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Last Updated on: 19 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 543993 | NSE: ARCL

Fundamental Analysis of ARCL Organics Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:19 pm

Market Cap 58.6 Cr.
Current Price 73.3
High / Low73.3/0.00
Stock P/E5.48
Book Value 80.4
Dividend Yield0.00 %
ROCE21.5 %
ROE18.2 %
Face Value 10.0
PEG Ratio0.17

Data Source: screener.in

Competitors of ARCL Organics Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

Quarterly Result

MonthSep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales41.0031.7146.4441.5843.2548.3357.57
Expenses36.2730.3640.0438.4739.5141.0052.20
Operating Profit4.731.356.403.113.747.335.37
OPM %11.54%4.26%13.78%7.48%8.65%15.17%9.33%
Other Income0.580.012.250.430.640.810.82
Interest0.440.450.510.511.031.850.76
Depreciation1.000.641.301.331.291.170.50
Profit before tax3.870.276.841.702.065.124.93
Tax %28.94%29.63%73.39%16.47%55.83%30.86%2.03%
Net Profit2.760.191.811.420.913.534.83
EPS in Rs3.450.242.261.781.144.416.04

Last Updated: July 11, 2024, 11:23 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 12:20 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales49717187141165191
Expenses46676474126147171
Operating Profit24712151820
OPM %5%6%10%14%11%11%10%
Other Income2111233
Interest2232224
Depreciation1111134
Profit before tax12310151714
Tax %45%26%24%29%29%30%23%
Net Profit1137101211
EPS in Rs0.701.403.219.1413.1014.7213.38
Dividend Payout %0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2018-20192019-20202020-20212021-20222022-20232023-2024
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%

Growth

Compounded Sales Growth
10 Years:%
5 Years:22%
3 Years:30%
TTM:16%
Compounded Profit Growth
10 Years:%
5 Years:57%
3 Years:14%
TTM:-9%
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: July 18, 2024, 4:49 pm

Balance Sheet

Last Updated: July 11, 2024, 12:20 am

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital8888888
Reserves13141624344656
Borrowings10201710162029
Other Liabilities18151326353955
Total Liabilities4957556793113148
Fixed Assets18212020264562
CWIP0000000
Investments0111111
Other Assets30353347666685
Total Assets4957556793113148

Reserves and Borrowings Chart

Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 6502117
Cash from Investing Activity -0-1-7-22-20
Cash from Financing Activity -5-4636
Net Cash Flow00-112

Free Cash Flow

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-8.00-16.00-10.002.00-1.00-2.00-9.00

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

MonthMar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days97878796827165
Inventory Days59354540433858
Days Payable1025143898883110
Cash Conversion Cycle55718948372513
Working Capital Days56848980755347
ROCE %9%15%30%33%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Dec 2023Mar 2024
Promoters69.22%69.22%69.22%
DIIs0.75%0.75%0.75%
Public30.03%30.04%30.03%
No. of Shareholders6,6636,6756,668

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)14.1214.5913.1610.043.16
Diluted EPS (Rs.)14.1214.5913.1610.043.16
Cash EPS (Rs.)19.4917.9314.9511.904.94
Book Value[Excl.RevalReserv]/Share (Rs.)81.8867.8153.1840.2130.43
Book Value[Incl.RevalReserv]/Share (Rs.)81.8867.8153.1840.2130.43
Revenue From Operations / Share (Rs.)238.40206.32176.58108.3488.48
PBDIT / Share (Rs.)27.5226.6322.0418.279.74
PBIT / Share (Rs.)22.1523.3020.2516.427.96
PBT / Share (Rs.)18.3120.8718.5614.034.16
Net Profit / Share (Rs.)14.1314.5913.1610.043.15
NP After MI And SOA / Share (Rs.)14.1314.5913.1610.043.15
PBDIT Margin (%)11.5412.9012.4816.8611.00
PBIT Margin (%)9.2911.2911.4615.158.99
PBT Margin (%)7.6810.1110.5012.954.70
Net Profit Margin (%)5.927.077.459.273.56
NP After MI And SOA Margin (%)5.927.077.459.273.56
Return on Networth / Equity (%)17.2521.5124.7524.9710.36
Return on Capital Employeed (%)19.9426.4631.0532.0118.06
Return On Assets (%)7.189.7011.1312.834.62
Long Term Debt / Equity (X)0.270.190.080.060.23
Total Debt / Equity (X)0.440.370.330.260.47
Asset Turnover Ratio (%)1.371.540.001.480.00
Current Ratio (X)1.371.471.591.941.70
Quick Ratio (X)1.041.221.301.651.40
Inventory Turnover Ratio (X)7.989.770.009.590.00
Interest Coverage Ratio (X)7.1710.9913.037.662.57
Interest Coverage Ratio (Post Tax) (X)4.687.028.785.211.83
Enterprise Value (Cr.)48.650.000.000.000.00
EV / Net Operating Revenue (X)0.250.000.000.000.00
EV / EBITDA (X)2.210.000.000.000.00
MarketCap / Net Operating Revenue (X)0.180.000.000.000.00
Price / BV (X)0.520.000.000.000.00
Price / Net Operating Revenue (X)0.180.000.000.000.00
EarningsYield0.320.000.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 81.79

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: 11.58% compared to the current price 73.3

Intrinsic Value: 108.82

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: 48.45% compared to the current price 73.3

Last 5 Year EPS CAGR: 33.04%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.43%, which is a positive sign.
  2. The company has higher reserves (29.00 cr) compared to borrowings (17.43 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (110.71 cr) and profit (8.86 cr) over the years.
  1. The stock has a high average Working Capital Days of 69.14, which may not be favorable.
  2. 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: %)
      • 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: %)
      • 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: 5.48 (Industry average Stock P/E: )
      • 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

Chemicals - Organic - Others
INDUSTRYADDRESSCONTACT
Rampur, P.S. Maheshtala, Budge Budge Trunk Road, Kolkata West Bengal 700141Mr.Suraj%20Ratan%20Mundhra
Chairman%20&%20Managing%20Director
Management
NamePosition Held
Mr. Rajesh MundhraExecutive Director
Mr. Brij Mohan MohtaInd. Non-Executive Director
Mrs. Stuti PithisariaInd. Non-Executive Director
Mr. Prateek ChaudharyInd. Non-Executive Director

FAQ

What is the latest fair value of ARCL Organics Ltd?

The latest fair value of ARCL Organics Ltd is ₹81.79.

What is the Market Cap of ARCL Organics Ltd?

The Market Cap of ARCL Organics Ltd is 58.6 Cr..

What is the current Stock Price of ARCL Organics Ltd as on 19 July 2024?

The current stock price of ARCL Organics Ltd as on 19 July 2024 is 73.3.

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

In FY 2024, the High / Low of ARCL Organics Ltd stocks is 73.3/0.00.

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

The Stock P/E of ARCL Organics Ltd is 5.48.

What is the Book Value of ARCL Organics Ltd?

The Book Value of ARCL Organics Ltd is 80.4.

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.

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 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