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Last Updated on: 10 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

E2E Networks Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 9, 2024, 10:59 pm

Market Cap 7,121 Cr.
Current Price 4,217
High / Low5,488/607
Stock P/E227
Book Value 289
Dividend Yield0.00 %
ROCE25.0 %
ROE36.4 %
Face Value 10.0
PEG Ratio2.79

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

View Share Price Target for E2E Networks Ltd

Competitors of E2E Networks Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Computer Point Ltd 20.8 Cr. 6.9511.6/3.70 11.10.00 %0.03 %0.03 % 10.0
ACI Infocom Ltd 32.3 Cr. 2.923.67/1.31 1.480.00 %1.07 %0.53 % 1.00
TVS Electronics Ltd 688 Cr. 366490/235 50.50.27 %0.73 %0.08 % 10.0
Panache Digilife Ltd 377 Cr. 248248/64.472.3 40.80.00 %12.8 %13.2 % 10.0
HCL Infosystems Ltd 557 Cr. 17.026.7/13.6 8.530.00 %28.0 %% 2.00
Industry Average1,438.78 Cr547.3570.9568.920.23%14.73%17.51%6.50

All Competitor Stocks of E2E Networks Ltd

Quarterly Result

MonthMar 2018Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales9.0410.1111.3912.6313.6814.1615.1916.5216.9117.5919.4621.6523.95
Expenses5.336.526.827.366.947.817.888.248.468.579.1710.4712.71
Operating Profit3.713.594.575.276.746.357.318.288.459.0210.2911.1811.24
OPM %41.04%35.51%40.12%41.73%49.27%44.84%48.12%50.12%49.97%51.28%52.88%51.64%46.93%
Other Income0.050.150.080.130.030.120.090.110.170.390.360.400.63
Interest-0.050.110.080.010.040.050.070.110.140.150.200.360.81
Depreciation2.914.453.054.155.085.553.844.725.556.001.922.533.64
Profit before tax0.90-0.821.521.241.650.873.493.562.933.268.538.697.42
Tax %44.44%0.00%0.00%0.00%0.00%-134.48%26.65%26.12%24.91%22.09%18.29%33.37%24.80%
Net Profit0.50-0.821.521.251.642.042.552.632.192.536.975.795.58
EPS in Rs0.43-0.571.050.861.131.411.761.821.511.754.824.003.85

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2010Mar 2011Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales0110212936342535526676
Expenses01581318232625293337
Operating Profit0-0513171811-110233339
OPM %0%-2%47%61%57%50%32%-5%29%44%50%52%
Other Income000000021011
Interest000110000001
Depreciation0039101091012182016
Profit before tax-0-013682-9-151323
Tax %0%0%34%33%31%29%29%-0%0%-22%25%
Net Profit-0-012462-9-161017
EPS in Rs-10.00-0.4031.2382.13165.375.011.21-6.54-0.864.466.8512.08
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)100.00%100.00%50.00%-66.67%-550.00%88.89%700.00%66.67%
Change in YoY Net Profit Growth (%)0.00%0.00%-50.00%-116.67%-483.33%638.89%611.11%-633.33%

E2E Networks Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2015-2016 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:%
5 Years:23%
3 Years:39%
TTM:88%
Compounded Profit Growth
10 Years:%
5 Years:69%
3 Years:153%
TTM:80%
Stock Price CAGR
10 Years:%
5 Years:195%
3 Years:317%
1 Year:590%
Return on Equity
10 Years:%
5 Years:13%
3 Years:28%
Last Year:36%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:35 am

MonthMar 2010Mar 2011Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.010.250.270.270.271214141414141417
Reserves-0046116191013243556471
Borrowings00252000426144181
Other Liabilities00124444571340100
Total Liabilities0181318213828374868255768
Fixed Assets0071111101110263742210296
CWIP0000000000000
Investments00000418000000
Other Assets00137791910112645472
Total Assets0181318213828374868255768

Reserves and Borrowings Chart

Cash Flow

MonthMar 2010Mar 2011Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +00513141410-213263643
Cash from Investing Activity +00-8-13-10-12-2411-19-19-21-144
Cash from Financing Activity +0040-2-21502-2-292
Net Cash Flow00002019-4512-9

Free Cash Flow

MonthMar 2010Mar 2011Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow0.000.003.008.0015.0018.0011.00-1.006.0021.0027.00

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 2010Mar 2011Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days7391219192891041310
Inventory Days0000000000
Days Payable
Cash Conversion Cycle7391219192891041310
Working Capital Days-1,0950-27-3934630-15-25-39-6
ROCE %-5%44%54%54%9%-37%-5%15%29%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2020Mar 2021Sep 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters58.69%58.51%59.71%59.71%59.71%59.71%59.71%59.71%59.71%59.71%59.71%59.71%
FIIs0.00%0.00%0.00%0.00%0.00%1.66%1.66%1.66%1.66%1.68%1.68%1.67%
DIIs14.28%14.23%16.67%33.34%16.67%15.01%15.01%15.01%12.99%5.99%6.09%5.75%
Public27.02%27.25%22.91%45.82%22.91%22.91%23.06%23.15%25.19%32.20%32.22%32.65%
Others0.00%0.00%0.72%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
No. of Shareholders3263463176367411,3141,4851,6822,2574,9305,9608,153

