Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: | NSE:

Aarvi Encon Limited: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:34 pm

Market Cap 197 Cr.
Current Price 133
High / Low184/113
Stock P/E19.4
Book Value 80.5
Dividend Yield1.50 %
ROCE11.7 %
ROE10.1 %
Face Value 10.0
PEG Ratio53.21

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

View Share Price Target for Aarvi Encon Limited

Competitors of Aarvi Encon Limited

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IMEC Services Ltd 6.88 Cr. 36.236.2/2.709.84 8.790.00 %2.47 %1.85 % 10.0
Focus Business Solution Ltd 45.5 Cr. 99.0105/59.292.9 14.70.10 %16.1 %13.5 % 10.0
EKI Energy Services Ltd 581 Cr. 211508/207 1530.00 %24.0 %26.2 % 10.0
CMS Info Systems Ltd 7,859 Cr. 484616/35521.0 1241.19 %27.5 %20.5 % 10.0
Ashram Online.Com Ltd 6.31 Cr. 5.268.02/4.56210 10.60.00 %0.24 %0.08 % 10.0
Industry Average13,397.60 Cr1,048.7696.69260.000.36%15.43%13.49%9.05

All Competitor Stocks of Aarvi Encon Limited

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales58.4965.3973.6990.99106.64112.65110.94106.30100.87102.2999.88103.11113.33
Expenses56.0761.9969.7488.03102.04107.24107.35101.6796.7399.1197.66100.14110.02
Operating Profit2.423.403.952.964.605.413.594.634.143.182.222.973.31
OPM %4.14%5.20%5.36%3.25%4.31%4.80%3.24%4.36%4.10%3.11%2.22%2.88%2.92%
Other Income0.170.380.360.280.33-0.500.340.270.120.310.901.000.48
Interest0.140.130.190.280.320.440.540.460.310.350.390.420.67
Depreciation0.230.260.300.220.250.290.330.350.280.300.350.340.29
Profit before tax2.223.393.822.744.364.183.064.093.672.842.383.212.83
Tax %0.00%0.29%0.00%2.55%0.69%2.15%13.07%15.65%9.54%8.10%0.42%5.30%7.77%
Net Profit2.213.373.822.664.324.092.653.453.322.612.383.042.61
EPS in Rs1.492.282.581.802.922.771.792.332.251.771.612.061.77

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 20, 2024, 5:26 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales8099115110153173206218202289437406419
Expenses7189103105144164195209192275418393407
Operating Profit8101259101191013191312
OPM %11%10%10%5%6%6%6%4%5%5%4%3%3%
Other Income1101021121023
Interest2111211211222
Depreciation1111111111111
Profit before tax781047101071012161211
Tax %34%43%34%31%25%19%15%-3%-2%1%7%6%
Net Profit456358971012151111
EPS in Rs139.68152.58207.1081.61172.905.265.844.867.088.169.817.677.21
Dividend Payout %14%13%10%25%0%10%17%21%21%24%20%26%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)25.00%20.00%-50.00%66.67%60.00%12.50%-22.22%42.86%20.00%25.00%-26.67%
Change in YoY Net Profit Growth (%)0.00%-5.00%-70.00%116.67%-6.67%-47.50%-34.72%65.08%-22.86%5.00%-51.67%

Aarvi Encon Limited 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:15%
5 Years:15%
3 Years:26%
TTM:4%
Compounded Profit Growth
10 Years:9%
5 Years:7%
3 Years:3%
TTM:-16%
Stock Price CAGR
10 Years:%
5 Years:28%
3 Years:29%
1 Year:13%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:13%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital3333315151515151515
Reserves1721262732485562708093102
Borrowings12119915481046310
Other Liabilities121414121716283231484744
Total Liabilities434953526783106118120149158171
Fixed Assets1099777121110101010
CWIP000000000000
Investments100000000000
Other Assets33394444607694106109138148161
Total Assets434953526783106118120149158171

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +74401-7-4417-1073
Cash from Investing Activity +-6-0-0-0-01-1-020-01
Cash from Financing Activity +0-3-4-2481-2-7-1-72
Net Cash Flow110-241-4112-11-16

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-4.00-1.003.00-4.00-6.006.003.00-1.006.007.0016.003.00

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 Days1011101009185868697971027975
Inventory Days
Days Payable
Cash Conversion Cycle1011101009185868697971027975
Working Capital Days546262574858525660645061
ROCE %29%30%12%20%18%15%11%13%14%18%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters73.47%73.47%73.47%73.47%73.47%73.47%73.47%73.51%73.54%73.54%73.54%73.58%
Public26.52%26.52%26.53%26.52%26.52%26.53%26.53%26.49%26.46%26.46%26.46%26.42%
No. of Shareholders3,7573,5453,5105,2296,8758,1328,6869,32611,26210,66310,3829,691

