Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Damodar Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:28 pm

Market Cap 90.4 Cr.
Current Price 38.8
High / Low68.6/38.3
Stock P/E39.3
Book Value 59.2
Dividend Yield0.00 %
ROCE8.32 %
ROE2.98 %
Face Value 5.00
PEG Ratio0.99

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

View Share Price Target for Damodar Industries Ltd

Competitors of Damodar Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Deepak Spinners Ltd 135 Cr. 188320/185 3140.27 %1.93 %0.45 % 10.0
APM Industries Ltd 100.0 Cr. 46.392.0/45.0100.0 78.21.08 %3.27 %2.48 % 2.00
Aditya Spinners Ltd 44.6 Cr. 26.732.0/17.4139 28.50.00 %5.24 %3.88 % 10.0
Adinath Textiles Ltd 18.6 Cr. 27.235.5/23.037.9 4.490.00 %25.7 %18.1 % 10.0
Sangam (India) Ltd 1,808 Cr. 360630/30642.9 2220.56 %6.86 %4.70 % 10.0
Industry Average806.75 Cr124.6363.23142.170.33%7.56%5.84%7.75

All Competitor Stocks of Damodar Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales165.84215.31202.66208.11244.92252.91188.71152.19123.71218.18199.09194.09143.08
Expenses152.16193.58186.01191.37220.82231.46172.55143.60118.89210.69191.64185.17138.88
Operating Profit13.6821.7316.6516.7424.1021.4516.168.594.827.497.458.924.20
OPM %8.25%10.09%8.22%8.04%9.84%8.48%8.56%5.64%3.90%3.43%3.74%4.60%2.94%
Other Income0.825.640.051.110.740.860.021.326.116.216.265.608.37
Interest6.988.797.137.187.587.006.406.366.216.867.467.577.15
Depreciation6.516.415.935.985.935.745.825.895.745.535.525.535.40
Profit before tax1.0112.173.644.6911.339.573.96-2.34-1.021.310.731.420.02
Tax %41.58%32.70%31.32%31.98%41.13%37.30%35.61%33.33%34.31%64.12%-130.14%35.21%50.00%
Net Profit0.598.192.503.196.675.992.55-1.56-0.660.471.680.920.02
EPS in Rs0.253.521.071.372.862.571.09-0.67-0.280.200.720.390.01

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales392582735593621704650771768568909683754
Expenses358534678544580666615735725529830646726
Operating Profit34485750413835364339793728
OPM %9%8%8%8%7%5%5%5%6%7%9%5%4%
Other Income110001223731426
Interest18212419131311143431292629
Depreciation910111213128122324242322
Profit before tax919231815141812-11-92923
Tax %31%34%35%34%32%35%34%32%38%29%37%58%
Net Profit6121512109128-7-61813
EPS in Rs2.665.466.635.344.664.065.253.76-2.98-2.667.880.341.32
Dividend Payout %24%15%14%19%29%34%29%20%0%0%6%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)100.00%25.00%-20.00%-16.67%-10.00%33.33%-33.33%-187.50%14.29%400.00%-94.44%
Change in YoY Net Profit Growth (%)0.00%-75.00%-45.00%3.33%6.67%43.33%-66.67%-154.17%201.79%385.71%-494.44%

Damodar Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:0%
5 Years:-2%
3 Years:8%
TTM:-27%
Compounded Profit Growth
10 Years:-13%
5 Years:-16%
3 Years:32%
TTM:-5%
Stock Price CAGR
10 Years:6%
5 Years:8%
3 Years:-5%
1 Year:-23%
Return on Equity
10 Years:5%
5 Years:1%
3 Years:6%
Last Year:3%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:39 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital99911111111121212121212
Reserves526473778794998685104103108126
Borrowings13113911297106171332361331315298266213
Other Liabilities17181815121933411820353322
Total Liabilities208229212201216295475500446451448418373
Fixed Assets8785816966106251263237216204192182
CWIP03000912210310
Investments0000000000000
Other Assets121142131132149180212236208235241225191
Total Assets208229212201216295475500446451448418373

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +21654291318102647466070
Cash from Investing Activity +-200-7-0-10-70-153-1770-17-8
Cash from Financing Activity +-1-16-47-29-351143-10-54-45-44-62
Net Cash Flow-0-100-000-0-101-1-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow34.00-83.00-82.00-62.00-56.00-68.00-136.00-296.00-318.00-292.00-236.00-261.00

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 Days353841423853404752414433
Inventory Days392938373934426064457674
Days Payable55753712221251514
Cash Conversion Cycle69627273747969851048110693
Working Capital Days57576766698781811047794100
ROCE %23%23%18%15%14%12%7%5%4%13%6%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.63%70.63%70.63%70.63%70.63%70.63%70.63%70.63%70.63%70.45%70.38%70.33%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public29.36%29.36%29.36%29.36%29.37%29.37%29.36%29.36%29.36%29.55%29.62%29.67%
No. of Shareholders5,8796,2596,3106,4957,1057,0277,0666,9736,9518,2078,0928,296

