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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Agarwal Industrial Corporation Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:39 pm

Market Cap 1,503 Cr.
Current Price 1,005
High / Low1,341/771
Stock P/E12.2
Book Value 378
Dividend Yield0.30 %
ROCE20.4 %
ROE23.6 %
Face Value 10.0
PEG Ratio0.58

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

View Share Price Target for Agarwal Industrial Corporation Ltd

Competitors of Agarwal Industrial Corporation Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Asian Petroproducts & Exports Ltd 41.1 Cr. 16.722.6/7.38 1.490.00 %743 %% 10.0
Aadi Industries Ltd 5.30 Cr. 5.308.90/3.15 6.770.00 %40.8 %% 10.0
Goa Carbons Ltd 588 Cr. 6411,009/52816.0 2543.12 %23.2 %38.8 % 10.0
DCW Ltd 2,870 Cr. 97.2113/46.0298 35.10.00 %6.72 %1.65 % 2.00
Agarwal Industrial Corporation Ltd 1,503 Cr. 1,0051,341/77112.2 3780.30 %20.4 %23.6 % 10.0
Industry Average1,653.67 Cr353.04108.73135.070.68%166.82%21.35%8.40

All Competitor Stocks of Agarwal Industrial Corporation Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales408159381651581223552660629232488776708
Expenses384146348615547201514617587205444716648
Operating Profit24133336342138434227446060
OPM %6%8%9%6%6%10%7%6%7%12%9%8%8%
Other Income1002242112122
Interest3333323444588
Depreciation555556666771010
Profit before tax1852629281831333218334444
Tax %15%19%20%17%16%13%18%15%14%12%17%13%11%
Net Profit1542124231525282816283839
EPS in Rs12.723.4315.6017.9716.2310.5716.8518.9218.4310.7018.4725.4126.07

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales821211812222812974145317879041,5982,0152,072
Expenses751091682062602713834947418321,4921,8791,923
Operating Profit7121416212631374671106136149
OPM %8%10%8%7%8%9%7%7%6%8%7%7%7%
Other Income1-011111132495
Interest12447799910121214
Depreciation34445688914202325
Profit before tax356810141520314978110114
Tax %20%34%21%30%31%37%30%34%18%17%18%16%
Net Profit23567910132641649297
EPS in Rs5.676.199.2510.6712.468.8210.0213.1124.9139.5148.2261.6864.90
Dividend Payout %0%19%15%14%17%17%15%14%6%5%4%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)50.00%66.67%20.00%16.67%28.57%11.11%30.00%100.00%57.69%56.10%43.75%
Change in YoY Net Profit Growth (%)0.00%16.67%-46.67%-3.33%11.90%-17.46%18.89%70.00%-42.31%-1.59%-12.35%

Agarwal Industrial Corporation Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:28%
5 Years:32%
3 Years:33%
TTM:11%
Compounded Profit Growth
10 Years:36%
5 Years:52%
3 Years:39%
TTM:27%
Stock Price CAGR
10 Years:25%
5 Years:57%
3 Years:33%
1 Year:8%
Return on Equity
10 Years:21%
5 Years:24%
3 Years:25%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:45 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital6668101010101013151515
Reserves2933386196108123147186277389496550
Borrowings2335416574967790150171158361296
Other Liabilities791112212417525082188248188
Total Liabilities6582951472012382273003955437501,1201,050
Fixed Assets27303139446257102160219341589572
CWIP0110801313700
Investments00236997612263633
Other Assets375162105143168161188229309376495445
Total Assets6582951472012382273003955437501,1201,050

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-03213-12830494965157112
Cash from Investing Activity +-8-7-7-9-21-20-4-54-44-69-158-276
Cash from Financing Activity +571-12710-2772119-15178
Net Cash Flow-42-33-6-1-122714-1713

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow7.00-11.00-21.00-25.00-44.00-48.00-65.00-40.00-44.00-79.00-65.00-22.00

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 Days525667100129100786454373546
Inventory Days221322132943231624182528
Days Payable12914341662417153647
Cash Conversion Cycle626175110154126955662402526
Working Capital Days686372105141118925960412832
ROCE %15%16%16%15%14%12%14%17%20%22%24%20%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters60.11%58.57%58.57%62.15%59.18%57.20%57.20%57.20%57.20%57.20%57.20%57.20%
FIIs0.25%4.26%4.00%3.57%3.53%6.69%6.36%6.34%6.24%6.24%6.32%5.97%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.08%0.14%0.17%0.48%
Public39.64%37.17%37.43%34.28%37.29%36.12%36.44%36.40%36.49%36.43%36.32%36.35%
No. of Shareholders7,3758,2739,59610,94712,11514,84913,92514,73817,76516,67216,56220,887

