EL Forge Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:02 am

Market Cap	76.6 Cr.
Current Price	37.7
High / Low	44.4/9.24
Stock P/E	31.0
Book Value	11.6
Dividend Yield	0.00 %
ROCE	%
ROE	%
Face Value	10.0
PEG Ratio	0.29

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
Happy Forgings Ltd	9,521 Cr.	1,011	1,300/813	36.8	182	0.40 %	22.7 %	18.7 %	2.00
EL Forge Ltd	76.6 Cr.	37.7	44.4/9.24	31.0	11.6	0.00 %	%	%	10.0
CIE Automotive India Ltd	17,483 Cr.	461	628/401	21.4	163	1.08 %	18.3 %	20.3 %	10.0
Amforge Industries Ltd	15.6 Cr.	10.9	15.5/9.07		8.93	0.00 %	3.55 %	3.17 %	2.00
Tirupati Forge Ltd	711 Cr.	68.6	72.9/13.2	77.2	5.32	0.00 %	18.3 %	15.0 %	2.00
Industry Average	12,024.67 Cr	362.71		147.75	126.71	0.26%	11.50%	13.42%	5.86

All Competitor Stocks of

Quarterly Result

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Sales	10.42	9.25	11.26	12.48	12.82	14.92	18.24	18.23	17.71	15.05	17.33	17.02	20.53
Expenses	10.45	9.06	10.51	11.97	12.40	14.10	16.13	16.64	16.52	14.05	16.13	16.01	19.51
Operating Profit	-0.03	0.19	0.75	0.51	0.42	0.82	2.11	1.59	1.19	1.00	1.20	1.01	1.02
OPM %	-0.29%	2.05%	6.66%	4.09%	3.28%	5.50%	11.57%	8.72%	6.72%	6.64%	6.92%	5.93%	4.97%
Other Income	1.70	0.08	-0.21	0.01	0.02	-0.19	-0.72	-0.53	-0.22	-0.14	69.36	0.04	0.26
Interest	0.12	0.11	0.09	0.10	0.10	0.10	0.09	0.12	0.12	0.12	0.12	0.12	0.12
Depreciation	1.53	1.53	1.58	1.21	1.21	1.21	1.27	0.46	0.46	0.46	0.47	0.47	0.43
Profit before tax	0.02	-1.37	-1.13	-0.79	-0.87	-0.68	0.03	0.48	0.39	0.28	69.97	0.46	0.73
Tax %	0.00%	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 Profit	0.02	-1.37	-1.12	-0.79	-0.87	-0.67	0.03	0.48	0.40	0.28	69.96	0.46	0.73
EPS in Rs	0.01	-0.67	-0.55	-0.39	-0.43	-0.33	0.01	0.24	0.20	0.14	34.42	0.23	0.36

Last Updated: November 6, 2024, 6:50 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Month	Jun 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	75	66	54	39	33	42	50	33	27	40	58	68	67
Expenses	88	64	60	43	35	45	49	35	38	39	55	63	63
Operating Profit	-13	3	-6	-4	-3	-3	1	-2	-11	1	4	5	4
OPM %	-17%	4%	-11%	-10%	-9%	-6%	2%	-7%	-39%	3%	7%	7%	7%
Other Income	1	-5	-1	-1	-2	1	30	10	15	2	-1	68	69
Interest	14	2	1	1	3	3	1	0	0	0	0	0	0
Depreciation	8	7	10	10	8	7	7	7	6	6	5	2	2
Profit before tax	-34	-11	-18	-16	-16	-12	23	1	-2	-4	-2	71	71
Tax %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%
Net Profit	-34	-11	-18	-16	-16	-12	23	1	-2	-4	-2	71	71
EPS in Rs	-16.64	-5.59	-8.74	-7.91	-7.86	-5.72	11.44	0.30	-1.12	-1.95	-1.14	34.99	34.99
Dividend Payout %	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
YoY Net Profit Growth (%)	-63.64%	11.11%	0.00%	25.00%	291.67%	-95.65%	-300.00%	-100.00%	50.00%	3650.00%
Change in YoY Net Profit Growth (%)	0.00%	74.75%	-11.11%	25.00%	266.67%	-387.32%	-204.35%	200.00%	150.00%	3600.00%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:	0%
5 Years:	7%
3 Years:	36%
TTM:	1%

