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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 523319 | NSE: BALMLAWRIE

Fundamental Analysis of Balmer Lawrie & Company Ltd

Basic Stock Data

Last Updated: April 10, 2024, 3:25 am

Market Cap 4,369 Cr.
Current Price 256
High / Low291/112
Stock P/E19.2
Book Value 97.0
Dividend Yield2.93 %
ROCE10.1 %
ROE10.2 %
Face Value 10.0
PEG Ratio2.53

Competitors of Balmer Lawrie & Company Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
3M India Ltd 34,328 Cr. 30,46039,876/22,12562.8 1,6340.33 %31.4 %23.4 % 10.0
NESCO Ltd 6,118 Cr. 868934/59816.9 3260.52 %22.4 %17.0 % 2.00
Industry Average20,223.00 Cr15,664.0039.85980.000.43%26.90%20.20%6.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales388499486489505575648551514608592586585
Expenses364409449457469511587513464556528511511
Operating Profit24903732366461395052657574
OPM %6%18%8%7%7%11%9%7%10%9%11%13%13%
Other Income101610751588317101311
Interest2343435455655
Depreciation14141414141414141414151414
Profit before tax18892923236251293451546964
Tax %55%27%27%33%23%43%22%37%29%51%22%31%24%
Net Profit18743626264655343543566366
EPS in Rs1.134.402.151.581.592.763.282.052.112.613.353.733.90

Last Updated: May 7, 2024, 11:16 am

Quarterly Chart

Balmer Lawrie & Company Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,6693,0133,1203,2541,5911,7021,7201,7721,5321,5262,0512,3122,300
Expenses2,4562,7792,9083,0311,3861,4921,5021,5391,3421,3851,8822,1092,058
Operating Profit213234212223205211219233189141169202242
OPM %8%8%7%7%13%12%13%13%12%9%8%9%11%
Other Income47557064635651515149373743
Interest2323242355471512141820
Depreciation35383546242627305255575758
Profit before tax202229222218240236238247173123136164207
Tax %27%27%30%30%32%34%31%35%32%33%35%35%
Net Profit148167156152164155165197155115134168196
EPS in Rs8.679.799.098.899.589.059.6611.659.437.048.0510.0511.80
Dividend Payout %31%30%27%34%35%52%69%63%80%85%81%75%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)12.84%-6.59%-2.56%7.89%-5.49%6.45%19.39%-21.32%-25.81%16.52%25.37%
Change in YoY Net Profit Growth (%)0.00%-19.42%4.02%10.46%-13.38%11.94%12.94%-40.71%-4.49%42.33%8.85%

Growth

Compounded Sales Growth
10 Years:-3%
5 Years:6%
3 Years:15%
TTM:1%
Compounded Profit Growth
10 Years:5%
5 Years:6%
3 Years:31%
TTM:54%
Stock Price CAGR
10 Years:15%
5 Years:18%
3 Years:32%
1 Year:148%
Return on Equity
10 Years:12%
5 Years:10%
3 Years:11%
Last Year:15%

Last Updated: April 10, 2024, 3:25 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1616282828114114114171171171171171
Reserves7428479531,0151,2101,2471,3421,4061,3831,3711,4161,5101,487
Borrowings210196175197001581120125122121127
Other Liabilities657668724670559669720682660712736860949
Total Liabilities1,6251,7261,8801,9111,7982,0302,1912,2822,3342,3792,4452,6622,734
Fixed Assets415452464577393397410568770767767760745
CWIP1212771211631381172432112843
Investments0000248271293325375386436518540
Other Assets1,1981,2621,3391,3221,1461,2991,3501,2721,1651,1941,2311,3561,406
Total Assets1,6251,7261,8801,9111,7982,0302,1912,2822,3342,3792,4452,6622,734

Reserves and Borrowings Chart

Balmer Lawrie & Company Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1402011672011501811291941892442208
Cash from Investing Activity -16-45-76-42-71-117-19-137-60-80137-48
Cash from Financing Activity -69-101-131-143-66-73-86-78-162-149-127-147
Net Cash Flow5655-401613-924-21-34151212

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow3.0038.0037.0026.00205.00211.00204.00152.0069.0016.0047.0081.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days605462535360575765695657
Inventory Days534548487751464757595146
Days Payable5048534414410410896881006968
Cash Conversion Cycle63515756-148-4835283835
Working Capital Days28243133-930404452335142
ROCE %25%25%22%20%20%18%17%16%11%8%8%10%

Financial Efficiency Indicators Chart

Balmer Lawrie & Company Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
FIIs1.71%1.71%1.73%1.57%1.63%1.61%1.62%1.31%1.20%1.95%1.82%2.12%
DIIs3.50%3.00%2.52%2.50%2.50%2.49%2.50%2.50%2.47%2.45%2.48%2.21%
Government0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.02%
Public94.76%95.27%95.72%95.91%95.84%95.87%95.84%96.16%96.29%95.56%95.66%95.63%
No. of Shareholders78,40385,16789,50789,74197,91696,77596,64593,74091,60087,02787,34889,289

Shareholding Pattern Chart

No. of Shareholders

Balmer Lawrie & Company Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Motilal Oswal Nifty Microcap 250 Index Fund719250.21.13
Groww Nifty Total Market Index Fund1870.010

