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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 542932 | NSE: BIRLATYRE

Fundamental Analysis of Birla Tyres Ltd

Basic Stock Data

Last Updated: May 2, 2024, 9:11 pm

Market Cap 75.6 Cr.
Current Price 5.30
High / Low6.01/4.10
Stock P/E
Book Value 88.2
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 10.0
PEG Ratio0.00

Competitors of Birla Tyres Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MRF Ltd 55,561 Cr. 1,31,0401,51,445/94,00626.7 39,3840.13 %16.9 %13.2 % 10.0
TVS Srichakra Ltd 3,231 Cr. 4,2185,097/2,75528.2 1,4520.77 %10.9 %10.7 % 10.0
Apollo Tyres Ltd 29,824 Cr. 470560/31816.5 2040.84 %10.2 %8.77 % 1.00
Balkrishna Industries Ltd 45,352 Cr. 2,3462,796/1,95236.5 4250.69 %13.8 %13.8 % 2.00
Innovative Tyres & Tubes Ltd 12.3 Cr. 6.8510.2/2.10 0.040.00 %306 %% 10.0
Industry Average26,796.06 Cr27,616.1721.588,293.010.49%71.56%9.29%6.60

Quarterly Result

MonthMar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023
Sales40.7528.8039.7847.3521.432.890.481.011.040.200.000.005.90
Expenses115.9666.5561.9767.9748.6014.434.7910.197.426.373.00-0.35-0.99
Operating Profit-75.21-37.75-22.19-20.62-27.17-11.54-4.31-9.18-6.38-6.17-3.000.356.89
OPM %-184.56%-131.08%-55.78%-43.55%-126.78%-399.31%-897.92%-908.91%-613.46%-3,085.00%116.78%
Other Income25.000.260.350.0415.091.039.86-43.61-385.770.210.060.000.69
Interest46.8342.1442.8747.3430.0141.8942.7545.4446.0717.580.000.000.01
Depreciation9.238.948.218.167.987.717.647.536.736.364.145.252.77
Profit before tax-106.27-88.57-72.92-76.08-50.07-60.11-44.84-105.76-444.95-29.90-7.08-4.904.80
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-106.27-88.57-72.92-76.08-50.06-60.12-44.84-105.76-444.95-29.90-7.08-4.894.80
EPS in Rs-7.45-6.21-5.11-5.34-3.51-4.22-3.14-7.42-31.20-2.10-0.50-0.340.34

Last Updated: May 11, 2024, 11:39 am

Quarterly Chart

Birla Tyres Ltd Profit & Loss

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Sales047213756
Expenses0634245378
Operating Profit-0-163-108-31-2
OPM %-34%-79%-580%-31%
Other Income06616-4181
Interest015216217618
Depreciation038333019
Profit before tax-0-287-288-656-37
Tax %0%0%0%0%0%
Net Profit-0-287-288-656-37
EPS in Rs-20.10-20.17-45.98-2.60
Dividend Payout %0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2020-20212021-20222022-2023
YoY Net Profit Growth (%)-0.35%-127.78%94.36%
Change in YoY Net Profit Growth (%)0.00%-127.43%222.14%

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:-77%
TTM:13%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:23%
TTM:83%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:-43%
1 Year:19%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: May 2, 2024, 9:11 pm

Birla Tyres Ltd Balance Sheet

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Equity Capital0143143143143
Reserves-0-426-709-1,364-1,401
Borrowings09079841,1381,154
Other Liabilities01,0051,0801,0911,090
Total Liabilities01,6281,4971,008986
Fixed Assets0517477447429
CWIP0775775340340
Investments00000
Other Assets0336245221217
Total Assets01,6281,4971,008986

Reserves and Borrowings Chart

Birla Tyres Ltd Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -0215-27-15-2
Cash from Investing Activity -0131617
Cash from Financing Activity 0-135301910
Net Cash Flow09319515

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.00-1,070.00-1,092.00-32.00-3.00

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 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days892826,9616,191
Inventory Days8816794222,581
Days Payable3141,0898,769215,634
Cash Conversion Cycle-136-639-867-186,861
Working Capital Days-491-2,350-62,103-55,164
ROCE %-43%-24%-26%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Dec 2022Mar 2023
Promoters53.13%53.13%53.13%53.13%53.13%53.13%50.91%50.91%48.68%38.47%33.06%33.06%
FIIs0.08%0.00%0.00%0.00%0.00%0.00%0.01%0.03%0.01%0.06%0.00%0.00%
DIIs3.67%3.60%3.51%3.50%2.15%0.85%1.98%1.98%4.21%3.53%0.02%0.02%
Government0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.00%0.00%0.00%
Public42.88%43.02%43.12%43.13%44.48%45.78%46.87%46.85%46.86%57.95%66.90%66.89%
No. of Shareholders89,2211,01,2181,13,1111,22,3341,31,9371,34,8081,35,9461,37,1201,39,2991,51,4131,53,2081,52,387

