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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532853 | NSE: ASAHISONG

Asahi Songwon Colors Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 4:02 pm

Market Cap 432 Cr.
Current Price 367
High / Low589/261
Stock P/E56.1
Book Value 207
Dividend Yield0.14 %
ROCE1.08 %
ROE2.97 %
Face Value 10.0
PEG Ratio-25.88

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

View Share Price Target for Asahi Songwon Colors Ltd

Competitors of Asahi Songwon Colors Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Dynamic Industries Ltd 31.9 Cr. 105124/58.133.6 1570.47 %0.04 %0.49 % 10.0
Daikaffil Chemicals India Ltd 139 Cr. 231261/61.7 16.10.00 %17.3 %17.4 % 10.0
Amal Ltd 517 Cr. 418489/29660.0 61.40.00 %6.58 %2.42 % 10.0
Vidhi Specialty Food Ingredients Ltd 2,432 Cr. 487530/38264.0 58.00.40 %17.3 %13.8 % 1.00
Ushanti Colour Chem Ltd 68.0 Cr. 60.575.4/49.8 38.60.00 %0.21 %5.88 % 10.0
Industry Average1,060.73N/A63.62N/AN/A8.677.38N/A

All Competitor Stocks of Asahi Songwon Colors Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales90.4896.9694.87100.07123.48163.11126.3093.87123.78102.7995.33102.15125.97
Expenses76.9586.6784.5292.15115.36151.34120.0296.17132.27103.6889.9397.18117.00
Operating Profit13.5310.2910.357.928.1211.776.28-2.30-8.49-0.895.404.978.97
OPM %14.95%10.61%10.91%7.91%6.58%7.22%4.97%-2.45%-6.86%-0.87%5.66%4.87%7.12%
Other Income-1.130.030.130.230.500.191.200.362.140.6526.560.490.53
Interest0.640.881.131.311.412.803.513.823.893.172.962.743.67
Depreciation2.322.973.003.012.983.633.673.733.833.823.834.034.54
Profit before tax9.446.476.353.834.235.530.30-9.49-14.07-7.2325.17-1.311.29
Tax %34.85%29.68%28.50%40.73%22.46%42.50%430.00%5.37%17.06%19.09%9.77%-62.60%29.46%
Net Profit6.154.554.542.273.283.18-0.99-8.98-11.68-5.8522.71-2.120.91
EPS in Rs5.344.714.732.763.883.961.01-6.24-8.69-3.9520.00-0.871.83

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales294284283411505426
Expenses253249233379499408
Operating Profit40345032518
OPM %14%12%18%8%1%4%
Other Income-1146628
Interest54251413
Depreciation889121516
Profit before tax26234421-1818
Tax %30%2%27%30%-4%13%
Net Profit18233215-1816
EPS in Rs14.8818.9826.7816.10-9.8817.01
Dividend Payout %20%16%13%3%-5%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)27.78%39.13%-53.12%-220.00%188.89%
Change in YoY Net Profit Growth (%)0.00%11.35%-92.26%-166.88%408.89%

Asahi Songwon Colors Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:15%
TTM:21%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:134%
Stock Price CAGR
10 Years:10%
5 Years:22%
3 Years:11%
1 Year:29%
Return on Equity
10 Years:%
5 Years:4%
3 Years:-1%
Last Year:-3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:41 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121212121212
Reserves181189215230207224232
Borrowings62225087180197198
Other Liabilities5455112138147138160
Total Liabilities309278389468545570602
Fixed Assets150129213235275306314
CWIP1119025110
Investments141321111
Other Assets143125166231244253287
Total Assets309278389468545570602

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +27578-0309
Cash from Investing Activity +-3-16-60-28-77-13
Cash from Financing Activity +-24-395028474
Net Cash Flow02-2-00-0

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-22.0012.000.00-55.00-175.00-179.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days68711018077105
Inventory Days1326211415183103
Days Payable6651981047996
Cash Conversion Cycle1348211712782111
Working Capital Days126104145128101135
ROCE %11%15%7%-1%1%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters66.64%66.64%66.64%66.64%66.73%66.73%66.73%66.73%66.73%66.77%66.77%66.77%
FIIs0.24%0.33%0.33%0.29%0.33%0.01%0.02%0.00%0.00%0.17%0.10%0.07%
Public33.12%33.04%33.04%33.08%32.95%33.26%33.25%33.28%33.27%33.05%33.13%33.16%
No. of Shareholders12,43013,08713,40624,02514,10513,86411,07110,35310,39110,3949,0309,053

