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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Bhandari Hosiery Exports Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 19, 2024, 1:39 pm

Market Cap 155 Cr.
Current Price 6.44
High / Low11.4/5.32
Stock P/E23.7
Book Value 6.25
Dividend Yield0.30 %
ROCE9.65 %
ROE7.00 %
Face Value 1.00
PEG Ratio5.19

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

View Share Price Target for Bhandari Hosiery Exports Ltd

Competitors of Bhandari Hosiery Exports Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Filatex Fashions Ltd 775 Cr. 0.934.30/0.7984.9 2.770.00 %1.07 %0.73 % 1.00
Alan Scott Industries Ltd 53.8 Cr. 148148/57.0 5.640.00 %26.4 %139 % 10.0
Addi Industries Ltd 44.2 Cr. 40.970.7/37.69.55 73.23.06 %8.38 %6.17 % 5.00
T T Ltd (TTL) 356 Cr. 165174/89.91,975 36.80.00 %7.93 %6.77 % 10.0
Rupa & Company Ltd 1,959 Cr. 246362/22725.6 1241.25 %10.1 %7.76 % 1.00
Industry Average1,025.86 Cr141.93300.6486.730.56%8.44%18.45%5.50

All Competitor Stocks of Bhandari Hosiery Exports Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales68.1977.7543.0778.0168.3693.8546.4170.5255.90110.4154.1163.5260.27
Expenses62.1071.8638.2071.6062.9088.1441.1464.5349.78104.4448.9757.1053.98
Operating Profit6.095.894.876.415.465.715.275.996.125.975.146.426.29
OPM %8.93%7.58%11.31%8.22%7.99%6.08%11.36%8.49%10.95%5.41%9.50%10.11%10.44%
Other Income0.200.050.010.030.000.110.010.000.010.070.010.000.03
Interest3.202.772.382.772.682.452.412.562.682.692.202.852.86
Depreciation1.641.311.431.481.281.281.511.381.340.971.271.301.31
Profit before tax1.451.861.072.191.502.091.362.052.112.381.682.272.15
Tax %6.90%19.35%0.00%9.13%16.00%6.70%0.00%12.20%15.64%33.61%14.29%25.55%17.67%
Net Profit1.351.501.071.991.251.951.361.811.771.571.441.681.77
EPS in Rs0.080.090.070.120.080.120.080.110.110.100.090.100.11

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
Sales9795110125198214248266277225283282288
Expenses8887102117183201231246255207260259264
Operating Profit9888151317202118232324
OPM %9%9%7%6%8%6%7%7%8%8%8%8%8%
Other Income-000-0000000000
Interest434475791011101011
Depreciation1111334455555
Profit before tax5433556662788
Tax %32%34%29%27%26%20%16%15%15%21%8%17%
Net Profit3322445552676
EPS in Rs0.270.180.120.130.250.260.300.330.320.100.380.400.40
Dividend Payout %0%0%0%7%4%3%3%3%3%9%2%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%-33.33%0.00%100.00%0.00%25.00%0.00%0.00%-60.00%200.00%16.67%
Change in YoY Net Profit Growth (%)0.00%-33.33%33.33%100.00%-100.00%25.00%-25.00%0.00%-60.00%260.00%-183.33%

Bhandari Hosiery Exports 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:9%
5 Years:0%
3 Years:6%
TTM:-3%
Compounded Profit Growth
10 Years:13%
5 Years:4%
3 Years:56%
TTM:1%
Stock Price CAGR
10 Years:5%
5 Years:43%
3 Years:22%
1 Year:12%
Return on Equity
10 Years:7%
5 Years:7%
3 Years:8%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151515151515151515151624
Reserves333537404449545961677283126
Borrowings2329475573828710510810310412292
Other Liabilities14101715172624262433242828
Total Liabilities8588116125149172180205207218216249270
Fixed Assets21204441465653656056527976
CWIP12900101020100
Investments0000000000000
Other Assets51587284103115126140145162162170194
Total Assets8588116125149172180205207218216249270

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +00-3-7-62-3-2-041216
Cash from Investing Activity +00-15-0-9-14-2-17-21-3-29
Cash from Financing Activity +0017814135183-5-1012
Net Cash Flow00-11-11-0-110-0-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow9.00-15.00-21.00-39.00-40.00-60.00-65.00-67.00-84.00-90.00-80.00-81.00

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 Days395057567268587083898981
Inventory Days18115616610196105117121159125137157
Days Payable532547212125191818202233
Cash Conversion Cycle167181176136146147156173224194204205
Working Capital Days149166166130125134143153200169180199
ROCE %12%9%8%12%8%10%10%10%7%9%10%10%

