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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

Universal Cables Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:17 pm

Market Cap 2,060 Cr.
Current Price 592
High / Low939/380
Stock P/E21.4
Book Value 525
Dividend Yield0.51 %
ROCE10.0 %
ROE6.59 %
Face Value 10.0
PEG Ratio3.59

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

View Share Price Target for Universal Cables Ltd

Competitors of Universal Cables Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindusthan Urban Infrastructure Ltd 373 Cr. 2,5823,550/1,948 2,5850.00 %1.90 %7.09 % 10.0
Dynamic Cables Ltd 2,234 Cr. 922939/33747.8 1380.05 %24.1 %19.3 % 10.0
Cybele Industries Ltd 40.4 Cr. 37.861.0/31.8 46.30.00 %1.56 %0.16 % 10.0
BC Power Controls Ltd 28.6 Cr. 4.096.80/3.61 5.930.00 %4.88 %1.79 % 2.00
Advait Infratech Ltd 1,651 Cr. 1,5292,260/42562.8 1630.10 %39.6 %33.6 % 10.0
Industry Average17,962.22 Cr1,552.7769.54424.740.21%16.21%13.22%8.00

All Competitor Stocks of Universal Cables Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales422278451490594514514591583479494467580
Expenses390249436460546470468548531443471426519
Operating Profit32291630484446435237234161
OPM %8%11%3%6%8%9%9%7%9%8%5%9%11%
Other Income36231814231815173522182334
Interest16161720252224242721222424
Depreciation7666666666666
Profit before tax45291018413532315432143365
Tax %25%26%17%24%24%23%18%21%24%25%17%28%25%
Net Profit3322814312726244124122449
EPS in Rs9.646.292.393.948.977.727.477.0411.836.933.366.9114.00

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8171,1801,4151,5681,2801,8132,2022,0202,030
Expenses7421,0731,2401,4021,1891,6902,0161,8591,873
Operating Profit7510717516691123185162157
OPM %9%9%12%11%7%7%8%8%8%
Other Income525279818878869884
Interest445362776378979196
Depreciation192121232624222425
Profit before tax65841701479099152144120
Tax %-9%2%20%39%25%24%22%25%
Net Profit708313690677511810890
EPS in Rs20.3223.8439.1625.9619.3821.6034.0531.1925.88
Dividend Payout %0%6%5%8%5%7%9%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)18.57%63.86%-33.82%-25.56%11.94%57.33%-8.47%
Change in YoY Net Profit Growth (%)0.00%45.28%-97.68%8.27%37.50%45.39%-65.81%

Universal Cables Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:7%
3 Years:16%
TTM:1%
Compounded Profit Growth
10 Years:%
5 Years:-5%
3 Years:17%
TTM:-5%
Stock Price CAGR
10 Years:28%
5 Years:29%
3 Years:55%
1 Year:15%
Return on Equity
10 Years:%
5 Years:7%
3 Years:7%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:38 pm

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital353535353535353535
Reserves6478009649551,1011,2601,4621,7401,786
Borrowings288394541621609694657771827
Other Liabilities175299310571606770657774935
Total Liabilities1,1441,5271,8512,1832,3512,7582,8103,3203,583
Fixed Assets134122155172187167161200192
CWIP0172170211017
Investments5186347408471,0251,1901,3591,6521,702
Other Assets4927569541,1461,1381,4001,2801,4671,671
Total Assets1,1441,5271,8512,1832,3512,7582,8103,3203,583

Reserves and Borrowings Chart

Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +70-42-593890-1214333
Cash from Investing Activity +-13-18-27-42-16-7-15-50
Cash from Financing Activity +-6162844-7216-12718
Net Cash Flow-32-1-02-301

Free Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-213.00-287.00-366.00-455.00-518.00-571.00-472.00-609.00

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 2023Mar 2024
Debtor Days139159157187229195148195
Inventory Days897110189101796170
Days Payable95114961061241186382
Cash Conversion Cycle133116162169206155146183
Working Capital Days134125163163215171149183
ROCE %12%17%14%9%9%12%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%
FIIs0.00%0.01%0.03%0.00%0.11%0.35%0.36%0.35%0.31%0.34%0.30%0.37%
DIIs1.94%1.94%1.94%2.04%2.05%2.40%2.55%2.48%3.01%5.25%6.18%5.24%
Public36.17%36.16%36.14%36.07%35.96%35.36%35.20%35.28%34.80%32.50%31.62%32.49%
No. of Shareholders17,54917,31516,97316,65814,55213,22913,63914,27616,60614,91914,93915,850

