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Last Updated on: 17 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Ducon Infratechnologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 15, 2024, 3:26 pm

Market Cap 268 Cr.
Current Price 8.25
High / Low11.9/6.04
Stock P/E44.2
Book Value 4.83
Dividend Yield0.00 %
ROCE7.80 %
ROE4.33 %
Face Value 1.00
PEG Ratio2.28

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

View Share Price Target for Ducon Infratechnologies Ltd

Competitors of Ducon Infratechnologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Computer Point Ltd 19.2 Cr. 6.3911.6/3.70 11.10.00 %0.03 %0.03 % 10.0
ACI Infocom Ltd 31.7 Cr. 2.873.67/1.22 1.480.00 %1.07 %0.53 % 1.00
TVS Electronics Ltd 660 Cr. 354490/235 50.50.28 %0.73 %0.08 % 10.0
Panache Digilife Ltd 335 Cr. 220220/64.488.7 26.60.00 %12.8 %13.2 % 10.0
HCL Infosystems Ltd 542 Cr. 16.526.7/13.6 8.530.00 %28.0 %% 2.00
Industry Average1,416.11 Cr546.7074.1267.740.26%14.80%17.64%6.50

All Competitor Stocks of Ducon Infratechnologies Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales102.09100.515.1428.0830.1761.4864.3577.3988.7381.9665.5778.7989.12
Expenses98.0898.575.8425.2726.3856.5460.7673.5482.3080.5862.5674.8582.90
Operating Profit4.011.94-0.702.813.794.943.593.856.431.383.013.946.22
OPM %3.93%1.93%-13.62%10.01%12.56%8.04%5.58%4.97%7.25%1.68%4.59%5.00%6.98%
Other Income0.000.000.000.000.000.000.000.000.000.000.000.000.00
Interest2.842.801.822.512.262.942.542.773.281.292.292.942.00
Depreciation0.13-0.120.060.000.030.000.020.010.010.030.020.020.04
Profit before tax1.04-0.74-2.580.301.502.001.031.073.140.060.700.984.18
Tax %25.00%20.27%0.00%-6.67%-0.67%20.50%25.24%28.04%28.03%-16.67%28.57%31.63%27.99%
Net Profit0.78-0.59-2.580.311.511.580.770.772.260.070.510.673.01
EPS in Rs0.07-0.03-0.130.020.070.070.030.030.090.000.020.030.12

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
Sales2432323633398415394381342124312315
Expenses2230303430383405376369329114297301
Operating Profit222221510181213101515
OPM %7%6%6%5%7%4%3%5%3%4%8%5%5%
Other Income0000011111010
Interest111117710111210109
Depreciation1111111100000
Profit before tax0000084811156
Tax %25%33%41%50%16%40%34%23%23%22%31%27%
Net Profit0000052610144
EPS in Rs0.020.020.010.010.050.530.270.550.070.020.040.150.17
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2017-20182018-20192019-20202020-20212022-2023
YoY Net Profit Growth (%)-60.00%200.00%-83.33%-100.00%300.00%
Change in YoY Net Profit Growth (%)0.00%260.00%-283.33%-16.67%400.00%

Ducon Infratechnologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 5 years from 2017-2018 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:26%
5 Years:-4%
3 Years:-3%
TTM:-6%
Compounded Profit Growth
10 Years:48%
5 Years:-4%
3 Years:129%
TTM:73%
Stock Price CAGR
10 Years:10%
5 Years:12%
3 Years:0%
1 Year:-1%
Return on Equity
10 Years:3%
5 Years:2%
3 Years:3%
Last Year:4%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital688888101018212626
Reserves1818181862646869981119388
Borrowings77778393109123658295103
Other Liabilities25528892847494655465
Total Liabilities33373835241257272276275279267282
Fixed Assets443332110000
CWIP000000000000
Investments555555555555
Other Assets24293027234250266270270274262277
Total Assets33373835241257272276275279267282

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3-122-9-8-64-549112
Cash from Investing Activity +-1-1-1-111-0-0-0-0-0-0
Cash from Financing Activity +-11-1-11975-954-9-0-12
Net Cash Flow1-10-0110-1-6-0-000

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow2.00-5.00-5.00-5.00-5.00-68.00-83.00-91.00-111.00-52.00-72.00-80.00

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 Days82130143133183190217240266742278292
Inventory Days6174445555500000
Days Payable1548476555756
Cash Conversion Cycle128157140182133138166240266742278292
Working Capital Days123153137175132137164182211631230232
ROCE %4%4%4%4%16%7%10%6%7%5%7%8%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters70.23%70.23%74.09%74.09%62.55%60.24%60.24%60.24%59.66%51.97%51.97%51.97%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.02%0.02%0.01%0.04%
Public29.77%29.77%25.91%25.91%37.45%39.76%39.75%39.76%40.31%48.01%48.03%47.99%
No. of Shareholders22,16731,18138,94340,54742,00546,53546,34446,37749,57452,60353,31766,499

