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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

Fundamental Analysis of Aarvi Encon Limited

About the Company - Aarvi Encon Limited

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

Basic Stock Data of Aarvi Encon Limited

Last Updated: July 18, 2024, 11:26 pm

Market Cap 192 Cr.
Current Price 130
High / Low184/113
Stock P/E17.0
Book Value 78.9
Dividend Yield1.54 %
ROCE11.4 %
ROE10.1 %
Face Value 10.0
PEG Ratio1.26

Data Source: screener.in

Aarvi Encon Limited Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales49.7956.9958.4965.3973.6990.99106.64112.65110.94106.30100.87102.2999.88
Expenses48.1654.5856.0761.9969.7488.03102.04107.24107.35101.6796.7399.1197.66
Operating Profit1.632.412.423.403.952.964.605.413.594.634.143.182.22
OPM %3.27%4.23%4.14%5.20%5.36%3.25%4.31%4.80%3.24%4.36%4.10%3.11%2.22%
Other Income0.990.590.170.380.360.280.33-0.500.340.270.120.310.90
Interest0.080.140.140.130.190.280.320.440.540.460.310.350.39
Depreciation0.250.250.230.260.300.220.250.290.330.350.280.300.35
Profit before tax2.292.612.223.393.822.744.364.183.064.093.672.842.38
Tax %-15.72%-15.71%0.00%0.29%0.00%2.55%0.69%2.15%13.07%15.65%9.54%8.10%0.42%
Net Profit2.653.032.213.373.822.664.324.092.653.453.322.612.38
EPS in Rs1.792.051.492.282.581.802.922.771.792.332.251.771.61

Last Updated: July 11, 2024, 7:51 am

Aarvi Encon Limited Quarterly Chart

Aarvi Encon Limited Profit & Loss

Last Updated: July 10, 2024, 2:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8099115110153173206218202289437431
Expenses7189103105144164195209192275418413
Operating Profit81012591011910131918
OPM %11%10%10%5%6%6%6%4%5%5%4%4%
Other Income110102112100
Interest211121121122
Depreciation111111111111
Profit before tax7810471010710121615
Tax %34%43%34%31%25%19%15%-3%-2%1%7%
Net Profit4563589710121514
EPS in Rs139.68152.58207.1081.61172.905.265.844.867.088.169.819.14
Dividend Payout %14%13%10%25%0%10%17%21%21%24%20%

Aarvi Encon Limited Profit & Loss Yearly Chart

Aarvi Encon Limited Growth

Compounded Sales Growth
10 Years:15%
5 Years:15%
3 Years:26%
TTM:-7%
Compounded Profit Growth
10 Years:9%
5 Years:7%
3 Years:3%
TTM:-26%
Stock Price CAGR
10 Years:%
5 Years:30%
3 Years:23%
1 Year:1%
Return on Equity
10 Years:13%
5 Years:12%
3 Years:13%
Last Year:10%

Last Updated: July 16, 2024, 6:01 pm

Aarvi Encon Limited Balance Sheet

Last Updated: July 10, 2024, 2:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3333315151515151515
Reserves172126273248556270809396
Borrowings12119915481046311
Other Liabilities121414121716283231484739
Total Liabilities434953526783106118120149158161
Fixed Assets1099777121110101010
CWIP000000000000
Investments100000000000
Other Assets33394444607694106109138148150
Total Assets434953526783106118120149158161

Aarvi Encon Limited Reserves and Borrowings Chart

Aarvi Encon Limited Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 74401-7-4417-1033
Cash from Investing Activity -6-0-0-0-01-1-020-01
Cash from Financing Activity 0-3-4-2481-2-7-1-42
Net Cash Flow110-241-4112-11-16

Aarvi Encon Limited 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%

Aarvi Encon Limited Financial Efficiency Indicators Chart

Aarvi Encon Limited Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters73.47%73.47%73.47%73.47%73.47%73.47%73.47%73.47%73.47%73.51%73.54%73.54%
Public26.53%26.52%26.52%26.52%26.53%26.52%26.52%26.53%26.53%26.49%26.46%26.46%
No. of Shareholders3,5504,1303,7573,5453,5105,2296,8758,1328,6869,32611,26210,663

