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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Dharani Sugars & Chemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:27 pm

Market Cap 28.4 Cr.
Current Price 8.55
High / Low/
Stock P/E
Book Value 34.7
Dividend Yield0.00 %
ROCE8.35 %
ROE%
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for Dharani Sugars & Chemicals Ltd

Competitors of Dharani Sugars & Chemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Metallic Coal & Coke Ltd 5.94 Cr. 30.032.8/19.9 77.60.00 %0.37 %2.00 % 100
Gensol Engineering Ltd 3,121 Cr. 8241,377/70938.3 1550.00 %14.3 %20.1 % 10.0
Gagan Polycot India Ltd 0.86 Cr. 0.86/ 4.080.00 %81.2 %81.2 % 10.0
Fusion Micro Finance Ltd 1,772 Cr. 176675/161 2510.00 %14.1 %19.6 % 10.0
Five X Tradecom Ltd 0.99 Cr. 0.48/ 9.350.00 %0.00 %0.00 % 10.0
Industry Average4,743.48 Cr233.26160.56108.530.27%21.63%72.28%9.42

All Competitor Stocks of Dharani Sugars & Chemicals Ltd

Quarterly Result

MonthMar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023
Sales2.1724.106.600.160.2329.4510.230.000.000.000.000.000.82
Expenses15.6625.9411.965.406.1230.7717.674.744.332.512.272.582.69
Operating Profit-13.49-1.84-5.36-5.24-5.89-1.32-7.44-4.74-4.33-2.51-2.27-2.58-1.87
OPM %-621.66%-7.63%-81.21%-3,275.00%-2,560.87%-4.48%-72.73%-228.05%
Other Income34.880.095.620.040.060.170.750.050.040.020.060.020.03
Interest-19.480.010.020.022.061.091.101.20-3.380.000.000.000.00
Depreciation5.615.566.145.855.855.845.845.845.845.565.565.565.56
Profit before tax35.26-7.32-5.90-11.07-13.74-8.08-13.63-11.73-6.75-8.05-7.77-8.12-7.40
Tax %-9.64%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Net Profit38.65-7.32-5.91-11.07-13.74-8.08-13.63-11.74-6.75-8.06-7.77-8.13-7.40
EPS in Rs11.64-2.20-1.78-3.33-4.14-2.43-4.11-3.54-2.03-2.43-2.34-2.45-2.23

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Sales61557852436436450948231611031401
Expenses530486475374324435482353154495710
Operating Profit849349-114074-0-37-44-18-18-9
OPM %14%16%9%-3%11%15%-0%-12%-40%-59%-45%-1,127%
Other Income122189817435610
Interest49546566687579752200
Depreciation212429212323232322232322
Profit before tax1617-43-81-43-16-85-131-33-38-40-31
Tax %37%28%21%8%72%-12%-1%-14%10%0%0%0%
Net Profit1012-34-74-12-17-85-149-30-38-40-31
EPS in Rs3.494.15-11.50-25.23-4.08-5.25-25.72-44.98-9.00-11.46-12.11-9.45
Dividend Payout %29%24%0%0%0%0%0%0%0%0%0%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 (%)20.00%-383.33%-117.65%83.78%-41.67%-400.00%-75.29%79.87%-26.67%-5.26%22.50%
Change in YoY Net Profit Growth (%)0.00%-403.33%265.69%201.43%-125.45%-358.33%324.71%155.16%-106.53%21.40%27.76%

Dharani Sugars & Chemicals 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:%
5 Years:%
3 Years:%
TTM:-80%
Compounded Profit Growth
10 Years:0%
5 Years:12%
3 Years:3%
TTM:-79%
Stock Price CAGR
10 Years:-8%
5 Years:2%
3 Years:-21%
1 Year:%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:37 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital29292929333333333333333333
Reserves9763-1115814157-92-122-160-200-230-109-148
Borrowings528556588611620559518512536533539419457
Other Liabilities173184184185165208236180158169176150140
Total Liabilities827832790982959857694603568536518493482
Fixed Assets487477462629610604583558538514492470459
CWIP81013161800000000
Investments55524262917151515151515
Other Assets32734031031330522495301571188
Total Assets827832790982959857694603568536518493482

