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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 523019 | NSE: BNRSEC

BN Rathi Securities Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 10:28 pm

Market Cap 207 Cr.
Current Price 202
High / Low211/73.0
Stock P/E17.5
Book Value 61.4
Dividend Yield0.74 %
ROCE28.5 %
ROE19.8 %
Face Value 10.0
PEG Ratio0.75

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

View Share Price Target for BN Rathi Securities Ltd

Competitors of BN Rathi Securities Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HCKK Ventures Ltd 50.2 Cr. 135154/77.4218 11.30.00 %8.17 %6.44 % 10.0
HB Portfolio Ltd 133 Cr. 123177/49.114.0 2660.81 %3.34 %2.90 % 10.0
Haryana Capfin Ltd 186 Cr. 358448/10964.9 7690.00 %1.30 %0.97 % 10.0
Harmony Capital Services Ltd 13.1 Cr. 43.673.4/36.2 4.470.00 %6.55 %5.09 % 10.0
Gujarat Credit Corporation Ltd 92.3 Cr. 36.937.4/18.2 5.560.00 %0.06 %0.79 % 10.0
Industry Average4,815.84N/A57.85N/AN/A15.2215.94N/A

All Competitor Stocks of BN Rathi Securities Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales8.969.519.7110.4110.0510.0110.2810.1910.3812.1911.6813.5513.62
Expenses8.028.368.759.818.648.068.508.749.0610.0210.0112.7811.48
Operating Profit0.941.150.960.601.411.951.781.451.322.171.670.772.14
OPM %10.49%12.09%9.89%5.76%14.03%19.48%17.32%14.23%12.72%17.80%14.30%5.68%15.71%
Other Income1.020.961.281.381.331.551.661.492.042.372.572.682.86
Interest0.250.260.340.410.450.560.480.380.320.230.290.200.28
Depreciation0.050.080.090.090.090.090.100.090.080.080.110.120.16
Profit before tax1.661.771.811.482.202.852.862.472.964.233.843.134.56
Tax %24.70%24.29%24.86%27.03%25.00%24.21%24.83%34.82%25.34%25.30%25.26%26.84%23.68%
Net Profit1.251.331.351.091.662.162.151.612.213.162.872.303.49
EPS in Rs1.491.581.611.301.982.572.561.922.633.762.802.243.51

Last Updated: October 7, 2024, 8:33 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales10121923293028263343475751
Expenses8101619242526232735344244
Operating Profit113454236813167
OPM %14%11%17%17%16%15%9%12%19%19%27%27%13%
Other Income0000000000-0-010
Interest0001000111211
Depreciation0000000000000
Profit before tax1123442257101416
Tax %30%30%30%34%35%29%36%25%32%25%27%26%
Net Profit112233124581112
EPS in Rs0.890.891.992.333.013.241.482.024.335.969.0210.2712.31
Dividend Payout %34%40%23%21%20%22%41%30%17%17%17%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%100.00%0.00%50.00%0.00%-66.67%100.00%100.00%25.00%60.00%37.50%
Change in YoY Net Profit Growth (%)0.00%100.00%-100.00%50.00%-50.00%-66.67%166.67%0.00%-75.00%35.00%-22.50%

BN Rathi Securities Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:15%
3 Years:20%
TTM:25%
Compounded Profit Growth
10 Years:30%
5 Years:53%
3 Years:43%
TTM:43%
Stock Price CAGR
10 Years:34%
5 Years:68%
3 Years:90%
1 Year:127%
Return on Equity
10 Years:16%
5 Years:17%
3 Years:19%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital3335555558810
Reserves778111315161620283553
Borrowings101000007200
Other Liabilities132026333541414086110112142
Total Liabilities2329384954626261118148156205
Fixed Assets110100003334
CWIP000000000000
Investments0000110212411
Other Assets2229374852606160113143149191
Total Assets2329384954626261118148156205

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -136-1-27-4133441-55
Cash from Investing Activity 212103-7-3-44-2352
Cash from Financing Activity -0-407-1-1-1-216215
Net Cash Flow1-087-39-128-1025222

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow0.001.002.004.005.004.002.003.00-1.006.0013.0016.00

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 Days1002001171401671371475998896177
Inventory Days
Days Payable
Cash Conversion Cycle1002001171401671371475998896177
Working Capital Days-212-68-180-158-75-140-93-293-588-792-674-557
ROCE %15%13%26%24%24%21%11%14%23%23%30%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters53.48%53.48%58.10%58.10%58.10%58.10%58.10%58.10%58.10%47.61%47.61%47.61%
Public46.52%46.52%41.90%41.90%41.91%41.91%41.90%41.90%41.90%52.39%52.40%52.39%
No. of Shareholders3,6744,1804,9225,0895,0305,1355,1905,3795,1985,7165,7566,738

