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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 531082 | NSE: ALANKIT

Alankit Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:32 pm

Market Cap 555 Cr.
Current Price 20.3
High / Low29.7/13.7
Stock P/E22.1
Book Value 10.6
Dividend Yield0.00 %
ROCE10.7 %
ROE9.47 %
Face Value 1.00
PEG Ratio3.24

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

View Share Price Target for Alankit Ltd

Competitors of Alankit Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Nam Securities Ltd 85.7 Cr. 159198/59.3238 21.20.00 %4.16 %3.05 % 10.0
Naperol Investments Ltd 845 Cr. 1,4702,041/801862 3,2040.00 %0.08 %0.05 % 10.0
Inani Securities Ltd 14.1 Cr. 30.842.0/20.59.70 42.20.00 %10.6 %6.92 % 10.0
HCKK Ventures Ltd 41.4 Cr. 112154/77.4230 11.50.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 107 Cr. 99.5177/54.314.4 2791.01 %3.34 %2.90 % 10.0
Industry Average3,857.94N/A59.47N/AN/A15.0215.79N/A

All Competitor Stocks of Alankit Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales32.1233.1633.9328.9434.2213.19116.10148.1848.6243.3252.6191.1661.93
Expenses26.7030.1126.7934.4227.0227.86105.15139.9243.2638.7049.0580.7953.72
Operating Profit5.423.057.14-5.487.20-14.6710.958.265.364.623.5610.378.21
OPM %16.87%9.20%21.04%-18.94%21.04%-111.22%9.43%5.57%11.02%10.66%6.77%11.38%13.26%
Other Income2.431.641.283.171.58-36.85-6.812.082.452.475.761.163.11
Interest0.380.320.510.350.480.490.520.130.250.600.56-0.290.86
Depreciation2.022.112.172.402.131.901.972.471.941.911.881.941.90
Profit before tax5.452.265.74-5.066.17-53.911.657.745.624.586.889.888.56
Tax %34.31%37.17%61.32%-14.03%24.64%-7.81%-161.21%27.52%13.70%44.54%-18.02%34.62%12.03%
Net Profit3.581.422.21-4.344.65-49.694.315.604.852.548.126.477.53
EPS in Rs0.250.090.15-0.310.31-3.240.240.210.210.090.360.240.27

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales33185105130156115128312236249
Expenses322647611013296117299210222
Operating Profit-19212921241911132627
OPM %-27%28%25%28%16%15%17%9%4%11%11%
Other Income20248739-401212
Interest00132343232
Depreciation03144549888
Profit before tax1520262223158-382730
Tax %64%29%35%16%35%38%24%66%-8%19%
Net Profit0413221414113-352225
EPS in Rs0.030.260.931.520.980.980.690.17-1.500.800.96
Dividend Payout %193%39%22%13%20%20%29%121%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)225.00%69.23%-36.36%0.00%-21.43%-72.73%-1266.67%162.86%
Change in YoY Net Profit Growth (%)0.00%-155.77%-105.59%36.36%-21.43%-51.30%-1193.94%1429.52%

Alankit Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:27%
TTM:-24%
Compounded Profit Growth
10 Years:%
5 Years:8%
3 Years:28%
TTM:68%
Stock Price CAGR
10 Years:15%
5 Years:7%
3 Years:9%
1 Year:37%
Return on Equity
10 Years:%
5 Years:10%
3 Years:9%
Last Year:9%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital77141414141414222727
Reserves24283349597380119139249260
Borrowings005514131421134433
Other Liabilities1162658537157107128211154
Total Liabilities335178126140172165261302531474
Fixed Assets128283655506887565073
CWIP00018161810090
Investments102110112112136
Other Assets302349706810497161236451365
Total Assets335178126140172165261302531474

Reserves and Borrowings Chart

Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +21822819-9-22-4910
Cash from Investing Activity +-4-29-1-27-224-3-27-19-80
Cash from Financing Activity +1112214-2-34163122
Net Cash Flow101320-7-815-651

Free Cash Flow

MonthMar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-1.009.0016.0024.007.0011.005.00-10.000.00-18.00

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 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days106695449788911013180111
Inventory Days1,297247761422885711962931
Days Payable28859921,27456127431622147153
Cash Conversion Cycle1,11425738-1,083-196-129-88-2841-10
Working Capital Days2,5069148214197163521125
ROCE %16%50%47%30%24%17%8%8%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters63.77%54.86%54.86%54.86%54.86%54.86%52.03%52.03%52.03%52.03%54.14%54.14%
FIIs0.60%0.82%0.36%0.04%0.02%0.00%0.00%0.00%0.07%0.86%0.37%0.60%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.01%0.01%0.01%0.01%0.01%0.01%
Public35.62%44.30%44.76%45.08%45.11%45.12%47.95%47.96%47.89%47.11%45.49%45.24%
No. of Shareholders42,07644,50360,12859,44657,52355,51455,43154,38164,49386,73994,62488,032

