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Last Updated on: 04 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 539151 | NSE: ARFIN

Arfin India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 31, 2024, 5:08 pm

Market Cap 620 Cr.
Current Price 36.8
High / Low62.7/34.0
Stock P/E63.5
Book Value 9.15
Dividend Yield0.00 %
ROCE13.6 %
ROE8.91 %
Face Value 1.00
PEG Ratio3.32

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

View Share Price Target for Arfin India Ltd

Competitors of Arfin India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hind Aluminium Industries Ltd 47.5 Cr. 75.495.0/45.63.74 1220.00 %5.58 %8.34 % 10.0
Arfin India Ltd 620 Cr. 36.862.7/34.063.5 9.150.00 %13.6 %8.91 % 1.00
Manaksia Coated Metals & Industries Ltd 455 Cr. 61.374.8/24.832.3 19.70.08 %15.1 %8.54 % 1.00
Industry Average537.50 Cr57.8333.1850.280.03%11.43%8.60%4.00

All Competitor Stocks of Arfin India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales99.29132.33135.61158.87146.05125.90120.27151.89148.70134.22115.44136.80132.90
Expenses94.27126.15129.35152.36139.59119.26113.74145.07141.12127.11108.19128.52123.81
Operating Profit5.026.186.266.516.466.646.536.827.587.117.258.289.09
OPM %5.06%4.67%4.62%4.10%4.42%5.27%5.43%4.49%5.10%5.30%6.28%6.05%6.84%
Other Income0.050.120.251.090.270.540.221.450.610.710.470.200.25
Interest2.992.942.943.493.053.533.474.344.344.224.665.364.28
Depreciation0.820.830.830.840.890.890.890.880.930.960.931.091.00
Profit before tax1.262.532.743.272.792.762.393.052.922.642.132.034.06
Tax %12.70%6.32%5.84%4.28%1.79%5.43%0.42%15.08%20.89%34.09%7.04%-7.39%25.86%
Net Profit1.102.372.583.142.742.612.382.592.321.741.992.183.01
EPS in Rs0.070.150.160.200.170.160.150.160.150.110.130.140.18

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:07 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales186213250286363466413359303526544535534
Expenses181207238271336421390364287502518505500
Operating Profit561215274523-61624263034
OPM %3%3%5%5%8%10%6%-2%5%5%5%6%6%
Other Income1011010222221
Interest125561012141112141920
Depreciation0011122333444
Profit before tax44710203410-21510111012
Tax %30%34%34%34%36%36%34%5%12%6%6%15%
Net Profit335713227-224910810
EPS in Rs0.280.240.430.610.891.370.41-1.360.250.580.650.520.60
Dividend Payout %0%0%6%7%6%12%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%66.67%40.00%85.71%69.23%-68.18%-414.29%118.18%125.00%11.11%-20.00%
Change in YoY Net Profit Growth (%)0.00%66.67%-26.67%45.71%-16.48%-137.41%-346.10%532.47%6.82%-113.89%-31.11%

Arfin 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:10%
5 Years:5%
3 Years:21%
TTM:-4%
Compounded Profit Growth
10 Years:12%
5 Years:4%
3 Years:39%
TTM:8%
Stock Price CAGR
10 Years:%
5 Years:45%
3 Years:75%
1 Year:-6%
Return on Equity
10 Years:10%
5 Years:2%
3 Years:11%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital2333413161616161616
Reserves41015215169704952627280
Borrowings263434446295114109109112112120
Other Liabilities222838514435242553586769
Total Liabilities547590119160213224199230247267285
Fixed Assets8912142130384661626566
CWIP002401017130010
Investments000044550000
Other Assets466676101135168164135168185201220
Total Assets547590119160213224199230247267285

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -14-126-2-22-1013231111295
Cash from Investing Activity -2-1-5-4-7-20-17-60-3-8-4
Cash from Financing Activity 20121629304-18-12-8-14-8
Net Cash Flow4-2200-0-00-007-7

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-21.00-28.00-22.00-29.00-35.00-50.00-91.00-115.00-93.00-88.00-86.00-90.00

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 Days556034425959443251513836
Inventory Days3058759592791141211658388121
Days Payable505860714621212371434954
Cash Conversion Cycle356148661051171381291459177104
Working Capital Days38605058881011201091408984102
ROCE %24%15%24%25%29%30%12%-4%8%12%13%14%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.11%74.11%74.11%74.11%74.11%74.11%74.11%74.11%74.09%74.09%69.79%69.79%
FIIs1.78%1.78%1.90%0.00%0.00%0.00%0.00%0.95%2.56%2.56%2.41%2.41%
Government0.00%0.04%0.04%0.04%0.04%0.04%0.08%0.08%0.08%0.08%0.07%0.07%
Public24.11%24.07%23.95%25.85%25.85%25.86%25.80%24.86%23.27%23.26%27.73%27.73%
No. of Shareholders2,5792,3702,3473,9535,3825,2135,1555,4005,6336,2817,1127,997

