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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531381 | NSE: ARIHANT

Arihant Foundations & Housing Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:36 pm

Market Cap 545 Cr.
Current Price 634
High / Low682/57.5
Stock P/E18.1
Book Value 245
Dividend Yield0.16 %
ROCE10.8 %
ROE7.29 %
Face Value 10.0
PEG Ratio0.17

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

View Share Price Target for Arihant Foundations & Housing Ltd

Competitors of Arihant Foundations & Housing Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IITL Projects Ltd 26.4 Cr. 52.967.2/15.08.18 70.70.00 %%% 10.0
HB Estate Developers Ltd 174 Cr. 89.4125/41.023.4 80.10.00 %7.00 %2.39 % 10.0
Hazoor Multi Projects Ltd 1,109 Cr. 56.363.9/15.213.2 19.50.53 %%% 1.00
Gyan Developers & Builders Ltd 6.64 Cr. 22.133.8/6.74 12.70.00 %4.02 %3.75 % 10.0
GG Dandekar Properties Ltd 54.0 Cr. 114163/87.4 96.90.00 %1.27 %9.45 % 1.00
Industry Average17,715.80 Cr273.1343.99129.970.16%24.93%17.75%22.76

All Competitor Stocks of Arihant Foundations & Housing Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8.8820.6925.9027.3317.4622.8010.4013.6136.989.1632.5045.4538.70
Expenses9.6727.5126.9422.0713.1414.826.6316.2132.036.0119.6041.4124.37
Operating Profit-0.79-6.82-1.045.264.327.983.77-2.604.953.1512.904.0414.33
OPM %-8.90%-32.96%-4.02%19.25%24.74%35.00%36.25%-19.10%13.39%34.39%39.69%8.89%37.03%
Other Income3.533.110.874.314.853.054.398.063.093.343.242.783.46
Interest5.791.091.542.648.392.386.443.454.154.615.092.924.07
Depreciation0.090.080.080.110.070.090.100.060.080.080.080.110.10
Profit before tax-3.14-4.88-1.796.820.718.561.621.953.811.8010.973.7913.62
Tax %1.91%2.66%41.34%11.73%146.48%26.99%41.98%55.90%37.80%35.56%17.32%76.25%30.18%
Net Profit-3.20-5.01-2.536.02-0.336.250.940.862.371.169.070.909.51
EPS in Rs-1.77-3.00-1.214.811.176.991.081.002.761.3510.551.0511.06

Last Updated: September 11, 2024, 11:55 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 11, 2024, 11:55 am

MonthSep 2012Sep 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2171379912568668047568364124126
Expenses210147110129646582656286519991
Operating Profit7-9-11-441-2-18-6-3132534
OPM %3%-7%-11%-3%6%2%-2%-39%-10%-4%21%20%27%
Other Income93311132131311612201213
Interest8151320231924182311211717
Depreciation1112111100000
Profit before tax7-22-22-15-724-5-13-3132030
Tax %28%-15%-14%-17%-3%166%74%30%22%58%22%34%
Net Profit5-19-19-12-7-11-7-16-5101421
EPS in Rs5.63-21.58-21.70-13.50-8.01-3.07-2.92-7.84-11.69-1.1611.5915.7124.01
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)41.67%85.71%200.00%-800.00%-128.57%68.75%300.00%40.00%
Change in YoY Net Profit Growth (%)0.00%44.05%114.29%-1000.00%671.43%197.32%231.25%-260.00%

Arihant Foundations & Housing Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:-1%
5 Years:9%
3 Years:30%
TTM:135%
Compounded Profit Growth
10 Years:11%
5 Years:32%
3 Years:49%
TTM:465%
Stock Price CAGR
10 Years:28%
5 Years:92%
3 Years:150%
1 Year:808%
Return on Equity
10 Years:-3%
5 Years:0%
3 Years:5%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 4:04 pm

