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Last Updated on: 26 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

Donear Industries Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 26, 2024, 10:28 pm

Market Cap 818 Cr.
Current Price 158
High / Low 185/86.2
Stock P/E19.3
Book Value 43.1
Dividend Yield0.13 %
ROCE16.0 %
ROE18.4 %
Face Value 2.00
PEG Ratio0.89

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

View Share Price Target for Donear Industries Ltd

Competitors of Donear Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gravity (India) Ltd 6.18 Cr. 6.87 8.40/3.73 2.240.00 %81.2 %86.2 % 10.0
Flora Textiles Ltd 99.5 Cr. 166 187/9.0015.7 10.80.00 %88.9 %% 10.0
E-Land Apparel Ltd 61.8 Cr. 12.9 16.5/6.54 1030.00 %%% 10.0
Acknit Industries Ltd 90.6 Cr. 298 406/2109.93 2710.50 %11.3 %11.4 % 10.0
Siyaram Silk Mills Ltd 4,055 Cr. 894 1,175/41020.9 2651.23 %20.5 %16.3 % 2.00
Industry Average3,279.20 Cr230.5718.11105.240.25%31.29%26.27%7.22

All Competitor Stocks of Donear Industries Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales68.41119.33149.2773.32140.72181.53173.89177.58224.06210.06213.96180.22169.97
Expenses68.09115.54138.1171.66131.01160.08159.33162.96205.77187.63193.81162.82154.49
Operating Profit0.323.7911.161.669.7121.4514.5614.6218.2922.4320.1517.4015.48
OPM %0.47%3.18%7.48%2.26%6.90%11.82%8.37%8.23%8.16%10.68%9.42%9.65%9.11%
Other Income1.471.181.330.292.611.867.483.033.052.401.692.121.84
Interest4.403.804.574.735.094.815.416.286.627.297.657.417.51
Depreciation2.432.332.352.122.182.432.502.182.302.362.422.822.97
Profit before tax-5.04-1.165.57-4.905.0516.0714.139.1912.4215.1811.779.296.84
Tax %37.50%-23.28%21.90%25.71%24.36%24.95%25.48%28.51%23.35%23.45%27.53%27.34%28.22%
Net Profit-3.16-1.434.35-3.643.8312.0610.536.579.5311.628.536.754.91
EPS in Rs-0.61-0.280.84-0.700.742.322.021.261.832.231.641.300.94

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
Sales372394464509509499514594548358569826774
Expenses331350413452453455456534498341516743699
Operating Profit42445158564458615016548375
OPM %11%11%11%11%11%9%11%10%9%5%9%10%10%
Other Income686648335412108
Interest24293233302330312720263530
Depreciation25232226201412109109911
Profit before tax-2-035914202318-9304943
Tax %103%258%-32%-43%40%36%33%37%35%29%25%25%
Net Profit014869131412-6233632
EPS in Rs0.010.120.721.491.081.752.542.732.30-1.214.386.976.11
Dividend Payout %2,080%173%28%13%18%11%8%7%9%-17%5%3%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)300.00%100.00%-25.00%50.00%44.44%7.69%-14.29%-150.00%483.33%56.52%
Change in YoY Net Profit Growth (%)0.00%-200.00%-125.00%75.00%-5.56%-36.75%-21.98%-135.71%633.33%-426.81%

Donear Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2013-2014 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:6%
5 Years:6%
3 Years:31%
TTM:11%
Compounded Profit Growth
10 Years:26%
5 Years:20%
3 Years:95%
TTM:33%
Stock Price CAGR
10 Years:24%
5 Years:40%
3 Years:36%
1 Year:59%
Return on Equity
10 Years:13%
5 Years:14%
3 Years:20%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:36 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital10101010101010101010101010
Reserves535562667688101112105125161194214
Borrowings300311314270264304301263237313353338392
Other Liabilities4655585560759094108162129168183
Total Liabilities410432444401411478503480460611654710798
Fixed Assets10411010893908378868282918796
CWIP231001121245182
Investments1111111111188
Other Assets282311335306319392423390374523561607692
Total Assets410432444401411478503480460611654710798

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1831407934-13377650-24471
Cash from Investing Activity +-16-13-13-6-10-3-6-18-4-25-13-28
Cash from Financing Activity +-3-16-28-74-2516-27-63-464912-47
Net Cash Flow-01-1-1-004-50-03-4

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow42.00-256.00-260.00-256.00-214.00-220.00-246.00-240.00-213.00-221.00-259.00-270.00

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 Days8582907381968878108837079
Inventory Days277257232232242312262269351405266289
Days Payable4547433745737559991025661
Cash Conversion Cycle316292279269278335275288360387280307
Working Capital Days194179177174182215197188253227191200
ROCE %8%9%10%11%10%13%13%11%3%14%17%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters74.56%74.56%74.56%74.56%74.56%74.56%74.56%74.56%74.56%74.56%74.56%74.56%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.11%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.14%
Public25.44%25.43%25.44%25.44%25.45%25.45%25.44%25.44%25.44%25.44%25.34%25.20%
No. of Shareholders11,24310,56210,39710,81913,18815,04514,64616,89017,19617,29018,23817,303

