Canopy Finance Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 9:06 pm

Market Cap	89.2 Cr.
Current Price	84.2
High / Low	99.2/54.5
Stock P/E	165
Book Value	11.4
Dividend Yield	0.00 %
ROCE	5.16 %
ROE	4.84 %
Face Value	10.0
PEG Ratio	4.47

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Canopy Finance Ltd

Competitors of Canopy Finance Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Gujarat Metallic Coal & Coke Ltd	5.94 Cr.	30.0	32.8/19.9		77.6	0.00 %	0.37 %	2.00 %	100
Gensol Engineering Ltd	2,700 Cr.	713	1,377/711	33.2	155	0.00 %	14.3 %	20.1 %	10.0
Gagan Polycot India Ltd	0.86 Cr.	0.86	/		4.08	0.00 %	81.2 %	81.2 %	10.0
Fusion Micro Finance Ltd	1,726 Cr.	172	675/161		251	0.00 %	14.1 %	19.6 %	10.0
Five X Tradecom Ltd	0.99 Cr.	0.48	/		9.35	0.00 %	0.00 %	0.00 %	10.0
Industry Average	2,695.17	N/A		131.67	N/A	N/A	20.61	61.73	N/A

All Competitor Stocks of Canopy Finance Ltd

Quarterly Result

Month	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Sales	0.64	0.74	1.20	0.47	1.69	0.13	0.12	0.30	0.38	0.20	0.37	0.30	0.14
Expenses	0.12	0.89	0.43	0.07	2.34	0.08	0.09	0.15	0.21	0.05	0.11	0.13	0.15
Operating Profit	0.52	-0.15	0.77	0.40	-0.65	0.05	0.03	0.15	0.17	0.15	0.26	0.17	-0.01
OPM %	81.25%	-20.27%	64.17%	85.11%	-38.46%	38.46%	25.00%	50.00%	44.74%	75.00%	70.27%	56.67%	-7.14%
Other Income	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
Interest	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
Depreciation	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
Profit before tax	0.52	-0.15	0.77	0.40	-0.65	0.05	0.03	0.15	0.17	0.15	0.26	0.17	-0.01
Tax %	26.92%	166.67%	6.49%	7.50%	-3.08%	200.00%	-133.33%	46.67%	11.76%	46.67%	7.69%	-5.88%	-500.00%
Net Profit	0.38	-0.40	0.72	0.37	-0.63	-0.06	0.07	0.08	0.15	0.08	0.24	0.18	0.04
EPS in Rs	0.41	-0.43	0.77	0.40	-0.68	-0.06	0.08	0.08	0.14	0.08	0.23	0.17	0.04

Last Updated: November 6, 2024, 7:05 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	0.00	0.00	0.02	1.02	0.56	0.23	0.24	2.24	5.44	4.94	3.49	1.00	1.01
Expenses	0.00	0.00	0.02	0.89	0.65	0.21	0.32	2.46	8.80	3.59	2.92	0.51	0.44
Operating Profit	0.00	0.00	0.00	0.13	-0.09	0.02	-0.08	-0.22	-3.36	1.35	0.57	0.49	0.57
OPM %			0.00%	12.75%	-16.07%	8.70%	-33.33%	-9.82%	-61.76%	27.33%	16.33%	49.00%	56.44%
Other Income	0.00	0.00	0.00	0.00	-0.01	0.00	-0.01	0.00	0.00	0.00	0.00	0.00	0.00
Interest	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
Depreciation	0.00	0.00	0.00	0.08	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Profit before tax	0.00	0.00	0.00	0.05	-0.10	0.02	-0.09	-0.22	-3.36	1.35	0.57	0.49	0.57
Tax %				80.00%	0.00%	0.00%	0.00%	0.00%	-8.93%	22.96%	10.53%	4.08%
Net Profit	0.00	0.00	0.00	0.01	-0.10	0.02	-0.09	-0.22	-3.06	1.04	0.51	0.46	0.54
EPS in Rs					-0.11	0.02	-0.10	-0.24	-3.29	1.12	0.55	0.43	0.52
Dividend Payout %				0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023
YoY Net Profit Growth (%)	-1100.00%	120.00%	-550.00%	-144.44%	-1290.91%	133.99%	-50.96%	-9.80%
Change in YoY Net Profit Growth (%)	0.00%	1220.00%	-670.00%	405.56%	-1146.46%	1424.90%	-184.95%	41.16%

Canopy Finance Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	33%
3 Years:	-43%
TTM:	9%

Compounded Profit Growth
10 Years:	%
5 Years:	51%
3 Years:	29%
TTM:	125%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	65%
1 Year:	48%

