Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 15 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Gallantt Ispat Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:29 pm

Market Cap 7,721 Cr.
Current Price 320
High / Low406/94.6
Stock P/E24.3
Book Value 109
Dividend Yield0.31 %
ROCE12.0 %
ROE9.63 %
Face Value 10.0
PEG Ratio0.49

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

View Share Price Target for Gallantt Ispat Ltd

Competitors of Gallantt Ispat Ltd

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

All Competitor Stocks of Gallantt Ispat Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales3077603456738308631,0219311,0061,0761,0369501,063
Expenses266655308642756753949853921970966863956
Operating Profit411053731741107278861067186107
OPM %13%14%11%5%9%13%7%8%8%10%7%9%10%
Other Income1122534414119121
Interest3625564789678
Depreciation424723232325252525252829
Profit before tax36863075012545505392415471
Tax %34%32%35%6%42%29%45%45%61%26%25%13%26%
Net Profit2458206298925282168314752
EPS in Rs2.917.142.440.763.5710.931.021.140.872.811.271.962.15

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
Sales5856636697206706168241,0648652,1053,0174,0354,068
Expenses5416086256566045657389388331,8362,7213,6933,720
Operating Profit4455446566528612532269297342348
OPM %8%8%7%9%10%8%10%12%4%13%10%8%9%
Other Income3511315519532523
Interest161012127676622202729
Depreciation1616171718171514146892100103
Profit before tax1533163744306911013189237240240
Tax %5%4%6%8%5%11%29%35%42%22%26%41%
Net Profit15321534422749727148176141167
EPS in Rs1.793.901.854.175.113.286.078.810.9218.1821.625.846.91
Dividend Payout %0%0%0%0%0%0%4%3%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)113.33%-53.12%126.67%23.53%-35.71%81.48%46.94%-90.28%2014.29%18.92%-19.89%
Change in YoY Net Profit Growth (%)0.00%-166.46%179.79%-103.14%-59.24%117.20%-34.54%-137.22%2104.56%-1995.37%-38.81%

Gallantt Ispat 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:20%
5 Years:32%
3 Years:26%
TTM:6%
Compounded Profit Growth
10 Years:31%
5 Years:26%
3 Years:15%
TTM:91%
Stock Price CAGR
10 Years:30%
5 Years:64%
3 Years:63%
1 Year:215%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:8%
Last Year:10%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital81818181818181818181241241241
Reserves1511662002422823314004051,8242,0021,9842,2092,381
Borrowings581289162745551123388387538462407
Other Liabilities12260525931943154147219186223296
Total Liabilities4134354244444685615646632,4412,6892,9493,1363,326
Fixed Assets1932072122052302192081981,3481,4521,6231,8941,840
CWIP975181329127241277359316122221
Investments434343434343434360125271
Other Assets1691791651781832701861827568771,0091,0681,195
Total Assets4134354244444685615646632,4412,6892,9493,1363,326

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +84-43705631109434117323496344
Cash from Investing Activity +-9-27-20-22-40-83-37-106-193-209-225-248
Cash from Financing Activity +-6957-48-367-24-96510-19126-102
Net Cash Flow6-132-1-22-3-0-106-3-5

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow44.00-3.00-84.00-26.004.00-22.0031.0074.00-91.00-119.00-90.00-196.00

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 Days16231217202213102319129
Inventory Days535655577765516956504848
Days Payable506031747819182476
Cash Conversion Cycle207467718041555961455351
Working Capital Days2165667674634535105807980
ROCE %14%9%13%13%9%17%23%3%15%10%10%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters67.24%67.24%67.24%67.24%68.72%68.72%68.73%68.75%68.79%68.94%68.94%68.93%
FIIs0.00%0.08%0.10%0.10%0.03%0.01%0.01%0.01%0.01%0.00%0.01%0.02%
Public32.76%32.68%32.66%32.67%31.25%31.26%31.25%31.22%31.19%31.05%31.04%31.02%
No. of Shareholders8,65010,48910,95811,43818,98218,34618,57818,35518,87620,35620,73120,884

