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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fertilizers & Chemicals Travancore Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:39 pm

Market Cap 55,014 Cr.
Current Price 850
High / Low1,187/483
Stock P/E261
Book Value 21.3
Dividend Yield0.11 %
ROCE16.9 %
ROE29.4 %
Face Value 10.0
PEG Ratio-21.36

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

View Share Price Target for Fertilizers & Chemicals Travancore Ltd

Competitors of Fertilizers & Chemicals Travancore Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Gujarat State Fertilizers & Chemicals Ltd 8,268 Cr. 207322/16615.4 3191.93 %5.77 %4.55 % 2.00
Bharat Agri Fert & Realty Ltd 419 Cr. 79.2132/77.0 9.970.06 %6.14 %14.8 % 1.00
Basant Agro Tech (India) Ltd 179 Cr. 19.828.9/17.742.6 19.20.25 %5.65 %1.30 % 1.00
Zuari Agro Chemicals Ltd 810 Cr. 192260/1356.08 4030.00 %8.50 %3.44 % 10.0
Southern Petrochemicals Industries Corporation Ltd (SPIC) 1,639 Cr. 80.5108/63.69.51 52.81.86 %17.8 %14.4 % 10.0
Industry Average9,460.00 Cr326.0734.57159.960.65%21.98%10.61%7.35

All Competitor Stocks of Fertilizers & Chemicals Travancore Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8398217427821,2081,6931,2921,9351,7221,2491,2331,6631,097
Expenses6546256586771,0981,3961,1101,6981,5231,0651,0861,5311,054
Operating Profit1851968510511029718323719918414713243
OPM %22%24%11%13%9%18%14%12%12%15%12%8%4%
Other Income182224-33-223-233652-73954
Interest61626162626062626261636162
Depreciation5884797779555
Profit before tax1371484036442271371451661667210530
Tax %0%0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit1371484036442271371451661667210530
EPS in Rs2.112.290.620.560.673.502.122.232.562.561.111.630.47

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
Sales2,8762,3162,2091,9791,7361,8671,9271,9552,7703,2594,4256,1985,867
Expenses2,7142,4882,3552,1571,9591,8211,7591,9452,4912,7083,8295,4435,204
Operating Profit162-172-146-178-2234516810279551596755663
OPM %6%-7%-7%-9%-13%2%9%0%10%17%13%12%11%
Other Income3719118-64118424571,0046822136120
Interest137155192196252305321281289245244247247
Depreciation43464520182117231823273027
Profit before tax20-354-265-400-452-263-129163976350346613508
Tax %0%0%0%0%0%0%0%0%0%0%0%0%
Net Profit20-354-265-400-452-263-129163976350346613508
EPS in Rs0.31-5.47-4.09-6.18-6.99-4.06-1.992.5115.085.425.359.477.86
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-1870.00%25.14%-50.94%-13.00%41.81%50.95%226.36%498.77%-64.14%-1.14%77.17%
Change in YoY Net Profit Growth (%)0.00%1895.14%-76.08%37.94%54.81%9.14%175.41%272.42%-562.91%63.00%78.31%

Fertilizers & Chemicals Travancore 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:9%
5 Years:21%
3 Years:16%
TTM:-28%
Compounded Profit Growth
10 Years:12%
5 Years:28%
3 Years:4%
TTM:-67%
Stock Price CAGR
10 Years:40%
5 Years:86%
3 Years:86%
1 Year:66%
Return on Equity
10 Years:%
5 Years:%
3 Years:56%
Last Year:29%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:43 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital647647647647647647647647647647647647
Reserves-839-1,104-1,504-1,956-2,159-2,286-2,119-1,139-82715627729
Borrowings9911,1111,0741,8112,4022,2782,2741,8211,8221,8381,8421,810
Other Liabilities9371,2611,4491,1677151,2151,5471,3171,7562,2762,3792,682
Total Liabilities1,7371,9151,6671,6681,6051,8542,3482,6463,3994,7755,4945,868
Fixed Assets243276282270297295296258286816814827
CWIP53242522251818395543105222
Investments212144465969788698113130
Other Assets1,4191,5941,3571,3731,2381,4821,9662,2712,9723,8194,4634,688
Total Assets1,7371,9151,6671,6681,6051,8542,3482,6463,3994,7755,4945,868

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity -10261192-20631224-4102141,021152638278
Cash from Investing Activity -43-50-9-375-3416336-854-157-765214
Cash from Financing Activity 123-16-180224-94-207-45-508-368-5-106
Net Cash Flow-22-53151214-40421303-132386