Return on Equity
10 Years:	-2%
5 Years:	-3%
3 Years:	9%
Last Year:	5%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:02 pm

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	3.48	3.48	3.48	9.29	9.29	9.29	9.29	9.29	9.29	9.29	9.29	10.59	10.59
Reserves	-0.07	-0.07	-0.07	-0.06	-0.16	-0.14	-0.23	-0.45	-3.52	-2.49	-1.98	1.09	1.50
Borrowings	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.53	0.00	0.00	0.00	0.00
Other Liabilities	0.00	0.00	0.00	0.05	0.02	0.03	0.02	3.17	0.73	0.39	0.10	0.13	0.08
Total Liabilities	3.41	3.41	3.41	9.28	9.15	9.18	9.08	12.01	7.03	7.19	7.41	11.81	12.17
Fixed Assets	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
CWIP	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
Investments	3.25	3.25	3.26	1.12	3.92	5.53	3.12	0.00	2.22	2.05	2.55	3.65	2.02
Other Assets	0.16	0.16	0.15	8.16	5.23	3.65	5.96	12.01	4.81	5.14	4.86	8.16	10.15
Total Assets	3.41	3.41	3.41	9.28	9.15	9.18	9.08	12.01	7.03	7.19	7.41	11.81	12.17

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity +	0.00	-0.65	-0.69	-0.21	-0.52	-2.96	-0.17	0.68	0.28	0.93
Cash from Investing Activity +	0.00	2.14	-2.80	-1.62	2.42	3.12	-2.22	0.17	-0.51	-1.09
Cash from Financing Activity +	0.00	-1.45	3.58	1.71	-1.86	0.03	2.23	-0.90	0.18	0.23
Net Cash Flow	0.00	0.03	0.10	-0.11	0.04	0.18	-0.17	-0.05	-0.05	0.07

Free Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	0.00	0.00	0.00	0.13	-0.09	0.02	-0.08	-0.22	-3.89	1.35	0.57	0.49

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

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days			0.00	0.00	0.00	0.00	30.42	219.98	0.00	16.26	12.55	0.00
Inventory Days				0.00			1,460.00	829.71	0.00	11.36	2.92
Days Payable							0.00	551.95		0.00	0.00
Cash Conversion Cycle			0.00	0.00	0.00	0.00	1,490.42	497.73	0.00	27.62	15.47	0.00
Working Capital Days			2,007.50	2,877.06	3,291.52	5,633.70	8,881.67	1,393.19	-34.89	10.34	46.02	-25.55
ROCE %	0.00%	0.00%	0.00%	0.79%	-0.98%	0.22%	-0.88%	-2.46%	-44.39%	20.61%	8.08%	5.16%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023
Promoters	18.63%	18.63%	18.63%	18.63%	18.63%	18.63%	16.35%	16.35%	16.35%	16.35%	16.35%	16.35%
DIIs	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	3.54%	3.54%	3.54%	3.54%	3.54%	3.54%
Public	81.37%	81.37%	81.37%	81.37%	81.37%	81.37%	80.11%	80.10%	80.12%	80.12%	80.12%	80.11%
No. of Shareholders	373	413	507	815	809	746	743	788	904	1,169	1,161	1,175

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 17	Mar 16	Mar 15	Mar 14	Mar 13
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	0.02	-0.11	0.02	0.00	0.00
Diluted EPS (Rs.)	0.02	-0.11	0.02	0.00	0.00
Cash EPS (Rs.)	0.01	-0.11	0.09	0.01	0.00
Book Value[Excl.RevalReserv]/Share (Rs.)	9.84	9.82	9.93	9.78	9.79
Book Value[Incl.RevalReserv]/Share (Rs.)	9.84	9.82	9.93	9.78	9.79
Revenue From Operations / Share (Rs.)	0.24	0.60	1.10	0.05	0.01
PBDIT / Share (Rs.)	0.01	-0.11	0.14	0.01	0.00
PBIT / Share (Rs.)	0.01	-0.11	0.05	0.00	0.00
PBT / Share (Rs.)	0.01	-0.11	0.05	0.00	0.00
Net Profit / Share (Rs.)	0.01	-0.11	0.01	0.00	0.00
NP After MI And SOA / Share (Rs.)	0.01	-0.11	0.01	0.00	0.00
PBDIT Margin (%)	7.90	-18.25	12.80	15.10	18.55
PBIT Margin (%)	7.90	-18.25	5.31	-4.07	18.55
PBT Margin (%)	7.90	-18.25	5.31	-4.07	18.55
Net Profit Margin (%)	6.37	-18.25	1.34	-8.85	12.98
NP After MI And SOA Margin (%)	6.37	-18.25	1.34	-8.85	12.98
Return on Networth / Equity (%)	0.15	-1.12	0.14	-0.04	0.00
Return on Capital Employeed (%)	0.19	-1.12	0.58	-0.02	0.01
Return On Assets (%)	0.15	-1.12	0.14	-0.04	0.00
Asset Turnover Ratio (%)	0.02	0.06	0.16	0.01	0.00
Current Ratio (X)	200.68	329.76	186.38	49.35	170.97
Quick Ratio (X)	200.68	329.76	186.38	49.35	170.97
Enterprise Value (Cr.)	11.52	11.40	0.00	0.00	0.00
EV / Net Operating Revenue (X)	50.98	20.31	0.00	0.00	0.00
EV / EBITDA (X)	644.55	-111.25	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	51.41	20.70	0.00	0.00	0.00
Price / BV (X)	1.27	1.27	0.00	0.00	0.00
Price / Net Operating Revenue (X)	51.44	20.73	0.00	0.00	0.00
EarningsYield	0.00	-0.01	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Canopy Finance Ltd as of December 27, 2024 is: 92.86

