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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500039 | NSE: BANCOINDIA

Banco Products (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:25 pm

Market Cap 7,353 Cr.
Current Price 1,026
High / Low1,077/505
Stock P/E21.4
Book Value 178
Dividend Yield1.95 %
ROCE27.0 %
ROE26.9 %
Face Value 2.00
PEG Ratio0.79

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

View Share Price Target for Banco Products (India) Ltd

Competitors of Banco Products (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IP Rings Ltd 250 Cr. 197262/142 82.80.00 %4.05 %2.95 % 10.0
Talbros Automotive Components Ltd 1,787 Cr. 289396/22020.6 96.40.24 %21.4 %17.2 % 2.00
Sundram Fasteners Ltd 24,393 Cr. 1,1621,506/1,00244.6 1730.59 %18.5 %16.2 % 1.00
Sintercom India Ltd 389 Cr. 141170/121363 36.70.00 %4.82 %1.15 % 10.0
Shriram Pistons & Rings Ltd 8,855 Cr. 2,0102,399/99319.1 4870.50 %27.9 %25.2 % 10.0
Industry Average13,350.91 Cr3,628.8057.98534.830.70%16.39%14.39%7.00

All Competitor Stocks of Banco Products (India) Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales376445501549402507586628509609749725571
Expenses321418429468363427519569369511653602482
Operating Profit5427728140806759140989712289
OPM %14%6%14%15%10%16%11%9%28%16%13%17%16%
Other Income2180-3-11101316312
Interest1211132137564
Depreciation988882412121320151617
Profit before tax4718717228535556126749310481
Tax %22%-4%36%31%40%23%37%8%22%31%26%36%15%
Net Profit37184649174035529851696668
EPS in Rs5.152.576.426.882.395.624.847.2313.737.149.629.249.55

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9861,0241,1161,1291,1481,2391,3361,5671,4221,5331,9582,3322,654
Expenses8649059511,0271,0021,0961,1571,4051,3001,3541,6861,9662,247
Operating Profit122119165102146144179161122178272366407
OPM %12%12%15%9%13%12%13%10%9%12%14%16%15%
Other Income1099531132181025951434
Interest81619832243451322
Depreciation21293234353328293334485668
Profit before tax10283122113119141167138111150224311351
Tax %25%26%26%22%25%31%30%50%31%24%32%24%
Net Profit7761908890971176977114152236254
EPS in Rs10.708.5712.5612.2612.5713.5916.339.6610.7115.9021.3132.9435.55
Dividend Payout %23%21%16%24%37%66%61%83%187%13%94%67%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-20.78%47.54%-2.22%2.27%7.78%20.62%-41.03%11.59%48.05%33.33%55.26%
Change in YoY Net Profit Growth (%)0.00%68.32%-49.76%4.49%5.51%12.84%-61.64%52.62%36.46%-14.72%21.93%

Banco Products (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:12%
3 Years:22%
TTM:15%
Compounded Profit Growth
10 Years:12%
5 Years:32%
3 Years:34%
TTM:21%
Stock Price CAGR
10 Years:19%
5 Years:61%
3 Years:81%
1 Year:80%
Return on Equity
10 Years:16%
5 Years:19%
3 Years:23%
Last Year:27%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:37 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital14141414141414141414141414
Reserves4585746056747057938186968149679871,0371,259
Borrowings21417236363834409214115418423420
Other Liabilities168183164232211356322287344405435508648
Total Liabilities8549448199569691,1971,1951,0891,1871,5021,8551,9822,342
Fixed Assets232243227221192191184193190297359454447
CWIP912113413133115181012
Investments6271119124699110031
Other Assets5516185817316829699298839951,1901,4771,5181,852
Total Assets8549448199569691,1971,1951,0891,1871,5021,8551,9822,342

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +9713185689099625215757-41458
Cash from Investing Activity +-104-4288-17-59-22-52149-59-104-23-114
Cash from Financing Activity +-10-82-136-6-61-68-49-153-78-1159-339
Net Cash Flow-1673646-309-394920-58-65

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow122.00-95.00-7.0066.00110.00106.00145.00121.0030.00164.00157.00-52.00

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 Days697057706070637564606563
Inventory Days178172152190171217191212234225271210
Days Payable53573971519010299118959590
Cash Conversion Cycle194184170189180197152188180191241183
Working Capital Days102107106118116116119142134139166131
ROCE %15%19%12%18%17%21%17%13%19%24%26%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters67.88%67.88%67.88%67.88%67.88%67.88%67.88%67.88%67.88%67.88%67.88%67.88%
FIIs0.38%0.34%0.31%0.37%0.74%1.15%1.88%1.87%2.07%2.35%3.00%3.21%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.03%0.02%0.02%0.08%0.13%0.14%
Public31.72%31.76%31.79%31.73%31.37%30.95%30.20%30.23%30.04%29.69%28.97%28.77%
No. of Shareholders34,70134,63136,27935,75543,25743,18040,57140,55048,39947,75151,17252,823

