Bihar Sponge Iron Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 24, 2024, 12:36 pm

Market Cap	149 Cr.
Current Price	16.6
High / Low	26.8/10.0
Stock P/E	13.8
Book Value	5.61
Dividend Yield	0.00 %
ROCE	11.0 %
ROE	%
Face Value	10.0
PEG Ratio	0.64

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Bihar Sponge Iron Ltd

Competitors of Bihar Sponge Iron Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Chennai Ferrous Industries Ltd	46.5 Cr.	129	175/103	10.6	141	0.00 %	10.2 %	5.85 %	10.0
Bihar Sponge Iron Ltd	149 Cr.	16.6	26.8/10.0	13.8	5.61	0.00 %	11.0 %	%	10.0
Ashirwad Steels & Industries Ltd	48.4 Cr.	38.7	67.6/31.5	18.8	65.7	0.00 %	4.08 %	2.84 %	10.0
Vaswani Industries Ltd	141 Cr.	47.1	73.9/25.5	13.8	42.2	0.00 %	13.3 %	7.76 %	10.0
Sarda Energy & Minerals Ltd	16,831 Cr.	478	525/180	28.1	168	0.21 %	15.3 %	14.1 %	1.00
Industry Average	17,563.22 Cr	332.20		30.88	109.63	0.10%	19.34%	18.46%	7.75

All Competitor Stocks of Bihar Sponge Iron Ltd

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	12.73	6.94	5.91	60.82	112.17	130.05	108.31	112.85	48.34	73.74	70.43	74.14	103.85
Expenses	9.95	6.36	5.16	61.91	111.01	125.92	103.22	109.12	52.85	77.97	74.61	75.07	107.10
Operating Profit	2.78	0.58	0.75	-1.09	1.16	4.13	5.09	3.73	-4.51	-4.23	-4.18	-0.93	-3.25
OPM %	21.84%	8.36%	12.69%	-1.79%	1.03%	3.18%	4.70%	3.31%	-9.33%	-5.74%	-5.93%	-1.25%	-3.13%
Other Income	2.11	1.07	0.51	4.59	0.43	0.15	0.08	1.75	6.25	6.43	6.37	6.47	8.00
Interest	0.07	-0.04	0.03	-0.02	0.00	0.01	0.02	0.11	0.00	0.00	0.00	0.00	0.00
Depreciation	0.73	0.70	0.72	0.83	1.06	1.06	1.06	1.06	1.06	1.06	1.06	1.05	1.06
Profit before tax	4.09	0.99	0.51	2.69	0.53	3.21	4.09	4.31	0.68	1.14	1.13	4.49	3.69
Tax %	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Net Profit	4.09	0.98	0.50	2.69	0.53	3.21	4.09	4.31	0.68	1.14	1.13	4.49	3.69
EPS in Rs	0.45	0.11	0.06	0.30	0.06	0.36	0.45	0.48	0.08	0.13	0.13	0.50	0.41

Last Updated: October 7, 2024, 8:29 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:52 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	TTM
Sales	120	19	0	0	0	0	0	0	22	86	463	267	322
Expenses	139	31	3	4	3	3	3	3	17	83	449	280	335
Operating Profit	-19	-12	-3	-4	-3	-3	-3	-3	5	3	14	-14	-13
OPM %	-16%	-64%		-9,175%					24%	3%	3%	-5%	-4%
Other Income	6	2	1	2	3	8	7	6	2	8	2	26	27
Interest	10	4	1	0	0	0	0	0	0	0	0	0	0
Depreciation	3	3	4	4	4	4	4	3	3	3	4	4	4
Profit before tax	-26	-18	-7	-6	-4	-0	-0	-1	4	8	12	7	10
Tax %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Net Profit	-26	-18	-7	-6	-4	-0	-0	-1	4	8	12	7	10
EPS in Rs	-2.89	-1.97	-0.82	-0.65	-0.42	-0.01	-0.01	-0.09	0.44	0.92	1.35	0.82	1.17
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	30.77%	61.11%	14.29%	33.33%	100.00%	500.00%	100.00%	50.00%	-41.67%
Change in YoY Net Profit Growth (%)	0.00%	30.34%	-46.83%	19.05%	66.67%	400.00%	-400.00%	-50.00%	-91.67%

Bihar Sponge Iron Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	30%
5 Years:	%
3 Years:	129%
TTM:	-9%