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 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)11.509.028.817.223.38
Diluted EPS (Rs.)11.509.028.817.223.38
Cash EPS (Rs.)10.669.466.337.683.80
Book Value[Excl.RevalReserv]/Share (Rs.)61.4552.2443.6449.2641.94
Book Value[Incl.RevalReserv]/Share (Rs.)61.4552.2443.6449.2641.94
Revenue From Operations / Share (Rs.)46.6448.2545.9358.9846.97
PBDIT / Share (Rs.)15.2115.329.8512.456.05
PBIT / Share (Rs.)14.8314.889.4811.995.62
PBT / Share (Rs.)13.8112.367.9910.554.54
Net Profit / Share (Rs.)10.289.025.967.223.38
NP After MI And SOA / Share (Rs.)10.289.025.967.223.38
PBDIT Margin (%)32.6231.7421.4421.1012.87
PBIT Margin (%)31.7930.8520.6420.3211.97
PBT Margin (%)29.6025.6117.3917.899.66
Net Profit Margin (%)22.0318.7012.9712.237.18
NP After MI And SOA Margin (%)22.0318.7012.9712.237.18
Return on Networth / Equity (%)16.7217.2713.6514.648.04
Return on Capital Employeed (%)23.8328.1620.2322.3313.07
Return On Assets (%)5.144.853.383.082.76
Long Term Debt / Equity (X)0.000.000.040.060.00
Total Debt / Equity (X)0.000.000.040.270.00
Asset Turnover Ratio (%)0.260.260.290.330.38
Current Ratio (X)1.411.331.301.241.47
Quick Ratio (X)1.331.331.301.241.47
Dividend Payout Ratio (NP) (%)11.9611.0812.070.000.00
Dividend Payout Ratio (CP) (%)11.5210.5711.370.000.00
Earning Retention Ratio (%)88.0488.9287.930.000.00
Cash Earning Retention Ratio (%)88.4889.4388.630.000.00
Interest Coverage Ratio (X)14.906.876.608.695.56
Interest Coverage Ratio (Post Tax) (X)11.065.185.006.044.11
Enterprise Value (Cr.)-30.36-91.93-94.95-60.12-33.02
EV / Net Operating Revenue (X)-0.63-2.27-2.46-2.02-1.39
EV / EBITDA (X)-1.95-7.15-11.47-9.58-10.83
MarketCap / Net Operating Revenue (X)2.190.700.730.410.23
Retention Ratios (%)88.0388.9187.920.000.00
Price / BV (X)1.660.640.770.490.26
Price / Net Operating Revenue (X)2.190.700.730.410.23
EarningsYield0.100.260.170.290.30

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of BN Rathi Securities Ltd as of October 15, 2024 is: ₹214.33

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 October 15, 2024, BN Rathi Securities Ltd is Undervalued by 6.10% compared to the current share price ₹202.00

Intrinsic Value of BN Rathi Securities Ltd as of October 15, 2024 is: ₹264.14

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 October 15, 2024, BN Rathi Securities Ltd is Undervalued by 30.76% compared to the current share price ₹202.00

Last 5 Year EPS CAGR: 23.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.08%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -319.17, which is a positive sign.
  3. The company has higher reserves (19.08 cr) compared to borrowings (0.92 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (31.38 cr) and profit (5.46 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 116.00, 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 BN Rathi Securities Ltd:
    1. Net Profit Margin: 22.03%
      • 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: 23.83% (Industry Average ROCE: 15.22%)
      • 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%: 16.72% (Industry Average ROE: 15.94%)
      • 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): 11.06
      • 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: 1.33
      • 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: 17.5 (Industry average Stock P/E: 57.85)
      • 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
      • 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

B N Rathi Securities Ltd. is a Public Limited Listed company incorporated on 30/09/1985 and has its registered office in the State of Telangana, India. Company’s Corporate Identification Number(CIN) is L65993TG1985PLC005838 and registration number is 005838. Currently company belongs to the Industry of Finance & Investments. Company’s Total Operating Revenue is Rs. 37.95 Cr. and Equity Capital is Rs. 8.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & Investments6-3-652, IV Floor, Hyderabad Telangana 500082investorgrievances@bnrsecurities.com
http://www.bnrsecurities.com
Management
NamePosition Held
Mr. Laxminiwas SharmaChairman, Non Ind & Non Exe Director
Mr. Hari Narayan RathiManaging Director
Mr. Chetan RathiExecutive Director & CFO
Mr. K Harishchandra PrasadNon Exe.Non Ind.Director
Mrs. Shanti Sree BolleniInd. Non-Executive Director
Mr. Lakshminarayana BolisettyInd. Non-Executive Director

FAQ

What is the latest fair value of BN Rathi Securities Ltd?

The latest fair value of BN Rathi Securities Ltd is ₹214.33.

What is the Market Cap of BN Rathi Securities Ltd?

The Market Cap of BN Rathi Securities Ltd is 207 Cr..

What is the current Stock Price of BN Rathi Securities Ltd as on 15 October 2024?

The current stock price of BN Rathi Securities Ltd as on 15 October 2024 is ₹202.

What is the High / Low of BN Rathi Securities Ltd stocks in FY 2024?

In FY 2024, the High / Low of BN Rathi Securities Ltd stocks is 211/73.0.

What is the Stock P/E of BN Rathi Securities Ltd?

The Stock P/E of BN Rathi Securities Ltd is 17.5.

What is the Book Value of BN Rathi Securities Ltd?

The Book Value of BN Rathi Securities Ltd is 61.4.

What is the Dividend Yield of BN Rathi Securities Ltd?

The Dividend Yield of BN Rathi Securities Ltd is 0.74 %.

What is the ROCE of BN Rathi Securities Ltd?

The ROCE of BN Rathi Securities Ltd is 28.5 %.

What is the ROE of BN Rathi Securities Ltd?

The ROE of BN Rathi Securities Ltd is 19.8 %.

What is the Face Value of BN Rathi Securities Ltd?

The Face Value of BN Rathi Securities 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 BN Rathi Securities 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