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.)15.116.854.46-0.79-6.54
Diluted EPS (Rs.)14.706.774.46-0.79-6.54
Cash EPS (Rs.)25.9820.7416.777.810.55
Book Value[Excl.RevalReserv]/Share (Rs.)48.9534.1326.5716.3617.06
Book Value[Incl.RevalReserv]/Share (Rs.)48.9534.1326.5716.3617.06
Revenue From Operations / Share (Rs.)65.2645.7335.8424.4717.56
PBDIT / Share (Rs.)34.2523.3616.098.200.70
PBIT / Share (Rs.)23.379.473.78-0.39-6.39
PBT / Share (Rs.)20.879.143.65-0.78-6.52
Net Profit / Share (Rs.)15.116.854.46-0.78-6.54
PBDIT Margin (%)52.4751.0844.9133.524.02
PBIT Margin (%)35.8020.7110.54-1.61-36.38
PBT Margin (%)31.9819.9910.19-3.20-37.11
Net Profit Margin (%)23.1414.9612.43-3.20-37.27
Return on Networth / Equity (%)30.8620.0616.77-4.79-38.36
Return on Capital Employeed (%)17.0725.2313.31-2.34-36.33
Return On Assets (%)8.5614.4813.43-3.44-33.02
Long Term Debt / Equity (X)1.250.000.010.000.00
Total Debt / Equity (X)1.450.010.020.160.00
Asset Turnover Ratio (%)0.581.141.281.150.75
Current Ratio (X)0.671.861.361.195.52
Quick Ratio (X)0.671.861.361.195.52
Interest Coverage Ratio (X)13.7271.26125.2621.135.53
Interest Coverage Ratio (Post Tax) (X)7.0521.8835.68-1.02-50.29
Enterprise Value (Cr.)1391.76234.88167.8554.897.16
EV / Net Operating Revenue (X)14.733.553.241.550.28
EV / EBITDA (X)28.076.947.204.647.10
MarketCap / Net Operating Revenue (X)13.743.863.351.590.78
Price / BV (X)18.325.184.522.380.80
Price / Net Operating Revenue (X)13.743.863.351.590.78
EarningsYield0.010.030.03-0.02-0.47

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of E2E Networks Ltd as of December 10, 2024 is: 24,357.08

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 10, 2024, E2E Networks Ltd is Undervalued by 477.59% compared to the current share price 4,217.00

Intrinsic Value of E2E Networks Ltd as of December 10, 2024 is: 44,173.83

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 10, 2024, E2E Networks Ltd is Undervalued by 947.52% compared to the current share price 4,217.00

Last 5 Year EPS CAGR: 81.36%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 15.25%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -9.08, which is a positive sign.
  3. The company has higher reserves (50.38 cr) compared to borrowings (26.62 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (32.08 cr) and profit (4.25 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 22.42, 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 E2E Networks Ltd:
    1. Net Profit Margin: 23.14%
      • 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: 17.07% (Industry Average ROCE: 14.73%)
      • 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%: 30.86% (Industry Average ROE: 17.51%)
      • 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): 7.05
      • 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: 0.67
      • 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: 227 (Industry average Stock P/E: 70.95)
      • 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: 1.45
      • 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

E2E Networks Ltd. is a Public Limited Listed company incorporated on 20/08/2009 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L72900DL2009PLC341980 and registration number is 039406. Currently Company is involved in the business activities of Data processing, hosting and related activities; web portals. Company’s Total Operating Revenue is Rs. 51.87 Cr. and Equity Capital is Rs. 14.48 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Networking EquipmentAwfis, 1st Floor, A-24/9, New Delhi Delhi 110044investors@e2enetworks.com
http://www.e2enetworks.com
Management
NamePosition Held
Mr. Tarun DuaManaging Director
Mrs. Srishti BawejaWhole Time Director
Mr. Aditya BhushanIndependent Director
Mr. Gaurav MunjalIndependent Director
Mr. Varun Pratap RajdaIndependent Director
Mr. Naman K SarawagiIndependent Director

FAQ

What is the latest intrinsic value of E2E Networks Ltd?

The latest intrinsic value of E2E Networks Ltd as on 09 December 2024 is ₹24357.08, which is 477.59% higher than the current market price of ₹4,217.00. The stock has a market capitalization of 7,121 Cr. and recorded a high/low of ₹5,488/607 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹471 Cr and total liabilities of ₹768 Cr.

What is the Market Cap of E2E Networks Ltd?

The Market Cap of E2E Networks Ltd is 7,121 Cr..

What is the current Stock Price of E2E Networks Ltd as on 09 December 2024?

The current stock price of E2E Networks Ltd as on 09 December 2024 is 4,217.

What is the High / Low of E2E Networks Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of E2E Networks Ltd stocks is 5,488/607.

What is the Stock P/E of E2E Networks Ltd?

The Stock P/E of E2E Networks Ltd is 227.

What is the Book Value of E2E Networks Ltd?

The Book Value of E2E Networks Ltd is 289.

What is the Dividend Yield of E2E Networks Ltd?

The Dividend Yield of E2E Networks Ltd is 0.00 %.

What is the ROCE of E2E Networks Ltd?

The ROCE of E2E Networks Ltd is 25.0 %.

What is the ROE of E2E Networks Ltd?

The ROE of E2E Networks Ltd is 36.4 %.

What is the Face Value of E2E Networks Ltd?

The Face Value of E2E Networks 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 E2E Networks 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