MonthSep 2012Sep 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital999999999999
Reserves17915914114017114215110291109169183
Borrowings94153192235151176153402334338175141
Other Liabilities19420918921913411156142124152139109
Total Liabilities475529531603465437368654558607492442
Fixed Assets3638133412119819202021
CWIP000000000000
Investments81617304543353333333334
Other Assets431476500539408383324614506554438387
Total Assets475529531603465437368654558607492442

Reserves and Borrowings Chart

Cash Flow

MonthSep 2012Sep 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +82-495-38-4-1-28-220147-3414730
Cash from Investing Activity +-16-2-0-2420843293302010
Cash from Financing Activity +-6153540-16-2-20209-1666-146-61
Net Cash Flow4310-22-15-618-16121-20

Free Cash Flow

MonthDec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2012Sep 2013
Free Cash Flow-203.00-239.00-147.00-175.00-155.00-420.00-340.00-341.00-162.00-116.00-87.00-162.00

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

MonthSep 2012Sep 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days110246130233264456199322273193252129
Inventory Days3693,9962,8342,0104,0723,441
Days Payable1421,2307198812,7381,395
Cash Conversion Cycle1104721302,9982642,5711993221,4021,5262522,175
Working Capital Days1653424224767265716011,7381,045620484343
ROCE %5%-2%-3%1%5%6%5%1%2%2%9%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters42.87%42.87%42.87%42.87%42.87%42.87%42.87%42.87%42.87%42.87%42.87%42.87%
Public57.13%57.13%57.13%57.13%57.14%57.14%57.14%57.14%57.14%57.13%57.13%57.14%
No. of Shareholders2,7043,6843,6063,5113,2703,2153,1562,9893,1493,1363,1363,096

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.)15.7011.60-5.51-18.60-8.23
Diluted EPS (Rs.)15.7011.60-5.51-18.60-8.23
Cash EPS (Rs.)15.1711.97-5.18-18.18-7.58
Book Value[Excl.RevalReserv]/Share (Rs.)222.66206.87101.2280.41109.82
Book Value[Incl.RevalReserv]/Share (Rs.)222.66206.87101.2280.41109.82
Revenue From Operations / Share (Rs.)144.2874.7396.2765.6754.47
PBDIT / Share (Rs.)42.6639.319.7012.2214.76
PBIT / Share (Rs.)42.2738.949.2911.6914.04
PBT / Share (Rs.)22.7714.92-3.58-15.41-6.42
Net Profit / Share (Rs.)14.7811.60-5.59-18.71-8.30
NP After MI And SOA / Share (Rs.)15.7111.60-1.16-11.69-7.84
PBDIT Margin (%)29.5652.6010.0718.6127.09
PBIT Margin (%)29.2952.109.6417.8025.77
PBT Margin (%)15.7819.97-3.71-23.47-11.78
Net Profit Margin (%)10.2415.51-5.80-28.49-15.23
NP After MI And SOA Margin (%)10.8815.51-1.20-17.79-14.39
Return on Networth / Equity (%)7.055.60-0.85-10.05-6.09
Return on Capital Employeed (%)11.8210.343.843.533.71
Return On Assets (%)3.052.02-0.16-1.80-1.03
Long Term Debt / Equity (X)0.580.760.911.981.91
Total Debt / Equity (X)0.610.792.503.073.44
Asset Turnover Ratio (%)0.260.110.100.060.04
Current Ratio (X)1.891.650.901.251.22
Quick Ratio (X)0.980.840.660.900.88
Inventory Turnover Ratio (X)0.470.000.000.000.00
Interest Coverage Ratio (X)2.191.640.750.450.72
Interest Coverage Ratio (Post Tax) (X)1.761.480.560.300.59
Enterprise Value (Cr.)212.50145.28283.76285.64357.09
EV / Net Operating Revenue (X)1.712.263.435.067.62
EV / EBITDA (X)5.794.3034.0127.1728.13
MarketCap / Net Operating Revenue (X)0.830.510.330.250.27
Price / BV (X)0.540.180.230.140.11
Price / Net Operating Revenue (X)0.830.510.330.250.27
EarningsYield0.130.30-0.03-0.69-0.51

