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Last Updated on: 24 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 514030 | NSE: DEEPAKSP

Fundamental Analysis of Deepak Spinners Ltd

Share Price and Basic Stock Data

Last Updated: June 24, 2024, 7:51 pm

Market Cap 159 Cr.
Current Price 222
High / Low320/202
Stock P/E123
Book Value 328
Dividend Yield1.13 %
ROCE2.12 %
ROE0.55 %
Face Value 10.0
PEG Ratio-3.19

Competitors of Deepak Spinners Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Sangam (India) Ltd 2,260 Cr. 450630/27449.2 2190.44 %7.04 %4.98 % 10.0
RSWM Ltd 884 Cr. 188243/159 2752.67 %0.31 %7.30 % 10.0
APM Industries Ltd 127 Cr. 59.092.0/47.030.6 79.12.71 %3.24 %2.45 % 2.00
Aditya Spinners Ltd 33.7 Cr. 20.132.0/17.418.1 29.20.00 %5.24 %3.88 % 10.0
Industry Average826.18 Cr179.2824.48150.581.46%3.96%4.65%8.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales111.3282.32159.67148.78138.42155.52157.00140.04107.91113.07133.12116.11108.68
Expenses94.0070.53139.93130.93118.39134.39135.69124.1495.70105.11125.40112.10108.37
Operating Profit17.3211.7919.7417.8520.0321.1321.3115.9012.217.967.724.010.31
OPM %15.56%14.32%12.36%12.00%14.47%13.59%13.57%11.35%11.31%7.04%5.80%3.45%0.29%
Other Income0.570.380.831.200.830.210.680.520.950.371.030.550.72
Interest1.071.441.200.840.900.830.550.580.921.231.100.870.72
Depreciation3.973.753.973.973.993.803.864.373.984.084.184.324.12
Profit before tax12.856.9815.4014.2415.9716.7117.5811.478.263.023.47-0.63-3.81
Tax %27.32%25.21%25.06%25.56%25.30%25.43%25.54%25.37%27.60%27.15%26.80%19.05%23.10%
Net Profit9.345.2211.5410.6011.9312.4613.098.565.982.202.54-0.51-2.93
EPS in Rs12.997.2616.0514.7416.5917.3318.2111.918.323.063.53-0.71-4.08

Last Updated: June 10, 2024, 12:01 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: June 10, 2024, 12:01 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales307392435401411439475461397532561471
Expenses277350397358373407435426355462491451
Operating Profit304237423832403542697120
OPM %10%11%9%11%9%7%8%8%11%13%13%4%
Other Income534524732323
Interest712161215131096434
Depreciation71116141616161616161617
Profit before tax202310229720122153542
Tax %35%49%8%28%27%15%32%-20%26%25%26%37%
Net Profit13129166614151639401
EPS in Rs18.0716.0112.4121.818.717.9319.1020.7121.8254.6555.761.81
Dividend Payout %0%0%0%9%23%0%8%7%9%5%4%28%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-7.69%-25.00%77.78%-62.50%0.00%133.33%7.14%6.67%143.75%2.56%-97.50%
Change in YoY Net Profit Growth (%)0.00%-17.31%102.78%-140.28%62.50%133.33%-126.19%-0.48%137.08%-141.19%-100.06%

Growth

Compounded Sales Growth
10 Years:2%
5 Years:0%
3 Years:6%
TTM:-16%
Compounded Profit Growth
10 Years:-20%
5 Years:-36%
3 Years:-56%
TTM:-97%
Stock Price CAGR
10 Years:16%
5 Years:20%
3 Years:3%
1 Year:-7%
Return on Equity
10 Years:11%
5 Years:12%
3 Years:13%
Last Year:1%

Last Updated: June 24, 2024, 2:21 pm

Balance Sheet

Last Updated: June 10, 2024, 12:01 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital777777777777
Reserves64758498104110124136152190228228
Borrowings1181381211511501281138656495044
Other Liabilities395642536174776653596474
Total Liabilities228277254309322319322296268304349353
Fixed Assets95158155203197188177168153150180178
CWIP3731210113149
Investments000000000000
Other Assets9511598103124131144127112153165167
Total Assets228277254309322319322296268304349353

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 242137452140294439394227
Cash from Investing Activity -67-28-4-59-6-5-4-3-2-26-37-16
Cash from Financing Activity 426-3416-16-35-25-41-37-13-4-11
Net Cash Flow-0-101-100-10-00-0

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-88.00-96.00-84.00-109.00-112.00-96.00-73.00-51.00-14.0020.0021.00-24.00

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 Days393526243530282331231921
Inventory Days67826388100951029695100117136
Days Payable27309132335383123232944
Cash Conversion Cycle798780100112909287104101108113
Working Capital Days565348475648495166606675
ROCE %17%17%12%14%10%8%11%9%12%25%21%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters45.67%45.67%45.67%45.67%45.67%45.67%45.67%45.67%45.67%45.67%45.67%45.73%
DIIs0.08%0.08%0.08%0.08%0.08%0.09%0.09%0.09%0.01%0.01%0.01%0.01%
Public54.24%54.24%54.24%54.24%54.24%54.25%54.25%54.25%54.32%54.31%54.32%54.27%
No. of Shareholders9,17112,28411,82312,68412,72912,76112,77113,06510,36310,40510,52710,692

