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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Bharat Wire Ropes Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:29 pm

Market Cap 1,498 Cr.
Current Price 220
High / Low402/210
Stock P/E17.6
Book Value 102
Dividend Yield0.00 %
ROCE18.7 %
ROE42.3 %
Face Value 10.0
PEG Ratio0.19

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

View Share Price Target for Bharat Wire Ropes Ltd

Competitors of Bharat Wire Ropes Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bombay Wire Ropes Ltd 32.4 Cr. 60.694.0/32.0 16.80.00 %6.18 %4.19 % 1.00
Kritika Wires Ltd 323 Cr. 12.124.5/8.2028.0 3.340.00 %15.7 %12.8 % 2.00
D P Wires Ltd 565 Cr. 364657/36119.2 1540.00 %24.6 %17.4 % 10.0
Bharat Wire Ropes Ltd 1,498 Cr. 220402/21017.6 1020.00 %18.7 %42.3 % 10.0
Bedmutha Industries Ltd 644 Cr. 200323/14219.0 43.70.00 %15.8 %18.6 % 10.0
Industry Average757.50 Cr171.3420.9563.970.00%16.20%19.06%6.60

All Competitor Stocks of Bharat Wire Ropes Ltd

Quarterly Result

Month

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
Sales777382776165165240258250411589624
Expenses686573675259147222229218348450459
Operating Profit9899861819293362139165
OPM %12%11%11%12%14%9%11%8%11%13%15%24%26%
Other Income-010-20320100111
Interest45444325738934232220
Depreciation22222412212222212121
Profit before tax3221230-74-82-231897125
Tax %29%32%38%70%40%16%20%40%26%26%24%36%
Net Profit2120120-45-61-17146283
EPS in Rs0.730.500.510.110.300.540.06-9.91-13.56-2.682.149.1712.37
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152016-20172017-20182019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-50.00%100.00%-100.00%100.00%-100.00%-35.56%72.13%182.35%342.86%
Change in YoY Net Profit Growth (%)0.00%150.00%-200.00%200.00%-200.00%64.44%107.69%110.22%160.50%

Bharat Wire Ropes Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:22%
5 Years:21%
3 Years:35%
TTM:-5%
Compounded Profit Growth
10 Years:52%
5 Years:33%
3 Years:98%
TTM:2%
Stock Price CAGR
10 Years:%
5 Years:48%
3 Years:57%
1 Year:-25%
Return on Equity
10 Years:5%
5 Years:18%
3 Years:42%
Last Year:42%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:35 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital29292945454545456364686868
Reserves38404193969855-6-105110210632
Borrowings362842196371525610674657652564515125
Other Liabilities43453983876857393753394270
Total Liabilities147142152417599736767752747774781835895
Fixed Assets68676665340566560539513492481475475
CWIP58111591422111031335
Investments1000000000220
Other Assets736775193117169206213233282294345385
Total Assets147142152417599736767752747774781835895

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +168-636173283151-244248385
Cash from Investing Activity +-8-2-5-193-259-98-14-0-1-0-13-25
Cash from Financing Activity +-12-131122717290-90-152247-25-64-61
Net Cash Flow-4-7-070-6923-21-12-26-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow9.00-28.00-19.00-33.00-188.00-365.00-507.00-591.00-645.00-624.00-590.00-425.00

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 Days10299671029551554253353046
Inventory Days259236274325334243213174148113122110
Days Payable130115978615012476242544207
Cash Conversion Cycle231220245341280170192191176104132150
Working Capital Days2151981734520178-45-215191146144181
ROCE %7%7%6%3%1%4%-0%1%2%6%16%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters37.60%37.60%37.47%36.96%36.81%36.78%39.90%39.86%39.83%39.83%40.77%40.98%
FIIs0.02%0.02%0.03%0.00%0.99%0.99%1.43%1.06%1.10%1.39%3.00%3.08%
DIIs9.93%9.93%9.89%9.76%6.62%4.67%3.61%3.20%2.70%2.63%2.62%2.61%
Public52.45%52.45%52.61%53.28%55.58%57.56%55.07%55.89%56.38%56.15%53.64%53.33%
No. of Shareholders7,2397,5868,0968,77010,91611,96412,99618,77524,74122,88723,63028,327

