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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: 544061 | NSE: AZAD

Fundamental Analysis of Azad Engineering Ltd

Basic Stock Data

Last Updated: July 18, 2024, 10:16 pm

Market Cap 9,732 Cr.
Current Price 1,648
High / Low2,080/642
Stock P/E166
Book Value 109
Dividend Yield0.00 %
ROCE21.5 %
ROE13.8 %
Face Value 2.00
PEG Ratio-4.04

Data Source: screener.in

Competitors of Azad Engineering Ltd

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

Quarterly Result

MonthDec 2022Mar 2023Sep 2023Dec 2023Mar 2024
Sales6085838993
Expenses4254575661
Operating Profit1730263331
OPM %29%36%32%37%34%
Other Income3511183
Interest131112196
Depreciation44555
Profit before tax320202723
Tax %-30%26%3%37%34%
Net Profit415191715
EPS in Rs23.1989.963.922.842.53

Last Updated: July 11, 2024, 10:14 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 11, 2024, 12:40 am

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales122121194252341
Expenses8192132179224
Operating Profit41296272117
OPM %34%24%32%29%34%
Other Income1431032
Interest65145247
Depreciation79131721
Profit before tax3019391381
Tax %29%29%28%36%27%
Net Profit211428959
EPS in Rs139.4489.28185.0451.529.91
Dividend Payout %0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2020-20212021-20222022-20232023-2024
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: July 17, 2024, 4:49 pm

Balance Sheet

Last Updated: July 11, 2024, 12:40 am

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital222212
Reserves8591118202633
Preference Capital4400
Borrowings588319730039
Other Liabilities53818785113
Total Liabilities198257404589797
Fixed Assets101114137210257
CWIP00243845
Investments76660
Other Assets90136237335494
Total Assets198257404589797

Reserves and Borrowings Chart

Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 373421-10-7
Cash from Investing Activity -28-29-114-101-55
Cash from Financing Activity -779612671
Net Cash Flow1123159

Free Cash Flow

MonthMar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-20.00-58.00-135.00-228.0078.00

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 2020Mar 2021Mar 2022Mar 2023
Debtor Days122159140172
Inventory Days4899101,0091,042
Days Payable851977748575
Cash Conversion Cycle-24092401639
Working Capital Days60133144236
ROCE %15%21%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2023Mar 2024
Promoters65.90%65.90%
FIIs4.68%6.98%
DIIs5.71%5.00%
Public23.70%22.13%
No. of Shareholders1,35,0901,06,231