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.96-2.070.160.770.98
Diluted EPS (Rs.)0.96-2.070.160.770.98
Cash EPS (Rs.)1.09-1.190.801.081.34
Book Value[Excl.RevalReserv]/Share (Rs.)10.958.0710.126.886.33
Book Value[Incl.RevalReserv]/Share (Rs.)10.958.0710.126.886.33
Revenue From Operations / Share (Rs.)8.6913.888.968.0410.92
PBDIT / Share (Rs.)1.320.971.311.442.05
PBIT / Share (Rs.)1.040.590.691.131.68
PBT / Share (Rs.)0.99-1.710.581.021.57
Net Profit / Share (Rs.)0.81-1.560.200.770.97
NP After MI And SOA / Share (Rs.)0.79-1.500.160.770.97
PBDIT Margin (%)15.177.0014.5617.9118.73
PBIT Margin (%)11.914.287.7614.0915.37
PBT Margin (%)11.43-12.306.5512.6714.42
Net Profit Margin (%)9.32-11.262.249.628.94
NP After MI And SOA Margin (%)9.14-10.821.839.628.94
Return on Networth / Equity (%)7.80-20.951.7611.7415.92
Return on Capital Employeed (%)9.176.675.8412.6019.21
Return On Assets (%)4.05-11.160.906.698.13
Long Term Debt / Equity (X)0.020.040.050.090.08
Total Debt / Equity (X)0.150.080.150.140.14
Asset Turnover Ratio (%)0.561.110.600.681.00
Current Ratio (X)1.162.091.372.462.13
Quick Ratio (X)1.132.041.262.342.03
Dividend Payout Ratio (NP) (%)0.000.00121.3225.810.00
Dividend Payout Ratio (CP) (%)0.000.0025.8418.480.00
Earning Retention Ratio (%)0.000.00-21.3274.190.00
Cash Earning Retention Ratio (%)0.000.0074.1681.520.00
Interest Coverage Ratio (X)31.8313.4311.9512.6119.72
Interest Coverage Ratio (Post Tax) (X)20.5710.202.847.7810.41
Enterprise Value (Cr.)477.53180.29198.90237.14151.52
EV / Net Operating Revenue (X)2.030.571.552.060.97
EV / EBITDA (X)13.358.2610.6611.515.18
MarketCap / Net Operating Revenue (X)2.040.521.471.970.97
Retention Ratios (%)0.000.00-21.3274.180.00
Price / BV (X)1.741.021.422.401.73
Price / Net Operating Revenue (X)2.040.521.471.970.97
EarningsYield0.04-0.200.010.040.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Alankit Ltd as of November 21, 2024 is: 22.63

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 21, 2024, Alankit Ltd is Undervalued by 11.48% compared to the current share price 20.30

Intrinsic Value of Alankit Ltd as of November 21, 2024 is: 24.18

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 21, 2024, Alankit Ltd is Undervalued by 19.11% compared to the current share price 20.30

Last 5 Year EPS CAGR: 6.83%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.03 and average Dividend Yield of 10.68%.
  2. The stock has a high average ROCE of 21.10%, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -11.50, which is a positive sign.
  4. The company has higher reserves (101.18 cr) compared to borrowings (14.73 cr), indicating strong financial stability.
  5. The company has shown consistent growth in sales (140.91 cr) and profit (12.64 cr) over the years.
  1. The stock has a high average Working Capital Days of 63.20, 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 Alankit Ltd:
    1. Net Profit Margin: 9.32%
      • 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: 9.17% (Industry Average ROCE: 15.02%)
      • 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%: 7.8% (Industry Average ROE: 15.79%)
      • 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): 20.57
      • 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: 1.13
      • 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: 22.1 (Industry average Stock P/E: 59.47)
      • 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: 0.15
      • 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

Alankit Ltd. is a Public Limited Listed company incorporated on 05/07/1989 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74900DL1989PLC036860 and registration number is 036860. Currently Company is involved in the business activities of Other data processing, hosting and related activities. Company’s Total Operating Revenue is Rs. 103.76 Cr. and Equity Capital is Rs. 14.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments205-208, Anarkali Complex, New Delhi Delhi 110055investor@alankit.com
http://www.alankit.in
Management
NamePosition Held
Mr. Ashok Kumar SinhaChairman & Ind.Director
Mr. Ankit AgarwalManaging Director
Mrs. Preeti ChadhaNon Executive Director
Mrs. Meera LalNon Executive Director
Mr. Raja Gopal Reddy GuduruNon Executive Director
Ms. Meenu AgrawalIndependent Director

FAQ

What is the latest intrinsic value of Alankit Ltd?

The latest intrinsic value of Alankit Ltd as on 21 November 2024 is ₹22.63, which is 11.48% higher than the current market price of ₹20.30.

What is the Market Cap of Alankit Ltd?

The Market Cap of Alankit Ltd is 555 Cr..

What is the current Stock Price of Alankit Ltd as on 21 November 2024?

The current stock price of Alankit Ltd as on 21 November 2024 is ₹20.3.

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

In FY 2024, the High / Low of Alankit Ltd stocks is 29.7/13.7.

What is the Stock P/E of Alankit Ltd?

The Stock P/E of Alankit Ltd is 22.1.

What is the Book Value of Alankit Ltd?

The Book Value of Alankit Ltd is 10.6.

What is the Dividend Yield of Alankit Ltd?

The Dividend Yield of Alankit Ltd is 0.00 %.

What is the ROCE of Alankit Ltd?

The ROCE of Alankit Ltd is 10.7 %.

What is the ROE of Alankit Ltd?

The ROE of Alankit Ltd is 9.47 %.

What is the Face Value of Alankit Ltd?

The Face Value of Alankit Ltd is 1.00.

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 Alankit 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