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
FaceValue1.001.0010.0010.0010.00
Basic EPS (Rs.)0.520.655.782.53-13.57
Diluted EPS (Rs.)0.520.655.782.53-13.57
Cash EPS (Rs.)0.760.877.874.29-11.90
Book Value[Excl.RevalReserv]/Share (Rs.)6.065.5448.8643.0240.82
Book Value[Incl.RevalReserv]/Share (Rs.)6.065.5448.8643.0240.82
Revenue From Operations / Share (Rs.)33.6734.24331.04190.94225.63
PBDIT / Share (Rs.)2.031.8216.0311.57-2.66
PBIT / Share (Rs.)1.781.6013.949.81-4.33
PBT / Share (Rs.)0.610.696.172.87-12.90
Net Profit / Share (Rs.)0.510.645.782.53-13.57
PBDIT Margin (%)6.015.314.846.06-1.17
PBIT Margin (%)5.284.664.215.13-1.92
PBT Margin (%)1.812.011.861.50-5.71
Net Profit Margin (%)1.531.891.741.32-6.01
Return on Networth / Equity (%)8.5311.7111.835.87-33.24
Return on Capital Employeed (%)22.4020.2018.6814.39-8.35
Return On Assets (%)2.883.863.721.74-10.83
Long Term Debt / Equity (X)0.280.400.480.510.20
Total Debt / Equity (X)1.241.271.441.521.65
Asset Turnover Ratio (%)1.942.122.211.421.69
Current Ratio (X)1.381.411.431.371.19
Quick Ratio (X)0.440.620.640.450.36
Inventory Turnover Ratio (X)3.454.564.092.133.14
Interest Coverage Ratio (X)1.732.012.061.67-0.31
Interest Coverage Ratio (Post Tax) (X)1.441.721.741.36-0.58
Enterprise Value (Cr.)930.67421.52364.94186.16152.10
EV / Net Operating Revenue (X)1.740.770.690.610.42
EV / EBITDA (X)28.9114.5814.3310.12-35.96
MarketCap / Net Operating Revenue (X)1.520.580.480.270.13
Price / BV (X)8.443.623.281.220.74
Price / Net Operating Revenue (X)1.520.580.480.270.13
EarningsYield0.010.030.030.04-0.44

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Arfin India Ltd as of November 4, 2024 is: 52.80

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 4, 2024, Arfin India Ltd is Undervalued by 43.48% compared to the current share price ₹36.80

Intrinsic Value of Arfin India Ltd as of November 4, 2024 is: 62.90

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 4, 2024, Arfin India Ltd is Undervalued by 70.92% compared to the current share price ₹36.80

Last 5 Year EPS CAGR: 19.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.83%, which is a positive sign.
  2. The company has shown consistent growth in sales (382.92 cr) and profit (8.92 cr) over the years.
  1. The stock has a high average Working Capital Days of 86.58, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 93.00, which may not be favorable.
  3. The company has higher borrowings (80.92) compared to reserves (46.25), which may suggest financial risk.

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 Arfin India Ltd:
    1. Net Profit Margin: 1.53%
      • 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: 22.4% (Industry Average ROCE: 11.43%)
      • 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%: 8.53% (Industry Average ROE: 8.6%)
      • 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): 1.44
      • 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: 0.44
      • 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: 63.5 (Industry average Stock P/E: 33.18)
      • 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: 1.24
      • 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

Arfin India Ltd. is a Public Limited Listed company incorporated on 10/04/1992 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L65990GJ1992PLC017460 and registration number is 017460. Currently Company is involved in the business activities of Manufacture of basic precious and other non-ferrous metals. Company’s Total Operating Revenue is Rs. 526.11 Cr. and Equity Capital is Rs. 15.89 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Aluminium - Sheets/Coils/WiresB-302, 3rd Floor, Pelican House, Gujarat Chamber of Commerce Building, Ahmedabad Gujarat 380009investors@arfin.co.in
http://www.arfin.co.in
Management
NamePosition Held
Mr. Mahendra R ShahChairman & Wholetime Director
Mr. Jatin M ShahManaging Director
Mrs. Pushpa M ShahExecutive Director
Mr. Mukesh Kumar ChowdharyIndependent Director
Mr. Tarachand R JainIndependent Director
Mr. Hardik S HundiaIndependent Director

FAQ

What is the latest fair value of Arfin India Ltd?

The latest fair value of Arfin India Ltd is ₹52.80.

What is the Market Cap of Arfin India Ltd?

The Market Cap of Arfin India Ltd is 620 Cr..

What is the current Stock Price of Arfin India Ltd as on 03 November 2024?

The current stock price of Arfin India Ltd as on 03 November 2024 is 36.8.

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

In FY 2024, the High / Low of Arfin India Ltd stocks is 62.7/34.0.

What is the Stock P/E of Arfin India Ltd?

The Stock P/E of Arfin India Ltd is 63.5.

What is the Book Value of Arfin India Ltd?

The Book Value of Arfin India Ltd is 9.15.

What is the Dividend Yield of Arfin India Ltd?

The Dividend Yield of Arfin India Ltd is 0.00 %.

What is the ROCE of Arfin India Ltd?

The ROCE of Arfin India Ltd is 13.6 %.

What is the ROE of Arfin India Ltd?

The ROE of Arfin India Ltd is 8.91 %.

What is the Face Value of Arfin India Ltd?

The Face Value of Arfin India 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 Arfin 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