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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523850 | NSE: AXTEL

Axtel Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 5:47 pm

Market Cap 772 Cr.
Current Price 478
High / Low850/426
Stock P/E31.0
Book Value 76.0
Dividend Yield1.26 %
ROCE40.7 %
ROE29.4 %
Face Value 10.0
PEG Ratio4.00

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

View Share Price Target for Axtel Industries Ltd

Competitors of Axtel Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hittco Tools Ltd 8.62 Cr. 14.016.0/9.53 4.590.00 %7.27 %5.66 % 10.0
Harshil Agrotech Ltd 667 Cr. 13.113.7/0.29112 1.200.00 %16.4 %13.5 % 1.00
Gujarat Toolroom Ltd 202 Cr. 12.645.9/10.81.72 14.87.91 %179 %170 % 1.00
GTV Engineering Ltd 158 Cr. 505640/34424.1 1250.00 %12.7 %13.5 % 10.0
Galaxy Agrico Exports Ltd 16.6 Cr. 60.868.2/27.2184 15.70.00 %33.5 %44.8 % 10.0
Industry Average4,479.51 Cr540.8844.49119.990.44%28.65%23.58%6.27

All Competitor Stocks of Axtel Industries Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales26.5037.9955.2930.4442.0040.3767.3347.9169.4753.7952.1644.7055.84
Expenses24.4234.6345.7730.8735.6136.7254.1540.8752.8641.1144.4439.2246.96
Operating Profit2.083.369.52-0.436.393.6513.187.0416.6112.687.725.488.88
OPM %7.85%8.84%17.22%-1.41%15.21%9.04%19.58%14.69%23.91%23.57%14.80%12.26%15.90%
Other Income1.910.200.310.460.590.362.270.751.090.750.600.911.31
Interest0.170.090.150.140.360.140.460.310.420.490.400.180.12
Depreciation0.700.740.740.570.590.610.630.470.530.770.980.870.92
Profit before tax3.122.738.94-0.686.033.2614.367.0116.7512.176.945.349.15
Tax %33.97%28.57%23.83%-1.47%22.39%31.90%22.77%23.97%28.90%21.20%23.34%23.03%35.52%
Net Profit2.061.946.81-0.674.672.2111.095.3211.929.585.314.115.90
EPS in Rs1.281.204.22-0.412.891.376.863.297.385.933.292.543.65

Last Updated: November 6, 2024, 7:14 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales604839677682111100153144180223220
Expenses5339425765719185124127157179178
Operating Profit79-210111020142917234442
OPM %11%19%-6%15%14%12%18%14%19%12%13%20%19%
Other Income0000112435433
Interest1221100110121
Depreciation1343323333233
Profit before tax54-868818152919234341
Tax %33%34%-4%16%18%25%29%27%26%26%25%25%
Net Profit33-857613112114173231
EPS in Rs3.382.76-4.672.974.233.678.026.7413.188.5610.7119.8919.14
Dividend Payout %0%0%0%0%0%41%19%37%46%23%28%30%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%-366.67%162.50%40.00%-14.29%116.67%-15.38%90.91%-33.33%21.43%88.24%
Change in YoY Net Profit Growth (%)0.00%-366.67%529.17%-122.50%-54.29%130.95%-132.05%106.29%-124.24%54.76%66.81%

Axtel Industries 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:17%
5 Years:15%
3 Years:13%
TTM:-8%
Compounded Profit Growth
10 Years:27%
5 Years:17%
3 Years:14%
TTM:-18%
Stock Price CAGR
10 Years:45%
5 Years:35%
3 Years:15%
1 Year:-33%
Return on Equity
10 Years:20%
5 Years:24%
3 Years:22%
Last Year:29%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:46 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101616161616161616161616
Reserves151710142127363955658097107
Borrowings15171210541810000
Other Liabilities23233121233631403650838357
Total Liabilities62676961648384103108131179196179
Fixed Assets17242119171716161614132525
CWIP3000000100501
Investments000041415263418343540
Other Assets42424743445253605998127135113
Total Assets62676961648384103108131179196179

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +187-1151291225-113039
Cash from Investing Activity +-11-8-1-1-4-13-2-11-814-20-9
Cash from Financing Activity +6-0-1-4-6-1-6-2-13-5-5-16
Net Cash Flow-305-55-31-14-2513

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.00-8.00-14.000.006.006.0019.006.0028.0017.0023.0044.00

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 Days10513412199869064434811612581
Inventory Days78191327158123161146235101175172177
Days Payable90164233971161729313286148153111
Cash Conversion Cycle92160216160937811714762143143147
Working Capital Days1141559711367465154341066298
ROCE %16%15%-14%18%22%19%39%27%43%22%26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters49.95%49.95%49.95%49.95%49.95%49.95%49.95%49.95%49.95%49.95%49.95%49.95%
FIIs0.19%0.19%0.19%0.09%0.06%0.00%0.00%0.00%0.00%0.02%0.48%0.58%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.25%0.30%0.39%
Public49.86%49.86%49.86%49.96%49.99%50.06%50.07%50.06%50.06%49.79%49.27%49.08%
No. of Shareholders17,66617,82917,99417,99718,58118,03318,23617,69819,18019,74919,49821,018

