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Last Updated on: 19 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 533477 | NSE: ENKEIWHEL

Enkei Wheels India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 18, 2024, 2:31 pm

Market Cap 1,118 Cr.
Current Price 622
High / Low760/490
Stock P/E145
Book Value 135
Dividend Yield0.00 %
ROCE7.01 %
ROE5.15 %
Face Value 5.00
PEG Ratio1.52

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

View Share Price Target for Enkei Wheels India Ltd

Competitors of Enkei Wheels India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Enkei Wheels India Ltd 1,118 Cr. 622760/490145 1350.00 %7.01 %5.15 % 5.00
Wheels India Ltd 1,660 Cr. 679915/54817.5 3561.09 %12.3 %7.38 % 10.0
Steel Strips Wheels Ltd 3,217 Cr. 205291/18914.8 92.00.49 %18.7 %17.7 % 1.00
Industry Average1,998.33 Cr502.0059.10194.330.53%12.67%10.08%5.33

All Competitor Stocks of Enkei Wheels India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales68.28119.23150.56170.66159.41184.71148.72132.43176.69206.76200.25221.61199.33
Expenses65.38109.17137.14155.56163.31162.44153.47129.61162.93184.80184.66198.69191.56
Operating Profit2.9010.0613.4215.10-3.9022.27-4.752.8213.7621.9615.5922.927.77
OPM %4.25%8.44%8.91%8.85%-2.45%12.06%-3.19%2.13%7.79%10.62%7.79%10.34%3.90%
Other Income-0.450.361.933.648.873.170.092.019.262.170.506.535.72
Interest2.170.920.640.701.692.381.752.082.762.862.772.933.12
Depreciation4.984.964.265.536.358.328.219.307.9311.9312.3912.3812.57
Profit before tax-4.704.5410.4512.51-3.0714.74-14.62-6.5512.339.340.9314.14-2.20
Tax %-8.30%-7.27%28.90%28.86%47.56%8.75%-3.35%-32.82%34.79%36.40%-127.96%37.34%-159.55%
Net Profit-4.314.887.438.90-4.5313.45-14.12-4.408.045.952.118.871.31
EPS in Rs-2.402.714.134.95-2.527.48-7.86-2.454.473.311.174.930.73

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023TTM
Sales287320384385407465474267235451663716828
Expenses265299346346373423450270235413617655760
Operating Profit22213840344225-4038466168
OPM %8%7%10%10%8%9%5%-1%0%8%7%9%8%
Other Income660-12061532128815
Interest69855555133161112
Depreciation16182826222321182219284249
Profit before tax612-3719145-3317101622
Tax %24%20%-21%91%63%44%7%47%-4%7%61%27%
Net Profit412-5311133-311641218
EPS in Rs3.410.421.70-3.871.846.997.851.60-17.459.062.066.5110.14
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-2020
YoY Net Profit Growth (%)-75.00%100.00%-350.00%160.00%266.67%-72.73%-338.46%
Change in YoY Net Profit Growth (%)0.00%175.00%-450.00%510.00%106.67%-90.91%-265.73%

Enkei Wheels India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2013-2014 to 2019-2020.

Growth

Compounded Sales Growth
10 Years:10%
5 Years:9%
3 Years:45%
TTM:29%
Compounded Profit Growth
10 Years:55%
5 Years:7%
3 Years:33%
TTM:271%
Stock Price CAGR
10 Years:15%
5 Years:16%
3 Years:20%
1 Year:9%
Return on Equity
10 Years:-1%
5 Years:-2%
3 Years:5%
Last Year:5%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital6677788999999
Reserves61012-53673121175182199212224234
Borrowings1411218879697386152184187162167191
Other Liabilities200180177158123121115877894110134152
Total Liabilities353318283239236275330423452488494534587
Fixed Assets158181164131129127126140122110231344328
CWIP250000255101189218100211
Investments0000000003344
Other Assets170136119108107147148182142158159183244
Total Assets353318283239236275330423452488494534587

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity +26182613172539616284959
Cash from Investing Activity +-31-15-11-6-20-44-71-89-64-37-42-56
Cash from Financing Activity +-7-25-34-8320421043712-332
Net Cash Flow-12-22-18-1-021121-113-264

Free Cash Flow

MonthDec 2019Dec 2020Dec 2021Dec 2022Dec 2023Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Free Cash Flow-156.00-184.00-149.00-116.00-106.00-119.00-100.00-50.00-39.00-35.00-31.00-61.00

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 2019Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days666354615856342944573143
Inventory Days53213133223372183168566756
Days Payable15110611310261555687100515865
Cash Conversion Cycle-32-21-28-8193449126113624034
Working Capital Days-21611293828193521372926
ROCE %4%3%8%15%12%14%3%-9%-6%6%7%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%
FIIs0.01%0.01%0.00%0.00%0.02%0.02%0.00%0.02%0.02%0.02%0.02%0.02%
Public25.03%25.03%25.03%25.03%25.01%25.02%25.04%25.02%25.02%25.02%25.01%25.02%
No. of Shareholders3,7803,6713,5903,5723,5323,6533,6903,7333,7663,7103,9114,526

