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Last Updated on: 14 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 541557 | NSE: FINEORG

Fundamental Analysis of Fine Organic Industries Ltd

Basic Stock Data

Last Updated: April 4, 2024, 7:19 am

Market Cap 13,072 Cr.
Current Price 4,260
High / Low5,165/4,005
Stock P/E29.3
Book Value 559
Dividend Yield0.21 %
ROCE65.3 %
ROE49.4 %
Face Value 5.00

Data Source: screener.in

Competitors of Fine Organic Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IVP Ltd 184 Cr. 178290/12411.4 1190.84 %15.3 %17.6 % 10.0
Jocil Ltd 164 Cr. 184263/16351.8 2361.36 %6.64 %4.86 % 10.0
Oriental Aromatics Ltd 1,118 Cr. 332503/2936,579 1840.15 %5.06 %3.21 % 5.00
Archit Organosys Ltd 95.1 Cr. 46.477.2/35.626.7 30.61.08 %17.3 %17.6 % 10.0
BASF India Ltd 15,874 Cr. 3,6673,755/2,28233.6 6770.22 %20.1 %15.2 % 10.0
Industry Average3,487.02 Cr881.481,340.50249.320.73%12.88%11.69%9.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales299323358438463617748919760597547540488
Expenses252274306366384457533665600395407410371
Operating Profit4748517380159214254159202140130117
OPM %16%15%14%17%17%26%29%28%21%34%26%24%24%
Other Income576671417191513141717
Interest2111111111111
Depreciation12121010101111121213121415
Profit before tax3941476875162219260161201143132119
Tax %25%23%23%27%31%25%27%22%34%26%30%22%21%
Net Profit293236505212216020310614910010394
EPS in Rs9.3610.3711.7116.2716.9539.7452.1266.0934.6548.7432.5433.7130.73

Last Updated: April 6, 2024, 9:21 am

Quarterly Chart

Fine Organic Industries Ltd Profit & Loss

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6607788561,0601,0381,1331,8763,0232,444
Expenses5146336978278039351,5132,1941,812
Operating Profit146145158234235198363829632
OPM %22%19%19%22%23%17%19%27%26%
Other Income8416202017336460
Interest743256553
Depreciation302420173547404851
Profit before tax117121151234216162352841637
Tax %35%36%37%40%24%26%26%26%
Net Profit767895136165120260618459
EPS in Rs157.74161.2231.0944.4353.7439.2484.67201.60149.64
Dividend Payout %29%9%23%16%13%28%11%4%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)2.63%21.79%43.16%21.32%-27.27%116.67%137.69%
Change in YoY Net Profit Growth (%)0.00%19.16%21.36%-21.83%-48.60%143.94%21.03%

Growth

Compounded Sales Growth
10 Years:%
5 Years:29%
3 Years:43%
TTM:-29%
Compounded Profit Growth
10 Years:%
5 Years:45%
3 Years:55%
TTM:-24%
Stock Price CAGR
10 Years:%
5 Years:27%
3 Years:19%
1 Year:-1%
Return on Equity
10 Years:%
5 Years:34%
3 Years:36%
Last Year:49%

Fine Organic Industries Ltd Balance Sheet

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital5515151515151515
Reserves2493233804856047169441,5261,698
Borrowings102405412812589592914
Other Liabilities63768174108127219237136
Total Liabilities4194455307028529481,2361,8071,863
Fixed Assets125978878217196229214249
CWIP6332106626144019
Investments01111103331313937
Other Assets2893343995085976949621,5131,557
Total Assets4194455307028529481,2361,8071,863

Reserves and Borrowings Chart

Fine Organic Industries Ltd Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 45659821913467485
Cash from Investing Activity -16-52-93-85-40-32-128
Cash from Financing Activity -55-1792-37-41-68-69
Net Cash Flow-26-3979853-33289

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow44.00105.00104.00106.00110.00109.00304.00800.00

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 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4952625447525942
Inventory Days7268585079637291
Days Payable5047463051494736
Cash Conversion Cycle7172757474668497
Working Capital Days80881028363758580
ROCE %35%38%44%32%22%39%65%

Financial Efficiency Indicators Chart

Fine Organic Industries Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs5.93%6.80%6.79%7.26%7.25%7.20%6.74%5.91%4.84%3.78%3.78%3.58%
DIIs14.19%11.41%11.32%11.21%11.64%10.94%10.92%11.51%12.09%12.24%12.17%11.84%
Public4.88%6.79%6.89%6.53%6.11%6.86%7.33%7.58%8.07%8.99%9.05%9.58%
No. of Shareholders42,04453,65055,59456,18561,41381,33396,3671,10,6771,16,9101,34,2611,35,2521,41,370

Shareholding Pattern Chart

No. of Shareholders

Fine Organic Industries Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Axis Small Cap Fund8653702.34382.47
Nippon India Small Cap Fund7037590.83311.04
SBI Small Cap Fund7000001.46309.38
Axis Midcap Fund3077240.62136
Axis Flexi Cap Fund3041681.27134.43
Bandhan Flexi Cap Fund1993101.4888.09
Axis Multicap Fund1215801.2653.73
HSBC Small Cap Fund - Regular Plan1004610.3844.4
Canara Robeco Small Cap Fund770570.4334.06
Axis Equity Hybrid Fund371341.0316.41