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
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)37.9532.9421.3115.9010.71
Diluted EPS (Rs.)37.9532.9421.3115.9010.71
Cash EPS (Rs.)48.5940.8228.0020.6115.29
Book Value[Excl.RevalReserv]/Share (Rs.)147.06139.96137.19115.7699.20
Book Value[Incl.RevalReserv]/Share (Rs.)147.06140.03137.27115.8399.28
Revenue From Operations / Share (Rs.)387.19326.04273.78214.29198.84
PBDIT / Share (Rs.)64.3453.1038.7226.1720.60
PBIT / Share (Rs.)53.7145.2232.0221.4616.02
PBT / Share (Rs.)50.7343.4631.2920.9515.59
Net Profit / Share (Rs.)37.9632.9421.3115.9010.71
NP After MI And SOA / Share (Rs.)37.9632.9421.3115.9010.71
PBDIT Margin (%)16.6116.2814.1412.2110.36
PBIT Margin (%)13.8713.8611.6910.018.05
PBT Margin (%)13.1013.3211.429.777.83
Net Profit Margin (%)9.8010.107.787.425.38
NP After MI And SOA Margin (%)9.8010.107.787.425.38
Return on Networth / Equity (%)25.8123.5315.5313.7310.79
Return on Capital Employeed (%)28.6026.2119.6316.8914.40
Return On Assets (%)13.3812.509.959.356.87
Long Term Debt / Equity (X)0.030.030.010.010.01
Total Debt / Equity (X)0.210.290.020.010.12
Asset Turnover Ratio (%)1.420.840.790.700.65
Current Ratio (X)2.202.243.173.212.70
Quick Ratio (X)0.850.701.201.371.20
Inventory Turnover Ratio (X)1.591.311.391.211.23
Dividend Payout Ratio (NP) (%)0.0024.289.380.00214.80
Dividend Payout Ratio (CP) (%)0.0019.597.140.00150.43
Earning Retention Ratio (%)0.0075.7290.620.00-114.80
Cash Earning Retention Ratio (%)0.0080.4192.860.00-50.43
Interest Coverage Ratio (X)21.5430.1852.6951.7347.59
Interest Coverage Ratio (Post Tax) (X)13.7119.7230.0032.4425.73
Enterprise Value (Cr.)4410.571882.76913.42896.66486.31
EV / Net Operating Revenue (X)1.590.800.460.580.34
EV / EBITDA (X)9.594.963.304.793.30
MarketCap / Net Operating Revenue (X)1.540.690.490.650.32
Retention Ratios (%)0.0075.7190.610.00-114.80
Price / BV (X)4.041.610.991.210.65
Price / Net Operating Revenue (X)1.540.690.490.650.32
EarningsYield0.060.140.150.110.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Banco Products (India) Ltd as of November 22, 2024 is: 1,044.66

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 22, 2024, Banco Products (India) Ltd is Undervalued by 1.82% compared to the current share price 1,026.00

Intrinsic Value of Banco Products (India) Ltd as of November 22, 2024 is: 1,327.96

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 22, 2024, Banco Products (India) Ltd is Undervalued by 29.43% compared to the current share price 1,026.00

Last 5 Year EPS CAGR: 27.12%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.00%, which is a positive sign.
  2. The company has higher reserves (799.00 cr) compared to borrowings (157.85 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (76.92 cr) and profit (164.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 124.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 187.42, 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 Banco Products (India) Ltd:
    1. Net Profit Margin: 9.8%
      • 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: 28.6% (Industry Average ROCE: 16.39%)
      • 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%: 25.81% (Industry Average ROE: 14.39%)
      • 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): 13.71
      • 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: 0.85
      • 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: 21.4 (Industry average Stock P/E: 57.98)
      • 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: 0.21
      • 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

Banco Products (India) Ltd. is a Public Limited Listed company incorporated on 16/03/1961 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L51100GJ1961PLC001039 and registration number is 001039. Currently company belongs to the Industry of Auto Ancl - Engine Parts. Company’s Total Operating Revenue is Rs. 795.37 Cr. and Equity Capital is Rs. 14.30 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine PartsBil, Near Bhaili Railway Station, Vadodra District Gujarat 391410investor@bancoindia.com
http://www.bancoindia.com
Management
NamePosition Held
Mr. Mehul K PatelChairman
Ms. Himali PatelWholeTime Director & CFO
Mr. Sharan M PatelWhole Time Director
Mr. Shivam M PatelNon Executive Director
Ms. Ameeta V ManoharIndependent Director
Mr. Ramkisan DevidayalIndependent Director
Mr. Mukesh D PatelIndependent Director
Mr. Devesh A PathakIndependent Director
Mr. Udayan P PatelIndependent Director
Mr. Tarak A PatelIndependent Director

FAQ

What is the latest intrinsic value of Banco Products (India) Ltd?

The latest intrinsic value of Banco Products (India) Ltd as on 21 November 2024 is ₹1044.66, which is 1.82% higher than the current market price of ₹1,026.00.

What is the Market Cap of Banco Products (India) Ltd?

The Market Cap of Banco Products (India) Ltd is 7,353 Cr..

What is the current Stock Price of Banco Products (India) Ltd as on 21 November 2024?

The current stock price of Banco Products (India) Ltd as on 21 November 2024 is ₹1,026.

What is the High / Low of Banco Products (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Banco Products (India) Ltd stocks is 1,077/505.

What is the Stock P/E of Banco Products (India) Ltd?

The Stock P/E of Banco Products (India) Ltd is 21.4.

What is the Book Value of Banco Products (India) Ltd?

The Book Value of Banco Products (India) Ltd is 178.

What is the Dividend Yield of Banco Products (India) Ltd?

The Dividend Yield of Banco Products (India) Ltd is 1.95 %.

What is the ROCE of Banco Products (India) Ltd?

The ROCE of Banco Products (India) Ltd is 27.0 %.

What is the ROE of Banco Products (India) Ltd?

The ROE of Banco Products (India) Ltd is 26.9 %.

What is the Face Value of Banco Products (India) Ltd?

The Face Value of Banco Products (India) 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 Banco Products (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