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.)-2.60-45.98-20.17-20.11-11.08
Diluted EPS (Rs.)-2.60-45.98-20.17-20.11-11.08
Cash EPS (Rs.)-1.30-43.91-17.84-17.43-11.08
Book Value[Excl.RevalReserv]/Share (Rs.)-88.25-85.66-39.75-19.85-1.08
Book Value[Incl.RevalReserv]/Share (Rs.)-88.25-85.66-39.75-19.85-1.08
Revenue From Operations / Share (Rs.)0.420.379.6333.080.00
PBDIT / Share (Rs.)-0.06-1.01-6.45-6.79-11.08
PBIT / Share (Rs.)-1.37-3.09-8.79-9.46-11.08
PBT / Share (Rs.)-2.60-45.98-20.17-20.10-11.08
Net Profit / Share (Rs.)-2.60-45.98-20.17-20.10-11.08
PBDIT Margin (%)-15.93-265.82-66.96-20.530.00
PBIT Margin (%)-319.46-812.41-91.19-28.600.00
PBT Margin (%)-607.97-12105.28-209.39-60.770.00
Net Profit Margin (%)-607.97-12105.28-209.39-60.770.00
Return on Capital Employeed (%)1.573.6523.09-26.481027.12
Return On Assets (%)-3.76-65.06-19.20-17.60-124.18
Long Term Debt / Equity (X)0.000.000.00-2.190.00
Total Debt / Equity (X)-0.91-0.93-1.73-3.020.00
Asset Turnover Ratio (%)0.010.000.080.570.00
Current Ratio (X)0.060.060.080.230.89
Quick Ratio (X)0.050.050.060.160.89
Inventory Turnover Ratio (X)0.000.001.150.000.00
Interest Coverage Ratio (X)-0.05-0.08-0.56-0.630.00
Interest Coverage Ratio (Post Tax) (X)-1.11-0.24-0.77-0.880.00
Enterprise Value (Cr.)0.001435.701304.45877.740.00
EV / Net Operating Revenue (X)0.00265.079.501.860.00
EV / EBITDA (X)0.00-99.71-14.18-9.060.00
MarketCap / Net Operating Revenue (X)0.0055.152.360.080.00
Price / BV (X)0.00-0.24-0.57-0.140.00
Price / Net Operating Revenue (X)0.0055.282.360.080.00
EarningsYield0.00-2.19-0.88-6.810.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹202.42

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.

Undervalued: 3,719.23% compared to the current price ₹5.3

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Intrinsic Value: ₹156.67

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 2,856.07% compared to the current price ₹5.3

Default values used*: Deafault value of 15 for Stock P/E is used, Deafault value of 15% for ROE is used

Last 5 Year EPS CAGR: -22.60%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -122.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -365.60, which is a positive sign.
  1. The stock has a low average ROCE of -18.60%, which may not be favorable.
  2. The company has higher borrowings (836.60) compared to reserves (-780.00), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (124.00) and profit (-253.60).

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 Tyres Ltd:
    1. Net Profit Margin: -607.97%
      • 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: 1.57% (Industry Average ROCE: 69.51%)
      • 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%: N/A% (Industry Average ROE: 7.26%)
      • 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): -1.11
      • 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: 0.05
      • 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: (Industry average Stock P/E: 21.88)
      • 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: -0.91
      • 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 Tyres Ltd. is a Public Limited Listed company incorporated on 22/11/2018 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L25209WB2018PLC228915 and registration number is 228915. Currently Company is involved in the business activities of Manufacture of rubber tyres and tubes for motor vehicles, motorcycles, scooters, three-wheelers, tractors and aircraft. Company’s Total Operating Revenue is Rs. 5.42 Cr. and Equity Capital is Rs. 142.59 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Tyres & Tubes9/1, R.N. Mukherjee Road, 8th Floor, Birla Building, Kolkata West Bengal 700001corporate@birlatyre.com
http://www.birlatyre.com
Management
NamePosition Held
Mrs. Manjushree KhaitanChairman
Mr. Kashi Prasad KhandelwalDirector
Ms. Rashmi BihaniDirector
Mr. Uma Shankar AsopaDirector
Mr. Abhijit GhoshDirector
Mr. Anil GoenkaDirector

FAQ

What is the latest fair value of Birla Tyres Ltd?

The latest fair value of Birla Tyres Ltd is ₹202.42.

What is the Market Cap of Birla Tyres Ltd?

The Market Cap of Birla Tyres Ltd is 75.6 Cr..

What is the current Stock Price of Birla Tyres Ltd as on 19 May 2024?

The current stock price of Birla Tyres Ltd as on 19 May 2024 is 5.30.

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

In FY 2024, the High / Low of Birla Tyres Ltd stocks is ₹6.01/4.10.

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

The Stock P/E of Birla Tyres Ltd is .

What is the Book Value of Birla Tyres Ltd?

The Book Value of Birla Tyres Ltd is 88.2.

What is the Dividend Yield of Birla Tyres Ltd?

The Dividend Yield of Birla Tyres Ltd is 0.00 %.

What is the ROCE of Birla Tyres Ltd?

The ROCE of Birla Tyres Ltd is %.

What is the ROE of Birla Tyres Ltd?

The ROE of Birla Tyres Ltd is %.

What is the Face Value of Birla Tyres Ltd?

The Face Value of Birla Tyres 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 Tyres 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