Compounded Profit Growth
10 Years:	9%
5 Years:	44%
3 Years:	20%
TTM:	7%

Stock Price CAGR
10 Years:	18%
5 Years:	100%
3 Years:	19%
1 Year:	68%

Return on Equity
10 Years:	%
5 Years:	%
3 Years:	%
Last Year:	%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:05 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	Sep 2024
Equity Capital	90	90	90	90	90	90	90	90	90	90	90	90	90
Reserves	-127	-147	-167	-173	-177	-177	-177	-178	-174	-166	-153	-146	-141
Borrowings	100	129	129	126	94	94	95	93	121	119	136	119	27
Other Liabilities	71	44	42	43	65	61	55	53	27	100	92	119	183
Total Liabilities	134	116	94	86	73	68	63	58	65	143	164	182	160
Fixed Assets	88	82	65	61	57	52	48	45	42	61	57	53	51
CWIP	4	3	3	3	3	3	3	3	3	0	2	3	3
Investments	0	0	0	0	0	0	0	0	0	0	0	0	0
Other Assets	42	30	26	21	13	13	12	11	20	82	105	126	106
Total Assets	134	116	94	86	73	68	63	58	65	143	164	182	160

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 Activity +	-0	-2	-0	-1	-3	0	-0	1	10	23	-16	19
Cash from Investing Activity +	-1	1	0	1	1	0	0	0	-0	-18	-2	-2
Cash from Financing Activity +	0	0	-1	-3	-4	-0	0	-1	-10	-2	17	-17
Net Cash Flow	-1	-1	-1	-3	-6	0	0	-0	0	2	-1	1

Free 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
Free Cash Flow	-119.00	-141.00	-132.00	-130.00	-97.00	-97.00	-98.00	-96.00	-116.00	-116.00	-122.00	-133.00

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	7	9		0					40	0	0	0
Inventory Days	67	165		13,793		105,668			85	228	58	135
Days Payable	176	440		37,691		270,100			402	457	64	154
Cash Conversion Cycle	-101	-266		-23,898					-277	-228	-6	-19
Working Capital Days	-294	-1,595		-794,879					-41	-68	12	-14
ROCE %	-33%	-19%	-9%	-12%	-20%	-4%	17%	-12%	21%	14%	21%	29%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	69.61%	69.34%	69.23%	69.23%	69.23%	69.23%	69.23%	69.23%	69.23%	69.23%	69.23%	69.23%
DIIs	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%	0.07%
Public	30.32%	30.59%	30.70%	30.71%	30.69%	30.70%	30.70%	30.70%	30.70%	30.69%	30.70%	30.70%
No. of Shareholders	56,434	57,523	57,689	57,480	57,267	57,049	56,983	58,529	58,894	59,618	59,207	59,958

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	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	0.83	1.35	0.92	0.44	-0.09
Diluted EPS (Rs.)	0.83	1.35	0.92	0.44	-0.09
Cash EPS (Rs.)	2.37	2.86	1.42	0.76	0.27
Book Value[Excl.RevalReserv]/Share (Rs.)	-10.74	-11.56	-12.90	-13.82	-14.26
Book Value[Incl.RevalReserv]/Share (Rs.)	-6.18	-7.00	-8.35	-9.26	-9.70
Revenue From Operations / Share (Rs.)	29.56	51.34	9.57	2.45	0.00
PBDIT / Share (Rs.)	1.29	1.81	1.24	0.83	0.27
PBIT / Share (Rs.)	0.82	1.34	0.90	0.50	-0.09
PBT / Share (Rs.)	0.82	1.34	0.91	0.43	-0.09
Net Profit / Share (Rs.)	0.82	1.34	0.91	0.43	-0.09
PBDIT Margin (%)	4.37	3.53	12.95	33.99	0.00
PBIT Margin (%)	2.79	2.61	9.49	20.75	0.00
PBT Margin (%)	2.79	2.61	9.56	17.93	0.00
Net Profit Margin (%)	2.79	2.61	9.56	17.93	0.00
Return on Networth / Equity (%)	-7.68	-11.63	-7.09	-3.17	0.00
Return on Capital Employeed (%)	18.79	35.50	-79.08	-23.97	3.49
Return On Assets (%)	4.08	7.38	5.77	6.12	-1.42
Long Term Debt / Equity (X)	-0.87	-0.83	-0.48	0.00	0.00
Total Debt / Equity (X)	-1.23	-1.30	-1.02	0.00	0.00
Asset Turnover Ratio (%)	1.54	3.01	0.83	0.35	0.00
Current Ratio (X)	0.84	0.76	0.50	0.11	0.08
Quick Ratio (X)	0.22	0.27	0.23	0.08	0.04
Inventory Turnover Ratio (X)	2.99	6.88	3.26	3.86	0.00
Interest Coverage Ratio (X)	0.00	112.32	340.19	30.33	256.44
Interest Coverage Ratio (Post Tax) (X)	0.00	83.17	249.38	18.51	-86.52
Enterprise Value (Cr.)	238.32	209.56	212.31	18.24	2.64
EV / Net Operating Revenue (X)	0.89	0.45	2.46	0.82	0.00
EV / EBITDA (X)	20.41	12.81	18.97	2.43	1.07
MarketCap / Net Operating Revenue (X)	0.46	0.16	1.12	0.87	0.00
Price / BV (X)	-1.27	-0.73	-0.83	-0.15	-0.02
Price / Net Operating Revenue (X)	0.46	0.16	1.12	0.87	0.00
EarningsYield	0.06	0.15	0.08	0.20	-0.25

