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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Bondada Engineering Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 1:33 pm

Market Cap 6,413 Cr.
Current Price 594
High / Low754/74.0
Stock P/E98.0
Book Value 19.7
Dividend Yield0.01 %
ROCE35.5 %
ROE37.2 %
Face Value 2.00
PEG Ratio-3.26

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

View Share Price Target for Bondada Engineering Ltd

Competitors of Bondada Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Bondada Engineering Ltd 6,413 Cr. 594754/74.098.0 19.70.01 %35.5 %37.2 % 2.00
Industry Average6,413.00 Cr594.0098.0019.700.01%35.50%37.20%2.00

All Competitor Stocks of Bondada Engineering Ltd

Quarterly Result

MonthSep 2022Mar 2023Sep 2023Mar 2024
Sales117254296505
Expenses108234275457
Operating Profit9192048
OPM %7%8%7%10%
Other Income0212
Interest2445
Depreciation111-0
Profit before tax6171745
Tax %26%24%13%29%
Net Profit4131531
EPS in Rs10.611.591.362.78

Last Updated: October 7, 2024, 8:27 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 2:55 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales224229287334371801
Expenses205211271314341732
Operating Profit191816203068
OPM %9%8%6%6%8%9%
Other Income001003
Interest224369
Depreciation222221
Profit before tax161412152362
Tax %29%27%21%31%25%25%
Net Profit11109101746
EPS in Rs27.7124.7622.4624.732.114.14
Dividend Payout %-0%-0%-0%2%1%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-9.09%-10.00%11.11%70.00%170.59%
Change in YoY Net Profit Growth (%)0.00%-0.91%21.11%58.89%100.59%

Bondada Engineering Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2019-2020 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:29%
3 Years:41%
TTM:79%
Compounded Profit Growth
10 Years:%
5 Years:32%
3 Years:75%
TTM:140%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:571%
Return on Equity
10 Years:%
5 Years:28%
3 Years:30%
Last Year:37%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:39 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.820.820.820.82162222
Reserves2838475762141191
Borrowings264047388462116
Other Liabilities5260766289280336
Total Liabilities107140171158251505665
Fixed Assets14131313154151
CWIP00000214
Investments0001227
Other Assets92126158144235460593
Total Assets107140171158251505665

Reserves and Borrowings Chart

Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4-18311-3254
Cash from Investing Activity +-5-1-2-2-12-62
Cash from Financing Activity +6123-124511
Net Cash Flow5-64-303

Free Cash Flow

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-7.00-22.00-31.00-18.00-54.006.00

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 2023Mar 2024
Debtor Days741251088612694
Inventory Days13318428210011896
Days Payable1381521836389111
Cash Conversion Cycle6915720712315579
Working Capital Days54103988813159
ROCE %24%16%19%21%36%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters63.33%63.33%63.33%63.33%63.33%
FIIs0.01%0.48%0.95%0.60%0.75%
Public36.66%36.20%35.71%36.08%35.93%
No. of Shareholders1,7462,1832,0833,1123,392

