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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500041 | NSE: BANARISUG

Bannari Amman Sugars Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:49 pm

Market Cap 4,664 Cr.
Current Price 3,720
High / Low3,800/2,189
Stock P/E32.1
Book Value 1,346
Dividend Yield0.34 %
ROCE11.8 %
ROE9.36 %
Face Value 10.0
PEG Ratio3.37

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

View Share Price Target for Bannari Amman Sugars Ltd

Competitors of Bannari Amman Sugars Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gayatri Sugars Ltd 123 Cr. 19.029.4/15.2615 15.10.00 %102 %% 10.0
Dhampure Speciality Sugars Ltd 69.6 Cr. 87.8116/50.545.8 33.60.00 %3.15 %3.78 % 10.0
Dhampur Bio Organics Ltd 934 Cr. 141181/11227.5 1521.78 %5.02 %3.67 % 10.0
DCM Shriram Industries Ltd 1,675 Cr. 192242/11614.0 93.71.04 %16.1 %14.9 % 2.00
Davangere Sugar Company Ltd 618 Cr. 6.6411.5/6.2751.2 3.610.00 %6.86 %3.75 % 1.00
Industry Average2,352.76 Cr333.9056.08205.600.56%13.29%13.21%6.37

All Competitor Stocks of Bannari Amman Sugars Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales373.33447.12715.76461.88426.72510.06932.36656.44430.86600.13768.17421.16403.95
Expenses345.30395.23650.27391.83391.56441.86834.53553.42387.34507.74648.69370.16374.86
Operating Profit28.0351.8965.4970.0535.1668.2097.83103.0243.5292.39119.4851.0029.09
OPM %7.51%11.61%9.15%15.17%8.24%13.37%10.49%15.69%10.10%15.39%15.55%12.11%7.20%
Other Income0.731.281.242.4733.941.521.572.341.251.531.532.391.07
Interest7.996.657.519.4413.0113.0012.9210.4010.246.956.867.596.48
Depreciation15.0615.3115.4022.0918.0218.7318.7918.4914.1314.3614.4114.6913.87
Profit before tax5.7131.2143.8240.9938.0737.9967.6976.4720.4072.6199.7431.119.81
Tax %11.91%32.33%32.57%40.77%32.52%29.11%39.64%34.72%33.38%32.78%31.75%29.83%34.56%
Net Profit5.0421.1229.5424.2825.6926.9340.8549.9213.5948.8168.0721.836.43
EPS in Rs4.0216.8423.5619.3620.4921.4832.5839.8110.8438.9254.2817.415.13

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,3376519301,4561,7521,4811,1251,6091,5631,9982,5262,2202,193
Expenses1,0525038021,2511,4041,2709431,3781,3521,7802,2211,9141,901
Operating Profit285148128204348211182231211218304306292
OPM %21%23%14%14%20%14%16%14%13%11%12%14%13%
Other Income-6-21636584933977
Interest456293116973430443932493228
Depreciation60525162697067656668745857
Profit before tax1743203018711293126115122220224213
Tax %18%11%-209%-7%22%22%18%24%20%34%35%32%
Net Profit142291321458776969280143152145
EPS in Rs124.5625.080.9027.73115.7769.5960.5676.2773.4863.78114.35121.45115.74
Dividend Payout %10%50%278%27%11%14%17%13%14%16%11%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-79.58%-96.55%3100.00%353.12%-40.00%-12.64%26.32%-4.17%-13.04%78.75%6.29%
Change in YoY Net Profit Growth (%)0.00%-16.97%3196.55%-2746.88%-393.12%27.36%38.96%-30.48%-8.88%91.79%-72.46%

