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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500058 | NSE: BIHSPONG

Fundamental Analysis of Bihar Sponge Iron Ltd

Basic Stock Data

Last Updated: April 23, 2024, 9:38 am

Market Cap 130 Cr.
Current Price 14.4
High / Low22.4/8.01
Stock P/E18.3
Book Value 6.80
Dividend Yield0.00 %
ROCE20.7 %
ROE%
Face Value 10.0

Data Source: screener.in

Competitors of Bihar Sponge Iron Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Jindal Steel & Power Ltd 91,992 Cr. 902927/50316.6 4070.22 %14.2 %10.6 % 1.00
Sarda Energy & Minerals Ltd 7,906 Cr. 224265/10514.6 1040.33 %19.3 %18.7 % 1.00
Vaswani Industries Ltd 112 Cr. 37.662.6/19.015.9 38.80.00 %12.5 %5.49 % 10.0
MSP Steel & Power Ltd 1,060 Cr. 27.533.4/8.0550.7 14.70.00 %1.40 %9.04 % 10.0
Ashirwad Steels & Industries Ltd 53.3 Cr. 42.654.6/19.327.8 63.50.00 %4.58 %4.09 % 10.0
Industry Average20,224.66 Cr246.7425.12125.600.11%10.40%9.58%6.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9.977.8812.736.945.9160.82112.17130.05108.31112.8548.3473.7470.43
Expenses6.746.109.956.365.1661.91111.01125.92103.22109.1252.8577.9774.61
Operating Profit3.231.782.780.580.75-1.091.164.135.093.73-4.51-4.23-4.18
OPM %32.40%22.59%21.84%8.36%12.69%-1.79%1.03%3.18%4.70%3.31%-9.33%-5.74%-5.93%
Other Income-0.130.972.111.070.514.590.430.150.081.756.256.436.37
Interest0.130.070.07-0.040.03-0.020.000.010.020.110.000.000.00
Depreciation0.730.730.730.700.720.831.061.061.061.061.061.061.06
Profit before tax2.241.954.090.990.512.690.533.214.094.310.681.141.13
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 Profit2.241.954.090.980.502.690.533.214.094.310.681.141.13
EPS in Rs0.250.220.450.110.060.300.060.360.450.480.080.130.13

Last Updated: April 10, 2024, 6:29 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:52 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales17112019-00-0-0-0-02286463305
Expenses179139313433331783449315
Operating Profit-8-19-12-3-4-3-3-3-35314-9
OPM %-5%-16%-64%-9,175%24%3%3%-3%
Other Income16212387628221
Interest101041000000000
Depreciation3334444433344
Profit before tax-21-26-18-7-6-4-0-0-148127
Tax %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%
Net Profit-21-26-18-7-6-4-0-0-148127
EPS in Rs-2.30-2.89-1.97-0.82-0.65-0.42-0.01-0.01-0.090.440.921.350.82
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182020-20212021-20222022-2023
YoY Net Profit Growth (%)-23.81%30.77%61.11%14.29%33.33%100.00%500.00%100.00%50.00%
Change in YoY Net Profit Growth (%)0.00%54.58%30.34%-46.83%19.05%66.67%400.00%-400.00%-50.00%

Growth

Compounded Sales Growth
10 Years:14%
5 Years:%
3 Years:%
TTM:-26%
Compounded Profit Growth
10 Years:9%
5 Years:81%
3 Years:153%
TTM:-32%
Stock Price CAGR
10 Years:17%
5 Years:73%
3 Years:73%
1 Year:74%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: April 17, 2024, 10:42 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital90909090909090909090909090
Reserves-98-127-147-167-173-177-177-177-178-174-166-153-152
Borrowings711001291291269494959312111913641
Other Liabilities9871444243656155532710092178
Total Liabilities16013411694867368635865143164158
Fixed Assets94888265615752484542615755
CWIP3433333333-022
Investments-0-0-0-0-0-0-0-0-0-0-0-0-0
Other Assets6342302621131312112082105101
Total Assets16013411694867368635865143164158

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 19-0-2-0-1-30-011023-16
Cash from Investing Activity -2-11011000-0-18-2
Cash from Financing Activity -1300-1-3-4-00-1-10-217
Net Cash Flow4-1-1-1-3-600-002-1

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-79.00-119.00-141.00-132.00-130.00-97.00-97.00-98.00-96.00-116.00-116.00-122.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days379-040-0-0
Inventory Days896716513,793105,6688522858
Days Payable13717644037,691270,10040245764
Cash Conversion Cycle-45-101-266-23,898-277-228-6
Working Capital Days-163-294-1,595-794,879-41-6812
ROCE %-13%-33%-19%-9%-12%-20%-4%17%-12%21%14%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.61%69.61%69.61%69.61%69.34%69.23%69.23%69.23%69.23%69.23%69.23%69.23%
FIIs0.53%0.53%0.53%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs0.21%0.19%0.09%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%0.07%
Public29.65%29.67%29.77%30.32%30.59%30.70%30.71%30.69%30.70%30.70%30.70%30.70%
No. of Shareholders54,98854,95355,20456,43457,52357,68957,48057,26757,04956,98358,52958,894