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)19.8910.718.5613.186.74
Diluted EPS (Rs.)19.8910.718.5613.186.74
Cash EPS (Rs.)21.6012.2010.3214.798.40
Book Value[Excl.RevalReserv]/Share (Rs.)69.9559.5250.0344.1834.05
Book Value[Incl.RevalReserv]/Share (Rs.)69.9559.5250.0344.1834.05
Dividend / Share (Rs.)6.003.002.006.002.50
Revenue From Operations / Share (Rs.)138.25111.5189.1394.9561.69
PBDIT / Share (Rs.)29.2416.3812.4919.9211.30
PBIT / Share (Rs.)27.5314.8910.7318.319.64
PBT / Share (Rs.)26.5314.2111.6517.879.20
Net Profit / Share (Rs.)19.8910.718.5613.186.74
PBDIT Margin (%)21.1414.6814.0120.9718.31
PBIT Margin (%)19.9113.3412.0319.2815.62
PBT Margin (%)19.1912.7413.0718.8114.91
Net Profit Margin (%)14.389.609.6013.8810.92
Return on Networth / Equity (%)28.4317.9917.1129.8319.80
Return on Capital Employeed (%)38.3124.3220.3338.6726.08
Return On Assets (%)16.399.6610.5719.6310.58
Long Term Debt / Equity (X)0.000.000.000.000.01
Total Debt / Equity (X)0.000.000.010.010.14
Asset Turnover Ratio (%)1.191.161.201.451.06
Current Ratio (X)2.061.962.442.751.83
Quick Ratio (X)1.401.391.642.051.12
Inventory Turnover Ratio (X)2.342.522.702.762.13
Dividend Payout Ratio (NP) (%)45.2418.6735.0322.7559.33
Dividend Payout Ratio (CP) (%)41.6716.3829.0520.2947.61
Earning Retention Ratio (%)54.7681.3364.9777.2540.67
Cash Earning Retention Ratio (%)58.3383.6270.9579.7152.39
Interest Coverage Ratio (X)29.2324.2342.2044.8725.90
Interest Coverage Ratio (Post Tax) (X)20.8916.8425.8230.7016.45
Enterprise Value (Cr.)1003.48376.49426.56499.76155.49
EV / Net Operating Revenue (X)4.492.092.963.261.56
EV / EBITDA (X)21.2514.2321.1415.538.52
MarketCap / Net Operating Revenue (X)4.602.153.003.311.53
Retention Ratios (%)54.7581.3264.9677.2440.66
Price / BV (X)9.104.045.357.112.76
Price / Net Operating Revenue (X)4.602.153.003.311.53
EarningsYield0.030.040.030.040.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Axtel Industries Ltd as of November 17, 2024 is: 701.39

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 17, 2024, Axtel Industries Ltd is Undervalued by 46.73% compared to the current share price 478.00

Intrinsic Value of Axtel Industries Ltd as of November 17, 2024 is: 755.73

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 17, 2024, Axtel Industries Ltd is Undervalued by 58.10% compared to the current share price 478.00

Last 5 Year EPS CAGR: 7.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.42%, which is a positive sign.
  2. The company has higher reserves (44.85 cr) compared to borrowings (5.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (115.62 cr) and profit (16.23 cr) over the years.
  1. The stock has a high average Working Capital Days of 83.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 129.83, 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 Axtel Industries Ltd:
    1. Net Profit Margin: 14.38%
      • 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: 38.31% (Industry Average ROCE: 28.65%)
      • 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%: 28.43% (Industry Average ROE: 23.58%)
      • 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): 20.89
      • 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: 1.4
      • 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: 31 (Industry average Stock P/E: 44.49)
      • 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

Axtel Industries Ltd. is a Public Limited Listed company incorporated on 28/08/1991 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L91110GJ1991PLC016185 and registration number is 016185. Currently Company is involved in the business activities of Manufacture of other machinery for the industrial preparation or manufacture of food or drink (including tea or coffee making machines). Company’s Total Operating Revenue is Rs. 143.99 Cr. and Equity Capital is Rs. 16.15 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralVadodara-Halol Highway, Baska, Panchmahal District Gujarat 389350info@axtelindia.com
http://www.axtelindia.com
Management
NamePosition Held
Mr. Ajay Naishad DesaiExecutive Director
Mr. Ajay Nalin ParikhExecutive Director
Mr. Ajit Singh BubberNon Executive Director
Mr. Ameet Nalin ParikhNon Executive Director
Mr. Nimish PatelIndependent Director
Ms. Deepti SharmaIndependent Director
Mr. Paresh Jaisinh RajdaIndependent Director

FAQ

What is the latest intrinsic value of Axtel Industries Ltd?

The latest intrinsic value of Axtel Industries Ltd as on 17 November 2024 is ₹701.39, which is 46.73% higher than the current market price of ₹478.00.

What is the Market Cap of Axtel Industries Ltd?

The Market Cap of Axtel Industries Ltd is 772 Cr..

What is the current Stock Price of Axtel Industries Ltd as on 17 November 2024?

The current stock price of Axtel Industries Ltd as on 17 November 2024 is ₹478.

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

In FY 2024, the High / Low of Axtel Industries Ltd stocks is 850/426.

What is the Stock P/E of Axtel Industries Ltd?

The Stock P/E of Axtel Industries Ltd is 31.0.

What is the Book Value of Axtel Industries Ltd?

The Book Value of Axtel Industries Ltd is 76.0.

What is the Dividend Yield of Axtel Industries Ltd?

The Dividend Yield of Axtel Industries Ltd is 1.26 %.

What is the ROCE of Axtel Industries Ltd?

The ROCE of Axtel Industries Ltd is 40.7 %.

What is the ROE of Axtel Industries Ltd?

The ROE of Axtel Industries Ltd is 29.4 %.

What is the Face Value of Axtel Industries Ltd?

The Face Value of Axtel Industries 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 Axtel Industries 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