Akar Auto Industries Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:30 am

Market Cap	134 Cr.
Current Price	125
High / Low	170/87.8
Stock P/E	21.5
Book Value	44.4
Dividend Yield	0.48 %
ROCE	17.3 %
ROE	13.1 %
Face Value	5.00
PEG Ratio	0.39

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

Stock P/E Current Price Intrinsic Value

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Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
G S Auto International Ltd	59.6 Cr.	41.1	54.8/24.1	48.5	15.6	0.00 %	10.1 %	3.21 %	5.00
Duncan Engineering Ltd	208 Cr.	563	902/384	32.0	149	0.62 %	18.4 %	13.9 %	10.0
Bharat Seats Ltd	685 Cr.	109	125/62.8	25.1	27.9	0.73 %	15.3 %	15.9 %	2.00
Automobile Corporation of Goa Ltd	1,300 Cr.	2,135	3,449/1,390	28.3	387	0.94 %	18.7 %	18.6 %	10.0
Akar Auto Industries Ltd	134 Cr.	125	170/87.8	21.5	44.4	0.48 %	17.3 %	13.1 %	5.00
Industry Average	5,065.58 Cr	690.44		39.04	148.22	0.62%	16.36%	15.36%	5.85

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	56.70	59.84	65.38	86.80	82.57	88.42	94.40	101.68	89.77	95.76	93.66	94.62	94.94
Expenses	52.52	55.41	60.61	81.00	78.01	83.42	88.55	94.88	84.62	90.19	87.19	87.92	88.60
Operating Profit	4.18	4.43	4.77	5.80	4.56	5.00	5.85	6.80	5.15	5.57	6.47	6.70	6.34
OPM %	7.37%	7.40%	7.30%	6.68%	5.52%	5.65%	6.20%	6.69%	5.74%	5.82%	6.91%	7.08%	6.68%
Other Income	0.02	0.02	0.12	0.43	0.03	0.04	0.06	0.05	0.05	0.06	0.03	0.10	0.06
Interest	1.87	1.83	2.09	2.22	1.90	2.21	2.64	3.29	2.22	2.47	2.78	3.71	2.90
Depreciation	1.15	1.15	1.10	1.02	0.99	1.00	1.01	1.05	0.95	0.90	1.07	1.12	1.20
Profit before tax	1.18	1.47	1.70	2.99	1.70	1.83	2.26	2.51	2.03	2.26	2.65	1.97	2.30
Tax %	1.69%	-4.76%	-23.53%	30.43%	27.65%	31.15%	28.76%	-11.16%	43.35%	35.40%	27.17%	51.78%	33.48%
Net Profit	1.17	1.54	2.10	2.08	1.23	1.26	1.60	2.79	1.15	1.46	1.92	0.96	1.54
EPS in Rs	1.08	1.43	1.95	1.93	1.14	1.17	1.48	2.59	1.07	1.35	1.78	0.89	1.43

Last Updated: October 7, 2024, 8:43 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:07 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	141	142	159	184	189	241	277	198	187	269	366	373	379
Expenses	132	133	149	171	175	223	258	188	178	250	344	349	354
Operating Profit	9	9	9	12	14	18	18	9	9	19	22	24	25
OPM %	7%	6%	6%	7%	7%	8%	7%	5%	5%	7%	6%	6%	7%
Other Income	0	0	1	0	0	-1	-0	0	2	1	0	0	0
Interest	5	5	6	7	7	8	8	8	8	8	10	11	12
Depreciation	2	2	3	3	3	4	4	4	4	4	4	4	4
Profit before tax	2	1	2	3	4	5	6	-2	-2	7	8	9	9
Tax %	42%	49%	32%	36%	37%	36%	12%	23%	35%	6%	17%	38%
Net Profit	1	1	1	2	2	3	5	-3	-3	7	7	5	6
EPS in Rs	0.86	0.64	1.14	1.70	2.28	2.97	4.83	-2.84	-2.63	6.38	6.38	5.09	5.45
Dividend Payout %	29%	47%	31%	29%	24%	19%	11%	-0%	-0%	4%	8%	12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	0.00%	0.00%	100.00%	0.00%	50.00%	66.67%	-160.00%	0.00%	333.33%	0.00%	-28.57%
Change in YoY Net Profit Growth (%)	0.00%	0.00%	100.00%	-100.00%	50.00%	16.67%	-226.67%	160.00%	333.33%	-333.33%	-28.57%

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:	10%
5 Years:	6%
3 Years:	26%
TTM:	-1%

