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Last Updated on: 31 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 500710 | NSE: AKZOINDIA

Akzo Nobel India Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 31, 2024, 9:01 am

Market Cap 15,536 Cr.
Current Price 3,411
High / Low 4,674/2,265
Stock P/E35.7
Book Value 313
Dividend Yield2.20 %
ROCE42.3 %
ROE32.3 %
Face Value 10.0
PEG Ratio2.27

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

View Share Price Target for Akzo Nobel India Ltd

Competitors of Akzo Nobel India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sirca Paints India Ltd 1,817 Cr. 331 444/28239.1 59.10.45 %24.0 %17.9 % 10.0
Shalimar Paints Ltd 1,050 Cr. 125 226/97.0 41.40.00 %12.6 %20.2 % 2.00
Kansai Nerolac Paints Ltd 20,865 Cr. 258 353/25234.2 69.80.97 %16.6 %12.8 % 1.00
Berger Paints India Ltd 52,258 Cr. 448 630/43845.6 48.00.78 %27.5 %23.5 % 1.00
Akzo Nobel India Ltd 15,536 Cr. 3,411 4,674/2,26535.7 3132.20 %42.3 %32.3 % 10.0
Industry Average51,835.67 Cr1,143.5040.26119.880.98%26.75%23.02%4.17

All Competitor Stocks of Akzo Nobel India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6267419148679389269879519999561,0339731,036
Expenses536646786748817820844797837814866812867
Operating Profit9195128119121106143155162142166162169
OPM %14%13%14%14%13%11%14%16%16%15%16%17%16%
Other Income10357451268981010
Interest3336233633332
Depreciation18201919192021221921202222
Profit before tax807511010110488132133148127152147154
Tax %5%26%24%26%26%26%26%28%26%26%25%26%26%
Net Profit765684757765979511094114109115
EPS in Rs16.6712.2318.4016.3816.8914.3621.3920.9524.1320.6824.9923.8925.16

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,1522,3322,4422,6402,5722,7192,9182,6622,4213,1493,8023,9623,999
Expenses1,9642,1412,1812,3802,2442,4202,5762,2912,0782,7143,2763,3283,360
Operating Profit188192261260329300342370343434526633639
OPM %9%8%11%10%13%11%12%14%14%14%14%16%16%
Other Income13857681106524043412123263537
Interest922234491014141212
Depreciation39445354545865797676828285
Profit before tax279203275314337478316323278367456573580
Tax %22%26%32%32%27%16%33%27%25%21%26%26%
Net Profit219150186214247401211237208290335427431
EPS in Rs46.8932.1939.9345.9152.9485.8546.3352.1345.5963.6873.5893.7094.72
Dividend Payout %171%233%50%153%42%26%52%27%110%118%88%80%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-31.51%24.00%15.05%15.42%62.35%-47.38%12.32%-12.24%39.42%15.52%27.46%
Change in YoY Net Profit Growth (%)0.00%55.51%-8.95%0.37%46.93%-109.73%59.70%-24.56%51.66%-23.91%11.95%

Akzo Nobel India Ltd 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:5%
5 Years:6%
3 Years:18%
TTM:3%
Compounded Profit Growth
10 Years:16%
5 Years:17%
3 Years:27%
TTM:10%
Stock Price CAGR
10 Years:9%
5 Years:11%
3 Years:19%
1 Year:32%
Return on Equity
10 Years:22%
5 Years:24%
3 Years:27%
Last Year:32%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:44 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital47474747474746464646464646
Reserves1,0598018731,1169621,2441,0901,1921,2421,2131,2701,2841,380
Borrowings0003333646470706064
Other Liabilities1,2001,1918798788729389591,0241,1781,2611,3541,5131,676
Total Liabilities2,3052,0391,7992,0431,8842,2312,0972,3252,5292,5902,7392,9033,166
Fixed Assets355502516523519539530574543520511526562
CWIP106311292327171616427311992
Investments9476293946003365733778400000
Other Assets8988778769111,0061,0921,1731,6521,9692,0292,1562,2582,511
Total Assets2,3052,0391,7992,0431,8842,2312,0972,3252,5292,5902,7392,9033,166

