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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500117 | NSE: DCW

DCW Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:23 pm

Market Cap 2,870 Cr.
Current Price 97.2
High / Low113/46.0
Stock P/E298
Book Value 35.1
Dividend Yield0.00 %
ROCE6.72 %
ROE1.65 %
Face Value 2.00
PEG Ratio11.24

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

View Share Price Target for DCW Ltd

Competitors of DCW Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Asian Petroproducts & Exports Ltd 41.1 Cr. 16.722.6/7.38 1.490.00 %743 %% 10.0
Aadi Industries Ltd 5.30 Cr. 5.308.90/3.15 6.770.00 %40.8 %% 10.0
Goa Carbons Ltd 588 Cr. 6411,009/52816.0 2543.12 %23.2 %38.8 % 10.0
DCW Ltd 2,870 Cr. 97.2113/46.0298 35.10.00 %6.72 %1.65 % 2.00
Agarwal Industrial Corporation Ltd 1,503 Cr. 1,0051,341/77112.2 3780.30 %20.4 %23.6 % 10.0
Industry Average1,653.67 Cr353.04108.73135.070.68%166.82%21.35%8.40

All Competitor Stocks of DCW Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales386456521572655707769698579588438414398
Expenses329386463492566608647592478489387373378
Operating Profit57705779899912210610299514219
OPM %15%15%11%14%14%14%16%15%18%17%12%10%5%
Other Income2716111173464443
Interest27363129282626622019171918
Depreciation22222222222222232323232324
Profit before tax10192129415291566662154-19
Tax %38%65%35%33%35%8%35%11%27%43%35%41%35%
Net Profit661320274859504835103-12
EPS in Rs0.240.250.510.751.021.832.121.681.631.200.340.09-0.42

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
Sales1,1831,3271,3241,2531,2631,1761,1871,3531,2771,4642,4552,6341,838
Expenses1,0581,0781,1941,1871,1131,0291,0611,1901,1301,2552,1272,2051,626
Operating Profit12524813066150147126163147209328429212
OPM %11%19%10%5%12%13%11%12%12%14%13%16%12%
Other Income5-31-03263811176116
Interest3432271958579310410712011312673
Depreciation51535152696888838787899092
Profit before tax4616052-52725-49-22-401414327463
Tax %33%35%27%-24%36%19%59%80%33%72%25%30%
Net Profit3110538-61720-20-4-27410819236
EPS in Rs1.515.001.81-0.280.780.92-0.91-0.19-1.030.154.126.501.21
Dividend Payout %24%7%20%0%0%0%0%0%0%0%10%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)238.71%-63.81%-115.79%383.33%17.65%-200.00%80.00%-575.00%114.81%2600.00%77.78%
Change in YoY Net Profit Growth (%)0.00%-302.52%-51.98%499.12%-365.69%-217.65%280.00%-655.00%689.81%2485.19%-2522.22%

DCW 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:4%
5 Years:7%
3 Years:9%
TTM:-1%
Compounded Profit Growth
10 Years:-8%
5 Years:46%
3 Years:65%
TTM:-90%
Stock Price CAGR
10 Years:17%
5 Years:47%
3 Years:31%
1 Year:87%
Return on Equity
10 Years:4%
5 Years:6%
3 Years:10%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:38 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital42424344444444525252595959
Reserves486515517591610591587626635742966973978
Borrowings544671780847770814683605624556508439456
Other Liabilities477562507481529455504550564553530618695
Total Liabilities1,5481,7901,8471,9631,9521,9041,8191,8341,8751,9032,0632,0892,189
Fixed Assets6646616351,2601,5311,4711,5341,4671,4071,3521,2961,3121,312
CWIP4427188493671221247124860417
Investments000000000002031
Other Assets442411363336299309278354464543708716839
Total Assets1,5481,7901,8471,9631,9521,9041,8191,8341,8751,9032,0632,0892,189

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2062326912322357285170218178226252
Cash from Investing Activity +-261-325-87-100-95-13-45-43-7852-165-99
Cash from Financing Activity +539219-23-128-44-241-119-99-192-139-153
Net Cash Flow-2-21-1-00-084138-781

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow125.00-296.00-541.00-714.00-697.00-623.00-688.00-520.00-458.00-415.00-228.00-79.00

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 Days262628342526202124171822
Inventory Days14711087100839666102826397139
Days Payable1362041551371671061491861447678125
Cash Conversion Cycle37-68-40-3-5916-63-63-3853837
Working Capital Days-7-35-37-33-59-51-84-71-3822012
ROCE %20%7%1%6%6%3%6%5%10%18%25%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters46.76%46.76%46.76%43.95%44.85%45.10%45.10%45.10%45.10%45.10%44.08%44.86%
FIIs6.38%6.32%6.72%6.32%7.89%8.22%8.30%7.99%8.43%7.87%7.25%7.35%
DIIs0.03%0.03%0.02%6.07%0.20%0.01%0.01%0.01%0.11%0.01%0.01%0.01%
Public46.84%46.90%46.50%43.67%47.04%46.66%46.58%46.90%46.35%47.01%48.65%47.77%
No. of Shareholders87,68292,97088,63386,88291,24991,79190,30193,7321,07,4691,20,5421,52,8881,43,623

