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:
-7%
Compounded Profit Growth
10 Years:
13%
5 Years:
4%
3 Years:
56%
TTM:
-1%
Stock Price CAGR
10 Years:
6%
5 Years:
44%
3 Years:
27%
1 Year:
15%
Return on Equity
10 Years:
7%
5 Years:
7%
3 Years:
8%
Last Year:
7%
Last Updated: Unknown
Balance Sheet
Last Updated: September 15, 2024, 3:58 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
15
15
15
15
15
15
15
15
15
15
15
16
Reserves
33
35
37
40
44
49
54
59
61
67
72
83
Borrowings
23
29
47
55
73
82
87
105
108
103
104
122
Other Liabilities
14
10
17
15
17
26
24
26
24
33
24
28
Total Liabilities
85
88
116
125
149
172
180
205
207
218
216
249
Fixed Assets
21
20
44
41
46
56
53
65
60
56
52
79
CWIP
12
9
0
0
1
0
1
0
2
0
1
0
Investments
0
0
0
0
0
0
0
0
0
0
0
0
Other Assets
51
58
72
84
103
115
126
140
145
162
162
170
Total Assets
85
88
116
125
149
172
180
205
207
218
216
249
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating ActivityÂ
0
0
-3
-7
-6
2
-3
-2
-0
4
12
16
Cash from Investing ActivityÂ
0
0
-15
-0
-9
-14
-2
-17
-2
1
-3
-29
Cash from Financing ActivityÂ
0
0
17
8
14
13
5
18
3
-5
-10
12
Net Cash Flow
0
0
-1
1
-1
1
-0
-1
1
0
-0
-1
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
9.00
-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
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Debtor Days
39
50
57
56
72
68
58
70
83
89
89
81
Inventory Days
181
156
166
101
96
105
117
121
159
125
137
157
Days Payable
53
25
47
21
21
25
19
18
18
20
22
33
Cash Conversion Cycle
167
181
176
136
146
147
156
173
224
194
204
205
Working Capital Days
149
166
166
130
125
134
143
153
200
169
180
199
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
Month
Mar 24
Mar 23
Mar 22
Mar 21
Mar 20
FaceValue
1.00
1.00
1.00
1.00
1.00
Basic EPS (Rs.)
0.40
0.44
0.43
0.11
0.36
Diluted EPS (Rs.)
0.42
0.44
0.43
0.11
0.36
Cash EPS (Rs.)
0.73
0.79
0.80
0.48
0.70
Book Value[Excl.RevalReserv]/Share (Rs.)
6.09
5.95
5.57
5.15
5.04
Book Value[Incl.RevalReserv]/Share (Rs.)
6.09
5.95
5.57
5.15
5.04
Dividend / Share (Rs.)
0.01
0.01
0.01
0.01
0.01
Revenue From Operations / Share (Rs.)
16.32
19.33
19.33
15.41
18.93
PBDIT / Share (Rs.)
1.55
1.60
1.54
1.25
1.47
PBIT / Share (Rs.)
1.22
1.24
1.17
0.87
1.13
PBT / Share (Rs.)
0.53
0.53
0.46
0.14
0.42
Net Profit / Share (Rs.)
0.39
0.44
0.42
0.11
0.36
PBDIT Margin (%)
9.51
8.27
7.97
8.08
7.75
PBIT Margin (%)
7.47
6.43
6.04
5.69
5.94
PBT Margin (%)
3.27
2.78
2.41
0.93
2.25
Net Profit Margin (%)
2.44
2.29
2.21
0.73
1.91
Return on Networth / Equity (%)
6.56
7.46
7.68
2.21
7.18
Return on Capital Employeed (%)
13.53
15.56
14.14
10.89
14.72
Return On Assets (%)
2.60
2.99
2.87
0.80
2.58
Long Term Debt / Equity (X)
0.38
0.30
0.43
0.51
0.46
Total Debt / Equity (X)
1.17
1.08
1.27
1.44
1.42
Asset Turnover Ratio (%)
1.14
1.30
1.33
1.09
1.44
Current Ratio (X)
1.65
1.64
1.68
1.63
1.50
Quick Ratio (X)
0.81
0.84
0.91
0.76
0.72
Inventory Turnover Ratio (X)
2.44
2.81
2.89
2.35
3.13
Dividend Payout Ratio (NP) (%)
0.00
2.25
2.33
8.77
2.76
Dividend Payout Ratio (CP) (%)
0.00
1.25
1.24
2.07
1.42
Earning Retention Ratio (%)
0.00
97.75
97.67
91.23
97.24
Cash Earning Retention Ratio (%)
0.00
98.75
98.76
97.93
98.58
Interest Coverage Ratio (X)
2.27
2.27
2.20
1.70
2.10
Interest Coverage Ratio (Post Tax) (X)
1.58
1.63
1.61
1.16
1.52
Enterprise Value (Cr.)
236.05
154.89
209.83
139.01
114.98
EV / Net Operating Revenue (X)
0.88
0.54
0.74
0.61
0.41
EV / EBITDA (X)
9.30
6.61
9.29
7.61
5.35
MarketCap / Net Operating Revenue (X)
0.44
0.22
0.38
0.14
0.03
Retention Ratios (%)
0.00
97.74
97.66
91.22
97.23
Price / BV (X)
1.20
0.72
1.32
0.43
0.14
Price / Net Operating Revenue (X)
0.44
0.22
0.38
0.14
0.03
EarningsYield
0.05
0.10
0.05
0.05
0.48
Profitability Ratios (%)
Liquidity Ratios
Liquidity Ratios (%)
Interest Coverage Ratios (%)
Valuation Ratios
Fair Value
Fair Value of Bhandari Hosiery Exports Ltd as of October 8, 2024 is: ₹6.63
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, Bhandari Hosiery Exports Ltd is Undervalued by 7.28% compared to the current share price ₹6.18
Intrinsic Value of Bhandari Hosiery Exports Ltd as of October 8, 2024 is: ₹6.93
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, Bhandari Hosiery Exports Ltd is Undervalued by 12.14% compared to the current share price ₹6.18
Last 5 Year EPS CAGR: 4.56%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock is trading at a low valuation with an average P/B ratio of 1.48 and average Dividend Yield of 6.31%.
The company has shown consistent growth in sales (208.31 cr) and profit (5.23 cr) over the years.
The stock has a low average ROCE of 9.58%, which may not be favorable.
The stock has a high average Working Capital Days of 159.50, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 175.75, which may not be favorable.
The company has higher borrowings (78.17) compared to reserves (52.83), 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:
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.
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.
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.
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.
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.
Stock P/E: 22.8 (Industry average Stock P/E: 45.38)
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.
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.
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
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