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.)7.679.828.167.084.86
Diluted EPS (Rs.)7.659.828.167.084.86
Cash EPS (Rs.)8.5310.658.857.735.69
Book Value[Excl.RevalReserv]/Share (Rs.)78.9473.0964.0557.5451.63
Book Value[Incl.RevalReserv]/Share (Rs.)78.9473.0964.0557.5451.63
Revenue From Operations / Share (Rs.)274.72295.27195.18136.49147.49
PBDIT / Share (Rs.)10.0413.219.408.016.63
PBIT / Share (Rs.)9.1812.388.717.365.79
PBT / Share (Rs.)8.1910.608.226.974.70
Net Profit / Share (Rs.)7.679.818.167.084.86
NP After MI And SOA / Share (Rs.)7.679.818.167.084.86
PBDIT Margin (%)3.654.474.815.874.49
PBIT Margin (%)3.344.194.465.383.92
PBT Margin (%)2.983.594.215.103.18
Net Profit Margin (%)2.793.324.185.183.29
NP After MI And SOA Margin (%)2.793.324.185.183.29
Return on Networth / Equity (%)9.7213.4212.7412.299.40
Return on Capital Employeed (%)11.4516.8013.3312.5410.93
Return On Assets (%)6.639.158.108.706.05
Total Debt / Equity (X)0.080.030.060.040.11
Asset Turnover Ratio (%)2.472.842.181.691.86
Current Ratio (X)2.562.291.992.601.75
Quick Ratio (X)2.562.291.992.601.75
Dividend Payout Ratio (NP) (%)26.0615.2824.5014.1324.83
Dividend Payout Ratio (CP) (%)23.4414.0822.5812.9221.16
Earning Retention Ratio (%)73.9484.7275.5085.8775.17
Cash Earning Retention Ratio (%)76.5685.9277.4287.0878.84
Interest Coverage Ratio (X)10.1111.1019.0120.916.12
Interest Coverage Ratio (Post Tax) (X)8.739.7417.5019.465.48
Enterprise Value (Cr.)162.64149.45170.5256.3533.69
EV / Net Operating Revenue (X)0.400.340.590.270.15
EV / EBITDA (X)10.967.6512.264.763.44
MarketCap / Net Operating Revenue (X)0.430.340.590.370.14
Retention Ratios (%)73.9384.7175.4985.8675.16
Price / BV (X)1.511.411.810.890.41
Price / Net Operating Revenue (X)0.430.340.590.370.14
EarningsYield0.060.090.070.130.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Aarvi Encon Limited as of November 22, 2024 is: 160.10

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, Aarvi Encon Limited is Undervalued by 20.38% compared to the current share price 133.00

Intrinsic Value of Aarvi Encon Limited as of November 22, 2024 is: 160.68

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, Aarvi Encon Limited is Undervalued by 20.81% compared to the current share price 133.00

Last 5 Year EPS CAGR: 0.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.00%, which is a positive sign.
  2. The company has higher reserves (52.75 cr) compared to borrowings (8.42 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (223.62 cr) and profit (9.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 57.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 92.42, 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 Aarvi Encon Limited:
    1. Net Profit Margin: 2.79%
      • 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: 11.45% (Industry Average ROCE: 15.43%)
      • 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%: 9.72% (Industry Average ROE: 13.49%)
      • 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): 8.73
      • 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: 2.56
      • 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: 19.4 (Industry average Stock P/E: 96.69)
      • 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: 0.08
      • 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

Aarvi Encon Ltd. is a Public Limited Listed company incorporated on 03/12/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29290MH1987PLC045499 and registration number is 045499. Currently Company is involved in the business activities of Activities of employment placement agencies. Company’s Total Operating Revenue is Rs. 274.51 Cr. and Equity Capital is Rs. 14.78 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Services - OthersB1- 603, Marathon Innova, Mumbai Maharashtra 400013info@aarviencon.com
https://www.aarviencon.com
Management
NamePosition Held
Mr. Virendra D SanghaviManaging Director
Mr. Jaydev V SanghaviExecutive Director & CFO
Mr. Devendra J ShrimankerIndependent Director
Mrs. Sonal N DoshiIndependent Director
Dr.(Mrs.) Padma V DevarajanIndependent Director
Mr. Ramachandran RamamoorthyIndependent Director

FAQ

What is the latest intrinsic value of Aarvi Encon Limited?

The latest intrinsic value of Aarvi Encon Limited as on 21 November 2024 is ₹160.10, which is 20.38% higher than the current market price of ₹133.00.

What is the Market Cap of Aarvi Encon Limited?

The Market Cap of Aarvi Encon Limited is 197 Cr..

What is the current Stock Price of Aarvi Encon Limited as on 21 November 2024?

The current stock price of Aarvi Encon Limited as on 21 November 2024 is ₹133.

What is the High / Low of Aarvi Encon Limited stocks in FY 2024?

In FY 2024, the High / Low of Aarvi Encon Limited stocks is 184/113.

What is the Stock P/E of Aarvi Encon Limited?

The Stock P/E of Aarvi Encon Limited is 19.4.

What is the Book Value of Aarvi Encon Limited?

The Book Value of Aarvi Encon Limited is 80.5.

What is the Dividend Yield of Aarvi Encon Limited?

The Dividend Yield of Aarvi Encon Limited is 1.50 %.

What is the ROCE of Aarvi Encon Limited?

The ROCE of Aarvi Encon Limited is 11.7 %.

What is the ROE of Aarvi Encon Limited?

The ROE of Aarvi Encon Limited is 10.1 %.

What is the Face Value of Aarvi Encon Limited?

The Face Value of Aarvi Encon Limited 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 Aarvi Encon Limited. 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