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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

DE Nora India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:53 pm

Market Cap 627 Cr.
Current Price 1,180
High / Low2,025/1,139
Stock P/E34.2
Book Value 235
Dividend Yield0.17 %
ROCE22.0 %
ROE16.4 %
Face Value 10.0
PEG Ratio1.41

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

View Share Price Target for DE Nora India Ltd

Competitors of DE Nora India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
HEG Ltd 7,861 Cr. 407549/31143.2 2301.10 %8.54 %7.14 % 2.00
DE Nora India Ltd 627 Cr. 1,1802,025/1,13934.2 2350.17 %22.0 %16.4 % 10.0
Industry Average4,244.00 Cr793.5038.70232.500.64%15.27%11.77%6.00

All Competitor Stocks of DE Nora India Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales6.229.5020.615.1114.7715.3938.9012.3814.3719.1927.639.1419.08
Expenses6.059.1415.175.789.3711.5224.6810.0912.6113.9912.219.3511.44
Operating Profit0.170.365.44-0.675.403.8714.222.291.765.2015.42-0.217.64
OPM %2.73%3.79%26.39%-13.11%36.56%25.15%36.56%18.50%12.25%27.10%55.81%-2.30%40.04%
Other Income0.740.67-0.280.520.060.080.300.470.611.491.291.161.14
Interest0.000.000.000.000.000.000.150.010.000.000.000.000.00
Depreciation0.650.650.660.670.680.680.650.640.240.250.240.250.25
Profit before tax0.260.384.50-0.824.783.2713.722.112.136.4416.470.708.53
Tax %38.46%13.16%25.78%0.00%21.34%26.61%26.46%25.59%26.29%25.31%25.14%25.71%25.56%
Net Profit0.150.343.35-0.813.762.4110.101.571.584.8112.320.526.35
EPS in Rs0.280.646.31-1.537.084.5419.032.962.989.0623.210.9811.96

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales34643631512727334851747475
Expenses27462925352525323842514947
Operating Profit7197516220118232528
OPM %19%29%19%17%30%8%8%1%22%17%31%34%37%
Other Income1112433422145
Interest0000000000000
Depreciation1111112333311
Profit before tax7197618432108212732
Tax %31%31%31%29%33%33%45%13%22%25%26%25%
Net Profit513541232286152024
EPS in Rs25.079.008.0122.575.613.183.0015.3110.6429.1038.2045.21
Dividend Payout %68%28%44%19%18%36%31%0%0%9%3%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-75.00%-33.33%0.00%300.00%-25.00%150.00%33.33%
Change in YoY Net Profit Growth (%)0.00%41.67%33.33%300.00%-325.00%175.00%-116.67%

DE Nora India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:18%
3 Years:13%
TTM:2%
Compounded Profit Growth
10 Years:14%
5 Years:63%
3 Years:47%
TTM:-24%
Stock Price CAGR
10 Years:23%
5 Years:41%
3 Years:45%
1 Year:-31%
Return on Equity
10 Years:14%
5 Years:17%
3 Years:19%
Last Year:16%

Last Updated: Unknown

Balance Sheet

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

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital5555555555555
Reserves2831344347474856627796114119
Borrowings0000000100000
Other Liabilities171291212111213131214719
Total Liabilities50484960646365758094116127144
Fixed Assets6777714121010781315
CWIP1112700101223
Investments15814192020145423425461
Other Assets28332632292940606662645766
Total Assets50484960646365758094116127144

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17-4101472-6-716121416
Cash from Investing Activity +-117-8-12-3-2771-16-24-14
Cash from Financing Activity +-5-4-3-1-3-1-11-1-1-1-1
Net Cash Flow1-1-111-21116-5-101

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow7.0019.007.005.0016.002.002.000.0010.008.0023.0025.00

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

MonthDec 2012Dec 2013Dec 2014Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days52131139758264619779588451
Inventory Days124299229130198398516471273288397401
Days Payable457067801142641828347379151
Cash Conversion Cycle132361302125166199396486305309391401
Working Capital Days34141144451448136224156132164157
ROCE %65%21%16%41%9%6%4%18%12%28%30%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters53.68%53.68%53.68%53.68%53.68%53.68%53.68%53.68%53.68%53.68%53.68%53.68%
FIIs0.00%0.00%0.00%0.00%0.00%0.52%0.56%0.56%0.25%0.19%0.10%0.09%
DIIs0.00%0.00%0.00%0.19%0.00%0.00%0.00%0.00%0.00%0.22%0.22%0.22%
Public46.32%46.32%46.32%46.13%46.32%45.80%45.76%45.76%46.07%45.92%46.00%45.99%
No. of Shareholders9,6958,2888,1848,5778,4948,8889,38311,05412,74814,61515,41514,878