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +59555061113145897-14-3-5126
Cash from Investing Activity +-55-12-6-4-5-81401000
Cash from Financing Activity +-10-41-39-65-108-138-104-918-36-127
Net Cash Flow-615-81-1-1-25-61-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow84.00-435.00-507.00-599.00-571.00-546.00-559.00-555.00-556.00-554.00-551.00-548.00

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 Days251543554035495760422,008
Inventory Days2122352463352261333225287
Days Payable48101154187771141404001,263954
Cash Conversion Cycle19014913420319053-59-318-1,175-9062,008
Working Capital Days6756836417-88-323-445-1,541-1,324-65,531
ROCE %11%3%-2%4%7%-1%-11%-15%-9%-10%-9%-8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters61.55%61.55%61.55%61.55%61.55%61.55%61.55%61.55%61.55%61.55%61.55%61.55%
FIIs0.00%0.00%0.16%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public38.44%38.44%38.28%38.43%38.44%38.44%38.43%38.43%38.43%38.43%38.43%38.43%
No. of Shareholders17,93018,74419,77819,58619,76119,67419,46119,45919,45719,45019,44919,443

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.)36.54-9.44-12.11-11.46-9.00
Diluted EPS (Rs.)36.54-9.44-12.11-11.46-9.00
Cash EPS (Rs.)43.22-2.74-5.07-4.41-2.24
Book Value[Excl.RevalReserv]/Share (Rs.)-22.82-59.37-50.10-38.16-26.88
Book Value[Incl.RevalReserv]/Share (Rs.)-22.82-59.37-50.10-38.16-26.88
Revenue From Operations / Share (Rs.)0.000.2411.959.3633.12
PBDIT / Share (Rs.)-1.93-2.74-5.06-3.77-13.09
PBIT / Share (Rs.)-8.61-9.44-12.10-10.82-19.85
PBT / Share (Rs.)36.54-9.44-12.11-11.46-10.02
Net Profit / Share (Rs.)36.54-9.44-12.11-11.46-9.00
PBDIT Margin (%)0.00-1107.47-42.38-40.30-39.50
PBIT Margin (%)0.00-3815.89-101.28-115.56-59.92
PBT Margin (%)0.00-3817.05-101.32-122.34-30.26
Net Profit Margin (%)0.00-3817.05-101.32-122.34-27.17
Return on Networth / Equity (%)-160.100.000.000.000.00
Return on Capital Employeed (%)-12.4318.2328.4735.4495.13
Return On Assets (%)24.63-6.05-7.50-6.70-4.95
Long Term Debt / Equity (X)-3.78-0.03-0.03-0.04-0.01
Total Debt / Equity (X)-5.52-2.74-3.21-4.23-5.74
Asset Turnover Ratio (%)0.000.000.070.050.16
Current Ratio (X)0.020.010.010.020.04
Quick Ratio (X)0.020.010.010.010.03
Inventory Turnover Ratio (X)0.00-0.0127.526.524.33
Interest Coverage Ratio (X)-1.07-957.67-1355.96-5.94-20.17
Interest Coverage Ratio (Post Tax) (X)-4.77-3299.75-3240.66-17.05-29.02
Enterprise Value (Cr.)0.000.00588.30551.77530.40
EV / Net Operating Revenue (X)0.000.0014.8317.754.82
EV / EBITDA (X)0.000.00-34.99-44.03-12.21
MarketCap / Net Operating Revenue (X)0.000.001.390.680.17
Price / BV (X)0.000.00-0.33-0.16-0.21
Price / Net Operating Revenue (X)0.000.001.390.680.17
EarningsYield0.000.00-0.72-1.77-1.56