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bihar Sponge Iron Ltd as of December 26, 2024 is: 11.84

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 December 26, 2024, Bihar Sponge Iron Ltd is Overvalued by 28.67% compared to the current share price 16.60

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of Bihar Sponge Iron Ltd as of December 26, 2024 is: 14.40

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 December 26, 2024, Bihar Sponge Iron Ltd is Overvalued by 13.25% compared to the current share price 16.60

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 21.60%

*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 0.69 and average Dividend Yield of 6.58%. The stock has a low average Working Capital Days of -100.00, which is a positive sign. The stock has a low average Cash Conversion Cycle of -76.67, which is a positive sign.	The stock has a low average ROCE of -0.58%, which may not be favorable. The company has higher borrowings (106.31) compared to reserves (-161.77), which may suggest financial risk. The company has not shown consistent growth in sales (99.92) and profit (-1.62).

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 Bihar Sponge Iron Ltd:
1. Net Profit Margin: 2.79%
  - 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: 18.79% (Industry Average ROCE: 19.34%)
  - 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%: -7.68% (Industry Average ROE: 18.46%)
  - 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): 0
  - 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: 0.22
  - 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: 13.8 (Industry average Stock P/E: 30.88)
  - 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: -1.23
  - 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

Bihar Sponge Iron Ltd. is a Public Limited Listed company incorporated on 16/04/1982 and has its registered office in the State of Jharkand, India. Company’s Corporate Identification Number(CIN) is L27106JH1982PLC001633 and registration number is 001633. Currently company belongs to the Industry of Steel - Sponge Iron. Company’s Total Operating Revenue is Rs. 86.40 Cr. and Equity Capital is Rs. 90.25 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Steel - Sponge Iron	Umesh Nagar, Chandil, Dist. Saraikela, Kharsawan Jharkand 832401	companysecretary@bsil.org.in http://www.bsil.org.in

Management
Name	Position Held
Mr. Umesh Kumar Modi	Chairman & President
Mr. Anirudh Kumar Modi	Director
Mr. Pramod Kumar Gupta	Director
Mrs. Asha Agarwal	Director
Mr. Salil Seth	Director
Mrs. Kumkum Modi	Director
Mr. Abhishek Modi	Director
Mr. Jayesh Modi	Director
Mr. Vijay Kumar Modi	Director
Mr. Aditya Kumar Modi	Director
Mr. Ajay Kumar Aggarwal	Director

FAQ

What is the latest intrinsic value of Bihar Sponge Iron Ltd?

The latest intrinsic value of Bihar Sponge Iron Ltd as on 26 December 2024 is ₹11.84, which is 28.67% lower than the current market price of ₹16.60. The stock has a market capitalization of 149 Cr. and recorded a high/low of 26.8/10.0 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹-141 Cr and total liabilities of ₹160 Cr.

What is the Market Cap of Bihar Sponge Iron Ltd?

The Market Cap of Bihar Sponge Iron Ltd is 149 Cr..

What is the current Stock Price of Bihar Sponge Iron Ltd as on 26 December 2024?

The current stock price of Bihar Sponge Iron Ltd as on 26 December 2024 is 16.6.

What is the High / Low of Bihar Sponge Iron Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Bihar Sponge Iron Ltd stocks is 26.8/10.0.

What is the Stock P/E of Bihar Sponge Iron Ltd?

The Stock P/E of Bihar Sponge Iron Ltd is 13.8.

What is the Book Value of Bihar Sponge Iron Ltd?

The Book Value of Bihar Sponge Iron Ltd is 5.61.

What is the Dividend Yield of Bihar Sponge Iron Ltd?

The Dividend Yield of Bihar Sponge Iron Ltd is 0.00 %.

What is the ROCE of Bihar Sponge Iron Ltd?

The ROCE of Bihar Sponge Iron Ltd is 11.0 %.

What is the ROE of Bihar Sponge Iron Ltd?

The ROE of Bihar Sponge Iron Ltd is %.

What is the Face Value of Bihar Sponge Iron Ltd?

The Face Value of Bihar Sponge Iron Ltd is 10.0.