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.350.920.44-0.09-0.01
Diluted EPS (Rs.)1.350.920.44-0.09-0.01
Cash EPS (Rs.)2.861.420.760.270.46
Book Value[Excl.RevalReserv]/Share (Rs.)-11.56-12.90-13.82-14.26-14.17
Book Value[Incl.RevalReserv]/Share (Rs.)-7.00-8.35-9.26-9.70-9.61
Revenue From Operations / Share (Rs.)51.349.572.450.000.00
PBDIT / Share (Rs.)1.811.240.830.270.61
PBIT / Share (Rs.)1.340.900.50-0.090.14
PBT / Share (Rs.)1.340.910.43-0.09-0.01
Net Profit / Share (Rs.)1.340.910.43-0.09-0.01
PBDIT Margin (%)3.5312.9533.990.000.00
PBIT Margin (%)2.619.4920.750.000.00
PBT Margin (%)2.619.5617.930.000.00
Net Profit Margin (%)2.619.5617.930.000.00
Return on Networth / Equity (%)-11.63-7.09-3.170.000.00
Return on Capital Employeed (%)35.50-79.08-23.973.49-6.08
Return On Assets (%)7.385.776.12-1.42-0.17
Long Term Debt / Equity (X)-0.83-0.480.000.000.00
Total Debt / Equity (X)-1.30-1.020.000.000.00
Asset Turnover Ratio (%)3.010.830.350.000.00
Current Ratio (X)0.760.500.110.080.10
Quick Ratio (X)0.270.230.080.040.04
Inventory Turnover Ratio (X)6.883.263.860.000.00
Interest Coverage Ratio (X)112.32340.1930.33256.4464.72
Interest Coverage Ratio (Post Tax) (X)83.17249.3818.51-86.5214.90
Enterprise Value (Cr.)209.56212.3118.242.646.81
EV / Net Operating Revenue (X)0.452.460.820.000.00
EV / EBITDA (X)12.8118.972.431.071.22
MarketCap / Net Operating Revenue (X)0.161.120.870.000.00
Price / BV (X)-0.73-0.83-0.15-0.02-0.06
Price / Net Operating Revenue (X)0.161.120.870.000.00
EarningsYield0.150.080.20-0.25-0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 19.04

The stock is undervalued by 32.22% compared to the current price ₹14.4

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.

*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 0.56 and average Dividend Yield of 6.02%.
  2. The stock has a low average Working Capital Days of -112.42, which is a positive sign.
  3. The stock has a low average Cash Conversion Cycle of -78.83, which is a positive sign.
  1. The stock has a low average ROCE of -4.08%, which may not be favorable.
  2. The company has higher borrowings (103.69) compared to reserves (-158.92), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (91.23) and profit (-4.00).

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: 2.61%
      • 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: 35.50% (Industry Average ROCE: 15.28%)
      • 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%: -11.63% (Industry Average ROE: 4.56%)
      • 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): 83.17
      • 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: 0.27
      • 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: 18.3 (Industry average Stock P/E: 13.94)
      • 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: -1.30
      • 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.
INDUSTRYADDRESSCONTACT
Steel - Sponge IronUmesh Nagar, Kharsawan Jharkand 832401companysecretary@bsil.org.in
http://www.bsil.org.in
Management
NamePosition Held
Mr. Umesh Kumar ModiChairman & President
Mr. Anirudh Kumar ModiDirector
Mr. Jagdish Chander ChawlaDirector
Mrs. Asha AgarwalDirector
Mr. Salil SethDirector
Mrs. Kumkum ModiDirector
Mr. Abhishek ModiDirector
Mr. Jayesh ModiDirector
Mr. Vijay Kumar ModiDirector
Mr. Aditya Kumar ModiDirector

Bihar Sponge Iron Ltd. Share Price Update

Share PriceValue
Today₹14.42
Previous Day₹14.71

FAQ

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

The latest fair value of Bihar Sponge Iron Ltd is 19.04.

What is the Market Cap of Bihar Sponge Iron Ltd?

The Market Cap of Bihar Sponge Iron Ltd is 130 Cr..

What is the current Stock Price of Bihar Sponge Iron Ltd as on 23 April 2024?

The current stock price of Bihar Sponge Iron Ltd as on 23 April 2024 is 14.4.

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

In FY 2024, the High / Low of Bihar Sponge Iron Ltd stocks is ₹22.4/8.01.

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

The Stock P/E of Bihar Sponge Iron Ltd is 18.3.

What is the Book Value of Bihar Sponge Iron Ltd?

The Book Value of Bihar Sponge Iron Ltd is 6.80.

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 20.7 %.

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.

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 Bihar Sponge Iron 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