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 21Mar 20Mar 19Mar 18
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)9.3410.012.7612.837.71
Diluted EPS (Rs.)9.3410.012.7612.837.71
Cash EPS (Rs.)14.138.912.6610.547.91
Book Value[Excl.RevalReserv]/Share (Rs.)101.5790.6280.5578.0965.57
Book Value[Incl.RevalReserv]/Share (Rs.)101.5790.6280.5578.0965.57
Revenue From Operations / Share (Rs.)175.19123.83106.37130.81101.33
PBDIT / Share (Rs.)18.8613.944.1115.9911.17
PBIT / Share (Rs.)14.0712.012.3714.269.33
PBT / Share (Rs.)12.9010.821.5913.538.53
Net Profit / Share (Rs.)9.346.980.928.816.07
NP After MI And SOA / Share (Rs.)9.3410.012.7512.837.71
PBDIT Margin (%)10.7611.253.8612.2211.02
PBIT Margin (%)8.039.702.2210.909.20
PBT Margin (%)7.368.731.4910.338.41
Net Profit Margin (%)5.335.630.866.735.98
NP After MI And SOA Margin (%)5.338.082.599.807.61
Return on Networth / Equity (%)9.1911.043.4216.4211.76
Return on Capital Employeed (%)12.7112.892.6818.2414.22
Return On Assets (%)7.188.752.6914.549.19
Long Term Debt / Equity (X)0.040.000.080.000.00
Total Debt / Equity (X)0.180.150.140.080.10
Asset Turnover Ratio (%)0.001.281.251.711.52
Current Ratio (X)2.241.221.432.001.63
Quick Ratio (X)1.300.420.280.640.88
Inventory Turnover Ratio (X)0.005.505.907.185.76
Dividend Payout Ratio (NP) (%)0.000.009.071.940.00
Dividend Payout Ratio (CP) (%)0.000.005.561.710.00
Earning Retention Ratio (%)0.000.0090.9398.060.00
Cash Earning Retention Ratio (%)0.000.0094.4498.290.00
Interest Coverage Ratio (X)16.1311.675.2421.7213.85
Interest Coverage Ratio (Post Tax) (X)8.996.852.1712.968.52
Enterprise Value (Cr.)5094.26460.95246.58451.73368.90
EV / Net Operating Revenue (X)1.210.450.280.420.44
EV / EBITDA (X)11.194.077.383.474.06
MarketCap / Net Operating Revenue (X)1.100.350.180.380.38
Retention Ratios (%)0.000.0090.9298.050.00
Price / BV (X)1.900.480.230.630.59
Price / Net Operating Revenue (X)1.100.350.180.380.38
EarningsYield0.040.220.140.250.19

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gallantt Ispat Ltd as of November 15, 2024 is: 255.86

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 15, 2024, Gallantt Ispat Ltd is Overvalued by 20.04% compared to the current share price 320.00

Intrinsic Value of Gallantt Ispat Ltd as of November 15, 2024 is: 382.95

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 15, 2024, Gallantt Ispat Ltd is Undervalued by 19.67% compared to the current share price 320.00

Last 5 Year EPS CAGR: 49.67%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (967.46 cr) compared to borrowings (217.23 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (432.77 cr) and profit (97.92 cr) over the years.
  1. The stock has a low average ROCE of 12.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 65.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 56.42, 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 Gallantt Ispat Ltd:
    1. Net Profit Margin: 5.33%
      • 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: 12.71% (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%: 9.19% (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): 8.99
      • 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: 1.3
      • 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: 24.3 (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: 0.18
      • 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

Gallantt Ispat Ltd. is a Public Limited Listed company incorporated on 07/02/2005 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27109DL2005PLC350524 and registration number is 101553. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 3017.38 Cr. and Equity Capital is Rs. 81.32 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Sponge IronGorakhpur Industrial Development Authority (GIDA), Sahjanwa, Gorakhpur Uttar Pradesh 273209csgml@gallantt.com
https://www.gallantt.com
Management
NamePosition Held
Mr. Chandra Prakash AgrawalChairman & Managing Director
Mr. Dinesh R AgarwalWhole Time Director
Mr. Prem Prakash AgrawalWhole Time Director
Mr. Nitin Mahavir Prasad KandoiWhole Time Director
Mr. Prashant JalanDirector
Mr. Ashtbhuja Prasad SrivastavaInd. Non-Executive Director
Mr. Udit AgarwalInd. Non-Executive Director
Mr. Nishi AgrawalInd. Non-Executive Director
Mrs. Smita ModiInd. Non-Executive Director
Mr. Pankaj KhannaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Gallantt Ispat Ltd?

The latest intrinsic value of Gallantt Ispat Ltd as on 15 November 2024 is ₹255.86, which is 20.04% lower than the current market price of ₹320.00.

What is the Market Cap of Gallantt Ispat Ltd?

The Market Cap of Gallantt Ispat Ltd is 7,721 Cr..

What is the current Stock Price of Gallantt Ispat Ltd as on 15 November 2024?

The current stock price of Gallantt Ispat Ltd as on 15 November 2024 is ₹320.

What is the High / Low of Gallantt Ispat Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gallantt Ispat Ltd stocks is 406/94.6.

What is the Stock P/E of Gallantt Ispat Ltd?

The Stock P/E of Gallantt Ispat Ltd is 24.3.

What is the Book Value of Gallantt Ispat Ltd?

The Book Value of Gallantt Ispat Ltd is 109.

What is the Dividend Yield of Gallantt Ispat Ltd?

The Dividend Yield of Gallantt Ispat Ltd is 0.31 %.

What is the ROCE of Gallantt Ispat Ltd?

The ROCE of Gallantt Ispat Ltd is 12.0 %.

What is the ROE of Gallantt Ispat Ltd?

The ROE of Gallantt Ispat Ltd is 9.63 %.

What is the Face Value of Gallantt Ispat Ltd?

The Face Value of Gallantt Ispat 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 Gallantt Ispat 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