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow162.00-1,163.00-147.00-179.00-224.0043.00166.008.00278.00550.00595.00754.00

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 Days12219969765112142811
Inventory Days16015314612315818419713811293103134
Days Payable721241801661091501204976773754
Cash Conversion Cycle8931-32-4114810215214147309491
Working Capital Days9362-116512376102-57-28-11-13-46
ROCE %-23%-24%-41%-61%6%25%1%27%40%33%30%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters90.00%90.00%90.00%90.00%90.00%90.00%90.00%90.00%90.00%90.00%90.00%90.00%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.05%0.07%0.11%0.11%0.12%
DIIs8.56%8.57%8.57%8.57%8.57%8.57%8.57%0.01%8.58%8.59%8.61%8.60%
Government0.40%0.40%0.40%0.40%0.40%0.40%0.40%8.96%0.40%0.40%0.40%0.40%
Public1.04%1.04%1.03%1.03%1.03%1.03%1.03%0.97%0.95%0.90%0.89%0.88%
No. of Shareholders32,15230,64033,31034,15534,42839,39445,30044,50354,76961,55658,56892,862

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Midcap 150 Index Fund31,0110.192.231,0112024-10-060%
Nippon India ETF Nifty Midcap 15027,4560.191.9531,0112024-10-06-11.46%
Nippon India Nifty Midcap 150 Index Fund25,8670.191.8331,0112024-10-06-16.59%
Mirae Asset Nifty Midcap 150 ETF15,3380.191.0931,0112024-10-06-50.54%
Motilal Oswal Nifty Midcap 100 ETF11,3640.240.8131,0112024-10-06-63.35%
ICICI Prudential Nifty Midcap 150 Index Fund6,7260.190.4831,0112024-10-06-78.31%
ICICI Prudential Nifty Midcap 150 ETF6,4360.190.4631,0112024-10-06-79.25%
SBI Nifty Midcap 150 Index Fund6,2170.190.4431,0112024-10-06-79.95%
Aditya Birla Sun Life Nifty Midcap 150 Index Fund3,6850.190.2631,0112024-10-06-88.12%
Shriram ELSS Tax Saver Fund2,8740.490.231,0112024-10-06-90.73%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)2.269.475.465.4415.08
Diluted EPS (Rs.)2.269.475.465.4415.08
Cash EPS (Rs.)2.679.945.885.7915.35
Book Value[Excl.RevalReserv]/Share (Rs.)21.2619.692.93-2.70-7.60
Book Value[Incl.RevalReserv]/Share (Rs.)21.2619.692.93-2.70-7.60
Revenue From Operations / Share (Rs.)78.1295.7968.3850.3642.81
PBDIT / Share (Rs.)8.6913.7611.039.584.80
PBIT / Share (Rs.)8.2813.3010.619.234.52
PBT / Share (Rs.)0.679.475.465.4415.07
Net Profit / Share (Rs.)2.269.475.465.4415.07
NP After MI And SOA / Share (Rs.)2.269.475.465.4415.07
PBDIT Margin (%)11.1214.3616.1319.0211.21
PBIT Margin (%)10.6013.8815.5218.3210.56
PBT Margin (%)0.869.887.9810.8035.21
Net Profit Margin (%)2.899.887.9810.8035.21
NP After MI And SOA Margin (%)2.899.887.9810.8035.21
Return on Networth / Equity (%)10.6248.11186.55-201.15-198.30
Return on Capital Employeed (%)33.9356.95155.53915.0947.71
Return On Assets (%)2.5111.278.2910.4537.33
Long Term Debt / Equity (X)0.000.000.05-0.08-1.84
Total Debt / Equity (X)1.291.429.53-0.08-1.89
Asset Turnover Ratio (%)0.891.281.161.091.12
Current Ratio (X)1.061.090.980.881.10
Quick Ratio (X)0.780.830.810.720.81
Inventory Turnover Ratio (X)2.825.104.712.582.51
Interest Coverage Ratio (X)2.283.602.922.531.07
Interest Coverage Ratio (Post Tax) (X)2.593.482.812.441.01
Enterprise Value (Cr.)39719.3212770.778408.635446.812335.67
EV / Net Operating Revenue (X)7.862.061.901.670.84
EV / EBITDA (X)70.6014.3411.788.797.52
MarketCap / Net Operating Revenue (X)8.042.141.922.180.75
Price / BV (X)29.5310.4344.79-40.57-4.25
Price / Net Operating Revenue (X)8.042.141.922.180.75
EarningsYield0.000.040.040.040.46

