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Last Updated on: 05 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500060 | NSE: BIRLACABLE

Birla Cable Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 4, 2024, 12:35 pm

Market Cap 671 Cr.
Current Price 224
High / Low340/202
Stock P/E92.8
Book Value 87.7
Dividend Yield0.78 %
ROCE9.57 %
ROE6.89 %
Face Value 10.0
PEG Ratio0.91

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

View Share Price Target for Birla Cable Ltd

Competitors of Birla Cable Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Vindhya Telelinks Ltd 2,367 Cr. 1,9923,233/1,85010.2 3,4900.75 %10.9 %7.64 % 10.0
Tamil Nadu Telecommunications Ltd 46.4 Cr. 10.217.3/6.55 35.80.00 %%% 10.0
Surana Telecom and Power Ltd 302 Cr. 22.330.5/10.435.0 9.860.00 %3.87 %3.27 % 1.00
Sterlite Technologies Ltd 5,778 Cr. 118163/110 60.20.00 %4.80 %3.52 % 2.00
Paramount Communications Ltd 2,255 Cr. 74.0117/60.023.2 22.20.00 %15.3 %19.4 % 2.00
Industry Average1,923.33 Cr350.1140.30529.750.22%12.96%29.45%5.71

All Competitor Stocks of Birla Cable Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales84.85118.9692.67137.78142.81162.19147.86199.34199.70245.30174.10174.71161.97
Expenses80.77107.1285.20129.55132.52144.74139.66182.45183.77222.76161.62164.72150.71
Operating Profit4.0811.847.478.2310.2917.458.2016.8915.9322.5412.489.9911.26
OPM %4.81%9.95%8.06%5.97%7.21%10.76%5.55%8.47%7.98%9.19%7.17%5.72%6.95%
Other Income0.310.460.690.420.660.930.101.441.861.109.672.900.76
Interest0.881.761.231.192.191.541.843.454.033.593.663.283.99
Depreciation2.752.702.712.712.722.632.712.642.592.702.412.603.01
Profit before tax0.767.844.224.756.0414.213.7512.2411.1717.3516.087.015.02
Tax %61.84%19.26%28.91%22.95%25.66%25.62%18.93%25.00%25.69%25.30%25.44%24.39%25.50%
Net Profit0.296.333.013.664.4910.583.059.188.3012.9611.985.303.74
EPS in Rs0.102.111.001.221.503.531.023.062.774.323.991.771.25

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
Sales75124291264250211325502223329535792756
Expenses74113255235223198290423206303492728700
Operating Profit2113529261435791725436456
OPM %2%9%12%11%11%6%11%16%8%8%8%8%7%
Other Income2324-2313223414
Interest559873457561315
Depreciation4456788111211111111
Profit before tax-5623181152466011294545
Tax %1%0%18%32%20%39%33%29%-240%25%26%25%
Net Profit-56191283164718223334
EPS in Rs-1.611.906.414.172.831.115.3815.680.342.737.2511.1611.33
Dividend Payout %0%0%16%24%35%0%19%13%0%37%21%22%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)220.00%216.67%-36.84%-33.33%-62.50%433.33%193.75%-97.87%700.00%175.00%50.00%
Change in YoY Net Profit Growth (%)0.00%-3.33%-253.51%3.51%-29.17%495.83%-239.58%-291.62%797.87%-525.00%-125.00%

Birla Cable 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:6%
3 Years:28%
TTM:-14%
Compounded Profit Growth
10 Years:-2%
5 Years:-19%
3 Years:26%
TTM:-81%
Stock Price CAGR
10 Years:10%
5 Years:25%
3 Years:37%
1 Year:-20%
Return on Equity
10 Years:12%
5 Years:9%
3 Years:11%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 4:03 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital303030303030303030303030
Reserves324857626691142126138157200222
Borrowings34485867404559757182129165
Other Liabilities441067373739211050777710342
Total Liabilities141232218232209258341281317346461459
Fixed Assets3038416155606785797483117
CWIP411010700230
Investments14141419201119913123037
Other Assets93178162152133187248187225258345304
Total Assets141232218232209258341281317346461459

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 3482930-71732-13-716
Cash from Investing Activity -3-11-10-20-56-25-19-3-5-24-32
Cash from Financing Activity 171-1-31180-1033015
Net Cash Flow1-0-17-7-0-013-140-0-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow2.00-23.00-13.00-29.00-41.00-26.00-10.0020.00-58.00-46.00-39.00-65.00

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 Days110118113111118117118133147106100114
Inventory Days12087829011510073170106736051
Days Payable14815288112142118947998564917
Cash Conversion Cycle825410689919997224155122111148
Working Capital Days12079105969410199184158121108140
ROCE %12%29%20%14%6%19%36%3%7%14%18%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters66.35%66.35%66.35%66.35%66.35%66.35%66.35%66.35%66.35%66.35%66.35%66.35%
FIIs0.00%0.03%0.00%0.07%0.00%0.40%0.23%0.01%0.00%0.04%0.01%0.00%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.21%0.09%0.01%
Public33.64%33.61%33.64%33.57%33.64%33.24%33.42%33.63%33.64%33.40%33.56%33.64%
No. of Shareholders36,65740,98639,81635,33339,78139,61039,32439,12238,61138,41250,77451,587