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 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)23.1410.536.845.91
Diluted EPS (Rs.)23.1410.536.845.91
Cash EPS (Rs.)21.8811.92154.70136.62
Book Value[Excl.RevalReserv]/Share (Rs.)77.7351.81719.82582.42
Book Value[Incl.RevalReserv]/Share (Rs.)77.7351.81719.82582.42
Revenue From Operations / Share (Rs.)370.67232.994077.483501.13
PBDIT / Share (Rs.)33.0918.99251.66213.04
PBIT / Share (Rs.)32.6517.84229.53188.68
PBT / Share (Rs.)28.5514.33187.25141.84
Net Profit / Share (Rs.)21.4410.77132.57112.26
NP After MI And SOA / Share (Rs.)20.7010.52132.57112.26
PBDIT Margin (%)8.928.156.176.08
PBIT Margin (%)8.807.655.625.38
PBT Margin (%)7.706.154.594.05
Net Profit Margin (%)5.784.623.253.20
NP After MI And SOA Margin (%)5.584.513.253.20
Return on Networth / Equity (%)27.5521.3518.4119.27
Return on Capital Employeed (%)37.2532.6330.1027.86
Return On Assets (%)8.866.666.875.38
Long Term Debt / Equity (X)0.090.050.050.12
Total Debt / Equity (X)0.381.070.640.97
Asset Turnover Ratio (%)2.120.001.850.00
Current Ratio (X)1.421.421.501.36
Quick Ratio (X)0.981.061.030.86
Inventory Turnover Ratio (X)6.070.002.730.00
Dividend Payout Ratio (NP) (%)0.000.970.000.00
Dividend Payout Ratio (CP) (%)0.000.880.000.00
Earning Retention Ratio (%)0.0099.030.000.00
Cash Earning Retention Ratio (%)0.0099.120.000.00
Interest Coverage Ratio (X)8.075.415.954.55
Interest Coverage Ratio (Post Tax) (X)6.234.074.143.40
Enterprise Value (Cr.)1858.570.000.000.00
EV / Net Operating Revenue (X)2.320.000.000.00
EV / EBITDA (X)26.000.000.000.00
MarketCap / Net Operating Revenue (X)2.300.000.000.00
Retention Ratios (%)0.0099.020.000.00
Price / BV (X)11.340.000.000.00
Price / Net Operating Revenue (X)2.300.000.000.00
EarningsYield0.020.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Bondada Engineering Ltd as of November 19, 2024 is: 718.26

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 19, 2024, Bondada Engineering Ltd is Undervalued by 20.92% compared to the current share price 594.00

Intrinsic Value of Bondada Engineering Ltd as of November 19, 2024 is: 502.26

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 19, 2024, Bondada Engineering Ltd is Overvalued by 15.44% compared to the current share price 594.00

Last 5 Year EPS CAGR: -30.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.33%, which is a positive sign.
  2. The company has higher reserves (80.57 cr) compared to borrowings (59.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (374.33 cr) and profit (23.67 cr) over the years.
  1. The stock has a high average Working Capital Days of 88.83, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 131.67, 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 Bondada Engineering Ltd:
    1. Net Profit Margin: 5.78%
      • 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: 37.25% (Industry Average ROCE: 35.5%)
      • 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%: 27.55% (Industry Average ROE: 37.2%)
      • 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): 6.23
      • 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: 0.98
      • 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: 98 (Industry average Stock P/E: 98)
      • 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: 0.38
      • 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

Engineering - General
INDUSTRYADDRESSCONTACT
1-1-27/37, Ashok Manoj Nagar, Kapra, Hyderabad Telangana 500062Mr.Raghavendra%20Rao%20Bondada
Chairman%20&%20Managing%20Director
Management
NamePosition Held
Mr. Satyanarayana BaratamWholeTime Director & CFO
Ms. Neelima BondadaNon Executive Director
Mr. Sarveswar Reddy SanivarapuInd. Non-Executive Director
Mr. Pasupuleti Venkata Subba RaoInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Bondada Engineering Ltd?

The latest intrinsic value of Bondada Engineering Ltd as on 19 November 2024 is ₹718.26, which is 20.92% higher than the current market price of ₹594.00.

What is the Market Cap of Bondada Engineering Ltd?

The Market Cap of Bondada Engineering Ltd is 6,413 Cr..

What is the current Stock Price of Bondada Engineering Ltd as on 19 November 2024?

The current stock price of Bondada Engineering Ltd as on 19 November 2024 is ₹594.

What is the High / Low of Bondada Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bondada Engineering Ltd stocks is 754/74.0.

What is the Stock P/E of Bondada Engineering Ltd?

The Stock P/E of Bondada Engineering Ltd is 98.0.

What is the Book Value of Bondada Engineering Ltd?

The Book Value of Bondada Engineering Ltd is 19.7.

What is the Dividend Yield of Bondada Engineering Ltd?

The Dividend Yield of Bondada Engineering Ltd is 0.01 %.

What is the ROCE of Bondada Engineering Ltd?

The ROCE of Bondada Engineering Ltd is 35.5 %.

What is the ROE of Bondada Engineering Ltd?

The ROE of Bondada Engineering Ltd is 37.2 %.

What is the Face Value of Bondada Engineering Ltd?

The Face Value of Bondada Engineering Ltd is 2.00.

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 Bondada Engineering 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