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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 505744 | NSE: FMGOETZE

Federal-Mogul Goetze (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:13 pm

Market Cap 2,188 Cr.
Current Price 392
High / Low489/313
Stock P/E15.8
Book Value 213
Dividend Yield0.00 %
ROCE16.9 %
ROE12.4 %
Face Value 10.0
PEG Ratio0.50

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

View Share Price Target for Federal-Mogul Goetze (India) Ltd

Competitors of Federal-Mogul Goetze (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IP Rings Ltd 250 Cr. 197262/142 82.80.00 %4.05 %2.95 % 10.0
Talbros Automotive Components Ltd 1,787 Cr. 289396/22020.6 96.40.24 %21.4 %17.2 % 2.00
Sundram Fasteners Ltd 24,393 Cr. 1,1621,506/1,00244.6 1730.59 %18.5 %16.2 % 1.00
Sintercom India Ltd 389 Cr. 141170/121363 36.70.00 %4.82 %1.15 % 10.0
Shriram Pistons & Rings Ltd 8,855 Cr. 2,0102,399/99319.1 4870.50 %27.9 %25.2 % 10.0
Industry Average13,350.91 Cr3,628.8057.98534.830.70%16.39%14.39%7.00

All Competitor Stocks of Federal-Mogul Goetze (India) Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales376319344325356402429393410411442415428
Expenses313282302289307355376338356355380367355
Operating Profit63364236494754555356634872
OPM %17%11%12%11%14%12%12%14%13%14%14%11%17%
Other Income-413133444876109
Interest1111211111111
Depreciation22222223212121212021212122
Profit before tax-0162015292935374041473559
Tax %2,239%28%31%27%24%26%26%30%15%24%29%26%26%
Net Profit-4121411222126263431332643
EPS in Rs-1.031.942.221.843.713.584.454.405.705.385.784.407.25

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,1981,1571,5781,3291,2791,3251,3421,0851,1071,3431,6341,696
Expenses1,0921,0121,3901,1521,0641,0971,1159539791,1771,4231,453
Operating Profit106145189178215228227132128166211243
OPM %9%13%12%13%17%17%17%12%12%12%13%14%
Other Income05181811111411-3371828
Interest27253326177643556
Depreciation656993787977869384878485
Profit before tax1456799113015514947881141181
Tax %87%36%36%40%36%38%36%17%37%27%24%26%
Net Profit236515584969639559107133
EPS in Rs-1.214.887.108.5615.0515.8815.715.840.109.7118.1322.81
Dividend Payout %-58%143%123%65%0%0%0%0%0%0%48%38%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)7.84%52.73%14.29%0.00%-59.38%-87.18%1080.00%81.36%24.30%
Change in YoY Net Profit Growth (%)0.00%44.88%-38.44%-14.29%-59.38%-27.80%1167.18%-998.64%-57.06%

Federal-Mogul Goetze (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 9 years from 2015-2016 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:5%
3 Years:15%
TTM:6%
Compounded Profit Growth
10 Years:16%
5 Years:8%
3 Years:196%
TTM:17%
Stock Price CAGR
10 Years:0%
5 Years:-8%
3 Years:16%
1 Year:9%
Return on Equity
10 Years:9%
5 Years:7%
3 Years:10%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital565656565656565656565656
Reserves3563824154555586487397627658209241,055
Borrowings174178195181832523110988
Other Liabilities315334374423384361353356489456499472
Total Liabilities9019501,0401,1151,0801,0891,1701,1751,3191,3401,4871,590
Fixed Assets474496486540534554578555547528508534
CWIP383357324835284229488555
Investments000000000222
Other Assets389421496543499500563578743762893999
Total Assets9019501,0401,1151,0801,0891,1701,1751,3191,3401,4871,590

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +79115126192159138133191152111210160
Cash from Investing Activity +-100-89-97-115-86-72-121-81-20-130-58-62
Cash from Financing Activity +21-25-22-46-100-69-8-32-8-8-8-10
Net Cash Flow11832-27-3478124-2714488

Free Cash Flow

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-68.00-33.00-6.00-3.00132.00203.00204.00131.00118.00157.00203.00235.00

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

MonthDec 2012Dec 2013Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days484942535560656687726161
Inventory Days124153139166177178195208185140110112
Days Payable147166142183173160161211287230192186
Cash Conversion Cycle25364036597910063-15-18-21-13
Working Capital Days415045504458726149452532
ROCE %8%13%16%16%20%21%19%6%6%10%15%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.98%74.98%74.98%74.98%74.98%74.98%74.98%74.98%74.98%74.98%74.98%74.98%
FIIs0.11%0.07%0.02%0.04%0.21%0.14%0.18%0.49%0.63%0.45%0.44%0.53%
DIIs1.57%1.63%1.92%1.87%1.48%1.43%1.43%1.43%1.13%1.13%0.61%0.00%
Public23.33%23.32%23.07%23.11%23.32%23.43%23.39%23.09%23.24%23.42%23.94%24.47%
No. of Shareholders35,00634,81532,16230,20328,20326,43025,80031,15732,03835,21235,14232,331

