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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Foseco India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:16 am

Market Cap 2,910 Cr.
Current Price 4,554
High / Low5,426/2,852
Stock P/E44.7
Book Value 476
Dividend Yield0.55 %
ROCE31.7 %
ROE24.3 %
Face Value 10.0
PEG Ratio3.01

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

View Share Price Target for Foseco India Ltd

Competitors of Foseco India Ltd

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

All Competitor Stocks of Foseco India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales828975878799100103106111121123122
Expenses73766875768385888895103107103
Operating Profit913712121514151815181620
OPM %11%14%9%14%13%15%14%15%17%14%15%13%16%
Other Income21311212251775
Interest0000000000000
Depreciation1112222242222
Profit before tax1012912111614151619332122
Tax %26%23%26%25%26%24%26%26%25%26%17%29%25%
Net Profit796981211111214281516
EPS in Rs11.2614.519.8814.0612.7019.1316.5317.1119.2022.3043.3123.1325.54

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022TTM
Sales233247227263292340358362323251338407461
Expenses193211196224241285306312276230294343393
Operating Profit40363139515551514621446368
OPM %17%15%13%15%17%16%14%14%14%8%13%16%15%
Other Income22232234866731
Interest0100010000000
Depreciation4555555546699
Profit before tax37322738485148505021436190
Tax %32%32%34%35%34%36%34%36%30%27%25%25%
Net Profit25221825323332323515334669
EPS in Rs39.5834.1727.9038.5049.6851.8049.4350.1754.0724.1851.1571.98107.94
Dividend Payout %46%41%88%55%53%44%51%50%46%62%49%56%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year
YoY Net Profit Growth (%)
Change in YoY Net Profit Growth (%)

No data available for trend analysis.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:6%
3 Years:24%
TTM:12%
Compounded Profit Growth
10 Years:13%
5 Years:15%
3 Years:60%
TTM:17%
Stock Price CAGR
10 Years:17%
5 Years:30%
3 Years:47%
1 Year:38%
Return on Equity
10 Years:21%
5 Years:19%
3 Years:21%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023Jun 2024
Equity Capital6666666666666
Reserves838391103118139150165176202233280298
Borrowings10864210000012
Other Liabilities42504850577582778086106132131
Total Liabilities141147152163183221238249263294345420438
Fixed Assets31282626262320343135313944
CWIP0011016250111
Investments0000000000000
Other Assets110119125136157197213213227259313379393
Total Assets141147152163183221238249263294345420438

Reserves and Borrowings Chart

Cash Flow

MonthDec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Cash from Operating Activity 202225173266474730205957
Cash from Investing Activity -7-1-1-4-62-5-9-2-0-3-12
Cash from Financing Activity -12-14-22-25-20-17-22-19-3-6-16-26
Net Cash Flow172-12651211925134019

Free Cash Flow

MonthDec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Free Cash Flow40.0026.0023.0033.0047.0053.0050.0051.0046.0021.0044.0063.00

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 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Dec 2023
Debtor Days99103101113107103888294807678
Inventory Days233232353529363932433246
Days Payable7786738081109111130173136146160
Cash Conversion Cycle45496068612312-8-46-13-37-36
Working Capital Days5449567270453120321119
ROCE %35%29%38%45%44%36%33%30%12%22%28%32%

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%
FIIs0.00%0.00%0.00%0.04%0.07%0.09%0.18%0.23%0.26%0.22%0.24%0.19%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.02%0.00%0.05%0.12%0.10%0.14%
Public25.01%25.01%25.01%24.97%24.94%24.92%24.82%24.78%24.70%24.67%24.67%24.67%
No. of Shareholders9,3989,54610,28010,87911,46311,15711,34711,52112,58512,94812,37012,097

