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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

Everest Kanto Cylinder Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:55 pm

Market Cap 2,380 Cr.
Current Price 212
High / Low222/112
Stock P/E20.2
Book Value 104
Dividend Yield0.33 %
ROCE11.8 %
ROE9.63 %
Face Value 2.00
PEG Ratio0.24

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

View Share Price Target for Everest Kanto Cylinder Ltd

Competitors of Everest Kanto Cylinder Ltd

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

All Competitor Stocks of Everest Kanto Cylinder Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales247284335421464479381340256298268299329
Expenses200243246310367384320304242248231258278
Operating Profit474189112979460361450374152
OPM %19%14%26%26%21%20%16%11%6%17%14%14%16%
Other Income32-51931211-191303
Interest5722232333222
Depreciation989999910101191010
Profit before tax65209710387845025-1737283043
Tax %22%78%29%31%31%23%23%25%-5%1%24%12%15%
Net Profit504697160653918-1836222636
EPS in Rs4.490.406.176.325.365.783.451.65-1.563.241.942.353.27

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
Sales6775434914725065645397027619491,6991,2741,122
Expenses6055715104665005124636236677831,2991,114979
Operating Profit72-28-196652767993166399160143
OPM %11%-5%-4%1%1%9%14%11%12%18%24%13%13%
Other Income816725-210721014321-11-14
Interest21415860554736383828141510
Depreciation67706871723432304335354040
Profit before tax-8-123-138-98-123782812121463729578
Tax %155%-7%-0%1%-1%0%16%-405%83%38%29%20%
Net Profit5-132-138-98-1247824582902657667
EPS in Rs0.40-12.30-12.89-9.12-11.066.982.085.230.278.0223.636.795.97
Dividend Payout %62%-2%0%0%0%0%0%0%0%4%3%10%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-2740.00%-4.55%28.99%-26.53%162.90%-69.23%141.67%-96.55%4400.00%194.44%-71.32%
Change in YoY Net Profit Growth (%)0.00%2735.45%33.53%-55.52%189.43%-232.13%210.90%-238.22%4496.55%-4205.56%-265.77%

Everest Kanto Cylinder 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:10%
5 Years:12%
3 Years:9%
TTM:22%
Compounded Profit Growth
10 Years:11%
5 Years:11%
3 Years:16%
TTM:39%
Stock Price CAGR
10 Years:32%
5 Years:56%
3 Years:10%
1 Year:50%
Return on Equity
10 Years:6%
5 Years:13%
3 Years:16%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital212121222222222222222222
Reserves6015004163214004214955166068809771,078
Borrowings5515815905785443773372942031149641
Other Liabilities123116113120170131180215222284297293
Total Liabilities1,2971,2181,1411,0421,1369521,0341,0471,0541,3011,3921,435
Fixed Assets636632560512423340329339312334392411
CWIP35282528148182646386482
Investments0000343333344
Other Assets626558555501695599683679692926932898
Total Assets1,2971,2181,1411,0421,1369521,0341,0471,0541,3011,3921,435

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +3436663174-215410784165106226
Cash from Investing Activity +5-72-5-122422-1875-60-77-122
Cash from Financing Activity +-32-32-44-57-74-203-76-82-118-113-43-74
Net Cash Flow7-323-31-00-1741-8-1430

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow72.00-579.00-600.00-584.00-572.00-492.00-301.00-258.00-201.00-37.00285.0064.00

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 Days618370777561635763495352
Inventory Days497393424368352406316270227175286283
Days Payable5556647310253585953402831
Cash Conversion Cycle503420431371325413322268236184311303
Working Capital Days302231257217240287193162142121177160
ROCE %-7%-7%-3%-6%3%7%6%7%16%41%12%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters67.39%67.39%67.39%67.39%67.39%67.39%67.39%67.39%67.39%67.39%67.39%67.38%
FIIs0.56%0.37%0.79%0.65%0.51%0.49%0.31%0.41%0.63%0.70%1.44%1.40%
DIIs0.51%0.34%0.33%0.33%0.33%0.13%0.79%0.79%0.79%0.19%0.07%0.07%
Public31.54%31.91%31.49%31.62%31.79%31.99%31.51%31.40%31.20%31.73%31.11%31.16%
No. of Shareholders42,43045,82149,16358,32561,96962,82659,29264,78067,33173,60177,25886,659

