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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 526821 | NSE: DAICHI

Dai Ichi Karkaria Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 8:49 pm

Market Cap 293 Cr.
Current Price 393
High / Low799/365
Stock P/E122
Book Value 241
Dividend Yield0.51 %
ROCE0.25 %
ROE1.43 %
Face Value 10.0
PEG Ratio-6.28

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

View Share Price Target for Dai Ichi Karkaria Ltd

Competitors of Dai Ichi Karkaria Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HP Adhesives Ltd 701 Cr. 76.3131/75.034.1 19.20.39 %17.7 %12.6 % 2.00
Haryana Leather Chemicals Ltd 41.4 Cr. 84.4124/48.79.16 87.21.19 %8.96 %7.25 % 10.0
Hardcastle & Waud Mfg Co Ltd 56.4 Cr. 8291,355/44229.5 6630.00 %7.00 %5.98 % 10.0
Grauer & Weil (India) Ltd 4,643 Cr. 102120/58.729.0 19.20.49 %26.1 %19.6 % 1.00
DMCC Speciality Chemicals Ltd 727 Cr. 291380/24554.8 85.40.34 %10.8 %5.68 % 10.0
Industry Average12,180.32 Cr897.5255.70181.120.33%13.12%10.00%6.77

All Competitor Stocks of Dai Ichi Karkaria Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales25.7630.1531.2738.2854.3248.8842.4627.8635.0535.2733.4033.8636.75
Expenses31.2534.2436.0339.4348.9842.2537.3828.4433.4232.8230.6131.9235.04
Operating Profit-5.49-4.09-4.76-1.155.346.635.08-0.581.632.452.791.941.71
OPM %-21.31%-13.57%-15.22%-3.00%9.83%13.56%11.96%-2.08%4.65%6.95%8.35%5.73%4.65%
Other Income1.131.384.911.279.284.851.320.9821.470.661.260.661.12
Interest0.270.760.230.670.680.631.061.180.970.470.440.470.50
Depreciation1.681.711.741.711.731.852.162.292.302.352.292.492.58
Profit before tax-6.31-5.18-1.82-2.2612.219.003.18-3.0719.830.291.32-0.36-0.25
Tax %0.00%0.00%0.00%0.00%0.00%0.00%114.47%-4.89%25.26%-103.45%24.24%-25.00%48.00%
Net Profit-6.51-4.92-1.38-1.9312.289.180.57-2.9014.601.111.090.43-0.23
EPS in Rs-8.74-6.60-1.85-2.5916.4812.320.76-3.8919.591.491.460.58-0.31

Last Updated: November 6, 2024, 6:57 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1021471811941261479210797122184132138
Expenses96134159161109132103112111140168125129
Operating Profit61322321715-11-5-14-181669
OPM %6%9%12%17%14%10%-12%-5%-14%-15%9%5%6%
Other Income5101541262-0878172424
Interest01010071091332
Depreciation2252248997799
Profit before tax92032342716-24-2556-18221821
Tax %27%24%28%35%24%27%-48%0%13%0%16%27%
Net Profit71623222514-13-2351-18201417
EPS in Rs8.8320.9431.2429.3433.4318.32-16.92-30.7668.02-24.2026.9418.6523.12
Dividend Payout %28%12%10%10%9%14%-15%-8%4%0%15%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)128.57%43.75%-4.35%13.64%-44.00%-192.86%-76.92%321.74%-135.29%211.11%-30.00%
Change in YoY Net Profit Growth (%)0.00%-84.82%-48.10%17.98%-57.64%-148.86%115.93%398.66%-457.03%346.41%-241.11%

