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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Bondada Engineering Ltd

Basic Stock Data

Last Updated: May 22, 2024, 6:51 pm

Market Cap 3,880 Cr.
Current Price 1,796
High / Low1,980/142
Stock P/E86.8
Book Value 75.1
Dividend Yield0.00 %
ROCE42.3 %
ROE57.1 %
Face Value 10.0
PEG Ratio-2.20

Data Source: screener.in

Competitors of Bondada Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0%0%0

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 Rs53.057.936.8013.91

Last Updated: May 11, 2024, 11:46 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 26, 2024, 7:53 pm

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Sales224229287334371
Expenses205211271314340
Operating Profit1918162031
OPM %9%8%6%6%8%
Other Income00100
Interest22436
Depreciation22222
Profit before tax1614121524
Tax %29%27%21%31%23%
Net Profit111091018
EPS in Rs138.54123.78112.32123.6611.22
Dividend Payout %0%0%0%2%1%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-9.09%-10.00%11.11%80.00%
Change in YoY Net Profit Growth (%)0.00%-0.91%21.11%68.89%

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:17%
TTM:11%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:21%
TTM:76%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:%
Return on Equity
10 Years:%
5 Years:%
3 Years:22%
Last Year:26%

Last Updated: April 16, 2024, 1:29 pm

Balance Sheet

Last Updated: May 9, 2024, 1:45 am

MonthMar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital11111622
Reserves2838475762114
Borrowings264047388465
Other Liabilities5260766289189
Total Liabilities107140171158251389
Fixed Assets141313131514
CWIP000001
Investments000122
Other Assets92126158144235373
Total Assets107140171158251389

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 2023
Free Cash Flow-7.00-22.00-31.00-18.00-53.00

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 Days7412510886126
Inventory Days133184282100118
Days Payable1381521836389
Cash Conversion Cycle69157207123155
Working Capital Days541039888135
ROCE %24%16%19%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2023Dec 2023
Promoters63.33%63.33%
FIIs0.01%0.48%
Public36.66%36.20%
No. of Shareholders1,7462,183

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 21
FaceValue10.0010.0010.00
Basic EPS (Rs.)10.536.845.91
Diluted EPS (Rs.)10.536.845.91
Cash EPS (Rs.)11.92154.70136.62
Book Value[Excl.RevalReserv]/Share (Rs.)51.81719.82582.42
Book Value[Incl.RevalReserv]/Share (Rs.)51.81719.82582.42
Revenue From Operations / Share (Rs.)232.994077.483501.13
PBDIT / Share (Rs.)18.99251.66213.04
PBIT / Share (Rs.)17.84229.53188.68
PBT / Share (Rs.)14.33187.25141.84
Net Profit / Share (Rs.)10.77132.57112.26
NP After MI And SOA / Share (Rs.)10.52132.57112.26
PBDIT Margin (%)8.156.176.08
PBIT Margin (%)7.655.625.38
PBT Margin (%)6.154.594.05
Net Profit Margin (%)4.623.253.20
NP After MI And SOA Margin (%)4.513.253.20
Return on Networth / Equity (%)21.3518.4119.27
Return on Capital Employeed (%)32.6330.1027.86
Return On Assets (%)6.666.875.38
Long Term Debt / Equity (X)0.050.050.12
Total Debt / Equity (X)1.070.640.97
Asset Turnover Ratio (%)0.001.850.00
Current Ratio (X)1.421.501.36
Quick Ratio (X)1.061.030.86
Inventory Turnover Ratio (X)0.002.730.00
Dividend Payout Ratio (NP) (%)0.970.000.00
Dividend Payout Ratio (CP) (%)0.880.000.00
Earning Retention Ratio (%)99.030.000.00
Cash Earning Retention Ratio (%)99.120.000.00
Interest Coverage Ratio (X)5.415.954.55
Interest Coverage Ratio (Post Tax) (X)4.074.143.40
Retention Ratios (%)99.020.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹3,796.61

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: 111.39% compared to the current price ₹1796

Intrinsic Value: ₹2,296.57

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: 27.87% compared to the current price ₹1796

Last 5 Year EPS CAGR: -39.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.20%, which is a positive sign.
  2. The company has higher reserves (62.17 cr) compared to borrowings (49.67 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (289.00 cr) and profit (16.20 cr) over the years.
  1. The stock has a high average Working Capital Days of 95.60, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 142.20, 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: 4.62%
      • 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: 32.63% (Industry Average ROCE: 0%)
      • 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%: 21.35% (Industry Average ROE: 0%)
      • 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): 4.07
      • 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: 1.06
      • 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: 86.8 (Industry average Stock P/E: 0)
      • 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: 1.07
      • 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 fair value of Bondada Engineering Ltd?

The latest fair value of Bondada Engineering Ltd is ₹3796.61.

What is the Market Cap of Bondada Engineering Ltd?

The Market Cap of Bondada Engineering Ltd is 3,880 Cr..

What is the current Stock Price of Bondada Engineering Ltd as on 22 May 2024?

The current stock price of Bondada Engineering Ltd as on 22 May 2024 is ₹1,796.

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 ₹1,980/142.

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

The Stock P/E of Bondada Engineering Ltd is 86.8.

What is the Book Value of Bondada Engineering Ltd?

The Book Value of Bondada Engineering Ltd is 75.1.

What is the Dividend Yield of Bondada Engineering Ltd?

The Dividend Yield of Bondada Engineering Ltd is 0.00 %.

What is the ROCE of Bondada Engineering Ltd?

The ROCE of Bondada Engineering Ltd is 42.3 %.

What is the ROE of Bondada Engineering Ltd?

The ROE of Bondada Engineering Ltd is 57.1 %.

What is the Face Value of Bondada Engineering Ltd?

The Face Value of Bondada Engineering 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 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