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Last Updated on: 18 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500128 | NSE: ELECTCAST

Electrosteel Castings Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

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

Market Cap 8,919 Cr.
Current Price 144
High / Low237/104
Stock P/E10.2
Book Value 88.0
Dividend Yield0.97 %
ROCE16.2 %
ROE15.9 %
Face Value 1.00
PEG Ratio0.37

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

View Share Price Target for Electrosteel Castings Ltd

Competitors of Electrosteel Castings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat Intrux Ltd 161 Cr. 468647/23018.2 1793.63 %17.0 %12.3 % 10.0
Carnation Industries Ltd 4.86 Cr. 14.014.0/5.97 8.390.00 %%% 10.0
Captain Technocast Ltd 358 Cr. 351379/96.270.1 26.90.00 %19.4 %16.9 % 10.0
Nelcast Ltd 948 Cr. 109179/10530.7 61.30.37 %10.1 %8.05 % 2.00
Kirloskar Industries Ltd 4,734 Cr. 4,5476,699/3,17724.2 6,6430.29 %10.7 %5.41 % 10.0
Industry Average5,952.44 Cr1,040.3238.09808.170.64%19.43%14.17%7.00

All Competitor Stocks of Electrosteel Castings Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,2301,0971,1651,4381,5771,7671,7841,8521,8721,6851,9191,8692,004
Expenses1,0639381,0341,2491,3601,5641,6301,6641,6801,5251,6191,4631,693
Operating Profit166159131190217203154187193160300406311
OPM %14%15%11%13%14%12%9%10%10%10%16%22%16%
Other Income1916211291617153627182334
Interest64604045536269777757575352
Depreciation32282927313030303130303034
Profit before tax9087831301431277295121100231346260
Tax %25%19%20%26%21%25%26%18%26%25%24%24%13%
Net Profit687066971139553798975175263227
EPS in Rs1.561.051.532.231.901.600.891.321.501.262.944.433.82

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales2,2142,4592,4022,2042,0792,2632,6992,7113,4745,2817,2767,478
Expenses2,0162,1612,0911,9111,7912,0062,2952,3203,0384,5866,5306,300
Operating Profit1982993112932882574043914366957461,178
OPM %9%12%13%13%14%11%15%14%13%13%10%16%
Other Income952859710080-1378-1945977102
Interest126150157180210210235228208195286219
Depreciation565671676762595790115121125
Profit before tax1121201445211165-26114-56444415937
Tax %21%32%19%32%30%-2%70%25%-72%22%24%21%
Net Profit-23-15-116-2714412439161-91348316740
EPS in Rs-0.73-0.46-3.25-0.774.043.470.943.72-2.115.845.3112.44
Dividend Payout %-68%-140%-20%-65%12%9%0%8%-12%14%17%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)34.78%-673.33%76.72%633.33%-13.89%-68.55%312.82%-156.52%482.42%-9.20%134.18%
Change in YoY Net Profit Growth (%)0.00%-708.12%750.06%556.61%-647.22%-54.66%381.37%-469.34%638.94%-491.61%143.37%

Electrosteel Castings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:12%
5 Years:23%
3 Years:29%
TTM:5%
Compounded Profit Growth
10 Years:44%
5 Years:33%
3 Years:97%
TTM:109%
Stock Price CAGR
10 Years:22%
5 Years:67%
3 Years:63%
1 Year:35%
Return on Equity
10 Years:6%
5 Years:9%
3 Years:11%
Last Year:16%

Last Updated: Unknown

Balance Sheet

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

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital33343636363641434359596262
Reserves2,1932,1682,0342,4552,3492,4432,5952,8373,6674,0444,2985,0515,375
Borrowings2,4302,5712,5722,1852,0571,6971,7611,7362,1382,9672,6672,3321,924
Other Liabilities4316835751,0321,0781,2251,0259771,3051,5541,4941,6631,790
Total Liabilities5,0875,4565,2185,7085,5195,4015,4215,5937,1528,6248,5199,1089,151
Fixed Assets1,1481,1821,1541,7801,7071,6781,6331,7032,6332,7632,7312,9282,913
CWIP9931,2181,2861,2781,2101,2021,2371,1661,3371,2081,3021,2291,313
Investments982839766786590637684747202457161204143
Other Assets1,9652,2172,0121,8632,0131,8841,8681,9772,9804,1964,3244,7474,783
Total Assets5,0875,4565,2185,7085,5195,4015,4215,5937,1528,6248,5199,1089,151

