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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

GMM Pfaudler Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:28 pm

Market Cap 5,782 Cr.
Current Price 1,286
High / Low1,731/1,143
Stock P/E59.1
Book Value 229
Dividend Yield0.16 %
ROCE19.1 %
ROE19.6 %
Face Value 2.00
PEG Ratio2.92

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

View Share Price Target for GMM Pfaudler Ltd

Competitors of GMM Pfaudler Ltd

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

All Competitor Stocks of GMM Pfaudler Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales186202459552647642699739780792866912937
Expenses147160429516553560628641661674770780795
Operating Profit394230369482729811911896132142
OPM %21%21%7%7%14%13%10%13%15%15%11%14%15%
Other Income23-1713112819-321599
Interest2251426216921212022
Depreciation6112839392827272830343532
Profit before tax3432-21-165650448310135568697
Tax %20%28%73%-18%30%24%60%26%4%46%34%37%27%
Net Profit2723-6-18393817619719365470
EPS in Rs6.125.280.960.597.887.253.6510.1414.454.158.5612.2215.82

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
Sales2522132793082923534065035911,0012,5413,1783,508
Expenses2341972462722573063444264798622,2572,7463,019
Operating Profit1816333635486277112139284431489
OPM %7%8%12%12%12%13%15%15%19%14%11%14%14%
Other Income454346985-10730-1
Interest11111111310256784
Depreciation679108810112150133119131
Profit before tax14132728304461739268133275273
Tax %29%28%30%33%33%29%30%31%23%7%44%22%
Net Profit1010191920314351716475214180
EPS in Rs2.262.214.344.304.587.099.7211.5216.2016.7319.3737.0640.75
Dividend Payout %41%42%23%23%22%19%14%13%10%10%10%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%90.00%0.00%5.26%55.00%38.71%18.60%39.22%-9.86%17.19%185.33%
Change in YoY Net Profit Growth (%)0.00%90.00%-90.00%5.26%49.74%-16.29%-20.11%20.61%-49.07%27.05%168.15%

GMM Pfaudler 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:29%
5 Years:47%
3 Years:51%
TTM:-9%
Compounded Profit Growth
10 Years:25%
5 Years:29%
3 Years:29%
TTM:-42%
Stock Price CAGR
10 Years:31%
5 Years:17%
3 Years:-8%
1 Year:-25%
Return on Equity
10 Years:20%
5 Years:21%
3 Years:20%
Last Year:20%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital333333333399
Reserves116136148164191225266326403524792959
Borrowings000000034633636973906
Other Liabilities779684891251611651661,3421,5541,5821,271
Total Liabilities1962352342563183894345302,3812,7173,3553,144
Fixed Assets555346536171781341,0431,0021,2241,233
CWIP125427524131327
Investments11121214465148361000
Other Assets1291691711842092603033581,3321,7032,1181,884
Total Assets1962352342563183894345302,3812,7173,3553,144

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 246302522682727157236185284
Cash from Investing Activity -122-17-17-21-24-8-50-66-134-294-32
Cash from Financing Activity -5-7-6-6-6-8-10-5105-55130-244
Net Cash Flow8282-5359-2819647218

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow18.0016.0033.0036.0035.0048.0062.0077.0078.00-494.00-352.00-542.00

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 Days5057456172454946113515046
Inventory Days214270202214201207181181470241220165
Days Payable8390979313313210092246141153106
Cash Conversion Cycle181236150182140121130134337151117105
Working Capital Days4156465165435680104535764
ROCE %10%21%20%19%22%29%29%31%15%13%22%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters54.95%54.95%54.95%54.95%56.06%38.74%38.74%38.74%25.18%25.18%25.18%25.18%
FIIs10.03%10.85%12.15%11.84%11.71%19.02%19.96%18.84%26.49%22.58%22.15%22.20%
DIIs5.93%5.99%5.82%6.10%5.61%10.65%10.58%10.75%12.58%13.10%13.06%14.51%
Public29.09%28.22%27.09%27.11%26.63%31.60%30.72%31.67%35.75%39.12%39.61%38.11%
No. of Shareholders91,99089,75686,48988,7741,00,4051,16,5251,10,4811,12,8951,17,4521,29,8181,30,3101,27,194

