Earthstahl & Alloys Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 17, 2024, 8:29 pm

Market Cap	51.4 Cr.
Current Price	42.0
High / Low	66.0/0.00
Stock P/E	34.0
Book Value	30.7
Dividend Yield	0.00 %
ROCE	8.22 %
ROE	5.21 %
Face Value	10.0
PEG Ratio	1.15

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Earthstahl & Alloys Ltd

Competitors of Earthstahl & Alloys Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Mukat Pipes Ltd	24.2 Cr.	20.4	26.0/9.54	173	5.76	0.00 %	%	%	5.00
Hariom Pipe Industries Ltd	1,753 Cr.	565	889/440	29.3	178	0.11 %	14.6 %	13.5 %	10.0
Earthstahl & Alloys Ltd	51.4 Cr.	42.0	66.0/0.00	34.0	30.7	0.00 %	8.22 %	5.21 %	10.0
Crimson Metal Engineering Company Ltd	4.57 Cr.	10.3	10.3/9.38		12.5	0.00 %	7.27 %	21.7 %	10.0
Welspun Corp Ltd	20,664 Cr.	788	824/440	18.8	230	0.63 %	20.2 %	19.8 %	5.00
Industry Average	9,803.23 Cr	611.43		50.85	145.94	0.33%	16.71%	14.57%	4.69

All Competitor Stocks of Earthstahl & Alloys Ltd

Quarterly Result

Month	Sep 2022	Mar 2023	Sep 2023	Mar 2024
Sales	48.16	43.65	45.70	42.24
Expenses	39.07	40.33	43.22	39.51
Operating Profit	9.09	3.32	2.48	2.73
OPM %	18.87%	7.61%	5.43%	6.46%
Other Income	0.09	0.29	0.48	0.50
Interest	0.54	0.52	0.49	0.44
Depreciation	0.87	1.24	1.03	1.13
Profit before tax	7.77	1.85	1.44	1.66
Tax %	25.87%	5.41%	27.08%	50.00%
Net Profit	5.76	1.75	1.06	0.83
EPS in Rs	19.20	1.43	0.87	0.68

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Sales	1.87	39.05	31.65	24.12	48.88	91.81	87.94
Expenses	2.58	40.93	29.04	17.95	35.43	79.40	82.73
Operating Profit	-0.71	-1.88	2.61	6.17	13.45	12.41	5.21
OPM %	-37.97%	-4.81%	8.25%	25.58%	27.52%	13.52%	5.92%
Other Income	1.17	0.27	0.16	0.46	0.20	0.38	0.98
Interest	0.09	1.58	1.75	1.75	1.20	1.06	0.93
Depreciation	1.64	1.35	1.38	1.45	1.51	2.10	2.15
Profit before tax	-1.27	-4.54	-0.36	3.43	10.94	9.63	3.11
Tax %	0.00%	0.00%	-5.56%	21.87%	31.44%	22.01%	39.23%
Net Profit	-1.27	-4.54	-0.33	2.67	7.49	7.51	1.89
EPS in Rs	-4.23	-15.13	-1.10	8.90	24.97	6.14	1.54
Dividend Payout %	0.00%	0.00%	0.00%	0.00%	0.00%	8.15%	0.00%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-257.48%	92.73%	909.09%	180.52%	0.27%	-74.83%
Change in YoY Net Profit Growth (%)	0.00%	350.21%	816.36%	-728.57%	-180.26%	-75.10%

Earthstahl & Alloys Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 6 years from 2018-2019 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	%
5 Years:	18%
3 Years:	54%
TTM:	-12%

Compounded Profit Growth
10 Years:	%
5 Years:	19%
3 Years:	-11%
TTM:	-46%

Stock Price CAGR
10 Years:	%
5 Years:	%
3 Years:	%
1 Year:	-17%

Return on Equity
10 Years:	%
5 Years:	23%
3 Years:	23%
Last Year:	5%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 1:48 pm

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	3.00	3.00	3.00	3.00	3.00	12.24	12.24	12.24
Reserves	3.66	-0.88	2.00	4.68	12.17	23.40	24.68	25.35
Borrowings	15.25	14.99	17.34	13.97	14.00	12.73	12.97	17.29
Other Liabilities	2.07	5.78	7.56	6.52	6.75	9.34	10.44	9.65
Total Liabilities	23.98	22.89	29.90	28.17	35.92	57.71	60.33	64.53
Fixed Assets	17.53	17.07	16.25	15.84	15.95	24.16	22.97	22.38
CWIP	0.00	0.14	0.20	0.24	5.21	1.56	11.91	15.00
Investments	0.00	0.02	0.15	0.15	0.15	0.15	0.15	0.01
Other Assets	6.45	5.66	13.30	11.94	14.61	31.84	25.30	27.14
Total Assets	23.98	22.89	29.90	28.17	35.92	57.71	60.33	64.53