Bannari Amman Sugars Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:13%
5 Years:15%
3 Years:12%
TTM:-13%
Compounded Profit Growth
10 Years:17%
5 Years:15%
3 Years:19%
TTM:11%
Stock Price CAGR
10 Years:12%
5 Years:27%
3 Years:18%
1 Year:46%
Return on Equity
10 Years:7%
5 Years:8%
3 Years:8%
Last Year:9%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital111111111313131313131313
Reserves9319439409201,0551,1231,1831,2621,3441,4111,5391,676
Borrowings4581,0521,2211,5341,038508769996872961581486
Other Liabilities315274232355297143237164163184226260
Total Liabilities1,7152,2812,4052,8212,4021,7862,2022,4342,3902,5692,3592,435
Fixed Assets6696329171,1381,1031,0821,0261,0049541,0491,0781,071
CWIP33268221534424901456122112
Investments000121111123
Other Assets1,0131,3811,4661,6671,2636991,1511,3401,2911,4581,2571,249
Total Assets1,7152,2812,4052,8212,4021,7862,2022,4342,3902,5692,3592,435

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 158-25520178645588-192-5723633502274
Cash from Investing Activity -57-253-74-275-52-16-27-106-61-75-57-130
Cash from Financing Activity -10350961107-604-579219167-17942-443-144
Net Cash Flow-10710-11-604-5-031

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-173.00147.00127.00203.00347.00-297.00-587.00-765.00-661.00-743.00-277.00-180.00

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 Days272316332417424338632022
Inventory Days3481,542757485296188529330339255205247
Days Payable609739502728952120221719
Cash Conversion Cycle3151,468734468293176476352356296209249
Working Capital Days178602465278164114274255260234146170
ROCE %17%6%4%6%12%8%7%8%7%7%12%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters58.70%58.70%58.70%58.70%58.69%58.69%58.69%58.69%58.69%58.69%58.69%58.69%
FIIs0.17%0.21%0.23%0.26%0.27%0.26%0.26%0.26%0.26%0.26%0.25%0.25%
DIIs0.10%0.09%0.06%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.00%
Public41.04%41.00%41.01%41.04%41.04%41.05%41.04%41.04%41.03%41.04%41.04%41.05%
No. of Shareholders6,8627,6478,6438,6188,2908,1777,8957,8618,4628,7668,6948,662

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)121.46114.3563.7873.4876.27
Diluted EPS (Rs.)121.46114.3563.7873.4876.27
Cash EPS (Rs.)167.38173.39117.90125.89128.05
Book Value[Excl.RevalReserv]/Share (Rs.)1346.441237.581135.111081.431016.72
Book Value[Incl.RevalReserv]/Share (Rs.)1346.441237.581135.111081.431016.72
Dividend / Share (Rs.)12.5012.5010.0010.0010.00
Revenue From Operations / Share (Rs.)1770.632014.061593.411244.991283.36
PBDIT / Share (Rs.)249.69273.99176.24175.12187.66
PBIT / Share (Rs.)203.76214.95122.13122.71135.87
PBT / Share (Rs.)178.52175.6197.0891.34100.52
Net Profit / Share (Rs.)121.46114.3563.7873.4876.27
PBDIT Margin (%)14.1013.6011.0614.0614.62
PBIT Margin (%)11.5010.677.669.8510.58
PBT Margin (%)10.088.716.097.337.83
Net Profit Margin (%)6.855.674.005.905.94
Return on Networth / Equity (%)9.029.235.616.797.50
Return on Capital Employeed (%)13.7115.099.639.9411.04
Return On Assets (%)6.256.073.113.853.92
Long Term Debt / Equity (X)0.030.100.080.120.19
Total Debt / Equity (X)0.280.370.670.620.76
Asset Turnover Ratio (%)0.921.030.800.640.69
Current Ratio (X)2.092.041.461.491.46
Quick Ratio (X)0.320.330.430.310.38
Inventory Turnover Ratio (X)1.551.721.461.141.16
Dividend Payout Ratio (NP) (%)10.298.7415.6713.6013.11
Dividend Payout Ratio (CP) (%)7.465.768.487.947.80
Earning Retention Ratio (%)89.7191.2684.3386.4086.89
Cash Earning Retention Ratio (%)92.5494.2491.5292.0692.20
Interest Coverage Ratio (X)9.896.977.035.585.31
Interest Coverage Ratio (Post Tax) (X)5.813.913.553.343.16
Enterprise Value (Cr.)3372.023986.564309.942808.962070.43
EV / Net Operating Revenue (X)1.521.582.161.801.29
EV / EBITDA (X)10.7711.6019.5012.798.80
MarketCap / Net Operating Revenue (X)1.301.351.681.260.68
Retention Ratios (%)89.7091.2584.3286.3986.88
Price / BV (X)1.712.202.361.450.86
Price / Net Operating Revenue (X)1.301.351.681.260.68
EarningsYield0.050.040.020.040.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bannari Amman Sugars Ltd as of October 8, 2024 is: ₹4,057.89