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthDec 23Dec 22Dec 21Dec 20Dec 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)6.512.069.06-17.961.61
Diluted EPS (Rs.)6.512.069.06-17.961.61
Cash EPS (Rs.)29.6217.8619.71-5.3412.00
Book Value[Excl.RevalReserv]/Share (Rs.)120.95114.27115.51106.09107.29
Book Value[Incl.RevalReserv]/Share (Rs.)120.95114.27115.51106.09107.29
Revenue From Operations / Share (Rs.)398.43369.14250.65130.86156.22
PBDIT / Share (Rs.)38.0029.6321.520.69-2.54
PBIT / Share (Rs.)14.8813.8310.87-11.42-12.94
PBT / Share (Rs.)8.935.339.72-18.153.01
Net Profit / Share (Rs.)6.512.069.06-17.451.60
PBDIT Margin (%)9.538.028.580.53-1.62
PBIT Margin (%)3.733.744.33-8.72-8.28
PBT Margin (%)2.241.443.87-13.871.92
Net Profit Margin (%)1.630.553.61-13.331.02
Return on Networth / Equity (%)5.371.807.83-16.441.48
Return on Capital Employeed (%)7.127.105.64-5.91-7.07
Return On Assets (%)2.190.753.33-6.930.64
Long Term Debt / Equity (X)0.510.510.530.670.54
Total Debt / Equity (X)0.760.780.710.790.77
Asset Turnover Ratio (%)1.391.350.950.530.70
Current Ratio (X)1.051.031.031.171.27
Quick Ratio (X)0.650.500.740.620.62
Inventory Turnover Ratio (X)5.847.235.311.912.43
Interest Coverage Ratio (X)6.383.4818.770.10-0.96
Interest Coverage Ratio (Post Tax) (X)2.091.248.90-1.59-5.47
Enterprise Value (Cr.)1201.671195.27726.34587.97614.90
EV / Net Operating Revenue (X)1.681.801.612.502.31
EV / EBITDA (X)17.6022.4518.77471.50-141.81
MarketCap / Net Operating Revenue (X)1.461.571.361.981.93
Price / BV (X)4.825.072.942.442.81
Price / Net Operating Revenue (X)1.461.571.361.981.93
EarningsYield0.010.000.02-0.060.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Enkei Wheels India Ltd as of November 19, 2024 is: 1,028.27

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 19, 2024, Enkei Wheels India Ltd is Undervalued by 65.32% compared to the current share price 622.00

Intrinsic Value of Enkei Wheels India Ltd as of November 19, 2024 is: 2,010.71

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 19, 2024, Enkei Wheels India Ltd is Undervalued by 223.27% compared to the current share price 622.00

Last 5 Year EPS CAGR: 95.54%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 23.92, which is a positive sign.
  2. The company has shown consistent growth in sales (452.46 cr) and profit (6.38 cr) over the years.
  1. The stock has a low average ROCE of 5.33%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 32.33, which may not be favorable.
  3. The company has higher borrowings (130.77) compared to reserves (113.77), 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 Enkei Wheels India Ltd:
    1. Net Profit Margin: 1.63%
      • 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: 7.12% (Industry Average ROCE: 12.67%)
      • 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%: 5.37% (Industry Average ROE: 10.08%)
      • 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): 2.09
      • 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: 0.65
      • 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: 145 (Industry average Stock P/E: 59.1)
      • 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: 0.76
      • 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

Enkei Wheels (India) Ltd. is a Public Limited Listed company incorporated on 30/03/2009 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L34300PN2009PLC133702 and registration number is 133702. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 450.53 Cr. and Equity Capital is Rs. 8.99 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Auto Ancl - Dr. Trans & Steer - WheelsGat No. 1425, Village Shikrapur, Pune District Maharashtra 412208secretarial@enkei.in
http://www.enkei.in
Management
NamePosition Held
Mr. Kenjiro HamaManaging Director
Mr. Junichi SuzukiNon Executive Director
Mr. Shailendrajit RaiNon Executive Director
Ms. Smita Subhash PattiInd. Non-Executive Director
Dr. Haresh ShahInd. Non-Executive Director
Mr. Satyavara Prasad GarimellaInd. Non-Executive Director
Mr. Makoto MiuraAlternate Director

FAQ

What is the latest intrinsic value of Enkei Wheels India Ltd?

The latest intrinsic value of Enkei Wheels India Ltd as on 19 November 2024 is ₹1028.27, which is 65.32% higher than the current market price of ₹622.00.

What is the Market Cap of Enkei Wheels India Ltd?

The Market Cap of Enkei Wheels India Ltd is 1,118 Cr..

What is the current Stock Price of Enkei Wheels India Ltd as on 19 November 2024?

The current stock price of Enkei Wheels India Ltd as on 19 November 2024 is ₹622.

What is the High / Low of Enkei Wheels India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Enkei Wheels India Ltd stocks is 760/490.

What is the Stock P/E of Enkei Wheels India Ltd?

The Stock P/E of Enkei Wheels India Ltd is 145.

What is the Book Value of Enkei Wheels India Ltd?

The Book Value of Enkei Wheels India Ltd is 135.

What is the Dividend Yield of Enkei Wheels India Ltd?

The Dividend Yield of Enkei Wheels India Ltd is 0.00 %.

What is the ROCE of Enkei Wheels India Ltd?

The ROCE of Enkei Wheels India Ltd is 7.01 %.

What is the ROE of Enkei Wheels India Ltd?

The ROE of Enkei Wheels India Ltd is 5.15 %.

What is the Face Value of Enkei Wheels India Ltd?

The Face Value of Enkei Wheels India Ltd is 5.00.

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 Enkei Wheels 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