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Last Updated on: 04 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Gandhi Special Tubes Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 3, 2024, 10:00 pm

Market Cap 997 Cr.
Current Price 821
High / Low935/658
Stock P/E17.2
Book Value 196
Dividend Yield1.58 %
ROCE31.5 %
ROE23.8 %
Face Value 5.00
PEG Ratio0.88

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

View Share Price Target for Gandhi Special Tubes Ltd

Competitors of Gandhi Special Tubes Ltd

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

All Competitor Stocks of Gandhi Special Tubes Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales36403337353244523735464441
Expenses21242023242127332522292826
Operating Profit15161314111117191213171616
OPM %42%41%41%37%32%33%38%37%32%37%37%36%38%
Other Income1122110222433
Interest0000000000000
Depreciation1111111111111
Profit before tax16171415111016201314201818
Tax %25%25%23%26%26%19%25%25%25%24%23%25%25%
Net Profit121311118812151010161313
EPS in Rs9.349.928.578.416.766.929.8412.647.878.6112.9810.9010.87

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
Sales107968492919811412381114137167162
Expenses6763576964657377576988107104
Operating Profit40322623273341462445496157
OPM %38%34%31%25%30%34%36%37%30%39%36%36%36%
Other Income638431088665510
Interest0000000000000
Depreciation5455544443333
Profit before tax42312923253845502648506364
Tax %28%28%41%31%26%19%26%22%18%24%24%25%
Net Profit30221716193134392136394749
EPS in Rs20.2915.0111.7810.7512.6220.9624.2927.9616.5427.9831.7438.9640.36
Dividend Payout %30%40%64%70%59%43%37%32%54%32%32%31%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-26.67%-22.73%-5.88%18.75%63.16%9.68%14.71%-46.15%71.43%8.33%20.51%
Change in YoY Net Profit Growth (%)0.00%3.94%16.84%24.63%44.41%-53.48%5.03%-60.86%117.58%-63.10%12.18%

Gandhi Special Tubes 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:7%
5 Years:7%
3 Years:15%
TTM:5%
Compounded Profit Growth
10 Years:14%
5 Years:5%
3 Years:10%
TTM:19%
Stock Price CAGR
10 Years:15%
5 Years:23%
3 Years:24%
1 Year:14%
Return on Equity
10 Years:19%
5 Years:22%
3 Years:24%
Last Year:24%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital777777766666
Reserves143150153158180170194140165141176217
Borrowings000000000000
Other Liabilities131514151820201520192020
Total Liabilities164172174180206197221162192166202243
Fixed Assets526463595551514845474443
CWIP400000000000
Investments616465821049912069947385132
Other Assets474546404647504453477368
Total Assets164172174180206197221162192166202243

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 271415292132311932424526
Cash from Investing Activity -18-4-1-14-513-1756-2022-7-37
Cash from Financing Activity -10-10-13-13-16-44-15-76-12-64-12-15
Net Cash Flow-1-10101-1-11-026-25

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow40.0032.0026.0023.0027.0033.0041.0046.0024.0045.0049.0061.00

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 Days576750656162466682443942
Inventory Days234292300186288197231308204179138233
Days Payable1724131010161512171099
Cash Conversion Cycle273335337240339243262362269213168265
Working Capital Days1201561521201391071131681229272115
ROCE %21%15%13%15%21%25%26%15%30%30%36%32%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters73.37%73.53%73.53%73.52%73.52%73.52%73.52%73.52%73.52%73.52%73.52%73.52%
FIIs0.19%0.19%0.19%0.22%0.28%1.28%1.49%1.49%1.49%1.43%1.43%1.42%
DIIs0.02%0.02%0.02%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public26.42%26.27%26.27%26.26%26.19%25.20%24.98%24.99%24.99%25.05%25.06%25.04%
No. of Shareholders10,28510,1509,9259,5729,6519,0199,45210,35411,10911,47911,60911,645

