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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

Future Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

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

Market Cap 57.5 Cr.
Current Price 0.80
High / Low1.10/0.60
Stock P/E
Book Value 5.77
Dividend Yield0.00 %
ROCE11.7 %
ROE121 %
Face Value 2.00
PEG Ratio0.00

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

View Share Price Target for Future Enterprises Ltd

Competitors of Future Enterprises Ltd

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

All Competitor Stocks of Future Enterprises Ltd

Quarterly Result

MonthMar 2019Jun 2019Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022
Sales1,5671,4151,7001,468783179238459546436693590474
Expenses1,1571,0301,2551,0476961672174184743906475291,086
Operating Profit4093854454208712214172464661-612
OPM %26%27%26%29%11%7%9%9%13%11%7%10%-129%
Other Income13111922-4213722496151528-1,344
Interest155168172173206200200210207202175192193
Depreciation212243262256272272164174171177172170147
Profit before tax55-152913-434-323-321-295-300-318-286-273-2,296
Tax %-20%44%26%9%9%-0%-0%-0%6%-0%-0%-0%0%
Net Profit67-92212-395-323-321-295-282-318-286-273-2,296
EPS in Rs1.31-0.230.370.34-7.77-6.46-6.23-5.99-5.97-6.49-5.97-5.95-44.84

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthJun 2010Jun 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Sales9,78712,22620,18613,89711,0578,9154,4885,2566,1735,3661,4222,193
Expenses9,02811,18318,25512,9259,8877,8103,4604,0514,7034,0061,2372,634
Operating Profit7591,0431,9319721,1701,1051,0271,2051,4701,360186-441
OPM %8%9%10%7%11%12%23%23%24%25%13%-20%
Other Income2071618213052134021516397-14174-1,305
Interest5076151,647726679507522578598719817762
Depreciation2783086324525425736547258161,034781665
Profit before tax18028147399162656665154-407-1,238-3,173
Tax %58%50%28%4%1%32%17%39%-14%9%1%0%
Net Profit7014033895160445540175-370-1,220-3,173
EPS in Rs2.184.337.872.293.940.920.810.153.19-7.28-24.66-63.25
Dividend Payout %37%14%9%17%16%12%27%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-2022
YoY Net Profit Growth (%)68.42%-72.50%25.00%-27.27%337.50%-311.43%-229.73%-160.08%
Change in YoY Net Profit Growth (%)0.00%-140.92%97.50%-52.27%364.77%-648.93%81.70%69.65%

Future Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2014-2015 to 2021-2022.

Growth

Compounded Sales Growth
10 Years:-16%
5 Years:-13%
3 Years:-29%
TTM:54%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:-34%
Stock Price CAGR
10 Years:-25%
5 Years:-48%
3 Years:-56%
1 Year:-11%
Return on Equity
10 Years:-8%
5 Years:-18%
3 Years:-34%
Last Year:-121%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthJun 2010Jun 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Equity Capital414346468386959999999999
Reserves2,6432,8013,2423,2165,2363,3113,5793,7343,8954,0402,812-361
Borrowings4,4227,8307,6026,4774,9234,9795,2065,7876,7336,8787,1847,460
Other Liabilities2,6023,6504,1462,4093,2081,5631,6701,8362,3564,6491,7611,241
Total Liabilities9,70814,32415,03712,14913,4509,93810,54911,45713,08315,66611,8568,438
Fixed Assets2,6473,2784,6324,5204,9985,4225,9826,7597,4238,3564,7503,869
CWIP304345553394277422456585597630920
Investments9101,3701,3911,4521,6221,1281,1358659571,1361,080760
Other Assets5,8479,3328,4615,7836,5532,9662,9763,2474,1055,5445,9333,808
Total Assets9,70814,32415,03712,14913,4509,93810,54911,45713,08315,66611,8568,438

Reserves and Borrowings Chart

Cash Flow

MonthJun 2010Jun 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Cash from Operating Activity 251-1,4533,4192,2341,2729819751,1141,1252,458-3,006400
Cash from Investing Activity -448-1,333-2,080-364-1,039-1,308-762-1,189-1,431-1,7753,58837
Cash from Financing Activity 2813,021-1,660-1,902-270347-19794345-816-555-465
Net Cash Flow84235-321-32-3720161939-13427-28

Free Cash Flow

MonthDec 2012Jun 2010Jun 2011Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Free Cash Flow-6.00755.00-6.00966.00-3.00-3.00-4.00-4.00-5.00-5.00179.00-448.00

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

MonthJun 2010Jun 2011Dec 2012Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Debtor Days151610121821495453156710269
Inventory Days1361641251151685010211211312239968
Days Payable769467469746747788132411181
Cash Conversion Cycle758668819024778978146698156
Working Capital Days13175466793401191129510552314
ROCE %9%9%16%8%7%6%6%6%7%4%-5%-12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023
Promoters50.11%43.29%37.09%20.61%20.61%20.61%18.88%17.03%16.37%16.37%16.37%16.37%
FIIs1.17%0.49%0.19%0.19%0.19%0.19%0.19%0.19%0.02%0.02%0.02%0.02%
DIIs2.66%6.45%5.96%5.95%5.95%5.25%4.96%0.57%0.58%0.58%0.58%0.58%
Public46.07%49.76%56.76%73.25%73.25%73.95%75.97%82.21%83.03%83.03%83.02%83.03%
No. of Shareholders54,1471,06,1661,08,6391,05,5431,05,9231,04,7771,07,7421,22,8461,32,0571,38,4981,38,9081,39,941