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +216109443533421450-46225444-279452806
Cash from Investing Activity +-279-177-2167172-6933-20129-329168-37
Cash from Financing Activity +260-88-236-592-332-574-5-220-419609-604-720
Net Cash Flow197-155-812162-193-18-1615411749

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow196.00297.00309.00291.00286.00256.00403.00390.00434.00693.00744.00-1.00

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 Days998578898185828381655367
Inventory Days206232212225249219228278279331208221
Days Payable581199012110912194120102935453
Cash Conversion Cycle247197200192220182217242258303207234
Working Capital Days15712412715415397130131167176139146
ROCE %5%6%6%5%6%6%9%8%8%10%10%16%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters55.29%44.08%44.08%44.08%44.08%44.08%44.08%44.08%44.08%46.22%46.22%46.22%
FIIs11.34%16.36%16.69%15.23%15.13%14.69%14.93%15.33%18.18%19.70%21.16%19.73%
DIIs2.65%2.22%2.10%1.98%1.98%1.76%1.68%0.88%0.43%0.36%0.44%1.98%
Government0.00%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.24%0.23%0.23%0.23%
Public30.72%37.10%36.89%38.47%38.58%39.22%39.06%39.47%37.07%33.47%31.95%31.84%
No. of Shareholders56,00690,80590,96896,74198,76197,35092,9551,04,9701,08,3151,21,6151,33,8611,53,243

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund368,5610.764.349362024-11-1239276.18%
Groww Nifty Total Market Index Fund9360.030.019362024-11-120%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)12.355.315.84-3.373.85
Diluted EPS (Rs.)12.305.315.84-3.373.85
Cash EPS (Rs.)13.997.367.77-0.143.31
Book Value[Excl.RevalReserv]/Share (Rs.)82.7373.7269.0387.0066.55
Book Value[Incl.RevalReserv]/Share (Rs.)82.7373.7269.0387.0066.55
Revenue From Operations / Share (Rs.)120.97122.3688.8180.1662.62
PBDIT / Share (Rs.)20.7213.8312.6711.309.22
PBIT / Share (Rs.)18.7011.7910.759.197.90
PBT / Share (Rs.)15.166.997.47-1.322.64
Net Profit / Share (Rs.)11.975.325.85-2.251.99
NP After MI And SOA / Share (Rs.)11.975.315.84-3.373.72
PBDIT Margin (%)17.1211.3014.2714.0914.72
PBIT Margin (%)15.469.6312.0911.4612.61
PBT Margin (%)12.535.708.41-1.644.22
Net Profit Margin (%)9.894.346.58-2.803.18
NP After MI And SOA Margin (%)9.894.346.57-4.205.94
Return on Networth / Equity (%)14.477.208.46-5.085.59
Return on Capital Employeed (%)18.6212.5711.627.788.61
Return On Assets (%)8.123.704.02-2.032.87
Long Term Debt / Equity (X)0.080.160.210.270.24
Total Debt / Equity (X)0.440.590.710.670.51
Asset Turnover Ratio (%)0.840.820.650.420.47
Current Ratio (X)1.581.471.441.471.17
Quick Ratio (X)0.790.690.720.870.61
Inventory Turnover Ratio (X)1.542.031.801.321.64
Dividend Payout Ratio (NP) (%)0.0015.067.84-8.900.00
Dividend Payout Ratio (CP) (%)0.0010.885.90-23.740.00
Earning Retention Ratio (%)0.0084.9492.16108.900.00
Cash Earning Retention Ratio (%)0.0089.1294.10123.740.00
Interest Coverage Ratio (X)5.852.883.872.321.75
Interest Coverage Ratio (Post Tax) (X)4.382.112.791.701.38
Enterprise Value (Cr.)12892.934127.084761.193398.641789.46
EV / Net Operating Revenue (X)1.720.560.900.970.66
EV / EBITDA (X)10.075.026.326.954.48
MarketCap / Net Operating Revenue (X)1.470.260.440.310.14
Retention Ratios (%)0.0084.9392.15108.900.00
Price / BV (X)2.160.430.570.370.13
Price / Net Operating Revenue (X)1.470.260.440.310.14
EarningsYield0.060.160.14-0.130.40