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Smallcap Fund440,1030.322.43168,7022024-11-21160.88%
ICICI Prudential Housing Opportunities Fund289,9440.5914.78168,7022024-11-2171.87%
ICICI Prudential Infrastructure Fund274,8630.3114.01168,7022024-11-2162.93%
ICICI Prudential Manufacturing Fund168,7020.328.6168,7022024-11-210%
HSBC Conservative Hybrid Fund14,0000.640.71168,7022024-11-21-91.7%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)31.1934.0521.6019.3825.96
Diluted EPS (Rs.)31.1934.0521.6019.3825.96
Cash EPS (Rs.)16.6920.8211.835.5113.52
Book Value[Excl.RevalReserv]/Share (Rs.)511.57431.32373.15327.30285.37
Book Value[Incl.RevalReserv]/Share (Rs.)511.57431.32373.15327.30285.37
Revenue From Operations / Share (Rs.)582.35634.60522.66369.08452.17
PBDIT / Share (Rs.)53.4058.5041.0430.0652.13
PBIT / Share (Rs.)46.5652.0234.0222.4745.64
PBT / Share (Rs.)20.1923.9511.624.3623.37
Net Profit / Share (Rs.)9.8514.344.81-2.087.03
NP After MI And SOA / Share (Rs.)31.1934.0521.5919.3725.96
PBDIT Margin (%)9.169.217.858.1411.52
PBIT Margin (%)7.998.196.506.0810.09
PBT Margin (%)3.463.772.221.185.16
Net Profit Margin (%)1.692.250.91-0.561.55
NP After MI And SOA Margin (%)5.355.364.135.245.74
Return on Networth / Equity (%)6.097.895.785.919.09
Return on Capital Employeed (%)6.948.896.565.3412.14
Return On Assets (%)3.264.202.712.854.13
Long Term Debt / Equity (X)0.110.160.180.070.11
Total Debt / Equity (X)0.430.430.530.450.56
Asset Turnover Ratio (%)0.650.790.870.690.94
Current Ratio (X)1.451.621.411.271.29
Quick Ratio (X)1.161.261.100.970.98
Inventory Turnover Ratio (X)5.075.514.853.323.88
Dividend Payout Ratio (NP) (%)9.614.404.6310.327.70
Dividend Payout Ratio (CP) (%)7.883.703.497.416.16
Earning Retention Ratio (%)90.3995.6095.3789.6892.30
Cash Earning Retention Ratio (%)92.1296.3096.5192.5993.84
Interest Coverage Ratio (X)2.032.081.831.662.34
Interest Coverage Ratio (Post Tax) (X)1.371.511.210.881.32
Enterprise Value (Cr.)2340.691901.031169.26987.73842.61
EV / Net Operating Revenue (X)1.160.860.640.770.53
EV / EBITDA (X)12.639.378.219.474.66
MarketCap / Net Operating Revenue (X)0.780.560.260.360.18
Retention Ratios (%)90.3895.5995.3689.6792.29
Price / BV (X)0.880.830.370.410.28
Price / Net Operating Revenue (X)0.780.560.260.360.18
EarningsYield0.060.090.150.140.31

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Universal Cables Ltd as of November 22, 2024 is: 744.16

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, Universal Cables Ltd is Undervalued by 25.70% compared to the current share price 592.00

Intrinsic Value of Universal Cables Ltd as of November 22, 2024 is: 788.48

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, Universal Cables Ltd is Undervalued by 33.19% compared to the current share price 592.00

Last 5 Year EPS CAGR: 5.96%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,190.56 cr) compared to borrowings (600.22 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (92.00 cr) and profit (119.00 cr) over the years.
  1. The stock has a low average ROCE of 10.38%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 162.88, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 158.75, 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 Universal Cables Ltd:
    1. Net Profit Margin: 1.69%
      • 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: 6.94% (Industry Average ROCE: 16.21%)
      • 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%: 6.09% (Industry Average ROE: 13.22%)
      • 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): 1.37
      • 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: 1.16
      • 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: 21.4 (Industry average Stock P/E: 69.54)
      • 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: 0.43
      • 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

Universal Cables Ltd. is a Public Limited Listed company incorporated on 06/03/1945 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L31300MP1945PLC001114 and registration number is 001114. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables. Company’s Total Operating Revenue is Rs. 1813.54 Cr. and Equity Capital is Rs. 34.70 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/OthersP.O. Birla Vikas, Satna Madhya Pradesh 485005headoffice@unistar.co.in
http://www.unistar.co.in
Management
NamePosition Held
Mr. Harsh V LodhaChairman
Mr. Y S LodhaManaging Director & CEO
Mr. B R NaharDirector
Dr. Kavita A SharmaDirector
Mr. Kishore Kumar MehrotraDirector
Dr. Ananya Ghosh DastidarDirector
Mr. Siddharth SwarupDirector

FAQ

What is the latest intrinsic value of Universal Cables Ltd?

The latest intrinsic value of Universal Cables Ltd as on 21 November 2024 is ₹744.16, which is 25.70% higher than the current market price of ₹592.00.

What is the Market Cap of Universal Cables Ltd?

The Market Cap of Universal Cables Ltd is 2,060 Cr..

What is the current Stock Price of Universal Cables Ltd as on 21 November 2024?

The current stock price of Universal Cables Ltd as on 21 November 2024 is ₹592.

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

In FY 2024, the High / Low of Universal Cables Ltd stocks is 939/380.

What is the Stock P/E of Universal Cables Ltd?

The Stock P/E of Universal Cables Ltd is 21.4.

What is the Book Value of Universal Cables Ltd?

The Book Value of Universal Cables Ltd is 525.

What is the Dividend Yield of Universal Cables Ltd?

The Dividend Yield of Universal Cables Ltd is 0.51 %.

What is the ROCE of Universal Cables Ltd?

The ROCE of Universal Cables Ltd is 10.0 %.

What is the ROE of Universal Cables Ltd?

The ROE of Universal Cables Ltd is 6.59 %.

What is the Face Value of Universal Cables Ltd?

The Face Value of Universal Cables 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 Universal Cables 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