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
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)8.846.7923.648.020.26
Diluted EPS (Rs.)8.846.7923.648.020.26
Cash EPS (Rs.)12.1910.2926.7511.174.05
Book Value[Excl.RevalReserv]/Share (Rs.)98.0589.0880.4855.9947.92
Book Value[Incl.RevalReserv]/Share (Rs.)98.0589.0880.4855.9947.92
Revenue From Operations / Share (Rs.)108.99113.58151.4084.5967.78
PBDIT / Share (Rs.)15.1014.2436.4414.898.47
PBIT / Share (Rs.)11.6010.7133.3111.744.60
PBT / Share (Rs.)10.538.4433.1013.121.51
Net Profit / Share (Rs.)8.706.7623.638.020.19
NP After MI And SOA / Share (Rs.)8.846.7923.638.020.26
PBDIT Margin (%)13.8512.5324.0617.6012.49
PBIT Margin (%)10.649.4322.0013.876.79
PBT Margin (%)9.667.4321.8615.512.23
Net Profit Margin (%)7.985.9515.609.470.28
NP After MI And SOA Margin (%)8.115.9715.619.480.39
Return on Networth / Equity (%)9.017.6229.3714.330.55
Return on Capital Employeed (%)11.3211.4339.3818.328.18
Return On Assets (%)7.025.5420.548.600.28
Long Term Debt / Equity (X)0.000.000.000.090.09
Total Debt / Equity (X)0.030.090.120.260.43
Asset Turnover Ratio (%)0.870.951.340.870.58
Current Ratio (X)3.342.761.241.871.46
Quick Ratio (X)1.511.030.580.950.71
Inventory Turnover Ratio (X)1.211.942.591.661.28
Dividend Payout Ratio (NP) (%)7.9110.311.260.000.00
Dividend Payout Ratio (CP) (%)5.676.781.120.000.00
Earning Retention Ratio (%)92.0989.6998.740.000.00
Cash Earning Retention Ratio (%)94.3393.2298.880.000.00
Interest Coverage Ratio (X)22.2114.3638.436.392.65
Interest Coverage Ratio (Post Tax) (X)14.379.1125.092.911.15
Enterprise Value (Cr.)1422.971056.532574.07977.88317.60
EV / Net Operating Revenue (X)1.160.821.521.030.41
EV / EBITDA (X)8.406.616.305.853.34
MarketCap / Net Operating Revenue (X)1.210.791.480.920.16
Retention Ratios (%)92.0889.6898.730.000.00
Price / BV (X)1.341.012.791.400.22
Price / Net Operating Revenue (X)1.210.791.480.920.16
EarningsYield0.060.070.100.100.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Everest Kanto Cylinder Ltd as of November 25, 2024 is: 202.97

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, Everest Kanto Cylinder Ltd is Overvalued by 4.26% compared to the current share price 212.00

Intrinsic Value of Everest Kanto Cylinder Ltd as of November 25, 2024 is: 377.01

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, Everest Kanto Cylinder Ltd is Undervalued by 77.83% compared to the current share price 212.00

Last 5 Year EPS CAGR: 85.75%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (600.92 cr) compared to borrowings (358.83 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (477.46 cr) and profit (25.46 cr) over the years.
  1. The stock has a low average ROCE of 6.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 207.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 340.58, 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 Everest Kanto Cylinder Ltd:
    1. Net Profit Margin: 7.98%
      • 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: 11.32% (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%: 9.01% (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): 14.37
      • 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: 1.51
      • 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: 20.2 (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: 0.03
      • 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

Everest Kanto Cylinder Ltd. is a Public Limited Listed company incorporated on 24/06/1978 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29200MH1978PLC020434 and registration number is 020434. Currently Company is involved in the business activities of Manufacture of fabricated metal products, except machinery and equipment. Company’s Total Operating Revenue is Rs. 1267.82 Cr. and Equity Capital is Rs. 22.44 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Packaging & Containers204, Raheja Centre, Free Press Journal Marg, Mumbai Maharashtra 400021investors@ekc.in
http://www.everestkanto.com
Management
NamePosition Held
Mr. Pushkar KhuranaChairman & Executive Director
Mr. Puneet KhuranaManaging Director
Mr. M N Sudhindra RaoIndependent Director
Mrs. Uma AcharyaIndependent Director
Mr. Ghanshyam KarkeraIndependent Director
Dr. Vaijayanti PanditIndependent Director

FAQ

What is the latest intrinsic value of Everest Kanto Cylinder Ltd?

The latest intrinsic value of Everest Kanto Cylinder Ltd as on 25 November 2024 is ₹202.97, which is 4.26% lower than the current market price of ₹212.00.

What is the Market Cap of Everest Kanto Cylinder Ltd?

The Market Cap of Everest Kanto Cylinder Ltd is 2,380 Cr..

What is the current Stock Price of Everest Kanto Cylinder Ltd as on 25 November 2024?

The current stock price of Everest Kanto Cylinder Ltd as on 25 November 2024 is 212.

What is the High / Low of Everest Kanto Cylinder Ltd stocks in FY 2024?

In FY 2024, the High / Low of Everest Kanto Cylinder Ltd stocks is 222/112.

What is the Stock P/E of Everest Kanto Cylinder Ltd?

The Stock P/E of Everest Kanto Cylinder Ltd is 20.2.

What is the Book Value of Everest Kanto Cylinder Ltd?

The Book Value of Everest Kanto Cylinder Ltd is 104.

What is the Dividend Yield of Everest Kanto Cylinder Ltd?

The Dividend Yield of Everest Kanto Cylinder Ltd is 0.33 %.

What is the ROCE of Everest Kanto Cylinder Ltd?

The ROCE of Everest Kanto Cylinder Ltd is 11.8 %.

What is the ROE of Everest Kanto Cylinder Ltd?

The ROE of Everest Kanto Cylinder Ltd is 9.63 %.

What is the Face Value of Everest Kanto Cylinder Ltd?

The Face Value of Everest Kanto Cylinder Ltd is 2.00.

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 Everest Kanto Cylinder 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