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 December 27, 2024, Canopy Finance Ltd is Undervalued by 10.29% compared to the current share price 84.20

Intrinsic Value of Canopy Finance Ltd as of December 27, 2024 is: 127.13

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 December 27, 2024, Canopy Finance Ltd is Undervalued by 50.99% compared to the current share price 84.20

Last 5 Year EPS CAGR: 36.91%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of 1.41, which is a positive sign.	The stock has a low average ROCE of -1.15%, which may not be favorable. The stock has a high average Cash Conversion Cycle of 45.15, which may not be favorable. The company has higher borrowings (0.04) compared to reserves (-0.51), which may suggest financial risk. The company has not shown consistent growth in sales (1.55) and profit (-0.06).

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 Canopy Finance Ltd:
1. Net Profit Margin: 6.37%
  - 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: 0.19% (Industry Average ROCE: 20.61%)
  - 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%: 0.15% (Industry Average ROE: 61.73%)
  - 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): 0
  - 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: 200.68
  - 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: 165 (Industry average Stock P/E: 131.67)
  - 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

Canopy Finance Ltd. is a Public Limited Listed company incorporated on 26/06/1981 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L65910MH1981PLC380399 and registration number is 033821. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 3.49 Cr. and Equity Capital is Rs. 9.29 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Finance & Investments	301 Corporate Arena, Off Aarey Piramal X Road, 3rd Floor, Mumbai Maharashtra 400062	info@canopyfinance.org http://www.canopyfinance.org

Management
Name	Position Held
Mr. Lalit Kumar Tapadia	Managing Director
Mr. Varun Newatia	Executive Director & CFO
Mrs. Manisha Agarwal	Ind. Non-Executive Director
Mr. Aneish Kumaran Kumar	Ind. Non-Executive Director
Mr. Suresh Salian	Ind. Non-Executive Director

FAQ

What is the latest intrinsic value of Canopy Finance Ltd?

The latest intrinsic value of Canopy Finance Ltd as on 27 December 2024 is ₹92.86, which is 10.29% higher than the current market price of ₹84.20. The stock has a market capitalization of 89.2 Cr. and recorded a high/low of 99.2/54.5 during the current fiscal year 2024-2025. As of Sep 2023, the company has reserves of ₹1.50 Cr and total liabilities of ₹12.17 Cr.

What is the Market Cap of Canopy Finance Ltd?

The Market Cap of Canopy Finance Ltd is 89.2 Cr..

What is the current Stock Price of Canopy Finance Ltd as on 27 December 2024?

The current stock price of Canopy Finance Ltd as on 27 December 2024 is 84.2.

What is the High / Low of Canopy Finance Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Canopy Finance Ltd stocks is 99.2/54.5.

What is the Stock P/E of Canopy Finance Ltd?

The Stock P/E of Canopy Finance Ltd is 165.

What is the Book Value of Canopy Finance Ltd?

The Book Value of Canopy Finance Ltd is 11.4.

What is the Dividend Yield of Canopy Finance Ltd?

The Dividend Yield of Canopy Finance Ltd is 0.00 %.

What is the ROCE of Canopy Finance Ltd?

The ROCE of Canopy Finance Ltd is 5.16 %.

What is the ROE of Canopy Finance Ltd?

The ROE of Canopy Finance Ltd is 4.84 %.

What is the Face Value of Canopy Finance Ltd?

The Face Value of Canopy Finance Ltd is 10.0.