Aarvi Encon Limited Shareholding Pattern Chart

No. of Aarvi Encon Limited Shareholders

This stock is not held by any mutual fund

Aarvi Encon Limited ROCE Trend

Aarvi Encon Limited EPS Trend

Aarvi Encon Limited Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)9.828.167.084.866.17
Diluted EPS (Rs.)9.828.167.084.866.17
Cash EPS (Rs.)10.658.857.735.696.67
Book Value[Excl.RevalReserv]/Share (Rs.)73.0964.0557.5451.6348.12
Book Value[Incl.RevalReserv]/Share (Rs.)73.0964.0557.5451.6348.12
Revenue From Operations / Share (Rs.)295.27195.18136.49147.49139.37
PBDIT / Share (Rs.)13.219.408.016.638.39
PBIT / Share (Rs.)12.388.717.365.797.89
PBT / Share (Rs.)10.608.226.974.707.18
Net Profit / Share (Rs.)9.818.167.084.866.17
NP After MI And SOA / Share (Rs.)9.818.167.084.866.17
PBDIT Margin (%)4.474.815.874.496.02
PBIT Margin (%)4.194.465.383.925.65
PBT Margin (%)3.594.215.103.185.15
Net Profit Margin (%)3.324.185.183.294.42
NP After MI And SOA Margin (%)3.324.185.183.294.42
Return on Networth / Equity (%)13.4212.7412.299.4012.81
Return on Capital Employeed (%)16.8013.3312.5410.9316.26
Return On Assets (%)9.158.108.706.058.78
Total Debt / Equity (X)0.030.060.040.110.10
Asset Turnover Ratio (%)3.012.181.691.862.16
Current Ratio (X)2.291.992.601.751.88
Quick Ratio (X)2.291.992.601.751.88
Dividend Payout Ratio (NP) (%)0.0024.5014.1324.838.10
Dividend Payout Ratio (CP) (%)0.0022.5812.9221.167.49
Earning Retention Ratio (%)0.0075.5085.8775.1791.90
Cash Earning Retention Ratio (%)0.0077.4287.0878.8492.51
Interest Coverage Ratio (X)11.1019.0120.916.1211.89
Interest Coverage Ratio (Post Tax) (X)9.7417.5019.465.489.74
Enterprise Value (Cr.)149.45170.5256.3533.6963.12
EV / Net Operating Revenue (X)0.340.590.270.150.30
EV / EBITDA (X)7.6512.264.763.445.09
MarketCap / Net Operating Revenue (X)0.340.590.370.140.29
Retention Ratios (%)0.0075.4985.8675.1691.89
Price / BV (X)1.411.810.890.410.85
Price / Net Operating Revenue (X)0.340.590.370.140.29
EarningsYield0.090.070.130.220.15

Aarvi Encon Limited Profitability Ratios (%)

Aarvi Encon Limited Liquidity Ratios

Aarvi Encon Limited Liquidity Ratios (%)

Aarvi Encon Limited Interest Coverage Ratios (%)

Aarvi Encon Limited Valuation Ratios

Fair Value

Fair Value: 137.56

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.

Undervalued: 5.81% compared to the current price 130

Intrinsic Value: 156.08

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.

Undervalued: 20.06% compared to the current price 130

Last 5 Year EPS CAGR: 13.47%

*Investments are subject to market risks

Strength and Weakness of Aarvi Encon Limited Stock

StrengthWeakness
  1. The company has higher reserves (52.75 cr) compared to borrowings (8.42 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (209.42 cr) and profit (9.67 cr) over the years.
  1. The stock has a low average ROCE of 15.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 57.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 92.42, which may not be favorable.

FAQ

What is the latest fair value of Aarvi Encon Limited?

The latest fair value of Aarvi Encon Limited is ₹137.56.

What is the Market Cap of Aarvi Encon Limited?

The Market Cap of Aarvi Encon Limited is 192 Cr..

What is the current Stock Price of Aarvi Encon Limited as on 19 July 2024?

The current stock price of Aarvi Encon Limited as on 19 July 2024 is 130.

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 17.0.

What is the Book Value of Aarvi Encon Limited?

The Book Value of Aarvi Encon Limited is 78.9.

What is the Dividend Yield of Aarvi Encon Limited?

The Dividend Yield of Aarvi Encon Limited is 1.54 %.

What is the ROCE of Aarvi Encon Limited?

The ROCE of Aarvi Encon Limited is 11.4 %.

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