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential Flexicap Fund831,4260.71100.63116,9002024-07-17611.23%
Nippon India Small Cap Fund403,1440.1148.79116,9002024-07-17244.86%
Kotak Infrastructure & Economic Reform Fund - Regular Plan233,7721.8328.29116,9002024-07-1799.98%
Edelweiss Recently Listed IPO Fund150,0001.9318.16116,9002024-07-1728.31%
Tata Infrastructure Fund - Regular Plan143,1360.9617.32116,9002024-07-1722.44%
Nippon India Value Fund138,7960.2416.8116,9002024-07-1718.73%
Kotak Business Cycle Fund116,9000.614.15116,9002024-07-170%
ICICI Prudential Transportation and Logistics Fund113,6950.5113.76116,9002024-07-17-2.74%
ICICI Prudential Innovation Fund106,7900.3112.93116,9002024-07-17-8.65%
WhiteOak Capital Flexi Cap Fund90,9820.3511.01116,9002024-07-17-22.17%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue2.0010.0010.0010.00
Basic EPS (Rs.)11.201.796.492.53
Diluted EPS (Rs.)11.201.796.492.53
Cash EPS (Rs.)13.38151.67282.69134.65
Book Value[Excl.RevalReserv]/Share (Rs.)109.121234.79793.17600.74
Book Value[Incl.RevalReserv]/Share (Rs.)109.121234.79793.17600.74
Revenue From Operations / Share (Rs.)57.651523.461285.31811.11
PBDIT / Share (Rs.)25.13497.12443.25201.34
PBIT / Share (Rs.)21.66396.74355.25142.70
PBT / Share (Rs.)13.6779.65265.26107.31
Net Profit / Share (Rs.)9.9151.29194.6976.01
NP After MI And SOA / Share (Rs.)9.9151.29194.6976.01
PBDIT Margin (%)43.6032.6334.4824.82
PBIT Margin (%)37.5726.0427.6317.59
PBT Margin (%)23.705.2220.6313.23
Net Profit Margin (%)17.193.3615.149.37
NP After MI And SOA Margin (%)17.193.3615.149.37
Return on Networth / Equity (%)9.084.1524.5412.65
Return on Capital Employeed (%)18.3214.8620.9515.04
Return On Assets (%)7.341.437.284.49
Long Term Debt / Equity (X)0.041.081.020.45
Total Debt / Equity (X)0.051.471.640.96
Asset Turnover Ratio (%)0.490.500.580.00
Current Ratio (X)4.291.911.131.12
Quick Ratio (X)2.941.330.740.81
Inventory Turnover Ratio (X)0.600.690.820.00
Interest Coverage Ratio (X)3.141.574.935.69
Interest Coverage Ratio (Post Tax) (X)2.241.163.163.15
Enterprise Value (Cr.)8045.070.000.000.00
EV / Net Operating Revenue (X)23.610.000.000.00
EV / EBITDA (X)54.150.000.000.00
MarketCap / Net Operating Revenue (X)23.670.000.000.00
Price / BV (X)12.510.000.000.00
Price / Net Operating Revenue (X)23.670.000.000.00
EarningsYield0.010.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,546.91

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: 54.55% compared to the current price 1648

Intrinsic Value: 1,500.90

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.

Overvalued: 8.93% compared to the current price 1648

Last 5 Year EPS CAGR: -41.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (225.80 cr) compared to borrowings (136.80 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (206.00 cr) and profit (36.40 cr) over the years.
  1. The stock has a low average ROCE of 13.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 143.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 223.00, 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:
    1. Net Profit Margin: 17.19%
      • 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: 18.32% (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%: 9.08% (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): 2.24
      • 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: 2.94
      • 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: 166 (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: 0.05
      • 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:

About the Company

Engineering - General
INDUSTRYADDRESSCONTACT
90/C, 90/D, Phase-1, I.D.A. Hyderabad Telangana 500055Mr.Rakesh%20Chopdar
Chairman%20&%20CEO
Management
NamePosition Held
Ms. Jyoti ChopdarWhole Time Director
Mr. Vishnu Pramodkumar MalpaniWhole Time Director
Mr. Michael Joseph BoothIndependent Director
Mr. Subba Rao AmbatiIndependent Director
Ms. Madhusree VemuruIndependent Director

FAQ

What is the latest fair value of Azad Engineering Ltd?

The latest fair value of Azad Engineering Ltd is ₹2546.91.

What is the Market Cap of Azad Engineering Ltd?

The Market Cap of Azad Engineering Ltd is 9,732 Cr..

What is the current Stock Price of Azad Engineering Ltd as on 19 July 2024?

The current stock price of Azad Engineering Ltd as on 19 July 2024 is 1,648.

What is the High / Low of Azad Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Azad Engineering Ltd stocks is 2,080/642.

What is the Stock P/E of Azad Engineering Ltd?

The Stock P/E of Azad Engineering Ltd is 166.

What is the Book Value of Azad Engineering Ltd?

The Book Value of Azad Engineering Ltd is 109.

What is the Dividend Yield of Azad Engineering Ltd?

The Dividend Yield of Azad Engineering Ltd is 0.00 %.

What is the ROCE of Azad Engineering Ltd?

The ROCE of Azad Engineering Ltd is 21.5 %.

What is the ROE of Azad Engineering Ltd?

The ROE of Azad Engineering Ltd is 13.8 %.

What is the Face Value of Azad Engineering Ltd?

The Face Value of Azad Engineering Ltd is 2.00.

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 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