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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500039 | NSE: BANCOINDIA

Fundamental Analysis of Banco Products (India) Ltd

Basic Stock Data

Last Updated: April 4, 2024, 10:05 am

Market Cap 4,523 Cr.
Current Price 634
High / Low734/220
Stock P/E17.8
Book Value 146
Dividend Yield3.47 %
ROCE25.8 %
ROE23.9 %
Face Value 2.00
PEG Ratio0.66

Competitors of Banco Products (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sundram Fasteners Ltd 24,615 Cr. 1,1691,341/1,00247.2 1630.56 %18.5 %16.2 % 1.00
Shriram Pistons & Rings Ltd 8,572 Cr. 1,9462,206/73019.5 4370.26 %28.3 %25.4 % 10.0
Talbros Automotive Components Ltd 1,771 Cr. 287351/10522.6 87.00.21 %21.6 %17.3 % 2.00
Jullundur Motor Agency (Delhi) Ltd 226 Cr. 98.8141/65.410.8 80.52.02 %17.8 %13.3 % 2.00
Rane Engine Valve Ltd 270 Cr. 374506/26217.5 1670.00 %12.9 %13.7 % 10.0
Industry Average7,090.80 Cr774.9623.52186.900.61%19.82%17.18%5.00

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: May 7, 2024, 3:48 am

Quarterly Chart

Banco Products (India) Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9861,0241,1161,1291,1481,2391,3361,5671,4221,5331,9582,3322,592
Expenses8649059511,0271,0021,0961,1571,4051,3001,3541,6861,9662,135
Operating Profit122119165102146144179161122178272366458
OPM %12%12%15%9%13%12%13%10%9%12%14%16%18%
Other Income1099531132181025951424
Interest81619832243451321
Depreciation21293234353328293334485664
Profit before tax10283122113119141167138111150224311396
Tax %25%26%26%22%25%31%30%50%31%24%32%24%
Net Profit7761908890971176977114152236284
EPS in Rs10.708.5712.5612.2612.5713.5916.339.6610.7115.9021.3132.9439.73
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%

Growth

Compounded Sales Growth
10 Years:9%
5 Years:12%
3 Years:18%
TTM:19%
Compounded Profit Growth
10 Years:15%
5 Years:15%
3 Years:48%
TTM:13%
Stock Price CAGR
10 Years:22%
5 Years:31%
3 Years:60%
1 Year:165%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:19%
Last Year:24%

Last Updated: April 4, 2024, 10:05 am

Banco Products (India) Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital14141414141414141414141414
Reserves4094585746056747057938186968149679871,033
Borrowings14721417236363834409214115418399
Other Liabilities153168183164232211356322287344405435502
Total Liabilities7248549448199569691,1971,1951,0891,1871,5021,8551,949
Fixed Assets201232243227221192191184193190297359340
CWIP39121134131331151835
Investments3962711191246991100
Other Assets4805516185817316829699298839951,1901,4771,574
Total Assets7248549448199569691,1971,1951,0891,1871,5021,8551,949

Reserves and Borrowings Chart

Banco Products (India) Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1099713185689099625215757-41
Cash from Investing Activity -88-104-4288-17-59-22-52149-59-104-23
Cash from Financing Activity -14-10-82-136-6-61-68-49-153-78-1159
Net Cash Flow7-1673646-309-394920-58-6

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-25.00-95.00-7.0066.00110.00106.00145.00121.0030.00164.00157.00-52.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days666970577060706375646065
Inventory Days142178172152190171217191212234225271
Days Payable45535739715190102991189595
Cash Conversion Cycle163194184170189180197152188180191241
Working Capital Days98102107106118116116119142134139166
ROCE %20%15%19%12%18%17%21%17%13%19%24%26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 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%
FIIs0.26%0.38%0.34%0.31%0.37%0.74%1.15%1.88%1.87%2.07%2.35%3.00%
DIIs0.02%0.02%0.02%0.02%0.02%0.02%0.02%0.03%0.02%0.02%0.08%0.13%
Public31.84%31.72%31.76%31.79%31.73%31.37%30.95%30.20%30.23%30.04%29.69%28.97%
No. of Shareholders32,19434,70134,63136,27935,75543,25743,18040,57140,55048,39947,75151,172