Compounded Profit Growth
10 Years:	23%
5 Years:	-1%
3 Years:	58%
TTM:	-11%

Stock Price CAGR
10 Years:	25%
5 Years:	47%
3 Years:	31%
1 Year:	-14%

Return on Equity
10 Years:	9%
5 Years:	8%
3 Years:	18%
Last Year:	13%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:20 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	5	5	5	5	5	5	5	5	5	5	5	5	5
Reserves	19	19	18	20	20	23	27	23	20	27	34	39	42
Borrowings	39	35	35	45	51	57	66	66	79	71	65	83	76
Other Liabilities	45	50	56	56	49	56	54	50	55	55	83	89	108
Total Liabilities	109	110	115	126	125	140	153	144	159	159	187	216	232
Fixed Assets	35	34	29	30	35	37	39	43	42	38	41	55	53
CWIP	0	0	0	1	3	1	4	0	0	0	1	0	1
Investments	1	1	0	0	0	0	0	0	0	0	0	0	0
Other Assets	72	75	86	95	88	102	110	101	117	121	145	161	178
Total Assets	109	110	115	126	125	140	153	144	159	159	187	216	232

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	8	11	6	1	12	9	7	14	0	15	25	10
Cash from Investing Activity +	-1	-1	1	-4	-10	-4	-8	-5	-1	0	-8	-17
Cash from Financing Activity +	-7	-9	-7	3	-2	-4	1	-9	1	-15	-16	7
Net Cash Flow	-1	0	0	0	0	1	-0	1	-1	1	1	-0

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-30.00	-26.00	-26.00	-33.00	-37.00	-39.00	-48.00	-57.00	-70.00	-52.00	-43.00	-59.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	59	60	65	71	60	56	50	57	77	48	49	54
Inventory Days	181	188	176	147	145	127	125	180	223	167	121	140
Days Payable	176	200	185	148	106	95	82	111	127	93	99	110
Cash Conversion Cycle	64	48	56	70	100	88	93	125	173	122	70	84
Working Capital Days	81	65	65	72	76	70	73	93	116	83	57	69
ROCE %	10%	10%	11%	15%	15%	18%	16%	5%	6%	15%	18%	17%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%	73.06%
FIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.65%	0.65%	0.37%	0.00%	0.00%	0.00%	0.00%
Government	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.54%	0.00%	0.00%
Public	26.94%	26.94%	26.94%	26.94%	26.94%	26.29%	26.29%	26.56%	26.94%	26.40%	26.94%	26.94%
No. of Shareholders	2,929	3,251	3,554	3,430	3,348	3,439	3,416	3,836	4,043	4,127	4,549	4,702

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 11
FaceValue	10.00
Basic EPS (Rs.)	7.45
Diluted EPS (Rs.)	7.45
PBDIT Margin (%)	9.87
PBIT Margin (%)	8.04
PBT Margin (%)	4.32
Net Profit Margin (%)	3.05
NP After MI And SOA Margin (%)	3.05
Interest Coverage Ratio (X)	2.16
Interest Coverage Ratio (Post Tax) (X)	1.82

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 125.65

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 December 21, 2024, is Undervalued by 0.52% compared to the current share price 125.00

Intrinsic Value of as of December 21, 2024 is: 195.33

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 December 21, 2024, is Undervalued by 56.26% compared to the current share price 125.00

Last 5 Year EPS CAGR: 55.46%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

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 :
1. Net Profit Margin: 3.05%
  - 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: 0% (Industry Average ROCE: 16.36%)
  - 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%: 0% (Industry Average ROE: 14.59%)
  - 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): 1.82
  - 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
  - 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: 21.5 (Industry average Stock P/E: 35.14)
  - 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
  - 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

Akar Auto Industries Ltd. is a Public Limited Listed company incorporated on 21/06/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29220MH1989PLC052305 and registration number is 052305. Currently Company is involved in the business activities of Manufacture of metal-forming machinery and machine tools. Company’s Total Operating Revenue is Rs. 268.52 Cr. and Equity Capital is Rs. 5.39 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Auto Ancl - Others	304, Abhay Steel House, Baroda Street, Mumbai Maharashtra 400009	corporate@akartoolsltd.com http://www.akartoolsltd.com

Management
Name	Position Held
Mr. N K Gupta	Non Executive Chairman
Mr. Sunil Todi	Managing Director
Mr. P M Nijampurkar	Whole Time Director
Mr. B R Galgali	Independent Director
Mrs. Bhavana Saboo	Independent Director
Mr. Anil Kumar Gupta	Independent Director
Mr. Ulhas Gaoli	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹125.65, which is 0.52% higher than the current market price of ₹125.00. The stock has a market capitalization of 134 Cr. and recorded a high/low of 170/87.8 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹42 Cr and total liabilities of ₹232 Cr.

What is the Market Cap of ?

The Market Cap of is 134 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 125.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 170/87.8.

What is the Stock P/E of ?

The Stock P/E of is 21.5.

What is the Book Value of ?

The Book Value of is 44.4.

What is the Dividend Yield of ?

The Dividend Yield of is 0.48 %.

What is the ROCE of ?

The ROCE of is 17.3 %.

What is the ROE of ?

The ROE of is 13.1 %.

What is the Face Value of ?

The Face Value of is 5.00.