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.)73.0263.7851.1039.5124.91
Diluted EPS (Rs.)73.0263.7851.1039.5124.91
Cash EPS (Rs.)93.1476.8463.1653.6033.64
Book Value[Excl.RevalReserv]/Share (Rs.)341.64269.90223.00191.16153.53
Book Value[Incl.RevalReserv]/Share (Rs.)341.64269.90223.00191.16153.53
Revenue From Operations / Share (Rs.)1420.861347.131209.98881.11767.18
PBDIT / Share (Rs.)118.9696.6682.9071.0747.68
PBIT / Share (Rs.)98.8481.4967.9656.9838.95
PBT / Share (Rs.)85.0373.3858.7047.4630.31
Net Profit / Share (Rs.)73.0261.6848.2239.5124.91
NP After MI And SOA / Share (Rs.)73.0261.6848.2239.5124.91
PBDIT Margin (%)8.377.176.858.066.21
PBIT Margin (%)6.956.045.616.465.07
PBT Margin (%)5.985.444.855.383.95
Net Profit Margin (%)5.134.573.984.483.24
NP After MI And SOA Margin (%)5.134.573.984.483.24
Return on Networth / Equity (%)21.3722.8521.6220.6616.22
Return on Capital Employeed (%)21.3424.8125.6422.8024.35
Return On Assets (%)9.7512.3011.7210.258.51
Long Term Debt / Equity (X)0.330.170.100.210.01
Total Debt / Equity (X)0.670.340.490.620.54
Asset Turnover Ratio (%)2.273.123.402.683.01
Current Ratio (X)1.231.531.631.691.43
Quick Ratio (X)0.931.091.291.341.22
Inventory Turnover Ratio (X)3.393.166.274.7811.32
Dividend Payout Ratio (NP) (%)0.003.133.523.797.22
Dividend Payout Ratio (CP) (%)0.002.512.682.795.35
Earning Retention Ratio (%)0.0096.8796.4896.2192.78
Cash Earning Retention Ratio (%)0.0097.4997.3297.2194.65
Interest Coverage Ratio (X)8.6111.928.957.475.52
Interest Coverage Ratio (Post Tax) (X)6.298.616.205.153.88
Enterprise Value (Cr.)1480.41955.35986.84248.83123.13
EV / Net Operating Revenue (X)0.690.470.610.270.15
EV / EBITDA (X)8.326.619.013.412.52
MarketCap / Net Operating Revenue (X)0.560.420.550.170.05
Retention Ratios (%)0.0096.8696.4796.2092.77
Price / BV (X)2.342.113.020.820.29
Price / Net Operating Revenue (X)0.560.420.550.170.05
EarningsYield0.090.100.070.250.55

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Agarwal Industrial Corporation Ltd as of November 24, 2024 is: 1,091.60

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 24, 2024, Agarwal Industrial Corporation Ltd is Undervalued by 8.62% compared to the current share price 1,005.00

Intrinsic Value of Agarwal Industrial Corporation Ltd as of November 24, 2024 is: 1,322.02

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 24, 2024, Agarwal Industrial Corporation Ltd is Undervalued by 31.54% compared to the current share price 1,005.00

Last 5 Year EPS CAGR: 21.11%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.08%, which is a positive sign.
  2. The company has higher reserves (194.85 cr) compared to borrowings (125.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (294.23 cr) and profit (35.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 73.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 74.33, 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 Agarwal Industrial Corporation Ltd:
    1. Net Profit Margin: 5.13%
      • 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: 21.34% (Industry Average ROCE: 166.82%)
      • 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%: 21.37% (Industry Average ROE: 21.35%)
      • 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): 6.29
      • 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: 0.93
      • 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: 12.2 (Industry average Stock P/E: 108.73)
      • 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: 0.67
      • 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

Agarwal Industrial Corporation Ltd. is a Public Limited Listed company incorporated on 13/01/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1995PLC084618 and registration number is 084618. Currently Company is involved in the business activities of Manufacture of other petroleum (includes manufacture of petroleum jelly, micro-crystalline petroleum wax, slack wax, ozokerite, lignite wax, petroleum coke, petroleum bitumen and other residues of petroleum oils or of oils obtained from bituminous minerals). Company’s Total Operating Revenue is Rs. 1405.30 Cr. and Equity Capital is Rs. 13.21 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Petrochemicals - OthersEastern Court, Unit No. 201-202, Plot No. 12, Mumbai Maharashtra 400071contact@aicltd.in
http://www.aicltd.in
Management
NamePosition Held
Mr. Jaiprakash AgarwalManaging Director
Mr. Ramchandra AgarwalWhole Time Director
Mr. Lalit AgarwalWhole Time Director
Mr. Mahendra AgarwalNon Exe.Non Ind.Director
Mr. Suresh NairIndependent Director
Mr. Mahendra PimpaleIndependent Director
Mr. Balraj SubramaniamIndependent Director
Ms. Khushboo laljiIndependent Woman Director

FAQ

What is the latest intrinsic value of Agarwal Industrial Corporation Ltd?

The latest intrinsic value of Agarwal Industrial Corporation Ltd as on 23 November 2024 is ₹1091.60, which is 8.62% higher than the current market price of ₹1,005.00.

What is the Market Cap of Agarwal Industrial Corporation Ltd?

The Market Cap of Agarwal Industrial Corporation Ltd is 1,503 Cr..

What is the current Stock Price of Agarwal Industrial Corporation Ltd as on 23 November 2024?

The current stock price of Agarwal Industrial Corporation Ltd as on 23 November 2024 is 1,005.

What is the High / Low of Agarwal Industrial Corporation Ltd stocks in FY 2024?

In FY 2024, the High / Low of Agarwal Industrial Corporation Ltd stocks is 1,341/771.

What is the Stock P/E of Agarwal Industrial Corporation Ltd?

The Stock P/E of Agarwal Industrial Corporation Ltd is 12.2.

What is the Book Value of Agarwal Industrial Corporation Ltd?

The Book Value of Agarwal Industrial Corporation Ltd is 378.

What is the Dividend Yield of Agarwal Industrial Corporation Ltd?

The Dividend Yield of Agarwal Industrial Corporation Ltd is 0.30 %.

What is the ROCE of Agarwal Industrial Corporation Ltd?

The ROCE of Agarwal Industrial Corporation Ltd is 20.4 %.

What is the ROE of Agarwal Industrial Corporation Ltd?

The ROE of Agarwal Industrial Corporation Ltd is 23.6 %.

What is the Face Value of Agarwal Industrial Corporation Ltd?

The Face Value of Agarwal Industrial Corporation 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 Agarwal Industrial Corporation 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