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Arihant Foundations & Housing Ltd as of November 23, 2024 is: 323.79

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 23, 2024, Arihant Foundations & Housing Ltd is Overvalued by 48.93% compared to the current share price 634.00

Intrinsic Value of Arihant Foundations & Housing Ltd as of November 23, 2024 is: 665.57

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 23, 2024, Arihant Foundations & Housing Ltd is Undervalued by 4.98% compared to the current share price 634.00

Last 5 Year EPS CAGR: 105.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of 3.50%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 396.00, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 146.42, which may not be favorable.
    4. The company has higher borrowings (212.00) compared to reserves (144.75), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (99.38) and profit (-0.85).

    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 Arihant Foundations & Housing Ltd:
      1. Net Profit Margin: 10.24%
        • 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: 11.82% (Industry Average ROCE: 24.93%)
        • 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%: 7.05% (Industry Average ROE: 17.75%)
        • 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): 1.76
        • 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: 0.98
        • 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: 18.1 (Industry average Stock P/E: 43.99)
        • 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: 0.61
        • 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

    Arihant Foundations & Housing Ltd. is a Public Limited Listed company incorporated on 06/03/1992 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L70101TN1992PLC022299 and registration number is 022299. Currently Company is involved in the business activities of Real estate activities with own or leased property. Company’s Total Operating Revenue is Rs. 48.35 Cr. and Equity Capital is Rs. 8.60 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Construction, Contracting & EngineeringNo.3 (Old No.25), Ganapathy Colony, 3rd Street, Chennai (Madras) Tamil Nadu 600018investors@arihants.co.in
    https://www.arihantspaces.com
    Management
    NamePosition Held
    Mr. Kamal LunawathChairman & Managing Director
    Mr. Vimal LunawathWholeTime Director & CFO
    Mr. Bharat M JainWhole Time Director
    Mrs. Ann GonsalvezIndependent Director
    Mr. Prateek KhichaIndependent Director
    Mr. Karan BhasinIndependent Director

    FAQ

    What is the latest intrinsic value of Arihant Foundations & Housing Ltd?

    The latest intrinsic value of Arihant Foundations & Housing Ltd as on 23 November 2024 is ₹323.79, which is 48.93% lower than the current market price of ₹634.00.

    What is the Market Cap of Arihant Foundations & Housing Ltd?

    The Market Cap of Arihant Foundations & Housing Ltd is 545 Cr..

    What is the current Stock Price of Arihant Foundations & Housing Ltd as on 23 November 2024?

    The current stock price of Arihant Foundations & Housing Ltd as on 23 November 2024 is 634.

    What is the High / Low of Arihant Foundations & Housing Ltd stocks in FY 2024?

    In FY 2024, the High / Low of Arihant Foundations & Housing Ltd stocks is 682/57.5.

    What is the Stock P/E of Arihant Foundations & Housing Ltd?

    The Stock P/E of Arihant Foundations & Housing Ltd is 18.1.

    What is the Book Value of Arihant Foundations & Housing Ltd?

    The Book Value of Arihant Foundations & Housing Ltd is 245.

    What is the Dividend Yield of Arihant Foundations & Housing Ltd?

    The Dividend Yield of Arihant Foundations & Housing Ltd is 0.16 %.

    What is the ROCE of Arihant Foundations & Housing Ltd?

    The ROCE of Arihant Foundations & Housing Ltd is 10.8 %.

    What is the ROE of Arihant Foundations & Housing Ltd?

    The ROE of Arihant Foundations & Housing Ltd is 7.29 %.

    What is the Face Value of Arihant Foundations & Housing Ltd?

    The Face Value of Arihant Foundations & Housing 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 Arihant Foundations & Housing 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