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Last Updated on: 22 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 543211 | NSE: BONLON

Fundamental Analysis of Bonlon Industries Ltd

Basic Stock Data

Last Updated: May 22, 2024, 8:32 pm

Market Cap 50.4 Cr.
Current Price 35.5
High / Low56.0/24.6
Stock P/E47.5
Book Value 54.6
Dividend Yield0.00 %
ROCE2.22 %
ROE1.37 %
Face Value 10.0
PEG Ratio-1.13

Data Source: screener.in

Competitors of Bonlon Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Prakash Industries Ltd 3,007 Cr. 168224/56.88.64 1690.00 %11.6 %11.6 % 10.0
SAL Steel Ltd 177 Cr. 20.830.6/13.8 4.930.00 %8.12 %8.95 % 10.0
Technocraft Industries (India) Ltd 5,469 Cr. 2,3822,750/1,45121.1 6820.00 %19.6 %19.3 % 10.0
Visa Steel Ltd 233 Cr. 20.125.9/10.6 70.00.00 %7.45 %% 10.0
Steel Authority of India Ltd 69,827 Cr. 169176/80.418.9 1380.89 %8.24 %6.62 % 10.0
Industry Average15,742.60 Cr551.989.73212.790.18%11.00%9.29%10.00

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales104.49121.78136.0089.2394.92163.16163.0589.48130.7392.63
Expenses103.07121.88135.3388.1594.24162.58163.1888.14129.6790.73
Operating Profit1.42-0.100.671.080.680.58-0.131.341.061.90
OPM %1.36%-0.08%0.49%1.21%0.72%0.36%-0.08%1.50%0.81%2.05%
Other Income0.330.610.330.341.270.240.310.170.06-0.19
Interest0.460.130.140.080.150.200.250.330.400.30
Depreciation0.060.150.290.280.360.410.430.360.450.49
Profit before tax1.230.230.571.061.440.21-0.500.820.270.92
Tax %23.58%47.83%8.77%24.53%20.14%19.05%14.00%25.61%25.93%26.09%
Net Profit0.930.130.520.801.160.17-0.440.610.200.69
EPS in Rs0.660.090.370.560.820.12-0.310.430.140.49

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

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 27, 2024, 1:29 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6877143185133238242215244135388511476
Expenses6876142183133238245222248135385508472
Operating Profit000110-3-8-40334
OPM %0%1%0%1%0%0%-1%-4%-2%0%1%1%1%
Other Income000111312173110
Interest0001000100111
Depreciation0001100000112
Profit before tax00000003123322
Tax %0%31%41%54%31%36%15%21%3%26%23%24%
Net Profit00000003122221
EPS in Rs0.870.900.530.400.670.530.932.5911.521.381.491.180.75
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)300.00%-83.33%0.00%0.00%
Change in YoY Net Profit Growth (%)0.00%-383.33%83.33%0.00%

Growth

Compounded Sales Growth
10 Years:21%
5 Years:16%
3 Years:28%
TTM:-2%
Compounded Profit Growth
10 Years:14%
5 Years:27%
3 Years:36%
TTM:-60%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:25%
1 Year:-30%
Return on Equity
10 Years:2%
5 Years:2%
3 Years:2%
Last Year:1%

Last Updated: April 16, 2024, 9:20 pm

Balance Sheet

Last Updated: May 8, 2024, 1:09 pm

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital33333331014141414
Reserves99991010105059616263
Borrowings20101212107014161524
Other Liabilities21729354730288233122643
Total Liabilities33405359694941143109103117145
Fixed Assets34443323291111
CWIP000000000000
Investments3000000612999
Other Assets27364955664638134958498124
Total Assets33405359694941143109103117145

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 0313-421-1813-359-43-45-9
Cash from Investing Activity 02-101-01-73-40-2
Cash from Financing Activity 0-5-126-2317-137-54434510
Net Cash Flow0002-2-11-27-40-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-20.00-10.00-12.00-11.00-9.00-7.00-3.00-8.00-5.00-4.00-13.00-12.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days7711449755040538473646
Inventory Days6171321521129
Days Payable7211446387921518
Cash Conversion Cycle77114499-477-12-36474237
Working Capital Days125684228422010-91176150
ROCE %1%1%1%4%2%3%-4%4%5%2%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2020Mar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters67.34%67.34%67.34%67.37%67.37%64.37%64.37%64.37%64.37%64.37%64.37%
Public32.66%32.66%32.66%32.63%32.63%35.63%35.62%35.62%35.62%35.63%35.62%
No. of Shareholders1391371361341342524545337057921,083