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +208171155263143181141375283121486486
Cash from Investing Activity +33250239-156225-61854-225230-15-87
Cash from Financing Activity +-231-438-410-113-392-126-360-157-174-346-302-439
Net Cash Flow10-17-16-6-2450-34222-1166170-41

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow188.00192.00261.00257.00326.00297.00339.00306.00279.00364.00456.00573.00

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 Days434842495853565462575353
Inventory Days89869589107848510713512995100
Days Payable135130119145164159131171220164138164
Cash Conversion Cycle-3417-71-229-10-232211-10
Working Capital Days-67-62-12-59151020-3-12165-1
ROCE %15%16%25%26%27%40%24%27%22%28%35%42%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.76%74.76%74.76%74.76%74.76%74.76%74.76%74.76%74.76%74.76%74.76%74.76%
FIIs1.65%1.66%1.75%2.12%2.71%2.97%3.15%3.14%3.20%3.42%3.63%3.75%
DIIs10.62%10.50%10.37%9.61%9.21%8.99%8.75%8.61%8.56%8.36%8.28%8.11%
Public12.98%13.09%13.12%13.51%13.33%13.27%13.34%13.49%13.49%13.47%13.33%13.39%
No. of Shareholders43,41145,78045,74645,88043,94043,73545,23146,65747,32246,71246,66245,906

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Frontline Equity Fund737,9140.72219.59457,0212024-12-2961.46%
HDFC Childrens Gift Fund - Regular Plan457,0211.39136457,0212024-12-290%
Tata Large & Mid Cap Fund - Regular Plan181,8000.6554.1457,0212024-12-29-60.22%
Tata Large & Mid Cap Fund - Regular Plan181,8000.6554.1457,0212024-12-29-60.22%
Templeton India Equity Income Fund115,0001.3634.22457,0212024-12-29-74.84%
UTI Dividend Yield Fund107,0000.7331.84457,0212024-12-29-76.59%
Aditya Birla Sun Life Midcap Fund86,3640.4225.7457,0212024-12-29-81.1%
Aditya Birla Sun Life MNC Fund - Div72,6010.5221.61457,0212024-12-29-84.11%
Aditya Birla Sun Life MNC Fund - Gr72,6010.5221.61457,0212024-12-29-84.11%
Templeton India Value Fund60,0000.7917.86457,0212024-12-29-86.87%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)93.6873.5863.7045.6052.13
Diluted EPS (Rs.)93.6873.5863.7045.6052.13
Cash EPS (Rs.)111.8591.7880.4462.2269.39
Book Value[Excl.RevalReserv]/Share (Rs.)292.02289.03276.55282.88271.23
Book Value[Incl.RevalReserv]/Share (Rs.)292.29289.30276.81283.14271.49
Revenue From Operations / Share (Rs.)870.68835.63692.00532.17583.73
PBDIT / Share (Rs.)146.77121.43100.0480.0091.38
PBIT / Share (Rs.)128.68103.3083.3663.4174.06
PBT / Share (Rs.)125.93100.2080.6161.1470.88
Net Profit / Share (Rs.)93.7673.6563.7645.6352.06
NP After MI And SOA / Share (Rs.)93.7673.6563.7645.6352.06
PBDIT Margin (%)16.8514.5314.4515.0315.65
PBIT Margin (%)14.7712.3612.0411.9112.68
PBT Margin (%)14.4611.9911.6411.4812.14
Net Profit Margin (%)10.768.819.218.578.91
NP After MI And SOA Margin (%)10.768.819.218.578.91
Return on Networth / Equity (%)32.1025.4823.0516.1219.19
Return on Capital Employeed (%)39.5531.8226.9420.0524.50
Return On Assets (%)14.6912.2211.198.2010.20
Asset Turnover Ratio (%)1.401.431.230.991.20
Current Ratio (X)1.351.481.491.601.64
Quick Ratio (X)0.921.000.921.151.19
Inventory Turnover Ratio (X)3.323.303.082.562.94
Dividend Payout Ratio (NP) (%)96.0881.52109.8974.5655.51
Dividend Payout Ratio (CP) (%)80.5465.4287.1054.6841.65
Earning Retention Ratio (%)3.9218.48-9.8925.4444.49
Cash Earning Retention Ratio (%)19.4634.5812.9045.3258.35
Interest Coverage Ratio (X)53.4239.1831.3935.3444.81
Interest Coverage Ratio (Post Tax) (X)35.1324.7720.8721.1627.09
Enterprise Value (Cr.)10323.769851.798249.979768.889482.65
EV / Net Operating Revenue (X)2.612.592.624.033.56
EV / EBITDA (X)15.4617.8318.1226.8422.76
MarketCap / Net Operating Revenue (X)2.742.742.774.343.77
Retention Ratios (%)3.9118.47-9.8925.4344.48
Price / BV (X)8.167.926.928.168.11
Price / Net Operating Revenue (X)2.742.742.774.343.77
EarningsYield0.030.030.030.010.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Akzo Nobel India Ltd as of December 31, 2024 is: 3,688.64