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 15Mar 14Mar 13Mar 12Mar 11
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-0.281.815.051.551.47
Diluted EPS (Rs.)-0.281.815.051.551.47
Cash EPS (Rs.)2.164.247.524.023.90
Book Value[Excl.RevalReserv]/Share (Rs.)25.9026.1624.7720.5919.70
Book Value[Incl.RevalReserv]/Share (Rs.)26.2326.5325.1621.0020.14
Revenue From Operations / Share (Rs.)58.7663.1863.2958.3053.95
PBDIT / Share (Rs.)3.126.2111.986.435.78
PBIT / Share (Rs.)0.683.789.463.923.36
PBT / Share (Rs.)-0.222.497.652.251.83
Net Profit / Share (Rs.)-0.271.815.001.511.47
NP After MI And SOA / Share (Rs.)-0.271.815.001.511.47
PBDIT Margin (%)5.309.8218.9211.0210.71
PBIT Margin (%)1.155.9714.946.726.22
PBT Margin (%)-0.373.9312.083.853.39
Net Profit Margin (%)-0.472.857.892.592.73
NP After MI And SOA Margin (%)-0.472.857.892.592.73
Return on Networth / Equity (%)-1.076.9020.187.337.47
Return on Capital Employeed (%)1.136.2319.179.659.09
Return On Assets (%)-0.322.116.772.392.64
Long Term Debt / Equity (X)1.031.070.740.710.63
Total Debt / Equity (X)1.231.100.880.890.67
Asset Turnover Ratio (%)0.680.790.930.990.99
Current Ratio (X)0.580.730.810.710.78
Quick Ratio (X)0.290.340.360.360.44
Inventory Turnover Ratio (X)3.493.203.125.255.07
Dividend Payout Ratio (NP) (%)0.0019.937.2023.8424.42
Dividend Payout Ratio (CP) (%)0.008.494.788.959.23
Earning Retention Ratio (%)0.0080.0792.8076.1675.58
Cash Earning Retention Ratio (%)0.0091.5195.2291.0590.77
Interest Coverage Ratio (X)3.564.827.823.853.78
Interest Coverage Ratio (Post Tax) (X)0.712.404.451.901.96
Enterprise Value (Cr.)1032.94847.36721.00573.17475.75
EV / Net Operating Revenue (X)0.820.630.540.480.44
EV / EBITDA (X)15.536.512.874.394.19
MarketCap / Net Operating Revenue (X)0.280.180.190.170.20
Retention Ratios (%)0.0080.0692.7976.1575.57
Price / BV (X)0.640.450.510.490.56
Price / Net Operating Revenue (X)0.280.180.190.170.20
EarningsYield-0.010.150.390.140.13

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of DCW Ltd as of November 23, 2024 is: 176.04

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 23, 2024, DCW Ltd is Undervalued by 81.11% compared to the current share price 97.20

Intrinsic Value of DCW Ltd as of November 23, 2024 is: 222.70

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 23, 2024, DCW Ltd is Undervalued by 129.12% compared to the current share price 97.20

Last 5 Year EPS CAGR: 26.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -31.75, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -16.75, which is a positive sign.
  3. The company has higher reserves (678.23 cr) compared to borrowings (638.23 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (1.15 cr) and profit (52.92 cr) over the years.
  1. The stock has a low average ROCE of 9.50%, 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 DCW Ltd:
    1. Net Profit Margin: -0.47%
      • 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: 1.13% (Industry Average ROCE: 166.82%)
      • 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%: -1.07% (Industry Average ROE: 21.35%)
      • 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): 0.71
      • 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: 0.29
      • 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: 298 (Industry average Stock P/E: 108.73)
      • 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: 1.23
      • 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

DCW Ltd. is a Public Limited Listed company incorporated on 28/01/1939 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L24110GJ1939PLC000748 and registration number is 000748. Currently Company is involved in the business activities of Manufacture of dyes and pigments from any source in basic form or as concentrate. Company’s Total Operating Revenue is Rs. 2454.74 Cr. and Equity Capital is Rs. 52.21 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Petrochemicals - OthersSoda Ash Division: Dhrangadhra, Dhrangadhra Gujarat 363315ho@dcwltd.com
http://www.dcwltd.com
Management
NamePosition Held
Mr. Pramod Kumar JainChairman & Managing Director
Mr. Bakul JainManaging Director
Mr. Vivek JainManaging Director
Mr. Mahesh VennelkantiIndependent Director
Mr. Krishnamoorthy KrishnanIndependent Director
Mrs. Sujata RangnekarIndependent Director

FAQ

What is the latest intrinsic value of DCW Ltd?

The latest intrinsic value of DCW Ltd as on 23 November 2024 is ₹176.04, which is 81.11% higher than the current market price of ₹97.20.

What is the Market Cap of DCW Ltd?

The Market Cap of DCW Ltd is 2,870 Cr..

What is the current Stock Price of DCW Ltd as on 23 November 2024?

The current stock price of DCW Ltd as on 23 November 2024 is 97.2.

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

In FY 2024, the High / Low of DCW Ltd stocks is 113/46.0.

What is the Stock P/E of DCW Ltd?

The Stock P/E of DCW Ltd is 298.

What is the Book Value of DCW Ltd?

The Book Value of DCW Ltd is 35.1.

What is the Dividend Yield of DCW Ltd?

The Dividend Yield of DCW Ltd is 0.00 %.

What is the ROCE of DCW Ltd?

The ROCE of DCW Ltd is 6.72 %.

What is the ROE of DCW Ltd?

The ROE of DCW Ltd is 1.65 %.

What is the Face Value of DCW Ltd?

The Face Value of DCW Ltd is 2.00.

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 DCW 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