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 October 8, 2024, Bannari Amman Sugars Ltd is Undervalued by 9.08% compared to the current share price ₹3,720.00

Intrinsic Value of Bannari Amman Sugars Ltd as of October 8, 2024 is: ₹4,443.89

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 October 8, 2024, Bannari Amman Sugars Ltd is Undervalued by 19.46% compared to the current share price ₹3,720.00

Last 5 Year EPS CAGR: 9.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,193.92 cr) compared to borrowings (873.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (122.69 cr) and profit (126.77 cr) over the years.
  1. The stock has a low average ROCE of 8.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 261.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 327.08, 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 Bannari Amman Sugars Ltd:
    1. Net Profit Margin: 6.85%
      • 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: 13.71% (Industry Average ROCE: 13.29%)
      • 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%: 9.02% (Industry Average ROE: 13.21%)
      • 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): 5.81
      • 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: 0.32
      • 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: 32.1 (Industry average Stock P/E: 56.08)
      • 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: 0.28
      • 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

Bannari Amman Sugars Ltd. is a Public Limited Listed company incorporated on 01/12/1983 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15421TZ1983PLC001358 and registration number is 001358. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 1998.09 Cr. and Equity Capital is Rs. 12.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Sugar1212, Trichy Road, Coimbatore Tamil Nadu 641018shares@bannari.com
http://www.bannari.com
Management
NamePosition Held
Mr. S V BalasubramaniamChairman
Mr. B SaravananManaging Director
Dr. M P VijayakumarInd. Non-Executive Director
Mr. A K PerumalsamyInd. Non-Executive Director
Mr. T GundanInd. Non-Executive Director
Dr. Radha RamaniInd. Non-Executive Woman Director

FAQ

What is the latest fair value of Bannari Amman Sugars Ltd?

The latest fair value of Bannari Amman Sugars Ltd is ₹4057.89.

What is the Market Cap of Bannari Amman Sugars Ltd?

The Market Cap of Bannari Amman Sugars Ltd is 4,664 Cr..

What is the current Stock Price of Bannari Amman Sugars Ltd as on 08 October 2024?

The current stock price of Bannari Amman Sugars Ltd as on 08 October 2024 is ₹3,720.

What is the High / Low of Bannari Amman Sugars Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bannari Amman Sugars Ltd stocks is 3,800/2,189.

What is the Stock P/E of Bannari Amman Sugars Ltd?

The Stock P/E of Bannari Amman Sugars Ltd is 32.1.

What is the Book Value of Bannari Amman Sugars Ltd?

The Book Value of Bannari Amman Sugars Ltd is 1,346.

What is the Dividend Yield of Bannari Amman Sugars Ltd?

The Dividend Yield of Bannari Amman Sugars Ltd is 0.34 %.

What is the ROCE of Bannari Amman Sugars Ltd?

The ROCE of Bannari Amman Sugars Ltd is 11.8 %.

What is the ROE of Bannari Amman Sugars Ltd?

The ROE of Bannari Amman Sugars Ltd is 9.36 %.

What is the Face Value of Bannari Amman Sugars Ltd?

The Face Value of Bannari Amman Sugars 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 Bannari Amman Sugars 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