ARCL Organics Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 9:16 pm

Market Cap	236 Cr.
Current Price	295
High / Low	313/0.00
Stock P/E	18.2
Book Value	86.1
Dividend Yield	0.00 %
ROCE	21.5 %
ROE	18.2 %
Face Value	10.0
PEG Ratio	1.78

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for ARCL Organics Ltd

Competitors of ARCL Organics Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
ARCL Organics Ltd	236 Cr.	295	313/0.00	18.2	86.1	0.00 %	21.5 %	18.2 %	10.0
Industry Average	236.00 Cr	295.00		18.20	86.10	0.00%	21.50%	18.20%	10.00

All Competitor Stocks of ARCL Organics Ltd

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:	36%

Compounded Profit Growth
10 Years:	%
5 Years:	57%
3 Years:	14%
TTM:	200%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	998%

Return on Equity
10 Years:	%
5 Years:	22%
3 Years:	23%
Last Year:	18%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:15 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	8	8	8	8	8	8	8	8
Reserves	13	14	16	24	34	46	56	61
Borrowings	10	20	17	10	16	20	29	32
Other Liabilities	18	15	13	26	35	39	55	53
Total Liabilities	49	57	55	67	93	113	148	154
Fixed Assets	18	21	20	20	26	45	62	64
CWIP	0	0	0	0	0	0	0	0
Investments	0	1	1	1	1	1	1	1
Other Assets	30	35	33	47	66	66	85	89
Total Assets	49	57	55	67	93	113	148	154

Reserves and Borrowings Chart

Cash Flow

Month	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	Sep 2024
Promoters	69.22%	69.22%	69.22%	69.22%	69.22%
DIIs	0.75%	0.75%	0.75%	0.75%	0.75%
Public	30.03%	30.04%	30.03%	30.03%	30.03%
No. of Shareholders	6,663	6,675	6,668	6,659	6,653

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 of ARCL Organics Ltd as of December 27, 2024 is: 290.90

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.

As of December 27, 2024, ARCL Organics Ltd is Overvalued by 1.39% compared to the current share price 295.00

Intrinsic Value of ARCL Organics Ltd as of December 27, 2024 is: 320.64

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 27, 2024, ARCL Organics Ltd is Undervalued by 8.69% compared to the current share price 295.00

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 (33.00 cr) compared to borrowings (19.25 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:
1. Net Profit Margin: 5.92%
  - 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: 19.94% (Industry Average ROCE: 21.5%)
  - 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%: 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.
4. Interest Coverage Ratio (Post Tax): 4.68
  - 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: 1.04
  - 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: 18.2 (Industry average Stock P/E: 18.2)
  - 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: 0.44
  - 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:

About the Company - Qualitative Analysis

Chemicals - Organic - Others

INDUSTRY	ADDRESS	CONTACT
Rampur, P.S. Maheshtala, Budge Budge Trunk Road, Kolkata West Bengal 700141	Mr.	Suraj%20Ratan%20Mundhra Chairman%20&%20Managing%20Director

Management
Name	Position Held
Mr. Rajesh Mundhra	Executive Director
Mr. Brij Mohan Mohta	Ind. Non-Executive Director
Mrs. Stuti Pithisaria	Ind. Non-Executive Director
Mr. Prateek Chaudhary	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of ARCL Organics Ltd?

The latest intrinsic value of ARCL Organics Ltd as on 27 December 2024 is ₹290.90, which is 1.39% lower than the current market price of ₹295.00. The stock has a market capitalization of 236 Cr. and recorded a high/low of 313/0.00 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹61 Cr and total liabilities of ₹154 Cr.

What is the Market Cap of ARCL Organics Ltd?

The Market Cap of ARCL Organics Ltd is 236 Cr..

What is the current Stock Price of ARCL Organics Ltd as on 27 December 2024?

The current stock price of ARCL Organics Ltd as on 27 December 2024 is 295.

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

In FY 2024-2025, the High / Low of ARCL Organics Ltd stocks is 313/0.00.

What is the Stock P/E of ARCL Organics Ltd?

The Stock P/E of ARCL Organics Ltd is 18.2.

What is the Book Value of ARCL Organics Ltd?

The Book Value of ARCL Organics Ltd is 86.1.

What is the Dividend Yield of ARCL Organics Ltd?

The Dividend Yield of ARCL Organics Ltd is 0.00 %.

What is the ROCE of ARCL Organics Ltd?

The ROCE of ARCL Organics Ltd is 21.5 %.

What is the ROE of ARCL Organics Ltd?

The ROE of ARCL Organics Ltd is 18.2 %.

What is the Face Value of ARCL Organics Ltd?

The Face Value of ARCL Organics Ltd is 10.0.

Share Price and Basic Stock Data

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

Competitors of ARCL Organics Ltd

Quarterly Result

Quarterly Chart

Profit & Loss - Annual Report

Profit & Loss Yearly Chart

YoY Net Profit Growth

Growth

Balance Sheet

Reserves and Borrowings Chart

Cash Flow

Free Cash Flow

Free Cash Flow Chart

Financial Efficiency Indicators

Financial Efficiency Indicators Chart

Share Holding Pattern

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Strength and Weakness

Stock Analysis

About the Company - Qualitative Analysis

FAQ

What is the latest intrinsic value of ARCL Organics Ltd?

What is the Market Cap of ARCL Organics Ltd?

What is the current Stock Price of ARCL Organics Ltd as on 27 December 2024?

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

What is the Stock P/E of ARCL Organics Ltd?

What is the Book Value of ARCL Organics Ltd?

What is the Dividend Yield of ARCL Organics Ltd?

What is the ROCE of ARCL Organics Ltd?

What is the ROE of ARCL Organics Ltd?

What is the Face Value of ARCL Organics Ltd?

About the Author

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