ARCL Organics Ltd: Intrinsic Value and Fundamental Analysis
Share Price and Basic Stock Data
Last Updated: September 18, 2024, 10:04 pm
Market Cap
88.4 Cr.
Current Price
110
High / Low
110/0.00
Stock P/E
7.43
Book Value
80.4
Dividend Yield
0.00 %
ROCE
21.5 %
ROE
18.2 %
Face Value
10.0
PEG Ratio
0.73
Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of ARCL Organics Ltd
Stock Name
Market Cap
Current Price
High / Low
Stock P/E
Book Value
Dividend Yield
ROCE
ROE
Face Value
Industry Average
0 Cr
0
0
0
0%
0%
0%
0
Quarterly Result
Month
Sep 2022
Dec 2022
Mar 2023
Jun 2023
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Sales
41.00
31.71
46.44
41.58
43.25
48.33
57.57
59.93
Expenses
36.27
30.36
40.04
38.47
39.51
41.00
52.20
54.12
Operating Profit
4.73
1.35
6.40
3.11
3.74
7.33
5.37
5.81
OPM %
11.54%
4.26%
13.78%
7.48%
8.65%
15.17%
9.33%
9.69%
Other Income
0.58
0.01
2.25
0.43
0.64
0.81
0.82
0.41
Interest
0.44
0.45
0.51
0.51
1.03
1.85
0.76
1.25
Depreciation
1.00
0.64
1.30
1.33
1.29
1.17
0.50
1.37
Profit before tax
3.87
0.27
6.84
1.70
2.06
5.12
4.93
3.60
Tax %
28.94%
29.63%
73.39%
16.47%
55.83%
30.86%
2.03%
27.22%
Net Profit
2.76
0.19
1.81
1.42
0.91
3.53
4.83
2.62
EPS in Rs
3.45
0.24
2.26
1.78
1.14
4.41
6.04
3.28
Last Updated: Unknown
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: Unknown
Month
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
TTM
Sales
49
71
71
87
141
165
191
209
Expenses
46
67
64
74
126
147
171
187
Operating Profit
2
4
7
12
15
18
20
22
OPM %
5%
6%
10%
14%
11%
11%
10%
11%
Other Income
2
1
1
1
2
3
3
3
Interest
2
2
3
2
2
2
4
5
Depreciation
1
1
1
1
1
3
4
4
Profit before tax
1
2
3
10
15
17
14
16
Tax %
45%
26%
24%
29%
29%
30%
23%
Net Profit
1
1
3
7
10
12
11
12
EPS in Rs
0.70
1.40
3.21
9.14
13.10
14.72
13.38
14.87
Dividend Payout %
0%
0%
0%
0%
0%
0%
0%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
YoY Net Profit Growth (%)
0.00%
200.00%
133.33%
42.86%
20.00%
-8.33%
Change in YoY Net Profit Growth (%)
0.00%
200.00%
-66.67%
-90.48%
-22.86%
-28.33%
ARCL Organics Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.
Growth
Compounded Sales Growth
10 Years:
%
5 Years:
22%
3 Years:
30%
TTM:
30%
Compounded Profit Growth
10 Years:
%
5 Years:
57%
3 Years:
14%
TTM:
92%
Stock Price CAGR
10 Years:
%
5 Years:
%
3 Years:
%
1 Year:
%
Return on Equity
10 Years:
%
5 Years:
22%
3 Years:
23%
Last Year:
18%
Last Updated: Unknown
Balance Sheet
Last Updated: Unknown
Month
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
8
8
8
8
8
8
8
Reserves
13
14
16
24
34
46
56
Borrowings
10
20
17
10
16
20
29
Other Liabilities
18
15
13
26
35
39
55
Total Liabilities
49
57
55
67
93
113
148
Fixed Assets
18
21
20
20
26
45
62
CWIP
0
0
0
0
0
0
0
Investments
0
1
1
1
1
1
1
Other Assets
30
35
33
47
66
66
85
Total Assets
49
57
55
67
93
113
148
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
6
5
0
21
17
Cash from Investing Activity
-0
-1
-7
-22
-20
Cash from Financing Activity
-5
-4
6
3
6
Net Cash Flow
0
0
-1
1
2
Free Cash Flow
Month
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
-8.00
-16.00
-10.00
2.00
-1.00
-2.00
-9.00
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 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Debtor Days
97
87
87
96
82
71
65
Inventory Days
59
35
45
40
43
38
58
Days Payable
102
51
43
89
88
83
110
Cash Conversion Cycle
55
71
89
48
37
25
13
Working Capital Days
56
84
89
80
75
53
47
ROCE %
9%
15%
30%
33%
28%
21%
Financial Efficiency Indicators Chart
Share Holding Pattern
Month
Sep 2023
Dec 2023
Mar 2024
Jun 2024
Promoters
69.22%
69.22%
69.22%
69.22%
DIIs
0.75%
0.75%
0.75%
0.75%
Public
30.03%
30.04%
30.03%
30.03%
No. of Shareholders
6,663
6,675
6,668
6,659
Shareholding Pattern Chart
No. of Shareholders
This stock is not held by any mutual fund
ROCE Trend
EPS Trend
Key Financial Ratios
Month
Mar 24
Mar 23
Mar 22
Mar 21
Mar 20
FaceValue
10.00
10.00
10.00
10.00
10.00
Basic EPS (Rs.)
