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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

Elgi Rubber Company Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

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

Market Cap 617 Cr.
Current Price 123
High / Low140/44.7
Stock P/E163
Book Value 37.9
Dividend Yield0.00 %
ROCE5.79 %
ROE0.97 %
Face Value 1.00
PEG Ratio3.35

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

View Share Price Target for Elgi Rubber Company Ltd

Competitors of Elgi Rubber Company Ltd

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

All Competitor Stocks of Elgi Rubber Company Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales929692789410111698971049695101
Expenses8582907893981151009293938989
Operating Profit61530221-25113613
OPM %7%15%3%0%2%2%1%-2%5%10%3%6%12%
Other Income46344-16101019-6109
Interest44244353461166
Depreciation4444545444445
Profit before tax312-1-4-3-5-31720-17512
Tax %58%1%-8%-8%-41%0%35%67%17%14%6%0%13%
Net Profit112-1-4-5-5-20617-16510
EPS in Rs0.212.32-0.17-0.87-0.96-1.09-0.350.041.133.39-3.211.012.04

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales478477489440362375377410368343390394397
Expenses452440456440348354359398371323384378364
Operating Profit263833015211811-22051733
OPM %5%8%7%0%4%6%5%3%-1%6%1%4%8%
Other Income1615151010111282416133332
Interest581112151517181916162328
Depreciation12111318211818181717181617
Profit before tax253323-20-11-2-5-16-153-161019
Tax %43%33%53%-14%-6%-157%-22%2%-5%66%-5%33%
Net Profit142311-22-11-4-6-16-151-16716
EPS in Rs2.854.502.19-4.47-2.29-0.81-1.13-3.22-3.040.22-3.271.353.23
Dividend Payout %18%18%17%-5%-16%-16%0%0%-5%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)64.29%-52.17%-300.00%50.00%63.64%-50.00%-166.67%6.25%106.67%-1700.00%143.75%
Change in YoY Net Profit Growth (%)0.00%-116.46%-247.83%350.00%13.64%-113.64%-116.67%172.92%100.42%-1806.67%1843.75%

Elgi Rubber Company Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-2%
5 Years:-1%
3 Years:4%
TTM:-1%
Compounded Profit Growth
10 Years:-16%
5 Years:16%
3 Years:89%
TTM:-30%
Stock Price CAGR
10 Years:15%
5 Years:48%
3 Years:47%
1 Year:116%
Return on Equity
10 Years:-4%
5 Years:-3%
3 Years:-1%
Last Year:1%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital555555555555
Reserves265291262257244234218181178166179185
Borrowings93151201245246297285268243247271307
Other Liabilities809385616153647168817869
Total Liabilities443541553568556588572525494500533566
Fixed Assets105183245258234245226208209205228245
CWIP22722383029313321172216
Investments3211798413192940
Other Assets334329284271284306308281252260255264
Total Assets443541553568556588572525494500533566

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +41525082-6733374916276
Cash from Investing Activity +1-111-93-83-1-212162-9-29-16
Cash from Financing Activity +-7-1221-14413-37-54-47-12210
Net Cash Flow-129-22-15-40-1-15-6-0-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow26.00-55.00-118.00-201.00-230.00-225.00-279.00-274.00-270.00-223.00-242.00-254.00

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 Days565754605950554957696258
Inventory Days144176175231250280260281246186215226
Days Payable68728085596886110991068892
Cash Conversion Cycle132161149206250262229221204149189192
Working Capital Days10511394122142142122120125105105122
ROCE %12%8%-2%1%2%2%0%-1%4%2%6%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters65.03%65.03%65.03%65.03%65.03%65.03%65.03%65.03%65.03%65.03%65.03%65.03%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.00%
DIIs1.50%1.46%1.46%1.46%1.46%1.46%1.46%1.46%1.46%1.46%1.10%0.95%
Government2.36%2.36%2.36%2.36%2.36%2.36%2.36%2.36%2.36%2.36%2.36%2.36%
Public31.11%31.15%31.15%31.15%31.15%31.15%31.15%31.15%31.15%31.14%31.50%31.66%
No. of Shareholders13,74314,02714,67914,34514,14313,89013,17314,43213,36014,77214,53913,771