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 22
FaceValue10.0010.0010.00
Basic EPS (Rs.)14.159.682.17
Diluted EPS (Rs.)14.159.682.17
Cash EPS (Rs.)17.2712.215.50
Book Value[Excl.RevalReserv]/Share (Rs.)97.0982.5070.77
Book Value[Incl.RevalReserv]/Share (Rs.)97.0982.5070.77
Revenue From Operations / Share (Rs.)91.3986.7664.34
PBDIT / Share (Rs.)24.2320.549.83
PBIT / Share (Rs.)21.1117.506.47
PBT / Share (Rs.)18.9414.232.81
Net Profit / Share (Rs.)14.169.172.14
NP After MI And SOA / Share (Rs.)14.149.162.14
PBDIT Margin (%)26.5023.6715.28
PBIT Margin (%)23.1020.1710.06
PBT Margin (%)20.7216.404.36
Net Profit Margin (%)15.4910.563.32
NP After MI And SOA Margin (%)15.4710.563.32
Return on Networth / Equity (%)14.5611.113.02
Return on Capital Employeed (%)18.5816.756.22
Return On Assets (%)11.777.961.76
Long Term Debt / Equity (X)0.150.250.45
Total Debt / Equity (X)0.200.320.59
Asset Turnover Ratio (%)0.770.750.00
Current Ratio (X)7.553.811.96
Quick Ratio (X)5.322.281.23
Inventory Turnover Ratio (X)3.073.560.00
Interest Coverage Ratio (X)11.156.282.68
Interest Coverage Ratio (Post Tax) (X)7.523.801.58
Enterprise Value (Cr.)1999.831224.97699.69
EV / Net Operating Revenue (X)3.222.081.70
EV / EBITDA (X)12.138.7811.15
MarketCap / Net Operating Revenue (X)3.021.791.06
Price / BV (X)2.841.880.96
Price / Net Operating Revenue (X)3.021.791.06
EarningsYield0.050.050.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bharat Wire Ropes Ltd as of November 23, 2024 is: 774.56

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 23, 2024, Bharat Wire Ropes Ltd is Undervalued by 252.07% compared to the current share price 220.00

Intrinsic Value of Bharat Wire Ropes Ltd as of November 23, 2024 is: 1,496.59

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 23, 2024, Bharat Wire Ropes Ltd is Undervalued by 580.27% compared to the current share price 220.00

Last 5 Year EPS CAGR: 93.22%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (228.62 cr) and profit (5.69 cr) over the years.
  1. The stock has a low average ROCE of 6.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 109.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 202.67, which may not be favorable.
  4. The company has higher borrowings (384.23) compared to reserves (107.85), 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 Bharat Wire Ropes Ltd:
    1. Net Profit Margin: 15.49%
      • 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: 18.58% (Industry Average ROCE: 16.2%)
      • 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%: 14.56% (Industry Average ROE: 19.06%)
      • 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): 7.52
      • 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: 5.32
      • 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: 17.6 (Industry average Stock P/E: 20.95)
      • 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: 0.2
      • 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

Bharat Wire Ropes Ltd. is a Public Limited Listed company incorporated on 24/07/1986 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27200MH1986PLC040468 and registration number is 040468. Currently Company is involved in the business activities of Manufacture of cordage, rope, twine and netting. Company’s Total Operating Revenue is Rs. 410.68 Cr. and Equity Capital is Rs. 63.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - WiresPlot No. 4, MIDC, Chalisgaon Industrial Area, Jalgaon District Maharashtra 424101compliance%20@bharatwireropes.com
http://www.bharatwireropes.com
Management
NamePosition Held
Mr. Sanjiv SwarupChairman(NonExe.&Ind.Director)
Mr. Murarilal Ramsukh MittalManaging Director
Mr. Mayank MittalJoint Managing Director
Mr. Anita Rahul ShantaramWhole Time Director - Finance
Mr. Venkateshwararao KandikuppaWhole Time Director
Ms. Ruhi MittalNon Executive Director
Mr. Shivkumar MaluIndependent Director
Mr. Subhash Chander KaliaIndependent Director

FAQ

What is the latest intrinsic value of Bharat Wire Ropes Ltd?

The latest intrinsic value of Bharat Wire Ropes Ltd as on 23 November 2024 is ₹774.56, which is 252.07% higher than the current market price of ₹220.00.

What is the Market Cap of Bharat Wire Ropes Ltd?

The Market Cap of Bharat Wire Ropes Ltd is 1,498 Cr..

What is the current Stock Price of Bharat Wire Ropes Ltd as on 23 November 2024?

The current stock price of Bharat Wire Ropes Ltd as on 23 November 2024 is 220.

What is the High / Low of Bharat Wire Ropes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Wire Ropes Ltd stocks is 402/210.

What is the Stock P/E of Bharat Wire Ropes Ltd?

The Stock P/E of Bharat Wire Ropes Ltd is 17.6.

What is the Book Value of Bharat Wire Ropes Ltd?

The Book Value of Bharat Wire Ropes Ltd is 102.

What is the Dividend Yield of Bharat Wire Ropes Ltd?

The Dividend Yield of Bharat Wire Ropes Ltd is 0.00 %.

What is the ROCE of Bharat Wire Ropes Ltd?

The ROCE of Bharat Wire Ropes Ltd is 18.7 %.

What is the ROE of Bharat Wire Ropes Ltd?

The ROE of Bharat Wire Ropes Ltd is 42.3 %.

What is the Face Value of Bharat Wire Ropes Ltd?

The Face Value of Bharat Wire Ropes 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 Bharat Wire Ropes 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