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 21Mar 20Mar 19Mar 18Mar 17
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)-22.69-6.712.930.130.74
Diluted EPS (Rs.)-22.69-6.712.930.130.74
Cash EPS (Rs.)-9.3613.1619.6615.3214.75
Book Value[Excl.RevalReserv]/Share (Rs.)58.8883.7386.5681.7980.31
Book Value[Incl.RevalReserv]/Share (Rs.)58.8883.7386.5681.7980.31
Revenue From Operations / Share (Rs.)28.77108.55121.23103.4494.86
PBDIT / Share (Rs.)6.8028.4131.3327.5326.03
PBIT / Share (Rs.)-9.007.4914.8012.8312.19
PBT / Share (Rs.)-25.52-8.502.701.121.15
Net Profit / Share (Rs.)-25.16-7.753.140.610.91
NP After MI And SOA / Share (Rs.)-22.69-6.702.940.130.74
PBDIT Margin (%)23.6226.1625.8426.6127.43
PBIT Margin (%)-31.276.9012.2112.4012.84
PBT Margin (%)-88.70-7.822.221.081.21
Net Profit Margin (%)-87.45-7.132.580.590.96
NP After MI And SOA Margin (%)-78.88-6.172.420.130.78
Return on Networth / Equity (%)-38.54-8.003.620.180.92
Return on Capital Employeed (%)-6.183.836.576.306.14
Return On Assets (%)-9.46-2.111.100.060.33
Long Term Debt / Equity (X)1.291.151.541.391.29
Total Debt / Equity (X)1.841.481.641.491.33
Asset Turnover Ratio (%)0.060.300.380.390.37
Current Ratio (X)1.110.781.701.992.24
Quick Ratio (X)0.870.581.061.211.49
Inventory Turnover Ratio (X)0.020.050.060.030.03
Dividend Payout Ratio (NP) (%)0.00-1.051.91139.270.00
Dividend Payout Ratio (CP) (%)0.000.490.281.310.00
Earning Retention Ratio (%)0.00101.0598.09-39.270.00
Cash Earning Retention Ratio (%)0.0099.5199.7298.690.00
Interest Coverage Ratio (X)0.411.952.592.352.36
Interest Coverage Ratio (Post Tax) (X)-0.520.561.261.051.08
Enterprise Value (Cr.)5706.076530.958568.317511.976373.30
EV / Net Operating Revenue (X)4.011.221.431.471.42
EV / EBITDA (X)16.984.655.545.535.18
MarketCap / Net Operating Revenue (X)0.270.070.310.340.31
Retention Ratios (%)0.00101.0598.08-39.270.00
Price / BV (X)0.130.100.470.450.37
Price / Net Operating Revenue (X)0.270.070.310.340.31
EarningsYield-2.85-0.770.070.000.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Future Enterprises Ltd as of October 11, 2024 is: ₹106.82

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, Future Enterprises Ltd is Undervalued by 13,252.50% compared to the current share price ₹0.80

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of Future Enterprises Ltd as of October 11, 2024 is: ₹46.44

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, Future Enterprises Ltd is Undervalued by 5,705.00% compared to the current share price ₹0.80

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -56.53%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (8.00 cr) and profit (94.50 cr) over the years.
  1. The stock has a low average ROCE of 5.08%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 137.83, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 139.00, which may not be favorable.
  4. The company has higher borrowings (6,290.08) compared to reserves (3,179.00), 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 Future Enterprises Ltd:
    1. Net Profit Margin: -87.45%
      • 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: -6.18% (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%: -38.54% (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): -0.52
      • 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: 0.87
      • 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: 0 (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: 1.84
      • 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

Future Enterprises Ltd. is a Public Limited Listed company incorporated on 12/10/1987 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L52399MH1987PLC044954 and registration number is 044954. Currently Company is involved in the business activities of Manufacture of wearing apparel. Company’s Total Operating Revenue is Rs. 1513.62 Cr. and Equity Capital is Rs. 98.86 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Retail - Apparel/AccessoriesKnowledge House, Shyam Nagar, Mumbai Maharashtra 400060investorrelations@futuregroup.in
http://www.felindia.in
Management
NamePosition Held
Mr. Vijay BiyaniChairman & Managing Director
Mr. Kishore BiyaniVice Chairman & Director
Ms. Bala DeshpandeDirector
Mr. Anand ChandrasekaranDirector
Ms. Malini ChopraDirector

FAQ

What is the latest fair value of Future Enterprises Ltd?

The latest fair value of Future Enterprises Ltd is ₹106.82.

What is the Market Cap of Future Enterprises Ltd?

The Market Cap of Future Enterprises Ltd is 57.5 Cr..

What is the current Stock Price of Future Enterprises Ltd as on 11 October 2024?

The current stock price of Future Enterprises Ltd as on 11 October 2024 is ₹0.80.

What is the High / Low of Future Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Future Enterprises Ltd stocks is 1.10/0.60.

What is the Stock P/E of Future Enterprises Ltd?

The Stock P/E of Future Enterprises Ltd is .

What is the Book Value of Future Enterprises Ltd?

The Book Value of Future Enterprises Ltd is 5.77.

What is the Dividend Yield of Future Enterprises Ltd?

The Dividend Yield of Future Enterprises Ltd is 0.00 %.

What is the ROCE of Future Enterprises Ltd?

The ROCE of Future Enterprises Ltd is 11.7 %.

What is the ROE of Future Enterprises Ltd?

The ROE of Future Enterprises Ltd is 121 %.

What is the Face Value of Future Enterprises Ltd?

The Face Value of Future Enterprises 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 Future Enterprises 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