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	1.43	6.81	6.59	8.68	7.82
Cash from Investing Activity +	-1.50	-1.04	-5.95	-12.32	-12.62
Cash from Financing Activity +	0.06	-5.11	-1.17	10.63	-1.29
Net Cash Flow	-0.01	0.66	-0.53	6.98	-6.09

Free Cash Flow

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-15.96	-16.87	-14.73	-7.80	-0.55	-0.32	-7.76

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

Month	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	66.36	8.79	7.84	12.71	4.18	13.87	6.68
Inventory Days	1,223.82	35.47	198.07	207.27	285.34	102.86	101.48
Days Payable	652.71	45.75	131.38	132.68	107.60	54.58	62.30
Cash Conversion Cycle	637.48	-1.50	74.53	87.31	181.93	62.16	45.86
Working Capital Days	343.53	-32.34	-4.15	-13.92	45.25	30.57	19.59
ROCE %		-15.17%	7.05%	23.51%	47.46%	27.57%	8.22%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Mar 2023	Sep 2023	Mar 2024
Promoters	73.53%	73.53%	73.53%
FIIs	0.00%	0.00%	0.88%
Public	26.47%	26.48%	25.58%
No. of Shareholders	438	510	531

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	1.55	7.94	24.97	19.57	-1.04
Diluted EPS (Rs.)	1.55	7.94	24.97	19.57	-1.04
Cash EPS (Rs.)	3.30	7.85	30.02	24.42	3.57
Book Value[Excl.RevalReserv]/Share (Rs.)	30.16	29.11	50.56	25.59	6.02
Book Value[Incl.RevalReserv]/Share (Rs.)	30.16	29.11	50.56	25.59	6.02
Dividend / Share (Rs.)	0.00	0.50	0.00	0.00	0.00
Revenue From Operations / Share (Rs.)	71.85	75.01	162.92	80.39	105.52
PBDIT / Share (Rs.)	5.05	10.45	45.49	21.91	9.39
PBIT / Share (Rs.)	3.30	8.73	40.44	17.06	4.77
PBT / Share (Rs.)	2.54	7.87	36.45	11.26	-1.04
Net Profit / Share (Rs.)	1.54	6.13	24.97	19.57	-1.04
PBDIT Margin (%)	7.03	13.92	27.92	27.25	8.89
PBIT Margin (%)	4.58	11.63	24.82	21.22	4.52
PBT Margin (%)	3.53	10.48	22.37	14.00	-0.98
Net Profit Margin (%)	2.15	8.17	15.32	24.34	-0.98
Return on Networth / Equity (%)	5.12	21.07	49.38	76.47	-17.29
Return on Capital Employeed (%)	8.73	24.56	43.86	26.02	9.57
Return On Assets (%)	3.13	13.01	20.58	20.84	-1.17
Long Term Debt / Equity (X)	0.20	0.19	0.75	1.56	7.26
Total Debt / Equity (X)	0.35	0.35	0.92	1.82	8.56
Asset Turnover Ratio (%)	1.49	1.95	1.51	0.87	1.28
Current Ratio (X)	1.03	1.62	1.32	0.73	0.61
Quick Ratio (X)	0.33	0.87	0.21	0.30	0.18
Inventory Turnover Ratio (X)	2.86	3.44	2.02	1.04	1.97
Dividend Payout Ratio (NP) (%)	32.36	0.00	0.00	0.00	0.00
Dividend Payout Ratio (CP) (%)	15.13	0.00	0.00	0.00	0.00
Earning Retention Ratio (%)	67.64	0.00	0.00	0.00	0.00
Cash Earning Retention Ratio (%)	84.87	0.00	0.00	0.00	0.00
Interest Coverage Ratio (X)	6.68	12.10	11.38	3.77	1.61
Interest Coverage Ratio (Post Tax) (X)	3.04	8.10	7.25	4.37	0.82
Enterprise Value (Cr.)	63.35	62.39	0.00	0.00	0.00
EV / Net Operating Revenue (X)	0.72	0.67	0.00	0.00	0.00
EV / EBITDA (X)	10.24	4.88	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	0.58	0.61	0.00	0.00	0.00
Retention Ratios (%)	67.63	0.00	0.00	0.00	0.00
Price / BV (X)	1.39	1.59	0.00	0.00	0.00
Price / Net Operating Revenue (X)	0.58	0.61	0.00	0.00	0.00
EarningsYield	0.03	0.13	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Earthstahl & Alloys Ltd as of December 18, 2024 is: 55.47

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 18, 2024, Earthstahl & Alloys Ltd is Undervalued by 32.07% compared to the current share price 42.00

Intrinsic Value of Earthstahl & Alloys Ltd as of December 18, 2024 is: 71.83

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 18, 2024, Earthstahl & Alloys Ltd is Undervalued by 71.02% compared to the current share price 42.00