Financial Efficiency Indicators Chart

No valid data available for the Shareholding

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.400.440.430.110.36
Diluted EPS (Rs.)0.420.440.430.110.36
Cash EPS (Rs.)0.730.790.800.480.70
Book Value[Excl.RevalReserv]/Share (Rs.)6.095.955.575.155.04
Book Value[Incl.RevalReserv]/Share (Rs.)6.095.955.575.155.04
Dividend / Share (Rs.)0.010.010.010.010.01
Revenue From Operations / Share (Rs.)16.3219.3319.3315.4118.93
PBDIT / Share (Rs.)1.551.601.541.251.47
PBIT / Share (Rs.)1.221.241.170.871.13
PBT / Share (Rs.)0.530.530.460.140.42
Net Profit / Share (Rs.)0.390.440.420.110.36
PBDIT Margin (%)9.518.277.978.087.75
PBIT Margin (%)7.476.436.045.695.94
PBT Margin (%)3.272.782.410.932.25
Net Profit Margin (%)2.442.292.210.731.91
Return on Networth / Equity (%)6.567.467.682.217.18
Return on Capital Employeed (%)13.5315.5614.1410.8914.72
Return On Assets (%)2.602.992.870.802.58
Long Term Debt / Equity (X)0.380.300.430.510.46
Total Debt / Equity (X)1.171.081.271.441.42
Asset Turnover Ratio (%)1.141.301.331.091.44
Current Ratio (X)1.651.641.681.631.50
Quick Ratio (X)0.810.840.910.760.72
Inventory Turnover Ratio (X)2.442.812.892.353.13
Dividend Payout Ratio (NP) (%)0.002.252.338.772.76
Dividend Payout Ratio (CP) (%)0.001.251.242.071.42
Earning Retention Ratio (%)0.0097.7597.6791.2397.24
Cash Earning Retention Ratio (%)0.0098.7598.7697.9398.58
Interest Coverage Ratio (X)2.272.272.201.702.10
Interest Coverage Ratio (Post Tax) (X)1.581.631.611.161.52
Enterprise Value (Cr.)236.05154.89209.83139.01114.98
EV / Net Operating Revenue (X)0.880.540.740.610.41
EV / EBITDA (X)9.306.619.297.615.35
MarketCap / Net Operating Revenue (X)0.440.220.380.140.03
Retention Ratios (%)0.0097.7497.6691.2297.23
Price / BV (X)1.200.721.320.430.14
Price / Net Operating Revenue (X)0.440.220.380.140.03
EarningsYield0.050.100.050.050.48

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bhandari Hosiery Exports Ltd as of November 19, 2024 is: 10.40

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 19, 2024, Bhandari Hosiery Exports Ltd is Undervalued by 61.49% compared to the current share price 6.44

Intrinsic Value of Bhandari Hosiery Exports Ltd as of November 19, 2024 is: 10.87

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 19, 2024, Bhandari Hosiery Exports Ltd is Undervalued by 68.79% compared to the current share price 6.44

Last 5 Year EPS CAGR: 4.56%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 1.48 and average Dividend Yield of 6.31%.
  2. The company has shown consistent growth in sales (208.31 cr) and profit (5.23 cr) over the years.
  1. The stock has a low average ROCE of 9.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 159.50, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 175.75, which may not be favorable.
  4. The company has higher borrowings (79.23) compared to reserves (58.46), which may suggest financial risk.

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 Bhandari Hosiery Exports Ltd:
    1. Net Profit Margin: 2.44%
      • 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: 13.53% (Industry Average ROCE: 8.44%)
      • 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%: 6.56% (Industry Average ROE: 18.45%)
      • 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): 1.58
      • 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: 0.81
      • 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: 23.7 (Industry average Stock P/E: 240.52)
      • 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: 1.17
      • 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

Bhandari Hosiery Exports Ltd. is a Public Limited Listed company incorporated on 25/11/1993 and has its registered office in the State of Punjab, India. Company’s Corporate Identification Number(CIN) is L17115PB1993PLC013930 and registration number is 013930. Currently company belongs to the Industry of Textiles - Hosiery/Knitwear. Company’s Total Operating Revenue is Rs. 283.28 Cr. and Equity Capital is Rs. 14.65 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Hosiery/KnitwearBhandari House, Ludhiana Punjab 141007bhandari@bhandariexport.com
http://www.bhandariexport.com
Management
NamePosition Held
Mr. Nitin BhandariChairman & Managing Director
Mr. Vikas NayarNon Executive Director
Mr. Rajesh KumarNon Executive Director
Mr. Surinder K KapoorIndependent Director
Ms. Alka GambhirIndependent Director
Ms. Komal BhallaIndependent Director

FAQ

What is the latest intrinsic value of Bhandari Hosiery Exports Ltd?

The latest intrinsic value of Bhandari Hosiery Exports Ltd as on 19 November 2024 is ₹10.40, which is 61.49% higher than the current market price of ₹6.44.

What is the Market Cap of Bhandari Hosiery Exports Ltd?

The Market Cap of Bhandari Hosiery Exports Ltd is 155 Cr..

What is the current Stock Price of Bhandari Hosiery Exports Ltd as on 19 November 2024?

The current stock price of Bhandari Hosiery Exports Ltd as on 19 November 2024 is ₹6.44.

What is the High / Low of Bhandari Hosiery Exports Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bhandari Hosiery Exports Ltd stocks is 11.4/5.32.

What is the Stock P/E of Bhandari Hosiery Exports Ltd?

The Stock P/E of Bhandari Hosiery Exports Ltd is 23.7.

What is the Book Value of Bhandari Hosiery Exports Ltd?

The Book Value of Bhandari Hosiery Exports Ltd is 6.25.

What is the Dividend Yield of Bhandari Hosiery Exports Ltd?

The Dividend Yield of Bhandari Hosiery Exports Ltd is 0.30 %.

What is the ROCE of Bhandari Hosiery Exports Ltd?

The ROCE of Bhandari Hosiery Exports Ltd is 9.65 %.

What is the ROE of Bhandari Hosiery Exports Ltd?

The ROE of Bhandari Hosiery Exports Ltd is 7.00 %.

What is the Face Value of Bhandari Hosiery Exports Ltd?

The Face Value of Bhandari Hosiery Exports Ltd is 1.00.

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 Bhandari Hosiery Exports 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