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Last Updated on: 10 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 517477 | NSE: ELNET

Elnet Technologies Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 9, 2024, 9:23 pm

Market Cap 174 Cr.
Current Price 434
High / Low450/253
Stock P/E10.0
Book Value 368
Dividend Yield0.39 %
ROCE17.9 %
ROE13.4 %
Face Value 10.0
PEG Ratio1.25

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

View Share Price Target for Elnet Technologies Ltd

Competitors of Elnet Technologies Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Naapbooks Ltd 126 Cr. 139159/32.354.0 20.0%17.4 %13.6 %
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.898.5/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 26.2 Cr. 205245/11034.5 16.80.49 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 71.6 Cr. 20.827.0/16.2217 11.20.00 %%% 10.0
Industry Average42,764.78 Cr763.6498.39119.950.61%21.18%61.06%6.91

All Competitor Stocks of Elnet Technologies Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales5.565.435.445.655.825.906.426.466.726.766.785.895.89
Expenses1.341.291.482.261.841.742.243.002.352.052.082.102.24
Operating Profit4.224.143.963.393.984.164.183.464.374.714.703.793.65
OPM %75.90%76.24%72.79%60.00%68.38%70.51%65.11%53.56%65.03%69.67%69.32%64.35%61.97%
Other Income1.291.281.301.271.401.471.561.671.582.142.202.362.30
Interest0.130.130.130.110.140.140.300.060.160.150.170.180.12
Depreciation0.880.890.850.800.760.690.610.500.440.420.420.370.37
Profit before tax4.504.404.283.754.484.804.834.575.356.286.315.605.46
Tax %24.00%24.55%21.96%32.27%23.66%13.96%30.43%38.95%26.73%24.20%24.56%27.68%25.82%
Net Profit3.423.323.332.543.424.133.372.793.934.764.764.054.05
EPS in Rs8.558.308.326.358.5510.328.426.989.8211.9011.9010.1210.12

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 2:32 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales21222122232221242122252625
Expenses101010101011101066998
Operating Profit11111212131211141616161817
OPM %51%52%54%54%57%53%54%60%73%71%64%67%67%
Other Income1122344555689
Interest0000001110111
Depreciation3354333443322
Profit before tax89810121212151617192424
Tax %33%32%34%34%35%27%28%26%26%26%27%26%
Net Profit5666898111213141718
EPS in Rs13.4814.6014.0816.1219.5822.5021.0227.1229.9831.5234.2243.7244.04
Dividend Payout %10%10%10%11%7%7%7%4%5%6%6%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)20.00%0.00%0.00%33.33%12.50%-11.11%37.50%9.09%8.33%7.69%21.43%
Change in YoY Net Profit Growth (%)0.00%-20.00%0.00%33.33%-20.83%-23.61%48.61%-28.41%-0.76%-0.64%13.74%

Elnet Technologies 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:2%
5 Years:4%
3 Years:7%
TTM:-7%
Compounded Profit Growth
10 Years:12%
5 Years:16%
3 Years:13%
TTM:17%
Stock Price CAGR
10 Years:20%
5 Years:32%
3 Years:37%
1 Year:62%
Return on Equity
10 Years:13%
5 Years:13%
3 Years:12%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 1:39 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444444444444
Reserves343943495564718193106119135
Borrowings444444444444
Other Liabilities151615161516151615141716
Total Liabilities57636774788895105116128144159
Fixed Assets424138372323262724232222
CWIP000000100000
Investments333778833444
Other Assets121926304857617588101118133
Total Assets57636774788895105116128144159

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +8813-8257-2232-2514-62
Cash from Investing Activity +-7-4-1-310-24-928-3534-1566
Cash from Financing Activity +10-00-1-1-1-1-0-1-1-1
Net Cash Flow25-0-01-0-35-38-23

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow7.007.008.008.009.008.007.0010.0012.0012.0012.0014.00

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 Days322931303739362953343635
Inventory Days
Days Payable
Cash Conversion Cycle322931303739362953343635
Working Capital Days20184519-124-142-6-1859-742-11
ROCE %20%19%17%18%20%19%16%18%18%16%16%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%52.85%
Government0.00%0.00%0.00%0.00%0.15%0.00%0.00%0.00%0.17%0.00%0.00%0.00%
Public47.15%47.15%47.15%47.15%47.00%47.17%47.16%47.15%46.98%47.15%47.15%47.15%
No. of Shareholders5,6695,4305,4845,4065,3165,1645,0574,9904,8625,6165,5895,568