Compounded Profit Growth
10 Years:	10%
5 Years:	20%
3 Years:	30%
TTM:	19%

Stock Price CAGR
10 Years:	19%
5 Years:	%
3 Years:	%
1 Year:	288%

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

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 4:34 pm

Month	Jun 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	20	20	20	20	20	20	20	20	20	20	20	20	20
Reserves	-25	-37	-55	-71	-85	-96	-73	-73	-75	-79	-81	2	3
Borrowings	146	150	154	152	140	133	42	22	12	12	12	0	0
Other Liabilities	51	47	39	41	44	36	94	92	83	83	86	15	16
Total Liabilities	192	181	158	143	120	93	84	61	40	37	37	38	39
Fixed Assets	104	100	90	78	56	47	41	35	32	27	23	22	21
CWIP	3	3	3	3	3	3	3	3	0	0	0	0	0
Investments	5	4	4	4	4	4	4	4	0	0	0	0	0
Other Assets	81	74	62	58	57	39	36	20	8	10	14	16	18
Total Assets	192	181	158	143	120	93	84	61	40	37	37	38	39

Reserves and Borrowings Chart

Cash Flow

Month	Jun 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	17	-5	-21	6	15	-11	36	21	6	0	3	2
Cash from Investing Activity +	0	11	2	0	3	2	-1	-0	-0	1	-2	-0
Cash from Financing Activity +	-19	-7	19	-7	-18	10	-35	-21	-5	-0	-0	-0
Net Cash Flow	-1	-0	-0	-0	0	0	0	-0	1	1	1	1

Free Cash Flow

Month	Jun 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-159.00	-147.00	-160.00	-156.00	-143.00	-136.00	-41.00	-24.00	-23.00	-11.00	-8.00	5.00

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

Month	Jun 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	114	131	102	124	171	39	34	36	18	18	24	29
Inventory Days	218	271	277	304	357	214	190	277	91	72	48	36
Days Payable	312	340	311	392	585	355	1,050	1,647	80	41	87	80
Cash Conversion Cycle	20	61	67	35	-57	-103	-825	-1,333	29	49	-15	-15
Working Capital Days	-75	-112	-40	-147	-85	21	-437	-814	-13	2	-1	3
ROCE %	-13%	-2%	-12%	-9%	-12%	-14%	-25%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	40.71%	40.71%	40.71%	40.71%	40.71%	40.71%	40.71%	40.71%	40.81%	40.81%	40.81%	40.81%
DIIs	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Public	59.28%	59.28%	59.28%	59.28%	59.28%	59.28%	59.28%	59.28%	59.18%	59.17%	59.16%	59.17%
No. of Shareholders	9,533	9,531	9,534	9,529	9,529	9,539	9,559	9,450	9,461	9,529	9,592	10,174