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Fertilizers & Chemicals Travancore Ltd as of October 8, 2024 is: ₹1,636.23

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 October 8, 2024, Fertilizers & Chemicals Travancore Ltd is Undervalued by 92.50% compared to the current share price ₹850.00

Intrinsic Value of Fertilizers & Chemicals Travancore Ltd as of October 8, 2024 is: ₹1,436.31

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 October 8, 2024, Fertilizers & Chemicals Travancore Ltd is Undervalued by 68.98% compared to the current share price ₹850.00

Last 5 Year EPS CAGR: -12.22%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 29.58, which is a positive sign.
  2. The company has shown consistent growth in sales (2.38 cr) and profit (85.62 cr) over the years.
  1. The stock has a low average ROCE of 2.50%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 71.00, which may not be favorable.
  3. The company has higher borrowings (1,756.17) compared to reserves (-1,046.83), 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 Fertilizers & Chemicals Travancore Ltd:
    1. Net Profit Margin: 2.89%
      • 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: 33.93% (Industry Average ROCE: 21.98%)
      • 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%: 10.62% (Industry Average ROE: 9.69%)
      • 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): 2.59
      • 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: 0.78
      • 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: 261 (Industry average Stock P/E: 30.06)
      • 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: 1.29
      • 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

The Fertilisers and Chemicals Travancore Ltd. is a Public Limited Listed company incorporated on 22/09/1943 and has its registered office in the State of Kerala, India. Company’s Corporate Identification Number(CIN) is L24129KL1943GOI000371 and registration number is 000371. Currently Company is involved in the business activities of Manufacture of associated nitrogen products (nitric and sulphonitric acids, ammonia, ammonium chloride, ammonium carbonate, nitrites and nitrates of potassium). Company’s Total Operating Revenue is Rs. 4424.80 Cr. and Equity Capital is Rs. 647.07 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
FertilisersEloor, Udyogamandal, Ernakulam District Kerala 683501investors@factltd.com
http://www.fact.co.in
Management
NamePosition Held
Mr. Kishor RungtaChairman & Managing Director
Mr. Anupam MisraDirector - Marketing
Mr. S SakthimaniDirector - Finance
Ms. Anjula MurmuIndependent Director
Ms. Aparna S SharmaGovernment Nominee Director
Mr. Krishnanunni JayachandranDirector
Mr. Taranjit SinghGovernment Nominee Director
Mr. M ChandranIndependent Director
Mr. Keda Tanaji AherIndependent Director

FAQ

What is the latest fair value of Fertilizers & Chemicals Travancore Ltd?

The latest fair value of Fertilizers & Chemicals Travancore Ltd is ₹1636.23.

What is the Market Cap of Fertilizers & Chemicals Travancore Ltd?

The Market Cap of Fertilizers & Chemicals Travancore Ltd is 55,014 Cr..

What is the current Stock Price of Fertilizers & Chemicals Travancore Ltd as on 08 October 2024?

The current stock price of Fertilizers & Chemicals Travancore Ltd as on 08 October 2024 is ₹850.

What is the High / Low of Fertilizers & Chemicals Travancore Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fertilizers & Chemicals Travancore Ltd stocks is 1,187/483.

What is the Stock P/E of Fertilizers & Chemicals Travancore Ltd?

The Stock P/E of Fertilizers & Chemicals Travancore Ltd is 261.

What is the Book Value of Fertilizers & Chemicals Travancore Ltd?

The Book Value of Fertilizers & Chemicals Travancore Ltd is 21.3.

What is the Dividend Yield of Fertilizers & Chemicals Travancore Ltd?

The Dividend Yield of Fertilizers & Chemicals Travancore Ltd is 0.11 %.

What is the ROCE of Fertilizers & Chemicals Travancore Ltd?

The ROCE of Fertilizers & Chemicals Travancore Ltd is 16.9 %.

What is the ROE of Fertilizers & Chemicals Travancore Ltd?

The ROE of Fertilizers & Chemicals Travancore Ltd is 29.4 %.

What is the Face Value of Fertilizers & Chemicals Travancore Ltd?

The Face Value of Fertilizers & Chemicals Travancore 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 Fertilizers & Chemicals Travancore 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