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue10.0010.00
Basic EPS (Rs.)7.3810.98
Diluted EPS (Rs.)7.3810.98
Cash EPS (Rs.)10.9814.52
Book Value[Excl.RevalReserv]/Share (Rs.)83.6776.47
Book Value[Incl.RevalReserv]/Share (Rs.)83.6776.47
Revenue From Operations / Share (Rs.)228.50264.07
PBDIT / Share (Rs.)18.4822.50
PBIT / Share (Rs.)14.8818.96
PBT / Share (Rs.)9.9314.65
Net Profit / Share (Rs.)7.3810.98
NP After MI And SOA / Share (Rs.)7.3810.98
PBDIT Margin (%)8.088.52
PBIT Margin (%)6.517.18
PBT Margin (%)4.345.55
Net Profit Margin (%)3.234.15
NP After MI And SOA Margin (%)3.234.15
Return on Networth / Equity (%)8.8214.35
Return on Capital Employeed (%)13.3419.00
Return On Assets (%)4.837.14
Long Term Debt / Equity (X)0.290.27
Total Debt / Equity (X)0.650.55
Asset Turnover Ratio (%)1.490.00
Current Ratio (X)2.432.09
Quick Ratio (X)1.811.45
Inventory Turnover Ratio (X)6.000.00
Dividend Payout Ratio (NP) (%)33.8713.66
Dividend Payout Ratio (CP) (%)22.7710.32
Earning Retention Ratio (%)66.1386.34
Cash Earning Retention Ratio (%)77.2389.68
Interest Coverage Ratio (X)3.735.23
Interest Coverage Ratio (Post Tax) (X)2.493.55
Enterprise Value (Cr.)839.00496.99
EV / Net Operating Revenue (X)1.220.62
EV / EBITDA (X)15.137.36
MarketCap / Net Operating Revenue (X)0.980.47
Retention Ratios (%)66.1286.33
Price / BV (X)2.701.63
Price / Net Operating Revenue (X)0.980.47
EarningsYield0.030.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Birla Cable Ltd as of November 5, 2024 is: 565.12

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 5, 2024, Birla Cable Ltd is Undervalued by 152.29% compared to the current share price ₹224.00

Intrinsic Value of Birla Cable Ltd as of November 5, 2024 is: 1,139.44

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 5, 2024, Birla Cable Ltd is Undervalued by 408.68% compared to the current share price ₹224.00

Last 5 Year EPS CAGR: 101.63%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.67%, which is a positive sign.
  2. The company has higher reserves (111.75 cr) compared to borrowings (72.75 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (359.77 cr) and profit (21.38 cr) over the years.
  1. The stock has a high average Working Capital Days of 117.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 114.83, which may not be favorable.

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 Birla Cable Ltd:
    1. Net Profit Margin: 3.23%
      • 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: 13.34% (Industry Average ROCE: 11.11%)
      • 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%: 8.82% (Industry Average ROE: 25.25%)
      • 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): 2.49
      • 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: 1.81
      • 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: 92.8 (Industry average Stock P/E: 23.03)
      • 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: 0.65
      • 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

Birla Cable Ltd. is a Public Limited Listed company incorporated on 30/06/1992 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L31300MP1992PLC007190 and registration number is 007190. Currently Company is involved in the business activities of Manufacture of fibre optic cables for data transmission or live transmission of images. Company’s Total Operating Revenue is Rs. 535.45 Cr. and Equity Capital is Rs. 30.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - TelecomUdyog Vihar, P O Chorhata, Rewa Madhya Pradesh 486006headoffice@birlacable.com
http://www.birlacable.com
Management
NamePosition Held
Mr. Harsh V LodhaChairman
Mr. D R BansalDirector
Mrs. Archana CapoorDirector
Mr. Bachh Raj NaharDirector
Mr. Kiran AggarwalDirector
Mr. Pandanda Kariappa MadappaDirector

FAQ

What is the latest fair value of Birla Cable Ltd?

The latest fair value of Birla Cable Ltd is ₹565.12.

What is the Market Cap of Birla Cable Ltd?

The Market Cap of Birla Cable Ltd is 671 Cr..

What is the current Stock Price of Birla Cable Ltd as on 05 November 2024?

The current stock price of Birla Cable Ltd as on 05 November 2024 is 224.

What is the High / Low of Birla Cable Ltd stocks in FY 2024?

In FY 2024, the High / Low of Birla Cable Ltd stocks is 340/202.

What is the Stock P/E of Birla Cable Ltd?

The Stock P/E of Birla Cable Ltd is 92.8.

What is the Book Value of Birla Cable Ltd?

The Book Value of Birla Cable Ltd is 87.7.

What is the Dividend Yield of Birla Cable Ltd?

The Dividend Yield of Birla Cable Ltd is 0.78 %.

What is the ROCE of Birla Cable Ltd?

The ROCE of Birla Cable Ltd is 9.57 %.

What is the ROE of Birla Cable Ltd?

The ROE of Birla Cable Ltd is 6.89 %.

What is the Face Value of Birla Cable Ltd?

The Face Value of Birla Cable 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 Birla Cable 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