14.12
14.59
13.16
10.04
3.16
Diluted EPS (Rs.)
14.12
14.59
13.16
10.04
3.16
Cash EPS (Rs.)
19.49
17.93
14.95
11.90
4.94
Book Value[Excl.RevalReserv]/Share (Rs.)
81.88
67.81
53.18
40.21
30.43
Book Value[Incl.RevalReserv]/Share (Rs.)
81.88
67.81
53.18
40.21
30.43
Revenue From Operations / Share (Rs.)
238.40
206.32
176.58
108.34
88.48
PBDIT / Share (Rs.)
27.52
26.63
22.04
18.27
9.74
PBIT / Share (Rs.)
22.15
23.30
20.25
16.42
7.96
PBT / Share (Rs.)
18.31
20.87
18.56
14.03
4.16
Net Profit / Share (Rs.)
14.13
14.59
13.16
10.04
3.15
NP After MI And SOA / Share (Rs.)
14.13
14.59
13.16
10.04
3.15
PBDIT Margin (%)
11.54
12.90
12.48
16.86
11.00
PBIT Margin (%)
9.29
11.29
11.46
15.15
8.99
PBT Margin (%)
7.68
10.11
10.50
12.95
4.70
Net Profit Margin (%)
5.92
7.07
7.45
9.27
3.56
NP After MI And SOA Margin (%)
5.92
7.07
7.45
9.27
3.56
Return on Networth / Equity (%)
17.25
21.51
24.75
24.97
10.36
Return on Capital Employeed (%)
19.94
26.46
31.05
32.01
18.06
Return On Assets (%)
7.18
9.70
11.13
12.83
4.62
Long Term Debt / Equity (X)
0.27
0.19
0.08
0.06
0.23
Total Debt / Equity (X)
0.44
0.37
0.33
0.26
0.47
Asset Turnover Ratio (%)
1.37
1.54
0.00
1.48
0.00
Current Ratio (X)
1.37
1.47
1.59
1.94
1.70
Quick Ratio (X)
1.04
1.22
1.30
1.65
1.40
Inventory Turnover Ratio (X)
7.98
9.77
0.00
9.59
0.00
Interest Coverage Ratio (X)
7.17
10.99
13.03
7.66
2.57
Interest Coverage Ratio (Post Tax) (X)
4.68
7.02
8.78
5.21
1.83
Enterprise Value (Cr.)
48.46
0.00
0.00
0.00
0.00
EV / Net Operating Revenue (X)
0.25
0.00
0.00
0.00
0.00
EV / EBITDA (X)
2.20
0.00
0.00
0.00
0.00
MarketCap / Net Operating Revenue (X)
0.18
0.00
0.00
0.00
0.00
Price / BV (X)
0.52
0.00
0.00
0.00
0.00
Price / Net Operating Revenue (X)
0.18
0.00
0.00
0.00
0.00
EarningsYield
0.32
0.00
0.00
0.00
0.00
Profitability Ratios (%)
Liquidity Ratios
Liquidity Ratios (%)
Interest Coverage Ratios (%)
Valuation Ratios
Fair Value
Fair Value: ₹110.90
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: 0.82% compared to the current price ₹110.00
Intrinsic Value: 122.24
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 intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.
Undervalued: 11.13% compared to the current price ₹110.00
Last 5 Year EPS CAGR: 10.22%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock has a high average ROCE of 19.43%, which is a positive sign.
The company has higher reserves (29.00 cr) compared to borrowings (17.43 cr), indicating strong financial stability.
The company has shown consistent growth in sales (123.00 cr) and profit (9.75 cr) over the years.
The stock has a high average Working Capital Days of 69.14, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 48.29, 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 ARCL Organics Ltd:
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.
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.
ROE%: 17.25% (Industry Average ROE: 18.2%)
ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
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.
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.
Stock P/E: 7.43 (Industry average Stock P/E: 7.43)
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.
Total Debt / Equity: 0.44
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:
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 ARCL Organics 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
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