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 18Mar 17Mar 16Mar 15Mar 14
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.5019.5916.1214.0714.60
Diluted EPS (Rs.)22.5019.5916.1214.0714.60
Cash EPS (Rs.)29.5027.8326.5226.3423.22
Book Value[Excl.RevalReserv]/Share (Rs.)169.40147.81132.51118.43107.48
Book Value[Incl.RevalReserv]/Share (Rs.)169.40147.81132.51118.43107.48
Revenue From Operations / Share (Rs.)55.5356.6655.2153.6953.90
PBDIT / Share (Rs.)38.3138.9034.9033.4730.25
PBIT / Share (Rs.)31.3130.6524.4921.1921.62
PBT / Share (Rs.)30.8330.1524.4921.1821.61
Net Profit / Share (Rs.)22.5019.5916.1114.0714.60
NP After MI And SOA / Share (Rs.)22.5019.5916.1114.0714.60
PBDIT Margin (%)68.9868.6463.2162.3356.11
PBIT Margin (%)56.3854.0944.3639.4740.11
PBT Margin (%)55.5153.2044.3639.4540.09
Net Profit Margin (%)40.5134.5629.1826.2027.08
NP After MI And SOA Margin (%)40.5134.5629.1826.2027.08
Return on Networth / Equity (%)13.2813.2512.1611.8713.58
Return on Capital Employeed (%)17.7719.6213.6612.8714.03
Return On Assets (%)10.1810.038.758.389.23
Long Term Debt / Equity (X)0.000.000.080.080.09
Total Debt / Equity (X)0.060.070.080.080.09
Asset Turnover Ratio (%)0.260.290.310.320.35
Current Ratio (X)2.521.3314.4418.239.11
Quick Ratio (X)2.521.3314.4418.239.11
Dividend Payout Ratio (NP) (%)0.000.0010.549.959.59
Dividend Payout Ratio (CP) (%)0.000.006.405.316.02
Earning Retention Ratio (%)0.000.0089.4690.0590.41
Cash Earning Retention Ratio (%)0.000.0093.6094.6993.98
Interest Coverage Ratio (X)79.4477.520.003645.973051.88
Interest Coverage Ratio (Post Tax) (X)47.6540.040.001508.391473.69
Enterprise Value (Cr.)24.0437.738.2911.807.78
EV / Net Operating Revenue (X)1.081.660.370.540.36
EV / EBITDA (X)1.572.420.590.880.64
MarketCap / Net Operating Revenue (X)2.702.231.301.220.71
Retention Ratios (%)0.000.0089.4590.0490.40
Price / BV (X)0.880.850.540.550.36
Price / Net Operating Revenue (X)2.702.231.301.220.71
EarningsYield0.140.150.220.210.37

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Elnet Technologies Ltd as of December 10, 2024 is: 495.04

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 10, 2024, Elnet Technologies Ltd is Undervalued by 14.06% compared to the current share price 434.00

Intrinsic Value of Elnet Technologies Ltd as of December 10, 2024 is: 534.62

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 10, 2024, Elnet Technologies Ltd is Undervalued by 23.18% compared to the current share price 434.00

Last 5 Year EPS CAGR: 7.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 17.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -17.67, which is a positive sign.
  3. The company has higher reserves (74.08 cr) compared to borrowings (4.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (22.69 cr) and profit (14.31 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 35.08, 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 Elnet Technologies Ltd:
    1. Net Profit Margin: 40.51%
      • 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: 17.77% (Industry Average ROCE: 20.19%)
      • 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%: 13.28% (Industry Average ROE: 55.92%)
      • 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): 47.65
      • 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: 2.52
      • 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 (Industry average Stock P/E: 78.16)
      • 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: 0.06
      • 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

Elnet Technologies Ltd. is a Public Limited Listed company incorporated on 01/08/1990 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L72300TN1990PLC019459 and registration number is 019459. Currently Company is involved in the business activities of Real estate activities with own or leased property. Company’s Total Operating Revenue is Rs. 22.08 Cr. and Equity Capital is Rs. 4.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareElnet Software City, TS 140, Block No.2 & 9, Chennai (Madras) Tamil Nadu 600113elnetcity@gmail.com
http://www.elnettechnologies.com
Management
NamePosition Held
Mr. Ramu KannanChairman & Non-Exe.Director
Mrs. Unnamalai ThiagarajanManaging Director
Mr. N Srivathsa DesikanNon Executive Director
Mr. Chakkolath RamachandranNon Executive Director
Mr. Ravi JanakiramanNon Executive Director
Mr. Ammoor Periyan RadhakrishnanInd. Non-Executive Director
Mr. Kadher Mohideen KasimInd. Non-Executive Director
Mr. Ganapathi RamachandranInd. Non-Executive Director
Mr. H Karthik Seshadri HarikrishnanInd. Non-Executive Director
Mr. Govindasamy SenrayaperumalInd. Non-Executive Director
Mr. Venkatesan KumaresanAddnl.Non Executive Director

FAQ

What is the latest intrinsic value of Elnet Technologies Ltd?

The latest intrinsic value of Elnet Technologies Ltd as on 10 December 2024 is ₹495.04, which is 14.06% higher than the current market price of ₹434.00. The stock has a market capitalization of 174 Cr. and recorded a high/low of ₹450/253 during the current fiscal year 2024-2025. As of Mar 2024, the company has reserves of ₹135 Cr and total liabilities of ₹159 Cr.

What is the Market Cap of Elnet Technologies Ltd?

The Market Cap of Elnet Technologies Ltd is 174 Cr..

What is the current Stock Price of Elnet Technologies Ltd as on 10 December 2024?

The current stock price of Elnet Technologies Ltd as on 10 December 2024 is 434.

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

In FY 2024-2025, the High / Low of Elnet Technologies Ltd stocks is 450/253.

What is the Stock P/E of Elnet Technologies Ltd?

The Stock P/E of Elnet Technologies Ltd is 10.0.

What is the Book Value of Elnet Technologies Ltd?

The Book Value of Elnet Technologies Ltd is 368.

What is the Dividend Yield of Elnet Technologies Ltd?

The Dividend Yield of Elnet Technologies Ltd is 0.39 %.

What is the ROCE of Elnet Technologies Ltd?

The ROCE of Elnet Technologies Ltd is 17.9 %.

What is the ROE of Elnet Technologies Ltd?

The ROE of Elnet Technologies Ltd is 13.4 %.

What is the Face Value of Elnet Technologies Ltd?

The Face Value of Elnet Technologies 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 Elnet Technologies 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