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Last Updated on: 27 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 530621 | NSE: AAIL

Fundamental Analysis of Akar Auto Industries Ltd

Basic Stock Data

Last Updated: July 26, 2024, 6:51 pm

Market Cap 118 Cr.
Current Price 109
High / Low170/80.3
Stock P/E21.4
Book Value 41.2
Dividend Yield0.46 %
ROCE17.7 %
ROE13.1 %
Face Value 5.00
PEG Ratio0.39

Data Source: screener.in

Competitors of Akar Auto Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Duncan Engineering Ltd 227 Cr. 613649/37140.2 1430.57 %18.4 %13.9 % 10.0
Bharat Seats Ltd 558 Cr. 178204/11622.4 53.10.90 %15.3 %15.9 % 2.00
Automobile Corporation of Goa Ltd 1,465 Cr. 2,4062,540/1,25038.2 3600.83 %18.7 %18.6 % 10.0
Akar Auto Industries Ltd 118 Cr. 109170/80.321.4 41.20.46 %17.7 %13.1 % 5.00
Shivam Autotech Ltd 495 Cr. 40.549.8/25.3 4.550.00 %2.82 %62.7 % 2.00
Industry Average4,116.82 Cr770.22130.09145.800.62%16.93%16.54%5.71

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales70.2356.7059.8465.3886.8082.5788.4294.40101.6889.7795.7693.6694.62
Expenses65.6652.5255.4160.6181.0078.0183.4288.5594.8884.6290.1987.1987.92
Operating Profit4.574.184.434.775.804.565.005.856.805.155.576.476.70
OPM %6.51%7.37%7.40%7.30%6.68%5.52%5.65%6.20%6.69%5.74%5.82%6.91%7.08%
Other Income0.130.020.020.120.430.030.040.060.050.050.060.030.10
Interest2.231.871.832.092.221.902.212.643.292.222.472.783.71
Depreciation1.051.151.151.101.020.991.001.011.050.950.901.071.12
Profit before tax1.421.181.471.702.991.701.832.262.512.032.262.651.97
Tax %29.58%1.69%-4.76%-23.53%30.43%27.65%31.15%28.76%-11.16%43.35%35.40%27.17%51.78%
Net Profit1.001.171.542.102.081.231.261.602.791.151.461.920.96
EPS in Rs0.931.081.431.951.931.141.171.482.591.071.351.780.89

Last Updated: July 10, 2024, 11:53 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 25, 2024, 12:00 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales141142159184189241277198187269366374
Expenses132133149171175223258188178250344350
Operating Profit9991214181899192224
OPM %7%6%6%7%7%8%7%5%5%7%6%6%
Other Income00100-1-002100
Interest55677888881011
Depreciation223334444444
Profit before tax2123456-2-2789
Tax %42%49%32%36%37%36%12%23%35%6%17%38%
Net Profit1112235-3-3775
EPS in Rs0.860.641.141.702.282.974.83-2.84-2.636.386.385.09
Dividend Payout %29%47%31%29%24%19%11%0%0%4%8%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
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%

Growth

Compounded Sales Growth
10 Years:10%
5 Years:6%
3 Years:26%
TTM:2%
Compounded Profit Growth
10 Years:23%
5 Years:-1%
3 Years:58%
TTM:-20%
Stock Price CAGR
10 Years:24%
5 Years:38%
3 Years:63%
1 Year:27%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:18%
Last Year:13%

Last Updated: July 25, 2024, 6:39 am

Balance Sheet

Last Updated: July 10, 2024, 11:53 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital555555555555
Reserves191918202023272320273439
Borrowings393535455157666679716578
Other Liabilities455056564956545055558394
Total Liabilities109110115126125140153144159159187216
Fixed Assets353429303537394342384155
CWIP000131400010
Investments110000000000
Other Assets7275869588102110101117121145161
Total Assets109110115126125140153144159159187216

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 811611297140152510
Cash from Investing Activity -1-11-4-10-4-8-5-10-8-17
Cash from Financing Activity -7-9-73-2-41-91-15-167
Net Cash Flow-100001-01-111-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-30.00-26.00-26.00-33.00-37.00-39.00-48.00-57.00-70.00-52.00-43.00-54.00

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 Days596065716056505777484954
Inventory Days181188176147145127125180223167121140
Days Payable17620018514810695821111279399110
Cash Conversion Cycle6448567010088931251731227084
Working Capital Days8165657276707393116835769
ROCE %10%10%11%15%15%18%16%5%6%15%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%73.06%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.65%0.65%0.37%0.00%0.00%0.00%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.54%0.00%
Public26.94%26.94%26.94%26.94%26.94%26.94%26.29%26.29%26.56%26.94%26.40%26.94%
No. of Shareholders2,8762,9293,2513,5543,4303,3483,4393,4163,8364,0434,1274,549

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 11
FaceValue10.00
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: 116.03

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: 6.45% compared to the current price 109

Intrinsic Value: 179.78

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: 64.94% compared to the current price 109

Last 5 Year EPS CAGR: 54.94%

*Investments are subject to market risks

Strength and Weakness

Unable to fetch valid data for stock valuation.

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 Akar Auto Industries Ltd:
    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: N/A% (Industry Average ROCE: 16.93%)
      • 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%: N/A% (Industry Average ROE: 16.54%)
      • 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: N/A
      • 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: 21.4 (Industry average Stock P/E: 130.09)
      • 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: N/A
      • 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

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.
INDUSTRYADDRESSCONTACT
Auto Ancl - Others304, Abhay Steel House, Baroda Street, Mumbai Maharashtra 400009corporate@akartoolsltd.com
http://www.akartoolsltd.com
Management
NamePosition Held
Mr. N K GuptaNon Executive Chairman
Mr. Sunil TodiManaging Director
Mr. P M NijampurkarWhole Time Director
Mr. Bhimsen Raghavendra GalgaliIndependent Director
Mrs. Bhavana Vijay SabooIndependent Director
Mr. Anil Kumar GuptaIndependent Director
Mr. Ulhas GaoliIndependent Director

FAQ

What is the latest fair value of Akar Auto Industries Ltd?

The latest fair value of Akar Auto Industries Ltd is ₹116.03.

What is the Market Cap of Akar Auto Industries Ltd?

The Market Cap of Akar Auto Industries Ltd is 118 Cr..

What is the current Stock Price of Akar Auto Industries Ltd as on 27 July 2024?

The current stock price of Akar Auto Industries Ltd as on 27 July 2024 is 109.

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

In FY 2024, the High / Low of Akar Auto Industries Ltd stocks is 170/80.3.

What is the Stock P/E of Akar Auto Industries Ltd?

The Stock P/E of Akar Auto Industries Ltd is 21.4.

What is the Book Value of Akar Auto Industries Ltd?

The Book Value of Akar Auto Industries Ltd is 41.2.

What is the Dividend Yield of Akar Auto Industries Ltd?

The Dividend Yield of Akar Auto Industries Ltd is 0.46 %.

What is the ROCE of Akar Auto Industries Ltd?

The ROCE of Akar Auto Industries Ltd is 17.7 %.

What is the ROE of Akar Auto Industries Ltd?

The ROE of Akar Auto Industries Ltd is 13.1 %.

What is the Face Value of Akar Auto Industries Ltd?

The Face Value of Akar Auto Industries Ltd is 5.00.

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 Akar Auto 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