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 31, 2024, Akzo Nobel India Ltd is Undervalued by 8.14% compared to the current share price 3,411.00

Intrinsic Value of Akzo Nobel India Ltd as of December 31, 2024 is: 4,269.54

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 31, 2024, Akzo Nobel India Ltd is Undervalued by 25.17% compared to the current share price 3,411.00

Last 5 Year EPS CAGR: 15.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 27.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -12.50, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -0.92, which is a positive sign.
  4. The company has higher reserves (1,132.77 cr) compared to borrowings (31.08 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (2.31 cr) and profit (367.62 cr) over the years.

    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 Akzo Nobel India Ltd:
      1. Net Profit Margin: 10.76%
        • 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: 39.55% (Industry Average ROCE: 26.75%)
        • 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%: 32.1% (Industry Average ROE: 23.02%)
        • 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): 35.13
        • 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: 0.92
        • 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: 35.7 (Industry average Stock P/E: 33.55)
        • 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

    Akzo Nobel India Ltd. is a Public Limited Listed company incorporated on 12/03/1954 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L24292WB1954PLC021516 and registration number is 021516. Currently Company is involved in the business activities of Manufacture of paints and varnishes, enamels or lacquers. Company’s Total Operating Revenue is Rs. 3148.60 Cr. and Equity Capital is Rs. 45.50 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Paints/Varnishes8-B, Middleton Street, Kolkata West Bengal 700071investor.india@akzonobel.com
    http://www.akzonobel.co.in
    Management
    NamePosition Held
    Mr. Rajiv RajgopalChairman & Managing Director
    Mr. Krishna RallapalliWholeTime Director & CFO
    Mr. Rohit G TotlaWhole Time Director
    Mr. Hemant SahaiIndependent Director
    Ms. Smriti Rekha VijayIndependent Director
    Mr. Amit JainIndependent Director

    FAQ

    What is the latest intrinsic value of Akzo Nobel India Ltd?

    The latest intrinsic value of Akzo Nobel India Ltd as on 31 December 2024 is ₹3688.64, which is 8.14% higher than the current market price of ₹3,411.00. The stock has a market capitalization of 15,536 Cr. and recorded a high/low of 4,674/2,265 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,380 Cr and total liabilities of ₹3,166 Cr.

    What is the Market Cap of Akzo Nobel India Ltd?

    The Market Cap of Akzo Nobel India Ltd is 15,536 Cr..

    What is the current Stock Price of Akzo Nobel India Ltd as on 31 December 2024?

    The current stock price of Akzo Nobel India Ltd as on 31 December 2024 is 3,411.

    What is the High / Low of Akzo Nobel India Ltd stocks in FY 2024-2025?

    In FY 2024-2025, the High / Low of Akzo Nobel India Ltd stocks is 4,674/2,265.

    What is the Stock P/E of Akzo Nobel India Ltd?

    The Stock P/E of Akzo Nobel India Ltd is 35.7.

    What is the Book Value of Akzo Nobel India Ltd?

    The Book Value of Akzo Nobel India Ltd is 313.

    What is the Dividend Yield of Akzo Nobel India Ltd?

    The Dividend Yield of Akzo Nobel India Ltd is 2.20 %.

    What is the ROCE of Akzo Nobel India Ltd?

    The ROCE of Akzo Nobel India Ltd is 42.3 %.

    What is the ROE of Akzo Nobel India Ltd?

    The ROE of Akzo Nobel India Ltd is 32.3 %.

    What is the Face Value of Akzo Nobel India Ltd?

    The Face Value of Akzo Nobel India 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 Akzo Nobel India 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