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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Electrotherm (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:46 pm

Market Cap 1,395 Cr.
Current Price 1,095
High / Low1,098/143
Stock P/E3.61
Book Value 613
Dividend Yield0.00 %
ROCE40.2 %
ROE%
Face Value 10.0
PEG Ratio0.06

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

View Share Price Target for Electrotherm (India) Ltd

Competitors of Electrotherm (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Electrotherm (India) Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales7508936957198116076797476151,0339319851,137
Expenses6577876417157915997027355779268608941,011
Operating Profit93106554208-2312381077291126
OPM %12%12%8%1%2%1%-3%2%6%10%8%9%11%
Other Income120114311-34020
Interest1317111011141217191922138
Depreciation35182221232112121212121212
Profit before tax477222-26-14-23-45-167423968107
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit477222-26-14-23-45-167423968107
EPS in Rs36.8756.3217.39-20.58-10.66-17.83-35.10-12.535.7432.6230.3652.9984.03

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthSep 2012Sep 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,5821,2407652,0482,1012,2592,9274,0403,2122,5182,8313,0744,087
Expenses2,7701,2639842,3622,1332,1982,7793,7373,0832,2982,7452,9403,691
Operating Profit-188-23-220-314-326114930312922086134396
OPM %-7%-2%-29%-15%-2%3%5%8%4%9%3%4%10%
Other Income287-253819204947-30-32
Interest5031071010145381954456762
Depreciation20614372159154148149143134121884948
Profit before tax-868-266-326-481-180-9131422449-40-12255
Tax %10%-0%1%0%-0%-0%1%0%0%0%0%-0%
Net Profit-782-266-322-480-180-9131422449-40-12255
EPS in Rs-681.08-231.69-280.49-416.71-156.72-71.622.32111.3218.9138.84-31.67-9.28200.00
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-49.07%62.50%49.44%103.30%4633.33%-83.10%104.17%-181.63%70.00%
Change in YoY Net Profit Growth (%)0.00%111.57%-13.06%53.85%4530.04%-4716.43%187.27%-285.80%251.63%

Electrotherm (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2014-2015 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:19%
5 Years:1%
3 Years:19%
TTM:19%
Compounded Profit Growth
10 Years:12%
5 Years:17%
3 Years:86%
TTM:91%
Stock Price CAGR
10 Years:50%
5 Years:52%
3 Years:112%
1 Year:700%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthSep 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital111111111313131313131313
Reserves-280-608-1,085-1,265-1,379-1,375-1,235-1,106-1,055-1,095-1,109-794
Borrowings3,2633,2453,1973,1863,0732,8512,6162,2942,2342,0871,9861,770
Other Liabilities351353354368512671775720705741862852
Total Liabilities3,3453,0022,4772,3002,2192,1602,1691,9201,8971,7451,7521,841
Fixed Assets1,6771,6061,4571,3211,1181,027949825738698638613
CWIP242321212217292827332644
Investments000277777888
Other Assets1,6431,3739989571,0731,1081,1841,0601,1241,0071,0811,177
Total Assets3,3453,0022,4772,3002,2192,1602,1691,9201,8971,7451,7521,841

Reserves and Borrowings Chart

No data available for this post.

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2012Sep 2013
Free Cash Flow-223.00-317.00-35.0058.00147.00301.00127.00218.0084.00133.00-188.00-26.00

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

MonthSep 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days11719457464946303640222519
Inventory Days287233736886787078110969176
Days Payable9110347669082607293686052
Cash Conversion Cycle31432483484641414358505642
Working Capital Days-131-478-157-114-87-83-66-8335201518
ROCE %-5%-10%-20%-9%-4%1%13%2%9%0%10%40%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters31.31%31.31%31.31%31.31%31.04%31.04%31.04%31.04%31.04%31.04%31.04%31.04%
FIIs4.94%4.94%4.94%5.10%4.94%4.94%4.94%4.94%4.94%4.94%4.94%4.95%
DIIs0.08%0.08%0.08%0.08%0.08%0.08%0.08%0.08%0.08%0.08%0.08%0.08%
Public63.67%63.67%63.67%63.50%63.94%63.95%63.94%63.95%63.95%63.94%63.94%63.93%
No. of Shareholders8,0218,5978,9079,8149,76710,40010,44410,41310,2239,0577,9167,486

