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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 542012 | NSE: AAL

Fundamental Analysis of A-1 Acid Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:25 pm

Market Cap 394 Cr.
Current Price 343
High / Low440/313
Stock P/E358
Book Value 41.5
Dividend Yield0.44 %
ROCE4.08 %
ROE2.29 %
Face Value 10.0
PEG Ratio-18.75

Data Source: screener.in

Competitors of A-1 Acid Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Advance Petrochemicals Ltd 24.6 Cr. 274376/108112 41.60.00 %10.2 %6.06 % 10.0
Deepak Nitrite Ltd 38,690 Cr. 2,8302,842/1,92253.2 3520.26 %21.6 %16.4 % 2.00
Sree Rayalaseema Hi-Strength Hypo Ltd 1,009 Cr. 587815/43911.4 4670.68 %15.7 %11.4 % 10.0
Emmessar Biotech & Nutrition Ltd 23.2 Cr. 46.454.0/21.130.9 14.80.00 %11.4 %10.7 % 10.0
Cochin Minerals & Rutile Ltd 227 Cr. 290350/21526.5 1902.76 %26.1 %5.83 % 10.0
Industry Average5,760.73 Cr628.5743.68161.410.51%17.57%12.40%7.33

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales49.7162.4184.79113.4493.8486.1179.0371.6258.9747.2039.5560.43
Expenses49.1760.7981.36111.1491.3285.1077.9571.9959.1847.3139.7260.26
Operating Profit0.541.623.432.302.521.011.08-0.37-0.21-0.11-0.170.17
OPM %1.09%2.60%4.05%2.03%2.69%1.17%1.37%-0.52%-0.36%-0.23%-0.43%0.28%
Other Income0.521.111.362.212.180.410.802.961.611.151.731.88
Interest0.250.310.310.340.470.350.540.470.220.150.130.25
Depreciation0.850.820.810.841.050.961.030.960.890.900.900.90
Profit before tax-0.041.603.673.333.180.110.311.160.29-0.010.530.90
Tax %25.00%13.75%28.61%25.83%26.42%90.91%41.94%6.90%37.93%-300.00%60.38%17.78%
Net Profit-0.031.382.612.482.340.020.191.070.18-0.040.210.75
EPS in Rs-0.031.202.272.162.030.020.170.930.16-0.030.180.65

Last Updated: July 10, 2024, 11:32 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 11:32 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales9785106100141116145310331206
Expenses938299104143112141301326206
Operating Profit337-4-24494-0
OPM %4%4%6%-4%-2%3%3%3%1%-0%
Other Income00011944466
Interest2112111121
Depreciation2112033344
Profit before tax0144644852
Tax %25%26%33%49%25%24%34%26%24%36%
Net Profit0132433641
EPS in Rs1.087.6725.002.373.632.772.375.493.140.96
Dividend Payout %0%16%0%0%0%0%0%27%48%157%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)200.00%-33.33%100.00%-25.00%0.00%100.00%-33.33%-75.00%
Change in YoY Net Profit Growth (%)0.00%-233.33%133.33%-125.00%25.00%100.00%-133.33%-41.67%

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:12%
TTM:-38%
Compounded Profit Growth
10 Years:%
5 Years:-23%
3 Years:-26%
TTM:-70%
Stock Price CAGR
10 Years:%
5 Years:45%
3 Years:36%
1 Year:-3%
Return on Equity
10 Years:%
5 Years:8%
3 Years:8%
Last Year:2%

Last Updated: July 17, 2024, 6:04 am

Balance Sheet

Last Updated: July 10, 2024, 11:32 pm

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital1117101010121212
Reserves77107252730353736
Borrowings1312191615617261411
Other Liabilities3688444755
Total Liabilities24263839534861806864
Fixed Assets43119141114171613
CWIP0000000000
Investments0000000235
Other Assets20232630383747604845
Total Assets24263839534861806864

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3-68-4-01911
Cash from Investing Activity 0-7-0-6-9-4-3
Cash from Financing Activity -414-799-15-6
Net Cash Flow-100-0-0-02

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-10.00-9.00-12.00-20.00-17.00-2.00-13.00-17.00-10.00-11.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days69877689707891544255
Inventory Days3724246324
Days Payable38514414416
Cash Conversion Cycle70867380688193544353
Working Capital Days616855707986101574257
ROCE %13%23%18%17%11%9%15%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2020Mar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters70.00%70.00%70.00%70.00%70.00%70.00%70.00%70.03%70.03%70.03%70.03%70.03%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%2.85%2.85%2.85%2.85%2.90%2.90%
Public30.00%30.00%30.00%30.00%30.00%30.00%27.14%27.12%27.11%27.11%27.06%27.07%
No. of Shareholders1922702663153279801,3391,9612,1062,0852,0712,028