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)32.9421.3115.9010.719.66
Diluted EPS (Rs.)32.9421.3115.9010.719.66
Cash EPS (Rs.)40.8228.0020.6115.2913.74
Book Value[Excl.RevalReserv]/Share (Rs.)139.96137.19115.7699.20116.35
Book Value[Incl.RevalReserv]/Share (Rs.)140.03137.27115.8399.28116.43
Revenue From Operations / Share (Rs.)326.04273.78214.29198.84219.05
PBDIT / Share (Rs.)53.1038.7226.1720.6026.01
PBIT / Share (Rs.)45.2232.0221.4616.0221.92
PBT / Share (Rs.)43.4631.2920.9515.5921.33
Net Profit / Share (Rs.)32.9421.3115.9010.719.66
NP After MI And SOA / Share (Rs.)32.9421.3115.9010.719.66
PBDIT Margin (%)16.2814.1412.2110.3611.87
PBIT Margin (%)13.8611.6910.018.0510.00
PBT Margin (%)13.3211.429.777.839.73
Net Profit Margin (%)10.107.787.425.384.40
NP After MI And SOA Margin (%)10.107.787.425.384.40
Return on Networth / Equity (%)23.5315.5313.7310.798.30
Return on Capital Employeed (%)26.2119.6316.8914.4017.15
Return On Assets (%)12.509.959.356.875.64
Long Term Debt / Equity (X)0.030.010.010.010.01
Total Debt / Equity (X)0.290.020.010.120.04
Asset Turnover Ratio (%)0.840.790.700.650.74
Current Ratio (X)2.243.173.212.703.11
Quick Ratio (X)0.701.201.371.201.57
Inventory Turnover Ratio (X)1.311.391.211.231.67
Dividend Payout Ratio (NP) (%)24.289.380.00214.8051.76
Dividend Payout Ratio (CP) (%)19.597.140.00150.4336.37
Earning Retention Ratio (%)75.7290.620.00-114.8048.24
Cash Earning Retention Ratio (%)80.4192.860.00-50.4363.63
Interest Coverage Ratio (X)30.1852.6951.7347.5943.65
Interest Coverage Ratio (Post Tax) (X)19.7230.0032.4425.7320.55
Enterprise Value (Cr.)1882.76913.42896.66486.311008.36
EV / Net Operating Revenue (X)0.800.460.580.340.64
EV / EBITDA (X)4.963.304.793.305.42
MarketCap / Net Operating Revenue (X)0.690.490.650.320.69
Retention Ratios (%)75.7190.610.00-114.8048.23
Price / BV (X)1.610.991.210.651.32
Price / Net Operating Revenue (X)0.690.490.650.320.69
EarningsYield0.140.150.110.160.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹642.67

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: 1.37% compared to the current price ₹634

Intrinsic Value: ₹816.95

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.

Undervalued: 28.86% compared to the current price ₹634

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 18.42%, which is a positive sign.
  2. The company has higher reserves (733.31 cr) compared to borrowings (135.00 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 121.92, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 185.75, 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: 10.10%
      • 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: 26.21% (Industry Average ROCE: 15.5%)
      • 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%: 23.53% (Industry Average ROE: 12.77%)
      • 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): 19.72
      • 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: 0.70
      • 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: 17.8 (Industry average Stock P/E: 34.38)
      • 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: 0.29
      • 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

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, Padra Road, 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
Ms. Ameeta V ManoharIndependent Director
Mr. Ramkisan DevidayalIndependent Director
Mr. Mukesh D PatelIndependent Director
Mr. Devesh A PathakIndependent Director
Mr. Udayan P PatelIndependent Director

FAQ

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

The latest fair value of Banco Products (India) Ltd is ₹642.67.

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

The Market Cap of Banco Products (India) Ltd is 4,523 Cr..

What is the current Stock Price of Banco Products (India) Ltd as on 07 April 2024?

The current stock price of Banco Products (India) Ltd as on 07 April 2024 is 634.

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 ₹734/220.

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

The Stock P/E of Banco Products (India) Ltd is 17.8.

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

The Book Value of Banco Products (India) Ltd is 146.

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

The Dividend Yield of Banco Products (India) Ltd is 3.47 %.

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

The ROCE of Banco Products (India) Ltd is 25.8 %.

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

The ROE of Banco Products (India) Ltd is 23.9 %.

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