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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543534 | NSE: AETHER

Aether Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 6:30 pm

Market Cap 10,831 Cr.
Current Price 817
High / Low1,071/762
Stock P/E107
Book Value 161
Dividend Yield0.00 %
ROCE7.82 %
ROE5.93 %
Face Value 10.0
PEG Ratio-2.85

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

View Share Price Target for Aether Industries Ltd

Competitors of Aether Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 710 Cr. 77.3131/77.034.5 18.40.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 43.6 Cr. 88.9124/48.79.66 87.21.12 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 58.9 Cr. 8671,355/44230.9 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,765 Cr. 105120/57.829.7 19.20.48 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 729 Cr. 292380/24555.0 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,411.24 Cr901.6456.19181.090.33%13.12%10.00%6.77

All Competitor Stocks of Aether Industries Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales141151148160140167184161164155115180196
Expenses101112105118103120124116118124106137142
Operating Profit4039424237476045463194355
OPM %29%26%29%27%26%28%32%28%28%20%8%24%28%
Other Income32066313156699
Interest3433101122432
Depreciation344556791010101011
Profit before tax3734354137445237502524052
Tax %32%25%26%26%27%20%28%18%24%25%40%24%26%
Net Profit2525263127353830381913038
EPS in Rs24.932.252.312.462.192.813.022.282.851.440.082.282.87

Last Updated: November 6, 2024, 7:25 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:13 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales01024109201302450590651596647
Expenses1312285154230338422465464508
Operating Profit-1-2-12234872112168186131139
OPM %-252%-194%10%21%24%24%25%28%29%22%21%
Other Income341002247173031
Interest1101911911135910
Depreciation00015681115233941
Profit before tax00019335794146174114119
Tax %39%27%31%300%17%28%29%24%26%25%23%
Net Profit000-182340711091308888
EPS in Rs0.140.120.11-1.279.0827.2746.6870.439.6710.476.656.67
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)900.00%187.50%73.91%77.50%53.52%19.27%-32.31%
Change in YoY Net Profit Growth (%)0.00%-712.50%-113.59%3.59%-23.98%-34.26%-51.57%

Aether Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2017-2018 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:24%
3 Years:10%
TTM:-4%
Compounded Profit Growth
10 Years:50%
5 Years:33%
3 Years:11%
TTM:-28%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:-9%
Return on Equity
10 Years:16%
5 Years:15%
3 Years:12%
Last Year:6%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:57 pm

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital9934999910113125133133
Reserves000-1730701642741,1201,9362,006
Borrowings40355311112612617221129116144157
Other Liabilities11-21191842506792120143214
Total Liabilities5045651371592073004537701,3802,3562,510
Fixed Assets21156100106129216257646743757
CWIP7204240211705837219322
Investments16800000221710100
Other Assets2515214156991542144386951,3931,330
Total Assets5045651371592073004537701,3802,3562,510

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-1-3-6-96231823-5-7-2
Cash from Investing Activity +-332-14-48-11-13-48-77-151-348-399
Cash from Financing Activity +47-617574-103355169439854
Net Cash Flow13-8-3-1-00221284453

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-41.00-37.00-54.00-109.00-103.00-78.00-100.00-99.00-123.00170.00-13.00

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 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days944,35816788877688101145141
Inventory Days529,733629149133166141221301411
Days Payable1721,922575927688829599113
Cash Conversion Cycle-2512,169220144144153147227348439
Working Capital Days3,56815,9833041237197121183269440
ROCE %-1%-0%2%14%28%32%33%30%18%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters87.09%87.10%87.07%87.07%81.80%81.80%81.79%81.79%81.79%81.78%
FIIs1.80%1.49%1.56%1.57%1.87%2.44%1.97%2.22%2.90%3.17%
DIIs8.33%8.39%8.35%8.39%13.65%12.99%11.79%11.82%11.55%11.63%
Public2.78%3.03%3.01%2.98%2.67%2.76%4.44%4.16%3.74%3.40%
No. of Shareholders51,63957,52956,84053,45655,20860,46684,00078,65571,68367,251

