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Last Updated on: 25 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Emkay Taps & Cutting Tools Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:20 pm

Market Cap 1,366 Cr.
Current Price 1,280
High / Low1,480/510
Stock P/E14.2
Book Value 332
Dividend Yield0.00 %
ROCE19.3 %
ROE15.7 %
Face Value 10.0
PEG Ratio0.45

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

View Share Price Target for Emkay Taps & Cutting Tools Ltd

Competitors of Emkay Taps & Cutting Tools Ltd

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

All Competitor Stocks of Emkay Taps & Cutting Tools Ltd

Quarterly Result

MonthSep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023
Sales272320363338454449
Expenses151613201819212425
Operating Profit1286171519242024
OPM %46%34%32%46%46%49%53%45%49%
Other Income11379531317
Interest000000000
Depreciation122222221
Profit before tax1277222321253139
Tax %29%15%18%18%18%22%24%21%21%
Net Profit866181917192531
EPS in Rs7.815.495.6816.6517.4315.6118.0523.3028.93

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
Sales35313044495356645156718993
Expenses21211827323433353033374549
Operating Profit13101117171923292023344344
OPM %38%31%38%38%34%36%41%45%40%41%48%49%47%
Other Income1102526-1319141630
Interest1000000000000
Depreciation3333233333333
Profit before tax117916191825131929445771
Tax %25%32%36%34%26%33%22%59%24%18%20%22%
Net Profit8561114122051424354456
EPS in Rs16.379.6511.2510.1313.1311.0718.594.9413.3122.3333.0441.3552.23
Dividend Payout %0%0%0%0%0%0%3%10%3%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 (%)-37.50%20.00%83.33%27.27%-14.29%66.67%-75.00%180.00%71.43%45.83%25.71%
Change in YoY Net Profit Growth (%)0.00%57.50%63.33%-56.06%-41.56%80.95%-141.67%255.00%-108.57%-25.60%-20.12%

Emkay Taps & Cutting Tools 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:13%
5 Years:10%
3 Years:22%
TTM:18%
Compounded Profit Growth
10 Years:22%
5 Years:51%
3 Years:34%
TTM:72%
Stock Price CAGR
10 Years:%
5 Years:69%
3 Years:85%
1 Year:105%
Return on Equity
10 Years:15%
5 Years:15%
3 Years:16%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:34 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital0.850.85222211111111111111
Reserves434956718310298111135170215288343
Borrowings2222543303661
Other Liabilities677681017111319253228
Total Liabilities5158678197118128136159203257337383
Fixed Assets18161416181717211919161413
CWIP0000101000000
Investments162431364971657899144187255304
Other Assets17182228303044374140536966
Total Assets5158678197118128136159203257337383

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +88851219141815322525
Cash from Investing Activity +-4-8-4-6-15-17-11-17-12-35-28-23
Cash from Financing Activity +-40-302-2-2-1-3321
Net Cash Flow101-0-100-0-1002

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow13.008.009.0015.0015.0014.0019.0026.0017.0023.0031.0037.00

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 Days81917982929994100117908184
Inventory Days307484612546827605681635194417518350
Days Payable588415081146211173988515715591
Cash Conversion Cycle330491541548773493602637226350443343
Working Capital Days149154127161158134157183181107112118
ROCE %17%19%30%29%22%27%12%16%16%19%21%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2018Mar 2019Sep 2019Mar 2020Sep 2020Mar 2021Sep 2021Mar 2022Sep 2022Mar 2023Sep 2023Mar 2024
Promoters74.55%74.55%74.55%74.57%74.57%74.57%74.57%74.99%74.99%74.99%74.99%74.99%
Public25.45%25.46%25.46%25.44%25.43%25.43%25.44%25.01%25.01%25.01%25.01%25.00%
No. of Shareholders9394928710696107135145159225338