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 21
FaceValue1.001.001.001.00
Basic EPS (Rs.)0.290.160.240.02
Diluted EPS (Rs.)0.290.160.190.01
Cash EPS (Rs.)0.340.200.270.03
Book Value[Excl.RevalReserv]/Share (Rs.)4.634.717.308.25
Book Value[Incl.RevalReserv]/Share (Rs.)4.634.717.308.25
Revenue From Operations / Share (Rs.)16.1115.2218.6919.35
PBDIT / Share (Rs.)0.840.640.820.74
PBIT / Share (Rs.)0.790.590.760.72
PBT / Share (Rs.)0.410.210.300.03
Net Profit / Share (Rs.)0.290.150.210.02
NP After MI And SOA / Share (Rs.)0.290.150.210.02
PBDIT Margin (%)5.244.224.403.84
PBIT Margin (%)4.953.924.113.76
PBT Margin (%)2.571.421.630.15
Net Profit Margin (%)1.821.031.150.12
NP After MI And SOA Margin (%)1.821.031.150.12
Return on Networth / Equity (%)6.333.342.950.28
Return on Capital Employeed (%)15.4011.1710.018.38
Return On Assets (%)2.611.481.470.15
Long Term Debt / Equity (X)0.050.070.000.00
Total Debt / Equity (X)0.850.770.540.44
Asset Turnover Ratio (%)1.481.370.440.00
Current Ratio (X)1.741.881.972.15
Quick Ratio (X)1.741.881.972.15
Interest Coverage Ratio (X)2.211.691.781.06
Interest Coverage Ratio (Post Tax) (X)1.771.411.461.03
Enterprise Value (Cr.)277.76229.61517.37165.13
EV / Net Operating Revenue (X)0.660.581.350.48
EV / EBITDA (X)12.6413.7430.5212.57
MarketCap / Net Operating Revenue (X)0.440.361.150.31
Price / BV (X)1.541.192.950.73
Price / Net Operating Revenue (X)0.440.361.150.31
EarningsYield0.040.020.010.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ducon Infratechnologies Ltd as of November 17, 2024 is: 9.43

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 17, 2024, Ducon Infratechnologies Ltd is Undervalued by 14.30% compared to the current share price 8.25

Intrinsic Value of Ducon Infratechnologies Ltd as of November 17, 2024 is: 11.26

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 17, 2024, Ducon Infratechnologies Ltd is Undervalued by 36.48% compared to the current share price 8.25

Last 5 Year EPS CAGR: 19.42%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock is trading at a low valuation with an average P/B ratio of 0.72 and average Dividend Yield of 4.19%.
  2. The company has shown consistent growth in sales (218.31 cr) and profit (2.62 cr) over the years.
  1. The stock has a low average ROCE of 6.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 208.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 238.50, which may not be favorable.
  4. The company has higher borrowings (65.08) compared to reserves (60.42), 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 Ducon Infratechnologies Ltd:
    1. Net Profit Margin: 1.82%
      • 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: 15.4% (Industry Average ROCE: 14.8%)
      • 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%: 6.33% (Industry Average ROE: 16.17%)
      • 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): 1.77
      • 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: 1.74
      • 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: 44.2 (Industry average Stock P/E: 37.06)
      • 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: 0.85
      • 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

Ducon Infratechnologies Ltd. is a Public Limited Listed company incorporated on 02/04/2009 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72900MH2009PLC191412 and registration number is 191412. Currently Company is involved in the business activities of Installation of industrial machinery and equipment. Company’s Total Operating Revenue is Rs. 124.48 Cr. and Equity Capital is Rs. 20.57 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Networking EquipmentDucon House, Plot No. A/4, Thane Maharashtra 400604cs@duconinfra.co.in
http://www.duconinfra.co.in
Management
NamePosition Held
Mr. Arun GovilManaging Director
Mr. Harish ShettyExecutive Director & CFO
Mr. Chandrasekhar GanesanExecutive Director
Mr. Ratna JhaveriIndependent Director
Mr. Prakash VaghelaIndependent Director
Mr. Jinesh ShahIndependent Director
Ms. Apeksha AgiwalIndependent Director
Mr. Maruti DeoreNon Independent Director

FAQ

What is the latest intrinsic value of Ducon Infratechnologies Ltd?

The latest intrinsic value of Ducon Infratechnologies Ltd as on 17 November 2024 is ₹9.43, which is 14.30% higher than the current market price of ₹8.25.

What is the Market Cap of Ducon Infratechnologies Ltd?

The Market Cap of Ducon Infratechnologies Ltd is 268 Cr..

What is the current Stock Price of Ducon Infratechnologies Ltd as on 17 November 2024?

The current stock price of Ducon Infratechnologies Ltd as on 17 November 2024 is ₹8.25.

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

In FY 2024, the High / Low of Ducon Infratechnologies Ltd stocks is 11.9/6.04.

What is the Stock P/E of Ducon Infratechnologies Ltd?

The Stock P/E of Ducon Infratechnologies Ltd is 44.2.

What is the Book Value of Ducon Infratechnologies Ltd?

The Book Value of Ducon Infratechnologies Ltd is 4.83.

What is the Dividend Yield of Ducon Infratechnologies Ltd?

The Dividend Yield of Ducon Infratechnologies Ltd is 0.00 %.

What is the ROCE of Ducon Infratechnologies Ltd?

The ROCE of Ducon Infratechnologies Ltd is 7.80 %.

What is the ROE of Ducon Infratechnologies Ltd?

The ROE of Ducon Infratechnologies Ltd is 4.33 %.

What is the Face Value of Ducon Infratechnologies Ltd?

The Face Value of Ducon Infratechnologies Ltd is 1.00.

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 Ducon Infratechnologies 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