Last 5 Year EPS CAGR: 29.49%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has shown consistent growth in sales (46.47 cr) and profit (2.99 cr) over the years.	The stock has a low average ROCE of 14.09%, which may not be favorable. The stock has a high average Working Capital Days of 55.50, which may not be favorable. The stock has a high average Cash Conversion Cycle of 155.40, which may not be favorable. The company has higher borrowings (14.82) compared to reserves (11.88), 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 Earthstahl & Alloys Ltd:
1. Net Profit Margin: 2.15%
  - 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: 8.73% (Industry Average ROCE: 14.62%)
  - 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%: 5.12% (Industry Average ROE: 12.75%)
  - 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): 3.04
  - 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: 0.33
  - 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: 34 (Industry average Stock P/E: 47.67)
  - 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: 0.35
  - 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

Earthstahl & Alloys Ltd. is a Public Limited Listed company incorporated on 09/12/2009 and has its registered office in the State of Chattisgarh, India. Company’s Corporate Identification Number(CIN) is U27310CT2009PLC021487 and registration number is 021487. Currently company belongs to the Industry of Steel - Tubes/Pipes. Company’s Total Operating Revenue is Rs. 48.88 Cr. and Equity Capital is Rs. 3.00 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Steel - Tubes/Pipes	Merlin Jayshree Vihar, Raipur Chattisgarh 492001	secretarial@earthstahl.com http://www.earthstahl.com

Management
Name	Position Held
Mr. Surendra Kumar Jain	Chairman & Ind.Director
Mr. Prawin Somani	Whole Time Director
Mr. Rajesh Somani	Whole Time Director
Mrs. Padma Somani	Whole Time Director
Mr. Ravi Thakurdasji Laddha	Non Executive Director
Mr. Vinod Kumar Arora	Independent Director

FAQ

What is the latest intrinsic value of Earthstahl & Alloys Ltd?

The latest intrinsic value of Earthstahl & Alloys Ltd as on 18 December 2024 is ₹55.47, which is 32.07% higher than the current market price of ₹42.00. The stock has a market capitalization of 51.4 Cr. and recorded a high/low of ₹66.0/0.00 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹25.35 Cr and total liabilities of ₹64.53 Cr.

What is the Market Cap of Earthstahl & Alloys Ltd?

The Market Cap of Earthstahl & Alloys Ltd is 51.4 Cr..

What is the current Stock Price of Earthstahl & Alloys Ltd as on 18 December 2024?

The current stock price of Earthstahl & Alloys Ltd as on 18 December 2024 is 42.0.

What is the High / Low of Earthstahl & Alloys Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Earthstahl & Alloys Ltd stocks is 66.0/0.00.

What is the Stock P/E of Earthstahl & Alloys Ltd?

The Stock P/E of Earthstahl & Alloys Ltd is 34.0.

What is the Book Value of Earthstahl & Alloys Ltd?

The Book Value of Earthstahl & Alloys Ltd is 30.7.

What is the Dividend Yield of Earthstahl & Alloys Ltd?

The Dividend Yield of Earthstahl & Alloys Ltd is 0.00 %.

What is the ROCE of Earthstahl & Alloys Ltd?

The ROCE of Earthstahl & Alloys Ltd is 8.22 %.

What is the ROE of Earthstahl & Alloys Ltd?

The ROE of Earthstahl & Alloys Ltd is 5.21 %.

What is the Face Value of Earthstahl & Alloys Ltd?

The Face Value of Earthstahl & Alloys Ltd is 10.0.

Share Price and Basic Stock Data

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

Competitors of Earthstahl & Alloys Ltd

Quarterly Result

Quarterly Chart

Profit & Loss - Annual Report

Profit & Loss Yearly Chart

YoY Net Profit Growth

Growth

Balance Sheet

Reserves and Borrowings Chart

Cash Flow

Free Cash Flow

Free Cash Flow Chart

Financial Efficiency Indicators

Financial Efficiency Indicators Chart

Share Holding Pattern

Shareholding Pattern Chart

No. of Shareholders

ROCE Trend

EPS Trend

Key Financial Ratios

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Strength and Weakness

Stock Analysis

About the Company - Qualitative Analysis

FAQ

What is the latest intrinsic value of Earthstahl & Alloys Ltd?

What is the Market Cap of Earthstahl & Alloys Ltd?

What is the current Stock Price of Earthstahl & Alloys Ltd as on 18 December 2024?

What is the High / Low of Earthstahl & Alloys Ltd stocks in FY 2024-2025?

What is the Stock P/E of Earthstahl & Alloys Ltd?

What is the Book Value of Earthstahl & Alloys Ltd?

What is the Dividend Yield of Earthstahl & Alloys Ltd?

What is the ROCE of Earthstahl & Alloys Ltd?

What is the ROE of Earthstahl & Alloys Ltd?

What is the Face Value of Earthstahl & Alloys Ltd?

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