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
ICICI Prudential ESG Fund628,8171.7622.64628,8172024-10-230%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)22.8118.139.710.105.84
Diluted EPS (Rs.)22.8118.139.710.105.84
Cash EPS (Rs.)39.1834.3426.2215.9123.64
Book Value[Excl.RevalReserv]/Share (Rs.)212.89188.96169.68159.43158.86
Book Value[Incl.RevalReserv]/Share (Rs.)212.89188.96169.68159.43158.86
Revenue From Operations / Share (Rs.)304.79293.74241.34199.01195.10
PBDIT / Share (Rs.)48.5841.0930.9024.5325.67
PBIT / Share (Rs.)33.3726.0515.259.518.99
PBT / Share (Rs.)32.5125.3514.481.428.38
Net Profit / Share (Rs.)23.9719.3010.570.886.96
NP After MI And SOA / Share (Rs.)22.8118.139.710.795.84
PBDIT Margin (%)15.9413.9812.8012.3213.15
PBIT Margin (%)10.958.866.314.774.60
PBT Margin (%)10.668.636.000.714.29
Net Profit Margin (%)7.866.574.380.443.56
NP After MI And SOA Margin (%)7.486.174.020.392.99
Return on Networth / Equity (%)11.4210.296.170.533.97
Return on Capital Employeed (%)15.3013.258.575.395.32
Return On Assets (%)7.976.784.030.332.76
Asset Turnover Ratio (%)1.101.161.050.920.96
Current Ratio (X)2.502.122.012.062.29
Quick Ratio (X)1.981.621.481.511.46
Inventory Turnover Ratio (X)3.213.312.751.971.69
Interest Coverage Ratio (X)56.0559.0540.2160.2342.33
Interest Coverage Ratio (Post Tax) (X)28.6628.7414.7622.0512.48
Enterprise Value (Cr.)1446.671436.391359.961417.281694.39
EV / Net Operating Revenue (X)0.850.871.011.281.56
EV / EBITDA (X)5.356.287.9110.3811.87
MarketCap / Net Operating Revenue (X)1.061.041.101.411.61
Price / BV (X)1.611.731.691.912.14
Price / Net Operating Revenue (X)1.061.041.101.411.61
EarningsYield0.070.050.030.000.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Federal-Mogul Goetze (India) Ltd as of November 22, 2024 is: 425.66

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 22, 2024, Federal-Mogul Goetze (India) Ltd is Undervalued by 8.59% compared to the current share price 392.00

Intrinsic Value of Federal-Mogul Goetze (India) Ltd as of November 22, 2024 is: 558.99

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 22, 2024, Federal-Mogul Goetze (India) Ltd is Undervalued by 42.60% compared to the current share price 392.00

Last 5 Year EPS CAGR: 31.32%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (656.58 cr) compared to borrowings (74.58 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.00 cr) and profit (94.33 cr) over the years.
  1. The stock has a low average ROCE of 13.92%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 47.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 30.92, 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 Federal-Mogul Goetze (India) Ltd:
    1. Net Profit Margin: 7.86%
      • 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: 15.3% (Industry Average ROCE: 16.39%)
      • 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%: 11.42% (Industry Average ROE: 14.39%)
      • 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): 28.66
      • 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: 1.98
      • 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: 15.8 (Industry average Stock P/E: 52.71)
      • 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
      • 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

Federal-Mogul Goetze (India) Ltd. is a Public Limited Listed company incorporated on 26/11/1954 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1954PLC002452 and registration number is 002452. Currently Company is involved in the business activities of Manufacture of engines and turbines, except aircraft, vehicle and cycle engines. Company’s Total Operating Revenue is Rs. 1321.98 Cr. and Equity Capital is Rs. 55.63 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Engine PartsDLF Prime Towers, 10 Ground Floor, New Delhi Delhi 110020investorgrievance@tenneco.com
http://www.federalmogulgoetzeindia.net
Management
NamePosition Held
Mr. K N SubramanianChairman & Director
Mr. T KannanManaging Director
Dr. Khalid Iqbal KhanWhole Time Director - Legal & Co. Secretary
Mr. Rajesh SihnaWhole Time Director
Mr. Manish ChadhaDirector - Finance & CFO
Mr. K C Sundareshan PillaiDirector
Ms. Nalini JollyDirector

FAQ

What is the latest intrinsic value of Federal-Mogul Goetze (India) Ltd?

The latest intrinsic value of Federal-Mogul Goetze (India) Ltd as on 22 November 2024 is ₹425.66, which is 8.59% higher than the current market price of ₹392.00.

What is the Market Cap of Federal-Mogul Goetze (India) Ltd?

The Market Cap of Federal-Mogul Goetze (India) Ltd is 2,188 Cr..

What is the current Stock Price of Federal-Mogul Goetze (India) Ltd as on 22 November 2024?

The current stock price of Federal-Mogul Goetze (India) Ltd as on 22 November 2024 is 392.

What is the High / Low of Federal-Mogul Goetze (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Federal-Mogul Goetze (India) Ltd stocks is 489/313.

What is the Stock P/E of Federal-Mogul Goetze (India) Ltd?

The Stock P/E of Federal-Mogul Goetze (India) Ltd is 15.8.

What is the Book Value of Federal-Mogul Goetze (India) Ltd?

The Book Value of Federal-Mogul Goetze (India) Ltd is 213.

What is the Dividend Yield of Federal-Mogul Goetze (India) Ltd?

The Dividend Yield of Federal-Mogul Goetze (India) Ltd is 0.00 %.

What is the ROCE of Federal-Mogul Goetze (India) Ltd?

The ROCE of Federal-Mogul Goetze (India) Ltd is 16.9 %.

What is the ROE of Federal-Mogul Goetze (India) Ltd?

The ROE of Federal-Mogul Goetze (India) Ltd is 12.4 %.

What is the Face Value of Federal-Mogul Goetze (India) Ltd?

The Face Value of Federal-Mogul Goetze (India) 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 Federal-Mogul Goetze (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