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.)35.8038.1929.1010.6415.31
Diluted EPS (Rs.)35.8038.1929.1010.6415.31
Cash EPS (Rs.)37.9640.7734.1315.5420.19
Book Value[Excl.RevalReserv]/Share (Rs.)225.46191.53154.24126.16115.53
Book Value[Incl.RevalReserv]/Share (Rs.)225.46191.53154.24126.16115.53
Dividend / Share (Rs.)2.002.001.001.000.00
Revenue From Operations / Share (Rs.)139.01138.60139.7195.2090.94
PBDIT / Share (Rs.)49.6753.7544.7919.1724.39
PBIT / Share (Rs.)47.5251.1739.7614.2719.50
PBT / Share (Rs.)47.5251.1539.4814.2719.50
Net Profit / Share (Rs.)35.8038.1929.1010.6315.31
PBDIT Margin (%)35.7338.7832.0520.1326.81
PBIT Margin (%)34.1836.9228.4514.9821.44
PBT Margin (%)34.1836.9028.2514.9821.44
Net Profit Margin (%)25.7527.5520.8311.1716.83
Return on Networth / Equity (%)15.8819.9418.868.4213.25
Return on Capital Employeed (%)21.0726.6125.7711.3016.85
Return On Assets (%)15.0017.5316.497.0910.80
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.600.700.850.650.68
Current Ratio (X)14.487.617.065.384.48
Quick Ratio (X)10.525.505.033.842.60
Inventory Turnover Ratio (X)0.721.021.271.150.96
Dividend Payout Ratio (NP) (%)5.582.613.430.000.00
Dividend Payout Ratio (CP) (%)5.262.452.920.000.00
Earning Retention Ratio (%)94.4297.3996.570.000.00
Cash Earning Retention Ratio (%)94.7497.5597.080.000.00
Interest Coverage Ratio (X)0.002194.98159.150.000.00
Interest Coverage Ratio (Post Tax) (X)0.001560.69104.420.000.00
Enterprise Value (Cr.)858.53434.79190.91103.3355.66
EV / Net Operating Revenue (X)11.635.912.572.041.15
EV / EBITDA (X)32.5615.248.0310.154.30
MarketCap / Net Operating Revenue (X)11.746.122.862.641.44
Retention Ratios (%)94.4197.3896.560.000.00
Price / BV (X)7.244.432.591.991.13
Price / Net Operating Revenue (X)11.746.122.862.641.44
EarningsYield0.020.040.070.040.11

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of DE Nora India Ltd as of November 25, 2024 is: 1,320.31

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 25, 2024, DE Nora India Ltd is Undervalued by 11.89% compared to the current share price 1,180.00

Intrinsic Value of DE Nora India Ltd as of November 25, 2024 is: 1,639.56

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 25, 2024, DE Nora India Ltd is Undervalued by 38.95% compared to the current share price 1,180.00

Last 5 Year EPS CAGR: 24.18%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.67%, which is a positive sign.
  2. The company has higher reserves (61.69 cr) compared to borrowings (0.08 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (48.08 cr) and profit (12.62 cr) over the years.
  1. The stock has a high average Working Capital Days of 116.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 297.75, 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 DE Nora India Ltd:
    1. Net Profit Margin: 25.75%
      • 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: 21.07% (Industry Average ROCE: 15.27%)
      • 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%: 15.88% (Industry Average ROE: 11.77%)
      • 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: 10.52
      • 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: 34.2 (Industry average Stock P/E: 38.7)
      • 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
      • 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

De Nora India Ltd. is a Public Limited Listed company incorporated on 11/03/1993 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L31200GA1993PLC001335 and registration number is 001335. Currently Company is involved in the business activities of Manufacture of other special-purpose machinery. Company’s Total Operating Revenue is Rs. 74.17 Cr. and Equity Capital is Rs. 5.31 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Electrodes - GraphitePlot Nos 184,185 & 189, Kundaim Industrial Estate, Kundaim Goa 403115info.dni@denora.com
http://india,denora.com
Management
NamePosition Held
Ms. Supriya BanerjiChairperson & Independent Director
Mr. Vinay ChopraManaging Director
Mr. Robert ScannellNon Executive Director
Mr. Francesco L�AbbateNon Executive Director
Ms. Lalita Correia AfonsoAddnl.Independent Director
Mr. Purushottam MantriIndependent Director

FAQ

What is the latest intrinsic value of DE Nora India Ltd?

The latest intrinsic value of DE Nora India Ltd as on 25 November 2024 is ₹1320.31, which is 11.89% higher than the current market price of ₹1,180.00.

What is the Market Cap of DE Nora India Ltd?

The Market Cap of DE Nora India Ltd is 627 Cr..

What is the current Stock Price of DE Nora India Ltd as on 25 November 2024?

The current stock price of DE Nora India Ltd as on 25 November 2024 is 1,180.

What is the High / Low of DE Nora India Ltd stocks in FY 2024?

In FY 2024, the High / Low of DE Nora India Ltd stocks is 2,025/1,139.

What is the Stock P/E of DE Nora India Ltd?

The Stock P/E of DE Nora India Ltd is 34.2.

What is the Book Value of DE Nora India Ltd?

The Book Value of DE Nora India Ltd is 235.

What is the Dividend Yield of DE Nora India Ltd?

The Dividend Yield of DE Nora India Ltd is 0.17 %.

What is the ROCE of DE Nora India Ltd?

The ROCE of DE Nora India Ltd is 22.0 %.

What is the ROE of DE Nora India Ltd?

The ROE of DE Nora India Ltd is 16.4 %.

What is the Face Value of DE Nora India Ltd?

The Face Value of DE Nora India 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 DE Nora India 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