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.)1.8155.7654.6421.8220.70
Diluted EPS (Rs.)1.8155.7654.6421.8220.70
Cash EPS (Rs.)25.0378.0376.4544.1443.08
Book Value[Excl.RevalReserv]/Share (Rs.)327.47327.63273.98221.18199.54
Book Value[Incl.RevalReserv]/Share (Rs.)327.47327.63273.98221.18199.54
Dividend / Share (Rs.)0.002.502.502.001.50
Revenue From Operations / Share (Rs.)655.05780.82734.85551.61640.77
PBDIT / Share (Rs.)31.53101.42101.0560.6352.70
PBIT / Share (Rs.)8.3079.1479.2438.3130.33
PBT / Share (Rs.)2.8575.1473.1529.5617.26
Net Profit / Share (Rs.)1.8155.7654.6421.8220.70
PBDIT Margin (%)4.8112.9813.7510.998.22
PBIT Margin (%)1.2610.1310.786.944.73
PBT Margin (%)0.439.629.955.352.69
Net Profit Margin (%)0.277.147.433.953.23
Return on Networth / Equity (%)0.5517.0119.949.8610.37
Return on Capital Employeed (%)2.3822.3825.6914.4211.75
Return On Assets (%)0.3611.4912.905.845.03
Long Term Debt / Equity (X)0.000.010.040.090.17
Total Debt / Equity (X)0.180.200.240.280.52
Asset Turnover Ratio (%)1.341.721.841.411.49
Current Ratio (X)1.531.611.611.411.12
Quick Ratio (X)0.540.570.620.650.44
Inventory Turnover Ratio (X)2.813.804.273.163.48
Dividend Payout Ratio (NP) (%)0.004.483.660.008.73
Dividend Payout Ratio (CP) (%)0.003.202.610.004.19
Earning Retention Ratio (%)0.0095.5296.340.0091.27
Cash Earning Retention Ratio (%)0.0096.8097.390.0095.81
Interest Coverage Ratio (X)5.7825.3516.596.934.03
Interest Coverage Ratio (Post Tax) (X)1.3314.949.973.492.58
Enterprise Value (Cr.)201.40207.82248.16110.16132.85
EV / Net Operating Revenue (X)0.420.370.460.270.28
EV / EBITDA (X)8.882.853.422.533.51
MarketCap / Net Operating Revenue (X)0.330.280.380.160.12
Retention Ratios (%)0.0095.5196.330.0091.26
Price / BV (X)0.670.681.020.410.40
Price / Net Operating Revenue (X)0.330.280.380.160.12
EarningsYield0.010.240.190.230.25

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 224.40

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.

Undervalued: 1.08% compared to the current price 222

Intrinsic Value: 137.82

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Overvalued: 37.92% compared to the current price ₹222

Last 5 Year EPS CAGR: -38.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (132.75 cr) compared to borrowings (100.33 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (440.17 cr) and profit (21.08 cr) over the years.
  1. The stock has a low average ROCE of 13.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 56.25, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 96.08, 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 Deepak Spinners Ltd:
    1. Net Profit Margin: 0.27%
      • 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: 2.38% (Industry Average ROCE: %)
      • 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%: 0.55% (Industry Average ROE: %)
      • 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): 1.33
      • 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: 0.54
      • 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: 123 (Industry average Stock P/E: )
      • 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: 0.18
      • 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

Deepak Spinners Ltd. is a Public Limited Listed company incorporated on 25/03/1982 and has its registered office in the State of Himachal Pradesh, India. Company’s Corporate Identification Number(CIN) is L17111HP1982PLC016465 and registration number is 016465. Currently company belongs to the Industry of Textiles - Spinning - Synthetic Blended. Company’s Total Operating Revenue is Rs. 528.31 Cr. and Equity Capital is Rs. 7.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - Spinning - Synthetic Blended121, Industrial Area, Baddi, Solan District Himachal Pradesh 173205share@dsl-india.com
http://www.dsl-india.com
Management
NamePosition Held
Mr. Pradip Kumar DagaChairman & Managing Director
Mr. Yashwant Kumar DagaVice Chairman & Jt Manag. Dir.
Mr. Shantanu DagaWhole Time Director
Mrs. Asha Devi DagaNon Executive Director
Mr. Pradeep Kumar DroliaInd. Non-Executive Director
Mr. Sharad AgarwalInd. Non-Executive Director
Mr. Anand Prasad AgarwallaInd. Non-Executive Director
Mr. Vivek ChiraniyaInd. Non-Executive Director

FAQ

What is the latest fair value of Deepak Spinners Ltd?

The latest fair value of Deepak Spinners Ltd is ₹224.40.

What is the Market Cap of Deepak Spinners Ltd?

The Market Cap of Deepak Spinners Ltd is 159 Cr..

What is the current Stock Price of Deepak Spinners Ltd as on 24 June 2024?

The current stock price of Deepak Spinners Ltd as on 24 June 2024 is ₹222.

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

In FY 2024, the High / Low of Deepak Spinners Ltd stocks is 320/202.

What is the Stock P/E of Deepak Spinners Ltd?

The Stock P/E of Deepak Spinners Ltd is 123.

What is the Book Value of Deepak Spinners Ltd?

The Book Value of Deepak Spinners Ltd is 328.

What is the Dividend Yield of Deepak Spinners Ltd?

The Dividend Yield of Deepak Spinners Ltd is 1.13 %.

What is the ROCE of Deepak Spinners Ltd?

The ROCE of Deepak Spinners Ltd is 2.12 %.

What is the ROE of Deepak Spinners Ltd?

The ROE of Deepak Spinners Ltd is 0.55 %.

What is the Face Value of Deepak Spinners Ltd?

The Face Value of Deepak Spinners 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 Deepak Spinners 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