Piyush MankadIndependent Director

FAQ

What is the latest intrinsic value of Subros Ltd?

The latest intrinsic value of Subros Ltd as on 25 November 2024 is ₹509.18, which is 15.98% lower than the current market price of ₹606.00.

What is the Market Cap of Subros Ltd?

The Market Cap of Subros Ltd is 3,955 Cr..

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

The current stock price of Subros Ltd as on 25 November 2024 is 606.

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

In FY 2024, the High / Low of Subros Ltd stocks is 827/420.

What is the Stock P/E of Subros Ltd?

The Stock P/E of Subros Ltd is 30.7.

What is the Book Value of Subros Ltd?

The Book Value of Subros Ltd is 156.

What is the Dividend Yield of Subros Ltd?

The Dividend Yield of Subros Ltd is 0.30 %.

What is the ROCE of Subros Ltd?

The ROCE of Subros Ltd is 16.3 %.

What is the ROE of Subros Ltd?

The ROE of Subros Ltd is 10.6 %.

What is the Face Value of Subros Ltd?

The Face Value of Subros 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 Subros 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