Dai Ichi Karkaria 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:-1%
5 Years:7%
3 Years:11%
TTM:-10%
Compounded Profit Growth
10 Years:%
5 Years:12%
3 Years:24%
TTM:-21%
Stock Price CAGR
10 Years:10%
5 Years:7%
3 Years:3%
1 Year:-10%
Return on Equity
10 Years:0%
5 Years:-7%
3 Years:-3%
Last Year:-1%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:42 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital7777777777777
Reserves6780101119142151135112163142162173172
Borrowings11114771041082022381919
Other Liabilities22313831254135424843392328
Total Liabilities97119147159179276281270239214247222227
Fixed Assets171716172094164153105105139132131
CWIP6761432435302020
Investments20314240644124232721232122
Other Assets556583886298889210786856774
Total Assets97119147159179276281270239214247222227

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-445113-861-22-32310
Cash from Investing Activity +9-3-0-8-7-57-211130-4-3316
Cash from Financing Activity +-2-3-3-626616-6-97-213-25
Net Cash Flow4-23-3-221-411-1041

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow5.0012.0021.0031.0013.00-62.00-115.00-113.00-34.00-40.00-22.00-13.00

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 Days727576705975657089535362
Inventory Days63515351787498104133935977
Days Payable7076948268831281462101228774
Cash Conversion Cycle655034397066362811242565
Working Capital Days5545435267794742103664670
ROCE %12%17%23%28%17%8%-7%-4%-8%-12%8%0%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters63.88%63.88%63.88%63.88%63.88%63.88%63.88%63.88%63.88%63.88%63.88%63.88%
DIIs0.44%0.44%0.44%0.44%0.44%0.35%0.35%0.35%0.00%0.00%0.00%0.00%
Public35.69%35.69%35.69%35.69%35.68%35.76%35.78%35.78%36.12%36.11%36.11%36.12%
No. of Shareholders5,4295,8435,9145,5785,6345,3895,2035,3955,5555,0855,5215,918

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.)18.6526.94-24.2068.03-30.75
Diluted EPS (Rs.)18.6526.94-24.2068.03-30.75
Cash EPS (Rs.)30.5034.79-20.4476.44-20.78
Book Value[Excl.RevalReserv]/Share (Rs.)242.63228.05201.21199.42160.60
Book Value[Incl.RevalReserv]/Share (Rs.)242.63228.05201.21199.42160.60
Revenue From Operations / Share (Rs.)176.62246.90163.54130.76143.85
PBDIT / Share (Rs.)13.5329.97-18.77-11.56-1.66
PBIT / Share (Rs.)1.1419.97-27.89-22.98-14.36
PBT / Share (Rs.)24.6629.68-29.5774.94-33.48
Net Profit / Share (Rs.)18.1124.79-29.5765.02-33.48
NP After MI And SOA / Share (Rs.)18.6626.94-24.2068.03-30.77
PBDIT Margin (%)7.6612.13-11.47-8.83-1.15
PBIT Margin (%)0.648.08-17.05-17.57-9.98
PBT Margin (%)13.9612.02-18.0857.30-23.27
Net Profit Margin (%)10.2510.04-18.0849.72-23.27
NP After MI And SOA Margin (%)10.5610.91-14.7952.02-21.38
Return on Networth / Equity (%)7.6811.81-12.0234.11-19.15
Return on Capital Employeed (%)0.467.84-13.26-11.34-5.63
Return On Assets (%)6.258.11-8.4123.34-8.47
Long Term Debt / Equity (X)0.010.100.020.000.56
Total Debt / Equity (X)0.100.220.140.130.76
Asset Turnover Ratio (%)0.560.830.590.390.40
Current Ratio (X)1.371.191.181.400.91
Quick Ratio (X)0.930.850.781.030.66
Inventory Turnover Ratio (X)4.435.513.623.133.98
Dividend Payout Ratio (NP) (%)21.430.00-12.420.000.00
Dividend Payout Ratio (CP) (%)12.880.00-19.940.000.00
Earning Retention Ratio (%)78.570.00112.420.000.00
Cash Earning Retention Ratio (%)87.120.00119.940.000.00
Interest Coverage Ratio (X)3.297.35-9.38-0.93-0.12
Interest Coverage Ratio (Post Tax) (X)-1.323.70-13.95-2.66-1.04
Enterprise Value (Cr.)392.80299.51288.20226.70218.01
EV / Net Operating Revenue (X)2.991.632.372.332.03
EV / EBITDA (X)38.9713.41-20.62-26.33-175.82
MarketCap / Net Operating Revenue (X)2.891.472.242.281.22
Retention Ratios (%)78.560.00112.420.000.00
Price / BV (X)2.101.591.821.491.09
Price / Net Operating Revenue (X)2.891.472.242.281.22
EarningsYield0.030.07-0.060.22-0.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dai Ichi Karkaria Ltd as of November 24, 2024 is: 422.59