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)2.240.347.88-2.66-2.98
Diluted EPS (Rs.)2.240.347.88-2.66-2.98
Cash EPS (Rs.)11.5810.2018.007.686.91
Book Value[Excl.RevalReserv]/Share (Rs.)51.4449.3449.5441.5742.11
Book Value[Incl.RevalReserv]/Share (Rs.)51.4449.3449.5441.5742.11
Dividend / Share (Rs.)0.000.000.500.000.00
Revenue From Operations / Share (Rs.)307.03293.04389.96243.62329.58
PBDIT / Share (Rs.)24.7121.7735.0619.8019.60
PBIT / Share (Rs.)15.3611.9124.949.469.71
PBT / Share (Rs.)2.670.8112.54-3.72-4.79
Net Profit / Share (Rs.)2.240.347.88-2.66-2.98
PBDIT Margin (%)8.047.428.988.125.94
PBIT Margin (%)5.004.066.393.882.94
PBT Margin (%)0.870.273.21-1.52-1.45
Net Profit Margin (%)0.720.112.02-1.09-0.90
Return on Networth / Equity (%)4.350.6915.90-6.39-7.07
Return on Capital Employeed (%)15.9610.5419.317.487.51
Return On Assets (%)1.240.174.07-1.39-1.38
Long Term Debt / Equity (X)0.811.231.552.042.06
Total Debt / Equity (X)2.222.302.503.163.45
Asset Turnover Ratio (%)1.651.522.031.201.55
Current Ratio (X)1.151.291.551.361.17
Quick Ratio (X)0.530.680.960.840.66
Inventory Turnover Ratio (X)3.234.375.943.214.42
Interest Coverage Ratio (X)1.951.962.831.501.35
Interest Coverage Ratio (Post Tax) (X)1.181.031.640.790.79
Enterprise Value (Cr.)361.04355.47427.27360.14382.48
EV / Net Operating Revenue (X)0.500.520.470.630.49
EV / EBITDA (X)6.277.015.237.808.37
MarketCap / Net Operating Revenue (X)0.130.130.150.090.05
Price / BV (X)0.800.791.210.560.45
Price / Net Operating Revenue (X)0.130.130.150.090.05
EarningsYield0.050.010.13-0.11-0.15

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Damodar Industries Ltd as of November 17, 2024 is: 70.72

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 17, 2024, Damodar Industries Ltd is Undervalued by 82.27% compared to the current share price 38.80

Intrinsic Value of Damodar Industries Ltd as of November 17, 2024 is: 98.72

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 17, 2024, Damodar Industries Ltd is Undervalued by 154.43% compared to the current share price 38.80

Last 5 Year EPS CAGR: 39.59%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (671.54 cr) and profit (10.92 cr) over the years.
  1. The stock has a low average ROCE of 12.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 78.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 80.58, which may not be favorable.
  4. The company has higher borrowings (220.92) compared to reserves (89.08), which may suggest financial risk.

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 Damodar Industries Ltd:
    1. Net Profit Margin: 0.72%
      • 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: 15.96% (Industry Average ROCE: 7.56%)
      • 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%: 4.35% (Industry Average ROE: 5.84%)
      • 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): 1.18
      • 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: 0.53
      • 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: 39.3 (Industry average Stock P/E: 63.23)
      • 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: 2.22
      • 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

Damodar Industries Ltd. is a Public Limited Listed company incorporated on 11/12/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L17110MH1987PLC045575 and registration number is 045575. Currently Company is involved in the business activities of Spinning, weaving and finishing of textiles. Company’s Total Operating Revenue is Rs. 908.61 Cr. and Equity Capital is Rs. 11.65 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Synthetic Blended19/22 & 27/30, Madhu Estate, Mumbai Maharashtra 400013cs@damodargroup.com
http://www.damodargroup.com
Management
NamePosition Held
Mr. Arunkumar BiyaniChairman
Mr. Ajay D BiyaniManaging Director
Mr. Anil D BiyaniExecutive Director
Mr. Ketan K PatelIndependent Director
Mrs. Mamta A BiyaniIndependent Director
Mr. Pankaj SrivastavaIndependent Director

FAQ

What is the latest intrinsic value of Damodar Industries Ltd?

The latest intrinsic value of Damodar Industries Ltd as on 17 November 2024 is ₹70.72, which is 82.27% higher than the current market price of ₹38.80.

What is the Market Cap of Damodar Industries Ltd?

The Market Cap of Damodar Industries Ltd is 90.4 Cr..

What is the current Stock Price of Damodar Industries Ltd as on 17 November 2024?

The current stock price of Damodar Industries Ltd as on 17 November 2024 is ₹38.8.

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

In FY 2024, the High / Low of Damodar Industries Ltd stocks is 68.6/38.3.

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

The Stock P/E of Damodar Industries Ltd is 39.3.

What is the Book Value of Damodar Industries Ltd?

The Book Value of Damodar Industries Ltd is 59.2.

What is the Dividend Yield of Damodar Industries Ltd?

The Dividend Yield of Damodar Industries Ltd is 0.00 %.

What is the ROCE of Damodar Industries Ltd?

The ROCE of Damodar Industries Ltd is 8.32 %.

What is the ROE of Damodar Industries Ltd?

The ROE of Damodar Industries Ltd is 2.98 %.

What is the Face Value of Damodar Industries Ltd?

The Face Value of Damodar Industries Ltd is 5.00.

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 Damodar 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