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 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)0.953.145.482.37
Diluted EPS (Rs.)0.953.145.482.37
Cash EPS (Rs.)4.416.678.525.54
Book Value[Excl.RevalReserv]/Share (Rs.)41.5442.0940.4540.21
Book Value[Incl.RevalReserv]/Share (Rs.)41.5442.0940.4540.21
Revenue From Operations / Share (Rs.)179.25287.48269.88145.18
PBDIT / Share (Rs.)5.609.2711.467.68
PBIT / Share (Rs.)2.485.798.554.88
PBT / Share (Rs.)1.824.197.504.15
Net Profit / Share (Rs.)1.283.195.612.73
NP After MI And SOA / Share (Rs.)0.953.145.482.73
PBDIT Margin (%)3.123.224.245.29
PBIT Margin (%)1.382.013.163.35
PBT Margin (%)1.011.452.782.86
Net Profit Margin (%)0.711.112.071.88
NP After MI And SOA Margin (%)0.531.092.031.88
Return on Networth / Equity (%)2.297.4613.556.79
Return on Capital Employeed (%)5.5712.4518.7610.97
Return On Assets (%)1.725.337.914.47
Long Term Debt / Equity (X)0.050.090.110.09
Total Debt / Equity (X)0.220.290.550.41
Asset Turnover Ratio (%)3.144.484.410.00
Current Ratio (X)3.483.202.032.67
Quick Ratio (X)3.333.111.942.56
Interest Coverage Ratio (X)8.505.8110.9310.66
Interest Coverage Ratio (Post Tax) (X)2.943.006.354.79
Enterprise Value (Cr.)399.87401.40325.92115.99
EV / Net Operating Revenue (X)1.941.211.050.79
EV / EBITDA (X)62.1037.6724.7215.10
MarketCap / Net Operating Revenue (X)1.921.180.960.68
Price / BV (X)8.298.076.452.48
Price / Net Operating Revenue (X)1.921.180.960.68
EarningsYield0.000.010.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 341.72

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.

Overvalued: 0.37% compared to the current price 343

Intrinsic Value: 276.46

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 19.40% compared to the current price 343

Last 5 Year EPS CAGR: -19.10%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (22.10 cr) compared to borrowings (14.90 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (163.70 cr) and profit (3.80 cr) over the years.
  1. The stock has a low average ROCE of 11.60%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 67.60, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 70.10, 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 A-1 Acid Ltd:
    1. Net Profit Margin: 0.71%
      • 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: 5.57% (Industry Average ROCE: %)
      • 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%: 2.29% (Industry Average ROE: %)
      • 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): 2.94
      • 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: 3.33
      • 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: 358 (Industry average Stock P/E: )
      • 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: 0.22
      • 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

A-1 Acid Ltd. is a Public Limited Listed company incorporated on 22/04/2004 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24119GJ2004PLC044011 and registration number is 044011. Currently Company is involved in the business activities of Wholesale of industrial chemicals,. Company’s Total Operating Revenue is Rs. 310.36 Cr. and Equity Capital is Rs. 11.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Inorganic - OthersCorporate House No. A-1, Shivalik Business Centre, Ahmedabad Gujarat 380059info@a1acid.com
http://www.a1acid.com
Management
NamePosition Held
Mr. Harshadkumar Naranbhai PatelChairman & Managing Director
Mr. Jitendra Naranbhai PatelWhole Time Director
Mr. Utkarsh Harshadkumar PatelWhole Time Director
Mrs. Lajju Hemang ShahIndependent Director
Mr. Chirag Rajnikant ShahIndependent Director
Mrs. Krishna Utkarsh PatelNon Executive Director
Mr. Nitin Rikhavbhai ShahIndependent Director
Mr. Suresh Somnath DaveIndependent Director
Mr. Shailesh Natverlal ThakkarIndependent Director

FAQ

What is the latest fair value of A-1 Acid Ltd?

The latest fair value of A-1 Acid Ltd is ₹341.72.

What is the Market Cap of A-1 Acid Ltd?

The Market Cap of A-1 Acid Ltd is 394 Cr..

What is the current Stock Price of A-1 Acid Ltd as on 19 July 2024?

The current stock price of A-1 Acid Ltd as on 19 July 2024 is 343.

What is the High / Low of A-1 Acid Ltd stocks in FY 2024?

In FY 2024, the High / Low of A-1 Acid Ltd stocks is 440/313.

What is the Stock P/E of A-1 Acid Ltd?

The Stock P/E of A-1 Acid Ltd is 358.

What is the Book Value of A-1 Acid Ltd?

The Book Value of A-1 Acid Ltd is 41.5.

What is the Dividend Yield of A-1 Acid Ltd?

The Dividend Yield of A-1 Acid Ltd is 0.44 %.

What is the ROCE of A-1 Acid Ltd?

The ROCE of A-1 Acid Ltd is 4.08 %.

What is the ROE of A-1 Acid Ltd?

The ROE of A-1 Acid Ltd is 2.29 %.

What is the Face Value of A-1 Acid Ltd?

The Face Value of A-1 Acid 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 A-1 Acid 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