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.)17.01-9.8316.1026.2918.60
Diluted EPS (Rs.)17.01-9.8316.1029.2918.60
Cash EPS (Rs.)27.03-3.0622.1233.7925.38
Book Value[Excl.RevalReserv]/Share (Rs.)225.62220.62236.49228.07175.73
Book Value[Incl.RevalReserv]/Share (Rs.)225.62220.62236.49228.07175.73
Revenue From Operations / Share (Rs.)361.61428.05345.36235.36231.12
PBDIT / Share (Rs.)17.889.4531.2341.4228.67
PBIT / Share (Rs.)4.11-3.1621.2934.2021.89
PBT / Share (Rs.)15.19-15.0517.3636.2818.96
Net Profit / Share (Rs.)13.27-15.6712.1826.5618.60
NP After MI And SOA / Share (Rs.)17.01-9.8816.1026.7818.60
PBDIT Margin (%)4.942.209.0417.5912.40
PBIT Margin (%)1.13-0.736.1614.529.47
PBT Margin (%)4.20-3.515.0215.418.20
Net Profit Margin (%)3.66-3.663.5211.288.04
NP After MI And SOA Margin (%)4.70-2.304.6611.378.04
Return on Networth / Equity (%)8.50-5.327.9814.1511.32
Return on Capital Employeed (%)1.35-1.107.7813.7711.13
Return On Assets (%)3.48-2.134.128.278.21
Long Term Debt / Equity (X)0.290.250.110.030.06
Total Debt / Equity (X)0.830.820.360.190.08
Asset Turnover Ratio (%)0.760.991.040.910.96
Current Ratio (X)1.151.121.621.793.21
Quick Ratio (X)0.750.710.861.262.41
Inventory Turnover Ratio (X)3.553.524.474.513.16
Dividend Payout Ratio (NP) (%)0.00-5.0521.740.0032.25
Dividend Payout Ratio (CP) (%)0.0018.3213.440.0023.64
Earning Retention Ratio (%)0.00105.0578.260.0067.75
Cash Earning Retention Ratio (%)0.0081.6886.560.0076.36
Interest Coverage Ratio (X)1.680.797.9525.669.78
Interest Coverage Ratio (Post Tax) (X)0.20-0.314.1015.167.34
Enterprise Value (Cr.)606.46430.98468.11470.96117.14
EV / Net Operating Revenue (X)1.420.851.131.660.41
EV / EBITDA (X)28.7838.6812.469.453.33
MarketCap / Net Operating Revenue (X)0.890.430.821.350.32
Retention Ratios (%)0.00105.0578.250.0067.74
Price / BV (X)1.621.001.411.680.45
Price / Net Operating Revenue (X)0.890.430.821.350.32
EarningsYield0.05-0.050.050.080.25

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Asahi Songwon Colors Ltd as of November 18, 2024 is: 345.38

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 18, 2024, Asahi Songwon Colors Ltd is Overvalued by 5.89% compared to the current share price 367.00

Intrinsic Value of Asahi Songwon Colors Ltd as of November 18, 2024 is: 337.89

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 18, 2024, Asahi Songwon Colors Ltd is Overvalued by 7.93% compared to the current share price 367.00

Last 5 Year EPS CAGR: -2.17%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (211.14 cr) compared to borrowings (113.71 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (367.17 cr) and profit (19.00 cr) over the years.
  1. The stock has a low average ROCE of 5.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 123.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 108.83, 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 Asahi Songwon Colors Ltd:
    1. Net Profit Margin: 3.66%
      • 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: 1.35% (Industry Average ROCE: 8.67%)
      • 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%: 8.5% (Industry Average ROE: 7.38%)
      • 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): 0.2
      • 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: 0.75
      • 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: 56.1 (Industry average Stock P/E: 63.62)
      • 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: 0.83
      • 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

Asahi Songwon Colors Ltd. is a Public Limited Listed company incorporated on 10/12/1990 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24222GJ1990PLC014789 and registration number is 014789. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 405.65 Cr. and Equity Capital is Rs. 12.03 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Dyes & Pigments�Asahi House�, 20, Times Corporate Park, Ahmedabad Gujarat 380059cs@asahisongwon.com
http://www.asahisongwon.com
Management
NamePosition Held
Mrs. Paru M JaykrishnaChairperson & Managing Director
Mr. Gokul M JaykrishnaJoint Managing Director & CEO
Mr. Arjun Gokul JaykrishnaExecutive Director
Mr. Munjal M JaykrishnaDirector
Mrs. Shivani Revat LakhiaDirector
Mr. Samvegbhai Arvindbhai LalbhaiDirector
Mr. Sudhin Bhagwandas ChokseyDirector
Mr. Anil JainDirector
Mr. Mitesh PatelExecutive Director

FAQ

What is the latest intrinsic value of Asahi Songwon Colors Ltd?

The latest intrinsic value of Asahi Songwon Colors Ltd as on 16 November 2024 is ₹345.38, which is 5.89% lower than the current market price of ₹367.00.

What is the Market Cap of Asahi Songwon Colors Ltd?

The Market Cap of Asahi Songwon Colors Ltd is 432 Cr..

What is the current Stock Price of Asahi Songwon Colors Ltd as on 16 November 2024?

The current stock price of Asahi Songwon Colors Ltd as on 16 November 2024 is ₹367.

What is the High / Low of Asahi Songwon Colors Ltd stocks in FY 2024?

In FY 2024, the High / Low of Asahi Songwon Colors Ltd stocks is 589/261.

What is the Stock P/E of Asahi Songwon Colors Ltd?

The Stock P/E of Asahi Songwon Colors Ltd is 56.1.

What is the Book Value of Asahi Songwon Colors Ltd?

The Book Value of Asahi Songwon Colors Ltd is 207.

What is the Dividend Yield of Asahi Songwon Colors Ltd?

The Dividend Yield of Asahi Songwon Colors Ltd is 0.14 %.

What is the ROCE of Asahi Songwon Colors Ltd?

The ROCE of Asahi Songwon Colors Ltd is 1.08 %.

What is the ROE of Asahi Songwon Colors Ltd?

The ROE of Asahi Songwon Colors Ltd is 2.97 %.

What is the Face Value of Asahi Songwon Colors Ltd?

The Face Value of Asahi Songwon Colors 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 Asahi Songwon Colors 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