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.)249.08-9.28-31.6938.8518.92
Diluted EPS (Rs.)249.08-9.28-31.6938.8518.92
Cash EPS (Rs.)285.7129.3237.31133.45124.25
Book Value[Excl.RevalReserv]/Share (Rs.)-613.12-860.45-849.58-818.19-858.18
Book Value[Incl.RevalReserv]/Share (Rs.)-613.12-860.45-849.58-818.19-858.18
Revenue From Operations / Share (Rs.)3352.822412.912222.381976.502521.11
PBDIT / Share (Rs.)332.92110.6872.98175.85111.63
PBIT / Share (Rs.)296.2672.063.9981.236.29
PBT / Share (Rs.)249.06-9.28-31.6938.8418.92
Net Profit / Share (Rs.)249.06-9.29-31.6938.8318.91
NP After MI And SOA / Share (Rs.)249.08-9.28-31.6838.8518.92
PBDIT Margin (%)9.924.583.288.894.42
PBIT Margin (%)8.832.980.174.100.24
PBT Margin (%)7.42-0.38-1.421.960.75
Net Profit Margin (%)7.42-0.38-1.421.960.75
NP After MI And SOA Margin (%)7.42-0.38-1.421.960.75
Return on Networth / Equity (%)-40.620.000.00-4.74-2.20
Return on Capital Employeed (%)-251.74-11.06-0.72-783.423.98
Return On Assets (%)17.23-0.67-2.312.601.25
Long Term Debt / Equity (X)-0.77-0.22-0.33-0.97-1.16
Total Debt / Equity (X)-2.27-1.81-1.93-1.00-1.19
Asset Turnover Ratio (%)2.381.781.551.321.39
Current Ratio (X)0.550.400.380.530.58
Quick Ratio (X)0.240.180.160.270.29
Inventory Turnover Ratio (X)5.034.114.073.353.60
Interest Coverage Ratio (X)7.052.102.054.157.32
Interest Coverage Ratio (Post Tax) (X)6.281.370.111.920.41
Enterprise Value (Cr.)2396.971982.592156.861090.551364.53
EV / Net Operating Revenue (X)0.560.640.760.430.42
EV / EBITDA (X)5.6514.0623.204.879.59
MarketCap / Net Operating Revenue (X)0.160.020.050.050.03
Price / BV (X)-0.88-0.06-0.13-0.13-0.10
Price / Net Operating Revenue (X)0.160.020.050.050.03
EarningsYield0.45-0.16-0.280.340.22

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Electrotherm (India) Ltd as of November 14, 2024 is: 338.58

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 14, 2024, Electrotherm (India) Ltd is Overvalued by 69.08% compared to the current share price 1,095.00

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

Intrinsic Value of Electrotherm (India) Ltd as of November 14, 2024 is: 542.66

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 14, 2024, Electrotherm (India) Ltd is Overvalued by 50.44% compared to the current share price 1,095.00

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

Last 5 Year EPS CAGR: 60.28%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -92.58, which is a positive sign.
  1. The stock has a low average ROCE of 2.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 95.50, which may not be favorable.
  3. The company has higher borrowings (2,650.17) compared to reserves (-1,032.17), which may suggest financial risk.
  4. The company has not shown consistent growth in sales (61.08) and profit (-137.77).

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 Electrotherm (India) Ltd:
    1. Net Profit Margin: 7.42%
      • 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: -251.74% (Industry Average ROCE: 0.59%)
      • 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%: -40.62% (Industry Average ROE: 0.49%)
      • 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): 6.28
      • 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: 0.24
      • 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: 3.61 (Industry average Stock P/E: 0)
      • 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: -2.27
      • 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

Electrotherm (India) Ltd. is a Public Limited Listed company incorporated on 29/10/1986 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29249GJ1986PLC009126 and registration number is 009126. Currently company belongs to the Industry of Engineering - General. Company’s Total Operating Revenue is Rs. 2830.28 Cr. and Equity Capital is Rs. 12.74 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralA-1, Skylark Apartment, Ahmedabad Gujarat 380015sec@electrotherm.com
http://www.electrotherm.com
Management
NamePosition Held
Mr. Dinesh MukatiNon Exe.Chairman&Ind.Director
Mr. Shailesh BhandariExecutive Vice Chairman
Mr. Suraj Shailesh BhandariManaging Director
Mr. Mukesh BhandariNon Executive Director
Ms. Nivedita SardaIndependent Director
Mr. Pratap MohanIndependent Director

FAQ

What is the latest intrinsic value of Electrotherm (India) Ltd?

The latest intrinsic value of Electrotherm (India) Ltd as on 13 November 2024 is ₹338.58, which is 69.08% lower than the current market price of ₹1,095.00.

What is the Market Cap of Electrotherm (India) Ltd?

The Market Cap of Electrotherm (India) Ltd is 1,395 Cr..

What is the current Stock Price of Electrotherm (India) Ltd as on 13 November 2024?

The current stock price of Electrotherm (India) Ltd as on 13 November 2024 is ₹1,095.

What is the High / Low of Electrotherm (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Electrotherm (India) Ltd stocks is 1,098/143.

What is the Stock P/E of Electrotherm (India) Ltd?

The Stock P/E of Electrotherm (India) Ltd is 3.61.

What is the Book Value of Electrotherm (India) Ltd?

The Book Value of Electrotherm (India) Ltd is 613.

What is the Dividend Yield of Electrotherm (India) Ltd?

The Dividend Yield of Electrotherm (India) Ltd is 0.00 %.

What is the ROCE of Electrotherm (India) Ltd?

The ROCE of Electrotherm (India) Ltd is 40.2 %.

What is the ROE of Electrotherm (India) Ltd?

The ROE of Electrotherm (India) Ltd is %.

What is the Face Value of Electrotherm (India) Ltd?

The Face Value of Electrotherm (India) 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 Electrotherm (India) 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