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)201.6084.7139.2553.7544.44
Diluted EPS (Rs.)201.6084.7139.2553.7544.44
Cash EPS (Rs.)217.8098.0654.9366.7051.23
Book Value[Excl.RevalReserv]/Share (Rs.)502.69312.85238.57201.87163.17
Book Value[Incl.RevalReserv]/Share (Rs.)502.69312.85238.57201.87163.17
Revenue From Operations / Share (Rs.)986.00611.96369.61338.58345.84
PBDIT / Share (Rs.)291.99129.6770.5685.0282.66
PBIT / Share (Rs.)276.37116.6655.3173.7176.96
PBT / Share (Rs.)274.88114.9953.3172.1476.36
Net Profit / Share (Rs.)202.1885.0439.6855.4045.53
NP After MI And SOA / Share (Rs.)201.6084.6739.2453.7444.43
PBDIT Margin (%)29.6121.1819.0925.1023.90
PBIT Margin (%)28.0219.0614.9621.7722.25
PBT Margin (%)27.8718.7914.4221.3022.08
Net Profit Margin (%)20.5013.8910.7316.3613.16
NP After MI And SOA Margin (%)20.4413.8310.6115.8712.84
Return on Networth / Equity (%)40.1027.0616.4526.6227.22
Return on Capital Employeed (%)54.9436.3021.3931.4739.52
Return On Assets (%)34.2120.9912.7019.3319.39
Long Term Debt / Equity (X)0.000.020.070.140.18
Total Debt / Equity (X)0.010.060.070.140.22
Asset Turnover Ratio (%)2.011.711.241.311.69
Current Ratio (X)5.373.534.013.914.12
Quick Ratio (X)3.682.603.202.933.27
Inventory Turnover Ratio (X)7.207.445.956.097.71
Dividend Payout Ratio (NP) (%)4.4612.997.6420.4615.75
Dividend Payout Ratio (CP) (%)4.1411.265.5016.9113.96
Earning Retention Ratio (%)95.5487.0192.3679.5484.25
Cash Earning Retention Ratio (%)95.8688.7494.5083.0986.04
Interest Coverage Ratio (X)195.7377.8235.3054.07137.79
Interest Coverage Ratio (Post Tax) (X)136.5252.0320.8436.2376.91
Enterprise Value (Cr.)12708.8812135.046792.445712.023795.25
EV / Net Operating Revenue (X)4.206.475.995.503.58
EV / EBITDA (X)14.2030.5231.4021.9114.98
MarketCap / Net Operating Revenue (X)4.376.566.185.623.58
Retention Ratios (%)95.5387.0092.3579.5384.24
Price / BV (X)8.5712.839.579.427.58
Price / Net Operating Revenue (X)4.376.566.185.623.58
EarningsYield0.040.020.010.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 8108.07

The stock is undervalued by 90.33% compared to the current price ₹4260

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 34.38%, which is a positive sign.
  2. The company has higher reserves (769.44 cr) compared to borrowings (71.11 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (255.89 cr) and profit (309.89 cr) over the years.
  1. The stock has a high average Working Capital Days of 82.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 76.63, which may not be favorable.

Stock Analysis

  • Based on the analysis of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Fine Organic Industries Ltd:
    1. Net Profit Margin: 20.50% (Higher values are generally favorable)
      • 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: 54.94% (Industry Average ROCE: 15.51%)
      • 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%: 40.10% (Industry Average ROE: 13.07%)
      • 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): 136.52 (Higher values, preferably > 2, are recommended)
      • 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: 3.68 (Higher values, preferably > 1, are recommended)
      • 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: 29.3 (Industry average Stock P/E: 47.9)
      • 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: 0.01 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.
    Stock Rating: ★★★★★

About the Company

Fine Organic Industries Ltd. is a Public Limited Listed company incorporated on 24/05/2002 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24119MH2002PLC136003 and registration number is 136003. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1858.43 Cr. and Equity Capital is Rs. 15.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - OthersFine House, Anandji Street, Mumbai Maharashtra 400077investors@fineorganics.com
http://www.fineorganics.com
Management
NamePosition Held
Mr. Mukesh Maganlal ShahChairman & Managing Director
Mr. Jayen Ramesh ShahExecutive Director & CEO
Mr. Tushar Ramesh ShahExecutive Director & CFO
Mr. Bimal Mukesh ShahExecutive Director
Mr. Nikhil Dattatraya KamatExecutive Director
Mr. Kaushik Dwarkadas ShahIndependent Director
Mr. Mahesh Pansukhlal SardaIndependent Director
Mr. Thiruvengadam ParthasarathiIndependent Director
Mrs. Pratima Madhukar UmarjiIndependent Director
Mr. Prakash Krishnaji ApteIndependent Director

Fine Organic Industries Ltd. Share Price Update

Share PriceValue
Today₹4,354.00
Previous Day₹4,373.70

FAQ

What is the latest fair value of Fine Organic Industries Ltd?

The latest fair value of Fine Organic Industries Ltd is 8108.07.

What is the Market Cap of Fine Organic Industries Ltd?

The Market Cap of Fine Organic Industries Ltd is 13,072 Cr..

What is the current Stock Price of Fine Organic Industries Ltd as on 13 April 2024?

The current stock price of Fine Organic Industries Ltd as on 13 April 2024 is 4,260.

What is the High / Low of Fine Organic Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Fine Organic Industries Ltd stocks is ₹5,165/4,005.

What is the Stock P/E of Fine Organic Industries Ltd?

The Stock P/E of Fine Organic Industries Ltd is 29.3.

What is the Book Value of Fine Organic Industries Ltd?

The Book Value of Fine Organic Industries Ltd is 559.

What is the Dividend Yield of Fine Organic Industries Ltd?

The Dividend Yield of Fine Organic Industries Ltd is 0.21 %.

What is the ROCE of Fine Organic Industries Ltd?

The ROCE of Fine Organic Industries Ltd is 65.3 %.

What is the ROE of Fine Organic Industries Ltd?

The ROE of Fine Organic Industries Ltd is 49.4 %.

What is the Face Value of Fine Organic Industries Ltd?

The Face Value of Fine Organic Industries 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 Fine Organic Industries 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