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Electrosteel Castings Ltd as of November 18, 2024 is: 144.10

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 18, 2024, Electrosteel Castings Ltd is Undervalued by 0.07% compared to the current share price 144.00

Intrinsic Value of Electrosteel Castings Ltd as of November 18, 2024 is: 183.45

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 18, 2024, Electrosteel Castings Ltd is Undervalued by 27.40% compared to the current share price 144.00

Last 5 Year EPS CAGR: 27.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (3,193.00 cr) compared to borrowings (2,233.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (3.17 cr) and profit (202.67 cr) over the years.
  1. The stock has a low average ROCE of 7.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 141.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 224.92, 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 Electrosteel Castings Ltd:
    1. Net Profit Margin: 9.89%
      • 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: 18.62% (Industry Average ROCE: 19.43%)
      • 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%: 14.47% (Industry Average ROE: 14.17%)
      • 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): 4.38
      • 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: 0.79
      • 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: 10.2 (Industry average Stock P/E: 38.09)
      • 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: 0.44
      • 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

Electrosteel Castings Ltd. is a Public Limited Listed company incorporated on 26/11/1955 and has its registered office in the State of Orissa, India. Company’s Corporate Identification Number(CIN) is L27310OR1955PLC000310 and registration number is 000310. Currently Company is involved in the business activities of Manufacture of tubes, pipes and hollow profiles and of tube or pipe fittings of cast-iron/cast-steel. Company’s Total Operating Revenue is Rs. 5014.83 Cr. and Equity Capital is Rs. 59.46 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Castings/FoundryRathod Colony, Rajgangpur, Sundargarh Orissa 770017companysecretary@electrosteel.com
http://www.electrosteelcastings.com
Management
NamePosition Held
Mr. Pradip Kumar KhaitanChairman
Mr. Umang KejriwalManaging Director
Mr. Mayank KejriwalJoint Managing Director
Mr. Ashutosh AgarwalWholeTime Director & CFO
Mr. Sunil KatialWholeTime Director & CEO
Mr. Uddhav KejriwalWhole Time Director
Mrs. Radha Kejriwal AgarwalWhole Time Director
Mrs. Nityangi Kejriwal JaiswalWhole Time Director
Mr. Madhav KejriwaWhole Time Director
Mrs. Priya Manjari TodiWhole Time Director
Mr. Binod Kumar KhaitanDirector
Mr. Amrendra Prasad VermaDirector
Dr. Mohua BanerjeeDirector
Mr. Rajkumar KhannaDirector
Mr. Jinendra Kumar JainDirector
Mr. Vyas Mitre RalliDirector
Mr. Bal Kishan ChoudhuryDirector
Mr. Virendra SinhaDirector
Dr. Ajay KumarDirector

FAQ

What is the latest intrinsic value of Electrosteel Castings Ltd?

The latest intrinsic value of Electrosteel Castings Ltd as on 18 November 2024 is ₹144.10, which is 0.07% higher than the current market price of ₹144.00.

What is the Market Cap of Electrosteel Castings Ltd?

The Market Cap of Electrosteel Castings Ltd is 8,919 Cr..

What is the current Stock Price of Electrosteel Castings Ltd as on 18 November 2024?

The current stock price of Electrosteel Castings Ltd as on 18 November 2024 is ₹144.

What is the High / Low of Electrosteel Castings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Electrosteel Castings Ltd stocks is 237/104.

What is the Stock P/E of Electrosteel Castings Ltd?

The Stock P/E of Electrosteel Castings Ltd is 10.2.

What is the Book Value of Electrosteel Castings Ltd?

The Book Value of Electrosteel Castings Ltd is 88.0.

What is the Dividend Yield of Electrosteel Castings Ltd?

The Dividend Yield of Electrosteel Castings Ltd is 0.97 %.

What is the ROCE of Electrosteel Castings Ltd?

The ROCE of Electrosteel Castings Ltd is 16.2 %.

What is the ROE of Electrosteel Castings Ltd?

The ROE of Electrosteel Castings Ltd is 15.9 %.

What is the Face Value of Electrosteel Castings Ltd?

The Face Value of Electrosteel Castings 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 Electrosteel Castings 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