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 24, 2024, Dai Ichi Karkaria Ltd is Undervalued by 7.53% compared to the current share price 393.00

Intrinsic Value of Dai Ichi Karkaria Ltd as of November 24, 2024 is: 340.56

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 24, 2024, Dai Ichi Karkaria Ltd is Overvalued by 13.34% compared to the current share price 393.00

Last 5 Year EPS CAGR: -19.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (132.23 cr) compared to borrowings (31.92 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (136.08 cr) and profit (14.46 cr) over the years.
  1. The stock has a low average ROCE of 6.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 59.58, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 42.75, 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 Dai Ichi Karkaria Ltd:
    1. Net Profit Margin: 10.25%
      • 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: 0.46% (Industry Average ROCE: 13.12%)
      • 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%: 7.68% (Industry Average ROE: 10%)
      • 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): -1.32
      • 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: 0.93
      • 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: 122 (Industry average Stock P/E: 55.7)
      • 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: 0.1
      • 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

Dai Ichi Karkaria Ltd. is a Public Limited Listed company incorporated on 13/05/1960 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24100MH1960PLC011681 and registration number is 011681. Currently Company is involved in the business activities of Manufacture of essential oils; modification by chemical processes of oils and fats (e.g. by oxidation, polymerization etc.). Company’s Total Operating Revenue is Rs. 121.84 Cr. and Equity Capital is Rs. 7.45 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersLiberty Building, Mumbai Maharashtra 400020investor@dai-ichiindia.com
http://www.dai-ichiindia.com
Management
NamePosition Held
Mrs. Shernaz VakilChairperson & Whole Time Director
Ms. Meher VakilManaging Director
Mr. Adi JehangirNon Executive Director
Mr. Ashok HiremathIndependent Director
Mr. Cyrus BagwadiaIndependent Director
Mr. Behram SorabjiIndependent Director

FAQ

What is the latest intrinsic value of Dai Ichi Karkaria Ltd?

The latest intrinsic value of Dai Ichi Karkaria Ltd as on 24 November 2024 is ₹422.59, which is 7.53% higher than the current market price of ₹393.00.

What is the Market Cap of Dai Ichi Karkaria Ltd?

The Market Cap of Dai Ichi Karkaria Ltd is 293 Cr..

What is the current Stock Price of Dai Ichi Karkaria Ltd as on 24 November 2024?

The current stock price of Dai Ichi Karkaria Ltd as on 24 November 2024 is 393.

What is the High / Low of Dai Ichi Karkaria Ltd stocks in FY 2024?

In FY 2024, the High / Low of Dai Ichi Karkaria Ltd stocks is 799/365.

What is the Stock P/E of Dai Ichi Karkaria Ltd?

The Stock P/E of Dai Ichi Karkaria Ltd is 122.

What is the Book Value of Dai Ichi Karkaria Ltd?

The Book Value of Dai Ichi Karkaria Ltd is 241.

What is the Dividend Yield of Dai Ichi Karkaria Ltd?

The Dividend Yield of Dai Ichi Karkaria Ltd is 0.51 %.

What is the ROCE of Dai Ichi Karkaria Ltd?

The ROCE of Dai Ichi Karkaria Ltd is 0.25 %.

What is the ROE of Dai Ichi Karkaria Ltd?

The ROE of Dai Ichi Karkaria Ltd is 1.43 %.

What is the Face Value of Dai Ichi Karkaria Ltd?

The Face Value of Dai Ichi Karkaria 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 Dai Ichi Karkaria 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