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)10.058.077.049.4314.13
Diluted EPS (Rs.)10.058.077.049.4314.13
Cash EPS (Rs.)9.578.498.059.9416.79
Book Value[Excl.RevalReserv]/Share (Rs.)100.1194.9492.4693.45137.73
Book Value[Incl.RevalReserv]/Share (Rs.)100.1194.9492.4693.45137.73
Revenue From Operations / Share (Rs.)135.76120.1989.4189.73155.72
PBDIT / Share (Rs.)13.9812.0611.0914.0424.91
PBIT / Share (Rs.)10.668.797.8811.0122.25
PBT / Share (Rs.)9.618.007.1810.1421.63
Net Profit / Share (Rs.)6.255.234.836.9114.13
NP After MI And SOA / Share (Rs.)10.057.886.749.0514.33
PBDIT Margin (%)10.2910.0312.4015.6415.99
PBIT Margin (%)7.857.318.8012.2714.29
PBT Margin (%)7.076.658.0311.3013.88
Net Profit Margin (%)4.604.355.407.709.07
NP After MI And SOA Margin (%)7.406.557.5410.089.20
Return on Networth / Equity (%)10.228.487.479.9610.74
Return on Capital Employeed (%)9.027.837.2710.2214.38
Return On Assets (%)6.455.504.846.627.16
Long Term Debt / Equity (X)0.040.050.060.060.05
Total Debt / Equity (X)0.050.050.060.060.05
Asset Turnover Ratio (%)0.900.940.710.730.87
Current Ratio (X)2.092.312.242.332.28
Quick Ratio (X)1.771.931.942.042.00
Inventory Turnover Ratio (X)7.885.343.904.185.35
Dividend Payout Ratio (NP) (%)64.6776.14111.2381.0069.79
Dividend Payout Ratio (CP) (%)48.6153.8475.3060.7158.87
Earning Retention Ratio (%)35.3323.86-11.2319.0030.21
Cash Earning Retention Ratio (%)51.3946.1624.7039.2941.13
Interest Coverage Ratio (X)13.3315.1715.9216.1439.87
Interest Coverage Ratio (Post Tax) (X)6.967.587.938.9523.62
Enterprise Value (Cr.)1567.621642.421805.181045.791802.11
EV / Net Operating Revenue (X)0.670.791.180.681.02
EV / EBITDA (X)6.567.979.514.366.35
MarketCap / Net Operating Revenue (X)0.810.931.440.881.19
Retention Ratios (%)35.3223.85-11.2318.9930.20
Price / BV (X)1.131.211.430.871.39
Price / Net Operating Revenue (X)0.810.931.440.881.19
EarningsYield0.090.060.050.110.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹195.53

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.

Overvalued: 23.62% compared to the current price ₹256

Intrinsic Value: ₹210.36

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: 17.83% compared to the current price ₹256

Last 5 Year EPS CAGR: 7.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.67%, which is a positive sign.
  2. The company has higher reserves (1,225.31 cr) compared to borrowings (114.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (1.77 cr) and profit (205.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 33.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 30.08, 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 Balmer Lawrie & Company Ltd:
    1. Net Profit Margin: 4.60%
      • 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: 9.02% (Industry Average ROCE: 26.9%)
      • 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%: 10.22% (Industry Average ROE: 20.2%)
      • 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): 6.96
      • 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: 1.77
      • 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: 19.2 (Industry average Stock P/E: 39.85)
      • 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

Balmer Lawrie & Company Ltd. is a Public Limited Listed company incorporated on 18/02/1924 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L15492WB1924GOI004835 and registration number is 004835. Currently Company is involved in the business activities of Manufacture of other containers. Company’s Total Operating Revenue is Rs. 2042.45 Cr. and Equity Capital is Rs. 171.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Diversified21, Netaji Subhas Road, Kolkata West Bengal 700001bhavsar.k@balmerlawrie.com
http://www.balmerlawrie.com
Management
NamePosition Held
Mr. Adika Ratna SekharChairman & Managing Director
Mr. Saurav DuttaDirector - Finance & CFO
Dr. Vandana Minda HedaIndependent Director
Mr. Rajeev KumarIndependent Director
Mr. Adhipnath PalchaudhuriDirector
Mr. R M UthayarajaDirector
Mr. Abhijit GhoshDirector
Mr. Rajinder KumarNominee Director

FAQ

What is the latest fair value of Balmer Lawrie & Company Ltd?

The latest fair value of Balmer Lawrie & Company Ltd is 195.53.

What is the Market Cap of Balmer Lawrie & Company Ltd?

The Market Cap of Balmer Lawrie & Company Ltd is 4,369 Cr..

What is the current Stock Price of Balmer Lawrie & Company Ltd as on 13 April 2024?

The current stock price of Balmer Lawrie & Company Ltd as on 13 April 2024 is 256.

What is the High / Low of Balmer Lawrie & Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Balmer Lawrie & Company Ltd stocks is ₹291/112.

What is the Stock P/E of Balmer Lawrie & Company Ltd?

The Stock P/E of Balmer Lawrie & Company Ltd is 19.2.

What is the Book Value of Balmer Lawrie & Company Ltd?

The Book Value of Balmer Lawrie & Company Ltd is 97.0.

What is the Dividend Yield of Balmer Lawrie & Company Ltd?

The Dividend Yield of Balmer Lawrie & Company Ltd is 2.93 %.

What is the ROCE of Balmer Lawrie & Company Ltd?

The ROCE of Balmer Lawrie & Company Ltd is 10.1 %.

What is the ROE of Balmer Lawrie & Company Ltd?

The ROE of Balmer Lawrie & Company Ltd is 10.2 %.

What is the Face Value of Balmer Lawrie & Company Ltd?

The Face Value of Balmer Lawrie & Company 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 Balmer Lawrie & Company 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