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
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)2.331.35-3.270.22-3.04
Diluted EPS (Rs.)2.331.35-3.270.22-3.04
Cash EPS (Rs.)6.154.600.343.530.32
Book Value[Excl.RevalReserv]/Share (Rs.)37.9136.7734.2636.6137.07
Book Value[Incl.RevalReserv]/Share (Rs.)37.9136.7734.2636.6137.07
Revenue From Operations / Share (Rs.)77.2178.8277.8468.5673.60
PBDIT / Share (Rs.)9.458.385.276.822.78
PBIT / Share (Rs.)5.635.121.663.50-0.58
PBT / Share (Rs.)2.742.01-3.110.63-2.90
Net Profit / Share (Rs.)2.331.35-3.270.21-3.04
NP After MI And SOA / Share (Rs.)2.331.35-3.270.21-3.04
PBDIT Margin (%)12.2310.626.769.943.77
PBIT Margin (%)7.296.492.125.11-0.80
PBT Margin (%)3.542.55-4.000.92-3.94
Net Profit Margin (%)3.011.71-4.190.31-4.12
NP After MI And SOA Margin (%)3.011.71-4.190.31-4.12
Return on Networth / Equity (%)6.143.66-9.530.58-8.19
Return on Capital Employeed (%)9.629.843.636.73-1.03
Return On Assets (%)2.061.26-3.260.21-2.89
Long Term Debt / Equity (X)0.540.410.330.410.53
Total Debt / Equity (X)1.611.471.441.141.34
Asset Turnover Ratio (%)0.700.760.420.330.38
Current Ratio (X)0.820.780.800.920.99
Quick Ratio (X)0.420.380.430.450.42
Inventory Turnover Ratio (X)1.521.701.380.870.91
Dividend Payout Ratio (NP) (%)0.000.000.000.00-5.27
Dividend Payout Ratio (CP) (%)0.000.000.000.0048.69
Earning Retention Ratio (%)0.000.000.000.00105.27
Cash Earning Retention Ratio (%)0.000.000.000.0051.31
Interest Coverage Ratio (X)1.861.801.692.200.71
Interest Coverage Ratio (Post Tax) (X)1.030.950.480.99-0.18
Enterprise Value (Cr.)523.68395.57419.94310.84278.31
EV / Net Operating Revenue (X)1.361.001.080.900.75
EV / EBITDA (X)11.079.4415.939.1120.03
MarketCap / Net Operating Revenue (X)0.620.370.500.380.15
Retention Ratios (%)0.000.000.000.00105.27
Price / BV (X)1.280.791.150.720.29
Price / Net Operating Revenue (X)0.620.370.500.380.15
EarningsYield0.040.04-0.080.01-0.27

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Elgi Rubber Company Ltd as of November 14, 2024 is: 61.12

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, Elgi Rubber Company Ltd is Overvalued by 50.31% compared to the current share price 123.00

Intrinsic Value of Elgi Rubber Company Ltd as of November 14, 2024 is: 90.88

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, Elgi Rubber Company Ltd is Overvalued by 26.11% compared to the current share price 123.00

Last 5 Year EPS CAGR: 48.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (407.69 cr) and profit (2.15 cr) over the years.
  1. The stock has a low average ROCE of 3.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 118.08, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 195.33, which may not be favorable.
  4. The company has higher borrowings (237.83) compared to reserves (221.67), 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 Elgi Rubber Company Ltd:
    1. Net Profit Margin: 3.01%
      • 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: 9.62% (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%: 6.14% (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): 1.03
      • 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: 0.42
      • 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: 163 (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: 1.61
      • 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

Elgi Rubber Company Ltd. is a Public Limited Listed company incorporated on 16/10/2006 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L25119TZ2006PLC013144 and registration number is 013144. Currently Company is involved in the business activities of Manufacture of rubber tyres and tubes. Company’s Total Operating Revenue is Rs. 198.37 Cr. and Equity Capital is Rs. 5.01 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rubber Processing/Rubber ProductsSuper A Unit, Coimbatore Private Industrial Estate, Coimbatore Tamil Nadu 641021info@in.elgirubber.com
http://www.elgirubber.com
Management
NamePosition Held
Mr. Sudarsan VaradarajChairman & Managing Director
Mr. Harsha VaradarajExecutive Director
Mr. Jairam VaradarajNon Executive Director
Mr. M D SelvarajNon Executive Director
Mr. P Vijay RaghunathNon Executive Director
Mr. V BhuvaneshwariNon Executive Director

FAQ

What is the latest intrinsic value of Elgi Rubber Company Ltd?

The latest intrinsic value of Elgi Rubber Company Ltd as on 14 November 2024 is ₹61.12, which is 50.31% lower than the current market price of ₹123.00.

What is the Market Cap of Elgi Rubber Company Ltd?

The Market Cap of Elgi Rubber Company Ltd is 617 Cr..

What is the current Stock Price of Elgi Rubber Company Ltd as on 14 November 2024?

The current stock price of Elgi Rubber Company Ltd as on 14 November 2024 is ₹123.

What is the High / Low of Elgi Rubber Company Ltd stocks in FY 2024?

In FY 2024, the High / Low of Elgi Rubber Company Ltd stocks is 140/44.7.

What is the Stock P/E of Elgi Rubber Company Ltd?

The Stock P/E of Elgi Rubber Company Ltd is 163.

What is the Book Value of Elgi Rubber Company Ltd?

The Book Value of Elgi Rubber Company Ltd is 37.9.

What is the Dividend Yield of Elgi Rubber Company Ltd?

The Dividend Yield of Elgi Rubber Company Ltd is 0.00 %.

What is the ROCE of Elgi Rubber Company Ltd?

The ROCE of Elgi Rubber Company Ltd is 5.79 %.

What is the ROE of Elgi Rubber Company Ltd?

The ROE of Elgi Rubber Company Ltd is 0.97 %.

What is the Face Value of Elgi Rubber Company Ltd?

The Face Value of Elgi Rubber Company 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 Elgi Rubber Company 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