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Dharani Sugars & Chemicals Ltd as of November 22, 2024 is: 79.64

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 22, 2024, Dharani Sugars & Chemicals Ltd is Undervalued by 831.46% compared to the current share price 8.55

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Intrinsic Value of Dharani Sugars & Chemicals Ltd as of November 22, 2024 is: 163.55

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 22, 2024, Dharani Sugars & Chemicals Ltd is Undervalued by 1,812.87% compared to the current share price 8.55

Default values used*: Default value of 15 for Stock P/E is used, Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 105.37%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -53.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -30.25, which is a positive sign.
  1. The stock has a low average ROCE of -3.33%, which may not be favorable.
  2. The company has higher borrowings (536.62) compared to reserves (-42.77), which may suggest financial risk.
  3. The company has not shown consistent growth in sales (327.83) and profit (-42.33).

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 Dharani Sugars & Chemicals Ltd:
    1. Net Profit Margin: 0%
      • 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: -12.43% (Industry Average ROCE: 21.63%)
      • 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%: -160.1% (Industry Average ROE: 72.28%)
      • 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): -4.77
      • 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: 0.02
      • 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: 0 (Industry average Stock P/E: 160.56)
      • 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: -5.52
      • 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

Dharani Sugars & Chemicals Ltd. is a Public Limited Listed company incorporated on 04/06/1987 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L15421TN1987PLC014454 and registration number is 014454. Currently Company is involved in the business activities of Manufacture or refining of sugar (sucrose) from sugercane. Company’s Total Operating Revenue is Rs. 39.67 Cr. and Equity Capital is Rs. 33.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
SugarPGP House, New No. 59 Sterling Road, Chennai (Madras) Tamil Nadu 600034secretarial@dharanisugars-pgp.com
http://www.dharanisugars.in
Management
NamePosition Held
Dr. Palani G PeriasamyExecutive Chairman
Mr. M RamalingamManaging Director
Mr. P S GopalakrishnanIndependent Director
Mr. P SelvamIndependent Director
Dr. S MuthuIndependent Director
Dr. V R S SampathIndependent Director
Mr. R K ViswanathanIndependent Director
Mr. A SennimalaiDirector
Mrs. Visalakshi PeriasamyDirector
Dr. K C ReddyNominee Director

FAQ

What is the latest intrinsic value of Dharani Sugars & Chemicals Ltd?

The latest intrinsic value of Dharani Sugars & Chemicals Ltd as on 15 November 2024 is ₹79.64, which is 831.46% higher than the current market price of ₹8.55.

What is the Market Cap of Dharani Sugars & Chemicals Ltd?

The Market Cap of Dharani Sugars & Chemicals Ltd is 28.4 Cr..

What is the current Stock Price of Dharani Sugars & Chemicals Ltd as on 15 November 2024?

The current stock price of Dharani Sugars & Chemicals Ltd as on 15 November 2024 is ₹8.55.

What is the High / Low of Dharani Sugars & Chemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of Dharani Sugars & Chemicals Ltd stocks is /.

What is the Stock P/E of Dharani Sugars & Chemicals Ltd?

The Stock P/E of Dharani Sugars & Chemicals Ltd is .

What is the Book Value of Dharani Sugars & Chemicals Ltd?

The Book Value of Dharani Sugars & Chemicals Ltd is 34.7.

What is the Dividend Yield of Dharani Sugars & Chemicals Ltd?

The Dividend Yield of Dharani Sugars & Chemicals Ltd is 0.00 %.

What is the ROCE of Dharani Sugars & Chemicals Ltd?

The ROCE of Dharani Sugars & Chemicals Ltd is 8.35 %.

What is the ROE of Dharani Sugars & Chemicals Ltd?

The ROE of Dharani Sugars & Chemicals Ltd is %.

What is the Face Value of Dharani Sugars & Chemicals Ltd?

The Face Value of Dharani Sugars & Chemicals 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 Dharani Sugars & Chemicals 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