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Magnum Midcap Fund3,266,2691.81288.671,590,2202024-11-15105.4%
SBI Magnum Global Fund3,100,0004.21273.981,590,2202024-11-1594.94%
SBI Multicap Fund1,590,2200.96140.541,590,2202024-11-150%
SBI Healthcare Opportunities Fund1,400,0005.09123.731,590,2202024-11-15-11.96%
SBI Conservative Hybrid Fund1,030,0000.9489.221,590,2202024-11-15-35.23%
SBI Conservative Hybrid Fund - Div (Annual)1,030,0000.9489.221,590,2202024-11-15-35.23%
SBI Conservative Hybrid Fund - Div (Monthly)1,030,0000.9489.221,590,2202024-11-15-35.23%
Axis Small Cap Fund585,4520.2651.741,590,2202024-11-15-63.18%
SBI Magnum Childrens Benefit Fund - Investment Plan440,0002.4238.891,590,2202024-11-15-72.33%
SBI Equity Savings Fund435,9600.9938.531,590,2202024-11-15-72.58%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22
FaceValue10.0010.0010.00
Basic EPS (Rs.)6.2210.479.67
Diluted EPS (Rs.)6.2210.479.67
Cash EPS (Rs.)9.2112.3411.04
Book Value[Excl.RevalReserv]/Share (Rs.)155.6699.9634.33
Book Value[Incl.RevalReserv]/Share (Rs.)155.6699.9634.33
Revenue From Operations / Share (Rs.)45.1352.2952.36
PBDIT / Share (Rs.)12.9416.2915.54
PBIT / Share (Rs.)9.9414.4214.16
PBT / Share (Rs.)8.2614.0113.00
Net Profit / Share (Rs.)6.2210.479.67
NP After MI And SOA / Share (Rs.)6.2210.479.67
PBDIT Margin (%)28.6631.1529.67
PBIT Margin (%)22.0327.5827.04
PBT Margin (%)18.3026.7924.82
Net Profit Margin (%)13.7920.0318.46
NP After MI And SOA Margin (%)13.7920.0318.46
Return on Networth / Equity (%)3.9910.4728.15
Return on Capital Employeed (%)6.2413.9630.24
Return On Assets (%)3.439.4514.14
Long Term Debt / Equity (X)0.000.000.31
Total Debt / Equity (X)0.080.000.73
Asset Turnover Ratio (%)0.310.600.00
Current Ratio (X)4.517.181.69
Quick Ratio (X)3.324.541.02
Inventory Turnover Ratio (X)1.271.840.00
Interest Coverage Ratio (X)20.1339.8213.34
Interest Coverage Ratio (Post Tax) (X)12.3026.619.30
Enterprise Value (Cr.)9960.4811572.590.00
EV / Net Operating Revenue (X)16.6517.770.00
EV / EBITDA (X)58.0957.060.00
MarketCap / Net Operating Revenue (X)17.3017.930.00
Price / BV (X)5.019.380.00
Price / Net Operating Revenue (X)17.3017.930.00
EarningsYield0.010.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Aether Industries Ltd as of November 17, 2024 is: 1,041.99

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 17, 2024, Aether Industries Ltd is Undervalued by 27.54% compared to the current share price 817.00

Intrinsic Value of Aether Industries Ltd as of November 17, 2024 is: 650.34

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 17, 2024, Aether Industries Ltd is Overvalued by 20.40% compared to the current share price 817.00

Last 5 Year EPS CAGR: -37.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (467.17 cr) compared to borrowings (123.50 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (297.58 cr) and profit (62.25 cr) over the years.
  1. The stock has a low average ROCE of 14.91%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 147.82, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 164.45, 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 Aether Industries Ltd:
    1. Net Profit Margin: 13.79%
      • 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: 6.24% (Industry Average ROCE: 13.12%)
      • 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%: 3.99% (Industry Average ROE: 10%)
      • 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): 12.3
      • 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: 3.32
      • 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: 107 (Industry average Stock P/E: 56.19)
      • 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

Aether Industries Ltd. is a Public Limited Listed company incorporated on 23/01/2013 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24100GJ2013PLC073434 and registration number is 073434. Currently company belongs to the Industry of Chemicals - Speciality - Others. Company’s Total Operating Revenue is Rs. 590.05 Cr. and Equity Capital is Rs. 112.69 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersPlot No. 8203, Surat Gujarat 394230info@aether.co.in
http://www.aether.co.in
Management
NamePosition Held
Mr. Kamalvijay Ramchandra TulsianChairman & Non-Exe.Director
Mr. Ashwin Jayantilal DesaiManaging Director
Mr. Rohan Ashwin DesaiWhole Time Director
Dr. Aman Ashvin DesaiWhole Time Director
Ms. Purnima Ashwin DesaiWhole Time Director
Ms. Ishita Surendra ManjrekarNon Executive Director
Mr. Arun Brijmohan KanodiyaInd. Non-Executive Director
Mr. Jeevan Lal NagoriInd. Non-Executive Director
Mr. Leja Satish HattiangadiInd. Non-Executive Director
Dr. Amol Arvindrao KulkarniInd. Non-Executive Director
Mr. Rajkumar Mangilal BoranaInd. Non-Executive Director
Mr. Jitendra Popatlal VakhariaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Aether Industries Ltd?

The latest intrinsic value of Aether Industries Ltd as on 17 November 2024 is ₹1041.99, which is 27.54% higher than the current market price of ₹817.00.

What is the Market Cap of Aether Industries Ltd?

The Market Cap of Aether Industries Ltd is 10,831 Cr..

What is the current Stock Price of Aether Industries Ltd as on 17 November 2024?

The current stock price of Aether Industries Ltd as on 17 November 2024 is ₹817.

What is the High / Low of Aether Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Aether Industries Ltd stocks is 1,071/762.

What is the Stock P/E of Aether Industries Ltd?

The Stock P/E of Aether Industries Ltd is 107.

What is the Book Value of Aether Industries Ltd?

The Book Value of Aether Industries Ltd is 161.

What is the Dividend Yield of Aether Industries Ltd?

The Dividend Yield of Aether Industries Ltd is 0.00 %.

What is the ROCE of Aether Industries Ltd?

The ROCE of Aether Industries Ltd is 7.82 %.

What is the ROE of Aether Industries Ltd?

The ROE of Aether Industries Ltd is 5.93 %.

What is the Face Value of Aether Industries Ltd?

The Face Value of Aether Industries 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 Aether Industries 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