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 21Mar 20Mar 19Mar 18Mar 17
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)1.3911.513.790.93-4.09
Diluted EPS (Rs.)1.3911.513.790.93-4.09
Cash EPS (Rs.)1.6011.803.052.19-2.52
Book Value[Excl.RevalReserv]/Share (Rs.)51.3757.9045.0538.6937.76
Book Value[Incl.RevalReserv]/Share (Rs.)51.3757.9045.0538.6937.76
Revenue From Operations / Share (Rs.)111.52233.07206.03807.09793.02
PBDIT / Share (Rs.)2.2212.270.67-0.92-0.77
PBIT / Share (Rs.)2.0111.980.33-2.19-2.35
PBT / Share (Rs.)1.8711.813.381.10-3.80
Net Profit / Share (Rs.)1.3911.512.710.92-4.09
NP After MI And SOA / Share (Rs.)1.3911.512.710.92-4.09
PBDIT Margin (%)1.995.260.32-0.11-0.09
PBIT Margin (%)1.805.130.16-0.27-0.29
PBT Margin (%)1.685.061.630.13-0.47
Net Profit Margin (%)1.244.931.310.11-0.51
NP After MI And SOA Margin (%)1.244.931.310.11-0.51
Return on Networth / Equity (%)2.6919.876.002.39-10.82
Return on Capital Employeed (%)3.9020.680.68-5.65-6.03
Return On Assets (%)1.728.404.470.70-2.56
Long Term Debt / Equity (X)0.000.000.060.000.02
Total Debt / Equity (X)0.040.010.060.000.58
Asset Turnover Ratio (%)1.072.364.15618.58497.40
Current Ratio (X)2.151.042.401.291.20
Quick Ratio (X)1.901.002.360.780.97
Inventory Turnover Ratio (X)0.004.414.5617.3728.66
Interest Coverage Ratio (X)16.3575.531.00-2.10-0.53
Interest Coverage Ratio (Post Tax) (X)11.1971.87-0.50-5.38-1.81
Enterprise Value (Cr.)23.560.000.000.000.00
EV / Net Operating Revenue (X)0.140.000.000.000.00
EV / EBITDA (X)7.470.000.000.000.00
MarketCap / Net Operating Revenue (X)0.160.000.000.000.00
Price / BV (X)0.350.000.000.000.00
Price / Net Operating Revenue (X)0.160.000.000.000.00
EarningsYield0.070.000.000.000.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹36.24

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: 2.09% compared to the current price ₹35.5

Intrinsic Value: ₹20.99

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.

Overvalued: 40.88% compared to the current price ₹35.5

Last 5 Year EPS CAGR: -42.09%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (30.08 cr) compared to borrowings (10.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (235.00 cr) and profit (1.92 cr) over the years.
  1. The stock has a low average ROCE of 1.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 46.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 23.92, 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 Bonlon Industries Ltd:
    1. Net Profit Margin: 1.24%
      • 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: 3.90% (Industry Average ROCE: 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%: 2.69% (Industry Average ROE: 9.29%)
      • 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): 11.19
      • 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: 1.90
      • 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: 47.5 (Industry average Stock P/E: 9.73)
      • 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: 0.04
      • 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

Bonlon Industries Ltd. is a Public Limited Listed company incorporated on 21/01/1997 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L27108DL1998PLC097397 and registration number is 097397. Currently company belongs to the Industry of Steel. Company’s Total Operating Revenue is Rs. 387.79 Cr. and Equity Capital is Rs. 14.18 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel7A/39 (12- First Floor), WEA Channa Market, New Delhi Delhi 110005cs@bonlonindustries.com
http://www.bonlonindustries.com
Management
NamePosition Held
Mr. Raj JainChairman & Managing Director
Mr. Arun Kumar JainWhole Time Director
Mrs. Smita JainNon Executive Director
Mrs. Bela Khattar ChauhanIndependent Director
Mr. Anil Kumar JainIndependent Director
Mr. Vineet GargIndependent Director
Ms. Siya SethIndependent Director

FAQ

What is the latest fair value of Bonlon Industries Ltd?

The latest fair value of Bonlon Industries Ltd is ₹36.24.

What is the Market Cap of Bonlon Industries Ltd?

The Market Cap of Bonlon Industries Ltd is 50.4 Cr..

What is the current Stock Price of Bonlon Industries Ltd as on 22 May 2024?

The current stock price of Bonlon Industries Ltd as on 22 May 2024 is ₹35.5.

What is the High / Low of Bonlon Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bonlon Industries Ltd stocks is ₹56.0/24.6.

What is the Stock P/E of Bonlon Industries Ltd?

The Stock P/E of Bonlon Industries Ltd is 47.5.

What is the Book Value of Bonlon Industries Ltd?

The Book Value of Bonlon Industries Ltd is 54.6.

What is the Dividend Yield of Bonlon Industries Ltd?

The Dividend Yield of Bonlon Industries Ltd is 0.00 %.

What is the ROCE of Bonlon Industries Ltd?

The ROCE of Bonlon Industries Ltd is 2.22 %.

What is the ROE of Bonlon Industries Ltd?

The ROE of Bonlon Industries Ltd is 1.37 %.

What is the Face Value of Bonlon Industries Ltd?

The Face Value of Bonlon Industries 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 Bonlon Industries 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