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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Airo Lam Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:08 pm

Market Cap 171 Cr.
Current Price 114
High / Low197/109
Stock P/E51.4
Book Value 48.1
Dividend Yield0.00 %
ROCE12.4 %
ROE12.1 %
Face Value 10.0
PEG Ratio4.18

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

View Share Price Target for Airo Lam Ltd

Competitors of Airo Lam Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ecoboard Industries Ltd 39.4 Cr. 22.146.6/22.1 5.230.00 %10.8 %28.6 % 10.0
Duroply Industries Ltd 252 Cr. 256370/15187.0 1320.00 %6.08 %0.98 % 10.0
Archidply Decor Ltd 51.8 Cr. 93.0147/76.4173 91.30.00 %4.13 %0.06 % 10.0
Ambition Mica Ltd 4.42 Cr. 2.964.20/2.57 8.380.00 %7.00 %% 10.0
Rushil Decor Ltd 869 Cr. 32.145.5/28.519.6 21.80.31 %11.9 %9.86 % 1.00
Industry Average4,105.29 Cr221.5266.7561.550.09%10.45%10.68%6.40

All Competitor Stocks of Airo Lam Ltd

Quarterly Result

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales38.8748.7653.9145.8147.6652.2148.6449.6156.2750.6751.67
Expenses35.8844.4449.4142.9943.8246.6743.2245.4451.0645.8147.00
Operating Profit2.994.324.502.823.845.545.424.175.214.864.67
OPM %7.69%8.86%8.35%6.16%8.06%10.61%11.14%8.41%9.26%9.59%9.04%
Other Income1.180.000.000.510.29-0.230.170.580.070.631.57
Interest0.811.150.651.091.041.411.121.221.231.651.92
Depreciation0.770.790.820.830.840.840.840.850.871.301.02
Profit before tax2.592.383.031.412.253.063.632.683.182.543.30
Tax %27.03%21.43%27.06%26.95%25.33%20.26%27.55%33.96%35.53%27.95%31.52%
Net Profit1.891.882.211.041.692.452.641.772.051.842.25
EPS in Rs1.261.251.470.691.131.631.761.181.371.231.50

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales50556367637093111105133168198199
Expenses4549586158648410197121153181179
Operating Profit56666799912151720
OPM %10%11%9%9%9%9%10%8%8%9%9%8%10%
Other Income0000010111110
Interest3223233222345
Depreciation1221122222333
Profit before tax122223566891012
Tax %38%32%32%32%33%33%34%29%25%29%28%24%
Net Profit1112223455779
EPS in Rs1.422.602.692.913.043.442.172.823.193.644.494.935.70
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%0.00%100.00%0.00%0.00%50.00%33.33%25.00%0.00%40.00%0.00%
Change in YoY Net Profit Growth (%)0.00%0.00%100.00%-100.00%0.00%50.00%-16.67%-8.33%-25.00%40.00%-40.00%

Airo Lam Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:13%
3 Years:15%
TTM:6%
Compounded Profit Growth
10 Years:19%
5 Years:14%
3 Years:15%
TTM:-61%
Stock Price CAGR
10 Years:%
5 Years:35%
3 Years:25%
1 Year:-12%
Return on Equity
10 Years:12%
5 Years:12%
3 Years:12%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:45 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital666661515151515151515
Reserves56810122024293541495757
Borrowings15182321262023343851637986
Other Liabilities15182026273230294253353947
Total Liabilities40495663708792107130160162190206
Fixed Assets11121211111111113837364557
CWIP00000011500000
Investments0000000000111
Other Assets293644516076808292122126145148
Total Assets40495663708792107130160162190206

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +62032-41420-69-0
Cash from Investing Activity +-1-3-1-0-1-4-2-14-14-4-5-13
Cash from Financing Activity +-512-4-1829-29-411
Net Cash Flow-0-02-1-011-14-1-0-2

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow5.00-9.00-12.00-17.00-15.00-19.00-11.00-14.00-25.00-26.00-36.00-46.00

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 Days92971271761911701231461141139199
Inventory Days127138129154168168172181165194175210
Days Payable1011221231811751491151151321296470
Cash Conversion Cycle117112133148183189180212146178202239
Working Capital Days98104126146155168161178130149166196
ROCE %17%16%15%13%13%15%14%11%12%13%12%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.23%52.25%52.25%52.45%52.48%52.48%52.49%52.73%53.01%53.01%53.02%53.02%
Public47.78%47.75%47.75%47.55%47.51%47.52%47.51%47.27%46.99%46.99%46.98%46.98%
No. of Shareholders4811,6072,4282,5073,5054,4024,1254,1613,8213,5504,6134,424