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)114.2871.9851.1624.1754.07
Diluted EPS (Rs.)114.2871.9851.1624.1754.07
Cash EPS (Rs.)126.4885.9260.3633.4260.64
Book Value[Excl.RevalReserv]/Share (Rs.)448.78374.25326.73285.99268.36
Book Value[Incl.RevalReserv]/Share (Rs.)448.78374.25326.73285.99268.36
Dividend / Share (Rs.)25.0040.0025.0015.0015.00
Revenue From Operations / Share (Rs.)747.53636.87529.26393.25505.01
PBDIT / Share (Rs.)142.70109.9777.0442.2884.28
PBIT / Share (Rs.)130.5096.0367.8333.0277.71
PBT / Share (Rs.)148.9996.0367.8333.0277.71
Net Profit / Share (Rs.)114.2871.9851.1624.1754.07
PBDIT Margin (%)19.0817.2614.5510.7516.68
PBIT Margin (%)17.4515.0712.818.3915.38
PBT Margin (%)19.9315.0712.818.3915.38
Net Profit Margin (%)15.2811.309.666.1410.70
Return on Networth / Equity (%)25.4619.2315.658.4520.14
Return on Capital Employeed (%)28.8925.5520.7011.5028.82
Return On Assets (%)17.3913.3111.095.8613.88
Asset Turnover Ratio (%)1.251.271.210.981.32
Current Ratio (X)2.842.912.982.742.70
Quick Ratio (X)2.592.722.722.582.44
Inventory Turnover Ratio (X)9.3710.1510.478.178.90
Dividend Payout Ratio (NP) (%)35.0034.7319.5420.6846.23
Dividend Payout Ratio (CP) (%)31.6229.0916.5614.9541.22
Earning Retention Ratio (%)65.0065.2780.4679.3253.77
Cash Earning Retention Ratio (%)68.3870.9183.4485.0558.78
Interest Coverage Ratio (X)1246.690.000.0038571.1441404.69
Interest Coverage Ratio (Post Tax) (X)836.820.000.0022053.5726564.77
Enterprise Value (Cr.)2210.851039.64758.83700.49722.16
EV / Net Operating Revenue (X)4.632.562.242.792.24
EV / EBITDA (X)24.2614.8015.4225.9413.42
MarketCap / Net Operating Revenue (X)5.113.022.693.332.59
Retention Ratios (%)64.9965.2680.4579.3153.76
Price / BV (X)8.525.144.354.594.87
Price / Net Operating Revenue (X)5.113.022.693.332.59
EarningsYield0.020.030.030.010.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Foseco India Ltd as of October 11, 2024 is: ₹5,198.80

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 11, 2024, Foseco India Ltd is Undervalued by 14.16% compared to the current share price ₹4,554.00

Intrinsic Value of Foseco India Ltd as of October 11, 2024 is: ₹5,969.64

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 11, 2024, Foseco India Ltd is Undervalued by 31.09% compared to the current share price ₹4,554.00

Last 5 Year EPS CAGR: 14.83%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 32.00%, which is a positive sign.
  2. The company has higher reserves (163.15 cr) compared to borrowings (2.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (315.54 cr) and profit (45.85 cr) over the years.
  1. The stock has a high average Working Capital Days of 36.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 14.83, 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 Foseco India Ltd:
    1. Net Profit Margin: 15.28%
      • 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: 28.89% (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%: 25.46% (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): 836.82
      • 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: 2.59
      • 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: 44.7 (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
      • 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

Foseco India Ltd. is a Public Limited Listed company incorporated on 22/03/1958 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L24294PN1958PLC011052 and registration number is 011052. Currently company belongs to the Industry of Chemicals - Organic - Others. Company’s Total Operating Revenue is Rs. 338.01 Cr. and Equity Capital is Rs. 6.39 Cr. for the Year ended 31/12/2021.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - OthersGat Nos. 922 & 923, Pune District Maharashtra 412208investor.grievance@vesuvius.com
http://www.fosecoindia.com
Management
NamePosition Held
Mr. Ravi Moti KirpalaniChairperson & Director
Mr. Prasad ChavareManaging Director & CEO
Mr. Mark Russel CollisDirector
Ms. Anita BelaniDirector
Ms. Karena CancilleriDirector
Mr. Amitabha MukhopadhyayDirector

FAQ

What is the latest fair value of Foseco India Ltd?

The latest fair value of Foseco India Ltd is ₹5198.80.

What is the Market Cap of Foseco India Ltd?

The Market Cap of Foseco India Ltd is 2,910 Cr..

What is the current Stock Price of Foseco India Ltd as on 11 October 2024?

The current stock price of Foseco India Ltd as on 11 October 2024 is ₹4,554.

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

In FY 2024, the High / Low of Foseco India Ltd stocks is 5,426/2,852.

What is the Stock P/E of Foseco India Ltd?

The Stock P/E of Foseco India Ltd is 44.7.

What is the Book Value of Foseco India Ltd?

The Book Value of Foseco India Ltd is 476.

What is the Dividend Yield of Foseco India Ltd?

The Dividend Yield of Foseco India Ltd is 0.55 %.

What is the ROCE of Foseco India Ltd?

The ROCE of Foseco India Ltd is 31.7 %.

What is the ROE of Foseco India Ltd?

The ROE of Foseco India Ltd is 24.3 %.

What is the Face Value of Foseco India Ltd?

The Face Value of Foseco 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 Foseco 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