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 15	Mar 14	Jun 13	Jun 12	Jun 11
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	-8.62	-5.22	-16.77	-3.17	-11.28
Diluted EPS (Rs.)	-8.62	-5.22	-16.77	-3.17	-11.28
Cash EPS (Rs.)	-3.95	-1.36	-12.44	1.50	0.10
Book Value[Excl.RevalReserv]/Share (Rs.)	-17.06	-6.57	-1.39	15.63	18.55
Book Value[Incl.RevalReserv]/Share (Rs.)	-17.06	-5.86	-0.64	16.45	20.62
Revenue From Operations / Share (Rs.)	26.44	44.74	51.15	52.45	142.29
PBDIT / Share (Rs.)	-2.27	-0.06	-5.17	8.05	9.89
PBIT / Share (Rs.)	-7.06	-3.93	-9.50	3.61	-1.80
PBT / Share (Rs.)	-8.74	-5.22	-16.77	-2.56	-11.58
Net Profit / Share (Rs.)	-8.74	-5.22	-16.77	-2.93	-11.58
NP After MI And SOA / Share (Rs.)	-8.62	-5.22	-16.77	-2.93	-11.58
PBDIT Margin (%)	-8.58	-0.15	-10.09	15.34	6.94
PBIT Margin (%)	-26.70	-8.78	-18.58	6.88	-1.26
PBT Margin (%)	-33.06	-11.66	-32.79	-4.87	-8.13
Net Profit Margin (%)	-33.06	-11.66	-32.79	-5.59	-8.13
NP After MI And SOA Margin (%)	-32.61	-11.66	-32.79	-5.59	-8.13
Return on Networth / Equity (%)	0.00	0.00	0.00	-18.77	-62.44
Return on Capital Employeed (%)	-56.40	-12.76	-25.28	5.81	-1.20
Return On Assets (%)	-10.50	-5.49	-16.79	-2.68	-4.88
Long Term Debt / Equity (X)	-1.38	-4.67	-23.19	2.54	6.62
Total Debt / Equity (X)	-2.78	-8.84	-40.20	3.87	8.79
Asset Turnover Ratio (%)	0.29	0.34	0.36	0.39	0.00
Current Ratio (X)	0.38	0.45	0.51	0.78	0.68
Quick Ratio (X)	0.29	0.23	0.27	0.41	0.42
Inventory Turnover Ratio (X)	1.42	1.17	1.42	2.13	0.00
Interest Coverage Ratio (X)	-2.00	-0.05	-0.71	1.29	0.98
Interest Coverage Ratio (Post Tax) (X)	-6.23	-3.05	-1.31	0.51	-0.17
Enterprise Value (Cr.)	116.92	0.00	0.00	0.00	0.00
EV / Net Operating Revenue (X)	2.18	0.00	0.00	0.00	0.00
EV / EBITDA (X)	-25.35	0.00	0.00	0.00	0.00
MarketCap / Net Operating Revenue (X)	0.16	0.00	0.00	0.00	0.00
Price / BV (X)	-0.25	0.00	0.00	0.00	0.00
Price / Net Operating Revenue (X)	0.16	0.00	0.00	0.00	0.00
EarningsYield	-1.95	0.00	0.00	0.00	0.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 55.02

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 22, 2024, is Undervalued by 45.94% compared to the current share price 37.70

Default values used*: Default value of 15% for ROE is used

Intrinsic Value of as of December 22, 2024 is: 113.35

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 22, 2024, is Undervalued by 200.66% compared to the current share price 37.70

Default values used*: Default value of 15% for ROE is used

Last 5 Year EPS CAGR: 106.01%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The stock has a low average Working Capital Days of -141.50, which is a positive sign. The stock has a low average Cash Conversion Cycle of -62.92, which is a positive sign. The company has shown consistent growth in sales (50.15 cr) and profit (3.92 cr) over the years.	The stock has a low average ROCE of -7.25%, which may not be favorable. The company has higher borrowings (75.00) compared to reserves (-57.31), which may suggest financial risk.

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 :
1. Net Profit Margin: -33.06%
  - 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: -56.4% (Industry Average ROCE: 11.5%)
  - 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%: 0% (Industry Average ROE: 13.42%)
  - 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): -6.23
  - 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: 0.29
  - 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: 31 (Industry average Stock P/E: 147.75)
  - 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: -2.78
  - 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

EL Forge Ltd. is a Public Limited Listed company incorporated on 18/07/1934 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L34103TN1934PLC000669 and registration number is 000669. Currently company belongs to the Industry of Forgings. Company’s Total Operating Revenue is Rs. 40.34 Cr. and Equity Capital is Rs. 20.32 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Forgings	1A, Sriperumbudur High Road, (via) Singaperumal Koil, Kancheepuram Dist. Tamil Nadu 603204	edf@elforge.com www.elforge.com

Management
Name	Position Held
Mr. V Srikanth	Chairman
Mr. K V Ramachandran	Vice Chairman & Mng.Director
Mrs. Shubha Ganesh	Independent Director
Mr. S Balakrishnan	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹55.02, which is 45.94% higher than the current market price of ₹37.70. The stock has a market capitalization of 76.6 Cr. and recorded a high/low of 44.4/9.24 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3 Cr and total liabilities of ₹39 Cr.

What is the Market Cap of ?

The Market Cap of is 76.6 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 37.7.

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

In FY 2024-2025, the High / Low of stocks is 44.4/9.24.

What is the Stock P/E of ?

The Stock P/E of is 31.0.

What is the Book Value of ?

The Book Value of is 11.6.

What is the Dividend Yield of ?

The Dividend Yield of is 0.00 %.

What is the ROCE of ?

The ROCE of is %.

What is the ROE of ?

The ROE of is %.

What is the Face Value of ?

The Face Value of is 10.0.