Stock P/E, Current Price, and Intrinsic Value Over Time
Competitors of Azad Engineering 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
Dec 2022
Mar 2023
Sep 2023
Dec 2023
Mar 2024
Sales
60
85
83
89
93
Expenses
42
54
57
56
61
Operating Profit
17
30
26
33
31
OPM %
29%
36%
32%
37%
34%
Other Income
3
5
11
18
3
Interest
13
11
12
19
6
Depreciation
4
4
5
5
5
Profit before tax
3
20
20
27
23
Tax %
-30%
26%
3%
37%
34%
Net Profit
4
15
19
17
15
EPS in Rs
23.19
89.96
3.92
2.84
2.53
Last Updated: September 8, 2024, 1:18 am
Quarterly Chart
Profit & Loss - Annual Report
Last Updated: August 24, 2024, 9:56 am
Month
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
TTM
Sales
122
121
194
252
341
363
Expenses
81
92
132
179
224
240
Operating Profit
41
29
62
72
117
123
OPM %
34%
24%
32%
29%
34%
34%
Other Income
1
4
3
10
32
32
Interest
6
5
14
52
47
40
Depreciation
7
9
13
17
21
22
Profit before tax
30
19
39
13
81
94
Tax %
29%
29%
28%
36%
27%
Net Profit
21
14
28
9
59
68
EPS in Rs
139.44
89.28
185.04
51.52
9.91
12.19
Dividend Payout %
0%
0%
0%
0%
0%
Profit & Loss Yearly Chart
YoY Net Profit Growth
Year
2020-2021
2021-2022
2022-2023
2023-2024
YoY Net Profit Growth (%)
-33.33%
100.00%
-67.86%
555.56%
Change in YoY Net Profit Growth (%)
0.00%
133.33%
-167.86%
623.41%
Growth
Compounded Sales Growth
10 Years:
%
5 Years:
%
3 Years:
41%
TTM:
35%
Compounded Profit Growth
10 Years:
%
5 Years:
%
3 Years:
63%
TTM:
588%
Stock Price CAGR
10 Years:
%
5 Years:
%
3 Years:
%
1 Year:
%
Return on Equity
10 Years:
%
5 Years:
%
3 Years:
14%
Last Year:
14%
Last Updated: August 10, 2024, 4:54 pm
Balance Sheet
Last Updated: August 11, 2024, 10:29 am
Month
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
2
2
2
2
12
Reserves
85
91
118
202
633
Borrowings
61
87
197
300
39
Other Liabilities
49
77
87
85
113
Total Liabilities
198
257
404
589
797
Fixed Assets
101
114
137
210
257
CWIP
0
-0
24
38
45
Investments
7
6
6
6
-0
Other Assets
90
136
237
335
494
Total Assets
198
257
404
589
797
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
37
34
21
-10
-7
Cash from Investing ActivityÂ
-28
-29
-114
-101
-55
Cash from Financing ActivityÂ
-7
7
96
126
71
Net Cash Flow
1
12
3
15
9
Free Cash Flow
Month
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Free Cash Flow
-20.00
-58.00
-135.00
-228.00
78.00
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.
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: 33.03% compared to the current price ₹1,557.00
Intrinsic Value: 1,390.88
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.
Overvalued: 10.67% compared to the current price ₹1,557.00
Last 5 Year EPS CAGR: -32.85%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The company has higher reserves (225.80 cr) compared to borrowings (136.80 cr), indicating strong financial stability.
The company has shown consistent growth in sales (232.17 cr) and profit (46.00 cr) over the years.
The stock has a low average ROCE of 14.80%, which may not be favorable.
The stock has a high average Working Capital Days of 173.40, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 346.60, 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 Azad Engineering 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%: 9.08% (Industry Average ROE: 13.8%)
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: 135 (Industry average Stock P/E: 135)
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: 0.05
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 Azad Engineering 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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