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24
FaceValue2.00
Basic EPS (Rs.)6.67
Diluted EPS (Rs.)6.67
Cash EPS (Rs.)8.99
Book Value[Excl.RevalReserv]/Share (Rs.)39.34
Book Value[Incl.RevalReserv]/Share (Rs.)39.34
Revenue From Operations / Share (Rs.)153.68
PBDIT / Share (Rs.)17.25
PBIT / Share (Rs.)14.94
PBT / Share (Rs.)9.13
Net Profit / Share (Rs.)6.68
NP After MI And SOA / Share (Rs.)6.67
PBDIT Margin (%)11.22
PBIT Margin (%)9.71
PBT Margin (%)5.94
Net Profit Margin (%)4.34
NP After MI And SOA Margin (%)4.34
Return on Networth / Equity (%)16.96
Return on Capital Employeed (%)30.94
Return On Assets (%)4.88
Long Term Debt / Equity (X)0.06
Total Debt / Equity (X)1.65
Current Ratio (X)1.28
Quick Ratio (X)0.56
Dividend Payout Ratio (NP) (%)2.99
Dividend Payout Ratio (CP) (%)2.22
Earning Retention Ratio (%)97.01
Cash Earning Retention Ratio (%)97.78
Interest Coverage Ratio (X)2.97
Interest Coverage Ratio (Post Tax) (X)2.15
Enterprise Value (Cr.)827.34
EV / Net Operating Revenue (X)1.04
EV / EBITDA (X)9.22
MarketCap / Net Operating Revenue (X)0.63
Retention Ratios (%)97.00
Price / BV (X)2.47
Price / Net Operating Revenue (X)0.63
EarningsYield0.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Donear Industries Ltd as of December 26, 2024 is: 153.26

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 December 26, 2024, Donear Industries Ltd is Overvalued by 3.00% compared to the current share price 158.00

Intrinsic Value of Donear Industries Ltd as of December 26, 2024 is: 186.33

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 December 26, 2024, Donear Industries Ltd is Undervalued by 17.93% compared to the current share price 158.00

Last 5 Year EPS CAGR: 21.58%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (533.08 cr) and profit (15.62 cr) over the years.
  1. The stock has a low average ROCE of 11.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 198.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 305.50, which may not be favorable.
  4. The company has higher borrowings (304.62) compared to reserves (108.62), 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 Donear Industries Ltd:
    1. Net Profit Margin: 4.34%
      • 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: 30.94% (Industry Average ROCE: 31.29%)
      • 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%: 16.96% (Industry Average ROE: 26.27%)
      • 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): 2.15
      • 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: 0.56
      • 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: 19.3 (Industry average Stock P/E: 18.11)
      • 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: 1.65
      • 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

Donear Industries Ltd. is a Public Limited Listed company incorporated on 01/01/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L99999MH1987PLC042076 and registration number is 042076. Currently company belongs to the Industry of Textiles - Weaving. Company’s Total Operating Revenue is Rs. 569.46 Cr. and Equity Capital is Rs. 10.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Textiles - WeavingDonear House, 8th Floor, Plot No. A-50, Mumbai Maharashtra 400093investor@donear.com
http://www.donear.com
Management
NamePosition Held
Mr. Rajendra AgarwalManaging Director
Mr. Ajay AgarwalWhole Time Director
Mr. Kishorsinh ParmarExecutive Director
Mr. Aniruddha DeshmukhIndependent Director
Mr. Govind ShrikhandeIndependent Director
Mrs. Medha PattanayakIndependent Director

FAQ

What is the latest intrinsic value of Donear Industries Ltd?

The latest intrinsic value of Donear Industries Ltd as on 26 December 2024 is ₹153.26, which is 3.00% lower than the current market price of ₹158.00. The stock has a market capitalization of 818 Cr. and recorded a high/low of 185/86.2 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹214 Cr and total liabilities of ₹798 Cr.

What is the Market Cap of Donear Industries Ltd?

The Market Cap of Donear Industries Ltd is 818 Cr..

What is the current Stock Price of Donear Industries Ltd as on 26 December 2024?

The current stock price of Donear Industries Ltd as on 26 December 2024 is 158.

What is the High / Low of Donear Industries Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Donear Industries Ltd stocks is 185/86.2.

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

The Stock P/E of Donear Industries Ltd is 19.3.

What is the Book Value of Donear Industries Ltd?

The Book Value of Donear Industries Ltd is 43.1.

What is the Dividend Yield of Donear Industries Ltd?

The Dividend Yield of Donear Industries Ltd is 0.13 %.

What is the ROCE of Donear Industries Ltd?

The ROCE of Donear Industries Ltd is 16.0 %.

What is the ROE of Donear Industries Ltd?

The ROE of Donear Industries Ltd is 18.4 %.

What is the Face Value of Donear Industries Ltd?

The Face Value of Donear Industries 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 Donear 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