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.)5.234.934.373.643.18
Diluted EPS (Rs.)5.234.934.373.643.18
Cash EPS (Rs.)7.827.146.405.204.28
Book Value[Excl.RevalReserv]/Share (Rs.)46.5742.6737.4933.1229.48
Book Value[Incl.RevalReserv]/Share (Rs.)46.5742.6737.4933.1229.48
Revenue From Operations / Share (Rs.)137.56132.96112.5888.8470.91
PBDIT / Share (Rs.)13.8011.5210.188.276.46
PBIT / Share (Rs.)11.219.318.156.705.37
PBT / Share (Rs.)7.726.516.115.144.24
Net Profit / Share (Rs.)5.234.934.373.643.18
NP After MI And SOA / Share (Rs.)5.234.934.373.643.18
PBDIT Margin (%)10.028.669.049.309.11
PBIT Margin (%)8.147.007.247.547.56
PBT Margin (%)5.614.895.425.795.97
Net Profit Margin (%)3.803.703.884.094.49
NP After MI And SOA Margin (%)3.803.703.884.094.49
Return on Networth / Equity (%)11.1211.5511.6510.9710.80
Return on Capital Employeed (%)18.6516.9014.8714.0413.44
Return On Assets (%)4.084.564.114.184.44
Long Term Debt / Equity (X)0.200.210.390.380.32
Total Debt / Equity (X)1.120.790.890.700.75
Asset Turnover Ratio (%)1.171.241.171.120.00
Current Ratio (X)1.431.571.571.561.71
Quick Ratio (X)0.680.780.800.870.97
Inventory Turnover Ratio (X)2.022.202.312.310.00
Interest Coverage Ratio (X)3.964.124.985.305.72
Interest Coverage Ratio (Post Tax) (X)2.502.763.143.333.82
Enterprise Value (Cr.)306.60144.00148.7870.6056.01
EV / Net Operating Revenue (X)1.490.720.880.520.52
EV / EBITDA (X)14.818.339.745.695.78
MarketCap / Net Operating Revenue (X)1.120.490.600.300.22
Price / BV (X)3.271.531.830.810.53
Price / Net Operating Revenue (X)1.120.490.600.300.22
EarningsYield0.030.070.060.130.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Airo Lam Ltd as of November 18, 2024 is: 305.14

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 18, 2024, Airo Lam Ltd is Undervalued by 167.67% compared to the current share price 114.00

Intrinsic Value of Airo Lam Ltd as of November 18, 2024 is: 342.70

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 18, 2024, Airo Lam Ltd is Undervalued by 200.61% compared to the current share price 114.00

Last 5 Year EPS CAGR: 12.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (105.77 cr) and profit (5.23 cr) over the years.
  1. The stock has a low average ROCE of 13.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 148.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 169.92, which may not be favorable.
  4. The company has higher borrowings (38.23) compared to reserves (27.15), which may suggest financial risk.

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 Airo Lam Ltd:
    1. Net Profit Margin: 3.8%
      • 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: 18.65% (Industry Average ROCE: 10.45%)
      • 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%: 11.12% (Industry Average ROE: 10.68%)
      • 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): 2.5
      • 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: 0.68
      • 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: 51.4 (Industry average Stock P/E: 66.75)
      • 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: 1.12
      • 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

Airo Lam Ltd. is a Public Limited Listed company incorporated on 22/10/2007 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L20211GJ2007PLC052019 and registration number is 052019. Currently company belongs to the Industry of Laminates. Company’s Total Operating Revenue is Rs. 168.90 Cr. and Equity Capital is Rs. 15.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
LaminatesSurvey No.355, Nananpur Road, Prantij Gujarat 383120info@airolam.com
http://www.airolam.com
Management
NamePosition Held
Mr. Pravinkumar Nathalal PatelChairman & Managing Director
Mr. Sureshkumar H PatelWhole Time Director
Mr. Hardikkumar P PatelNon Executive Director
Mrs. Mamta P PatelIndependent Director
Mr. Mehulkumar J PatelIndependent Director
Mr. Manibhai K PatelIndependent Director

FAQ

What is the latest intrinsic value of Airo Lam Ltd?

The latest intrinsic value of Airo Lam Ltd as on 18 November 2024 is ₹305.14, which is 167.67% higher than the current market price of ₹114.00.

What is the Market Cap of Airo Lam Ltd?

The Market Cap of Airo Lam Ltd is 171 Cr..

What is the current Stock Price of Airo Lam Ltd as on 18 November 2024?

The current stock price of Airo Lam Ltd as on 18 November 2024 is ₹114.

What is the High / Low of Airo Lam Ltd stocks in FY 2024?

In FY 2024, the High / Low of Airo Lam Ltd stocks is 197/109.

What is the Stock P/E of Airo Lam Ltd?

The Stock P/E of Airo Lam Ltd is 51.4.

What is the Book Value of Airo Lam Ltd?

The Book Value of Airo Lam Ltd is 48.1.

What is the Dividend Yield of Airo Lam Ltd?

The Dividend Yield of Airo Lam Ltd is 0.00 %.

What is the ROCE of Airo Lam Ltd?

The ROCE of Airo Lam Ltd is 12.4 %.

What is the ROE of Airo Lam Ltd?

The ROE of Airo Lam Ltd is 12.1 %.

What is the Face Value of Airo Lam Ltd?

The Face Value of Airo Lam 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 Airo Lam 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