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)45.7438.9530.6627.9815.93
Diluted EPS (Rs.)45.7438.9530.6627.9815.93
Cash EPS (Rs.)48.2741.5334.4130.5419.30
Book Value[Excl.RevalReserv]/Share (Rs.)183.33149.85121.11133.10113.46
Book Value[Incl.RevalReserv]/Share (Rs.)183.33149.85121.11133.10113.46
Dividend / Share (Rs.)13.0012.0010.009.009.00
Revenue From Operations / Share (Rs.)140.62137.82112.7387.8862.65
PBDIT / Share (Rs.)62.9654.4144.2639.4122.93
PBIT / Share (Rs.)60.4351.8341.5936.8620.18
PBT / Share (Rs.)60.3551.7341.5536.8220.15
Net Profit / Share (Rs.)45.7438.9531.7427.9816.54
PBDIT Margin (%)44.7739.4839.2644.8436.60
PBIT Margin (%)42.9737.6136.8941.9432.20
PBT Margin (%)42.9137.5336.8541.8932.15
Net Profit Margin (%)32.5228.2628.1531.8426.40
Return on Networth / Equity (%)24.9425.9926.2021.0214.58
Return on Capital Employeed (%)31.6132.9632.2426.2316.62
Return On Assets (%)22.9023.3923.1818.7813.21
Asset Turnover Ratio (%)0.760.900.760.640.42
Current Ratio (X)6.798.468.3310.8415.17
Quick Ratio (X)2.756.365.878.9210.05
Inventory Turnover Ratio (X)1.962.702.171.591.15
Dividend Payout Ratio (NP) (%)26.2325.6730.1432.1658.18
Dividend Payout Ratio (CP) (%)24.8624.0727.8029.4749.89
Earning Retention Ratio (%)73.7774.3369.8667.8441.82
Cash Earning Retention Ratio (%)75.1475.9372.2070.5350.11
Interest Coverage Ratio (X)807.05536.271007.231032.72701.99
Interest Coverage Ratio (Post Tax) (X)587.28384.92723.21734.31507.46
Enterprise Value (Cr.)889.97568.08422.14340.80262.72
EV / Net Operating Revenue (X)5.213.393.083.003.25
EV / EBITDA (X)11.638.597.856.698.87
MarketCap / Net Operating Revenue (X)5.233.563.103.033.27
Retention Ratios (%)73.7674.3269.8567.8341.81
Price / BV (X)4.013.272.882.001.81
Price / Net Operating Revenue (X)5.233.563.103.033.27
EarningsYield0.060.070.090.100.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Gandhi Special Tubes Ltd as of November 4, 2024 is: 815.02

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 4, 2024, Gandhi Special Tubes Ltd is Overvalued by 0.73% compared to the current share price ₹821.00

Intrinsic Value of Gandhi Special Tubes Ltd as of November 4, 2024 is: 974.21

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 4, 2024, Gandhi Special Tubes Ltd is Undervalued by 18.66% compared to the current share price ₹821.00

Last 5 Year EPS CAGR: 19.53%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.25%, which is a positive sign.
  2. The company has higher reserves (165.58 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (112.77 cr) and profit (41.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 123.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 275.50, 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 Gandhi Special Tubes Ltd:
    1. Net Profit Margin: 32.52%
      • 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: 31.61% (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%: 24.94% (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): 587.28
      • 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: 2.75
      • 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: 17.2 (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

Gandhi Special Tubes Ltd. is a Public Limited Listed company incorporated on 22/04/1985 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L27104MH1985PLC036004 and registration number is 036004. Currently Company is involved in the business activities of Manufacture of tubes, pipes and hollow profiles and of tube or pipe fittings of cast-iron/cast-steel. Company’s Total Operating Revenue is Rs. 136.99 Cr. and Equity Capital is Rs. 6.08 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes201-204 Plaza, 2nd Floor, 55 Hughes Road, Mumbai Maharashtra 400007complianceofficer@gandhitubes.com
http://www.gandhitubes.com
Management
NamePosition Held
Mr. Manhar G GandhiChairman & Managing Director
Mr. Bhupatrai G GandhiNon Executive Director
Mr. Jayesh M GandhiNon Executive Director
Ms. Bhavi Jatin KoradiaIndependent Director
Mr. Viral D DoshiIndependent Director
Mr. Hemal V ShahIndependent Director

FAQ

What is the latest fair value of Gandhi Special Tubes Ltd?

The latest fair value of Gandhi Special Tubes Ltd is ₹815.02.

What is the Market Cap of Gandhi Special Tubes Ltd?

The Market Cap of Gandhi Special Tubes Ltd is 997 Cr..

What is the current Stock Price of Gandhi Special Tubes Ltd as on 04 November 2024?

The current stock price of Gandhi Special Tubes Ltd as on 04 November 2024 is 821.

What is the High / Low of Gandhi Special Tubes Ltd stocks in FY 2024?

In FY 2024, the High / Low of Gandhi Special Tubes Ltd stocks is 935/658.

What is the Stock P/E of Gandhi Special Tubes Ltd?

The Stock P/E of Gandhi Special Tubes Ltd is 17.2.

What is the Book Value of Gandhi Special Tubes Ltd?

The Book Value of Gandhi Special Tubes Ltd is 196.

What is the Dividend Yield of Gandhi Special Tubes Ltd?

The Dividend Yield of Gandhi Special Tubes Ltd is 1.58 %.

What is the ROCE of Gandhi Special Tubes Ltd?

The ROCE of Gandhi Special Tubes Ltd is 31.5 %.

What is the ROE of Gandhi Special Tubes Ltd?

The ROE of Gandhi Special Tubes Ltd is 23.8 %.

What is the Face Value of Gandhi Special Tubes Ltd?

The Face Value of Gandhi Special Tubes 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 Gandhi Special Tubes 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