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23
FaceValue10.0010.00
Basic EPS (Rs.)67.3841.35
Diluted EPS (Rs.)67.3841.35
Cash EPS (Rs.)69.8244.27
Book Value[Excl.RevalReserv]/Share (Rs.)280.10211.71
Book Value[Incl.RevalReserv]/Share (Rs.)280.10211.71
Revenue From Operations / Share (Rs.)96.9483.04
PBDIT / Share (Rs.)87.0756.11
PBIT / Share (Rs.)84.6253.19
PBT / Share (Rs.)84.4153.06
Net Profit / Share (Rs.)67.3841.35
NP After MI And SOA / Share (Rs.)67.3841.35
PBDIT Margin (%)89.8167.56
PBIT Margin (%)87.2964.05
PBT Margin (%)87.0763.89
Net Profit Margin (%)69.5049.79
NP After MI And SOA Margin (%)69.5049.79
Return on Networth / Equity (%)24.0519.53
Return on Capital Employeed (%)30.1525.01
Return On Assets (%)21.3017.18
Total Debt / Equity (X)0.020.02
Current Ratio (X)1.801.76
Quick Ratio (X)1.371.19
Interest Coverage Ratio (X)412.78419.60
Interest Coverage Ratio (Post Tax) (X)320.41310.23
Enterprise Value (Cr.)696.36318.17
EV / Net Operating Revenue (X)6.733.59
EV / EBITDA (X)7.495.31
MarketCap / Net Operating Revenue (X)6.703.54
Price / BV (X)2.321.39
Price / Net Operating Revenue (X)6.703.54
EarningsYield0.100.14

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Emkay Taps & Cutting Tools Ltd as of November 25, 2024 is: 754.96

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 25, 2024, Emkay Taps & Cutting Tools Ltd is Overvalued by 41.02% compared to the current share price 1,280.00

Intrinsic Value of Emkay Taps & Cutting Tools Ltd as of November 25, 2024 is: 992.37

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 25, 2024, Emkay Taps & Cutting Tools Ltd is Overvalued by 22.47% compared to the current share price 1,280.00

Last 5 Year EPS CAGR: 31.45%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.58%, which is a positive sign.
  2. The company has higher reserves (135.69 cr) compared to borrowings (3.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (55.54 cr) and profit (26.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 145.08, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 481.42, 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 Emkay Taps & Cutting Tools Ltd:
    1. Net Profit Margin: 69.5%
      • 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: 30.15% (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%: 24.05% (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): 320.41
      • 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: 1.37
      • 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: 14.2 (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: 0.02
      • 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

Emkay Taps and Cutting Tools Ltd. is a Public Limited Listed company incorporated on 27/07/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29220MH1995PLC091091 and registration number is 091091. Currently Company is involved in the business activities of Manufacture of machine tools for turning, drilling, milling, shaping, planning, boring, grinding etc.. Company’s Total Operating Revenue is Rs. 70.81 Cr. and Equity Capital is Rs. 10.67 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - GeneralB-27 & B-27/1, M.I.D.C. Industrial Area, Nagpur Maharashtra 440016investors@etctl.com
http://www.etctl.com
Management
NamePosition Held
Mr. Ajayprakash KanoriaChairman & M.D & CEO
Mrs. Alka KanoriaWhole Time Director
Mr. Mahesh MorInd. Non-Executive Director
Mr. Ravindra LoiyaInd. Non-Executive Director
Mr. P C RamchandranInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Emkay Taps & Cutting Tools Ltd?

The latest intrinsic value of Emkay Taps & Cutting Tools Ltd as on 25 November 2024 is ₹754.96, which is 41.02% lower than the current market price of ₹1,280.00.

What is the Market Cap of Emkay Taps & Cutting Tools Ltd?

The Market Cap of Emkay Taps & Cutting Tools Ltd is 1,366 Cr..

What is the current Stock Price of Emkay Taps & Cutting Tools Ltd as on 25 November 2024?

The current stock price of Emkay Taps & Cutting Tools Ltd as on 25 November 2024 is 1,280.

What is the High / Low of Emkay Taps & Cutting Tools Ltd stocks in FY 2024?

In FY 2024, the High / Low of Emkay Taps & Cutting Tools Ltd stocks is 1,480/510.

What is the Stock P/E of Emkay Taps & Cutting Tools Ltd?

The Stock P/E of Emkay Taps & Cutting Tools Ltd is 14.2.

What is the Book Value of Emkay Taps & Cutting Tools Ltd?

The Book Value of Emkay Taps & Cutting Tools Ltd is 332.

What is the Dividend Yield of Emkay Taps & Cutting Tools Ltd?

The Dividend Yield of Emkay Taps & Cutting Tools Ltd is 0.00 %.

What is the ROCE of Emkay Taps & Cutting Tools Ltd?

The ROCE of Emkay Taps & Cutting Tools Ltd is 19.3 %.

What is the ROE of Emkay Taps & Cutting Tools Ltd?

The ROE of Emkay Taps & Cutting Tools Ltd is 15.7 %.

What is the Face Value of Emkay Taps & Cutting Tools Ltd?

The Face Value of Emkay Taps & Cutting Tools 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 Emkay Taps & Cutting Tools 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