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HSBC Small Cap Fund - Regular Plan836,0991.26145.07529,4122024-11-1257.93%
Aditya Birla Sun Life Flexi Cap Fund529,4120.5491.86529,4122024-11-120%
Canara Robeco Small Cap Fund458,1291.0179.49529,4122024-11-12-13.46%
Aditya Birla Sun Life Midcap Fund441,1761.876.55529,4122024-11-12-16.67%
HSBC Aggressive Hybrid Fund320,6571.1755.64529,4122024-11-12-39.43%
Edelweiss Small Cap Fund219,0051.5438529,4122024-11-12-58.63%
Aditya Birla Sun Life Multi-Cap Fund205,8820.8235.72529,4122024-11-12-61.11%
Aditya Birla Sun Life Small Cap Fund176,4710.6730.62529,4122024-11-12-66.67%
Canara Robeco Focused Equity Fund155,0001.4226.89529,4122024-11-12-70.72%
Edelweiss Large & Mid Cap Fund154,5871.2126.82529,4122024-11-12-70.8%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)39.8037.5258.1850.1948.66
Diluted EPS (Rs.)39.7937.5158.1750.1948.66
Cash EPS (Rs.)71.3674.07142.4577.9763.12
Book Value[Excl.RevalReserv]/Share (Rs.)216.74181.37457.80362.97234.64
Book Value[Incl.RevalReserv]/Share (Rs.)216.74181.37457.80362.97234.64
Revenue From Operations / Share (Rs.)766.74706.911740.12684.99404.43
PBDIT / Share (Rs.)110.53107.42199.04110.9279.98
PBIT / Share (Rs.)77.9080.84108.2176.3365.53
PBT / Share (Rs.)56.8261.2391.3646.4363.15
Net Profit / Share (Rs.)38.7347.5051.6243.3848.67
NP After MI And SOA / Share (Rs.)39.8037.0758.2550.2048.67
PBDIT Margin (%)14.4115.1911.4316.1919.77
PBIT Margin (%)10.1611.436.2111.1416.20
PBT Margin (%)7.418.665.256.7715.61
Net Profit Margin (%)5.056.712.966.3312.03
NP After MI And SOA Margin (%)5.195.243.347.3212.03
Return on Networth / Equity (%)18.4820.7216.1318.0120.74
Return on Capital Employeed (%)17.4718.509.536.9025.26
Return On Assets (%)5.664.963.113.0313.08
Long Term Debt / Equity (X)0.510.790.851.090.00
Total Debt / Equity (X)0.730.990.951.120.03
Asset Turnover Ratio (%)1.061.040.491.061.19
Current Ratio (X)1.611.491.581.662.37
Quick Ratio (X)1.060.930.950.921.61
Inventory Turnover Ratio (X)1.791.830.982.212.11
Dividend Payout Ratio (NP) (%)5.025.338.599.969.24
Dividend Payout Ratio (CP) (%)2.763.103.355.897.13
Earning Retention Ratio (%)94.9894.6791.4190.0490.76
Cash Earning Retention Ratio (%)97.2496.9096.6594.1192.87
Interest Coverage Ratio (X)5.247.2511.8115.9233.49
Interest Coverage Ratio (Post Tax) (X)2.844.534.0610.5221.38
Enterprise Value (Cr.)5929.587025.566981.406580.703608.90
EV / Net Operating Revenue (X)1.722.212.756.576.11
EV / EBITDA (X)11.9414.5524.0240.5930.87
MarketCap / Net Operating Revenue (X)1.612.072.626.296.22
Retention Ratios (%)94.9794.6691.4090.0390.75
Price / BV (X)5.748.1912.6415.4510.71
Price / Net Operating Revenue (X)1.612.072.626.296.22
EarningsYield0.030.020.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of GMM Pfaudler Ltd as of November 14, 2024 is: 2,656.89

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 14, 2024, GMM Pfaudler Ltd is Undervalued by 106.60% compared to the current share price 1,286.00

Intrinsic Value of GMM Pfaudler Ltd as of November 14, 2024 is: 3,195.19

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 14, 2024, GMM Pfaudler Ltd is Undervalued by 148.46% compared to the current share price 1,286.00

Last 5 Year EPS CAGR: 20.26%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.83%, which is a positive sign.
  2. The company has higher reserves (354.17 cr) compared to borrowings (265.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (246.62 cr) and profit (87.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 59.67, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 165.33, 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 GMM Pfaudler Ltd:
    1. Net Profit Margin: 5.05%
      • 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: 17.47% (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%: 18.48% (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): 2.84
      • 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: 1.06
      • 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: 59.1 (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: 0.73
      • 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

GMM Pfaudler Ltd. is a Public Limited Listed company incorporated on 17/11/1962 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L29199GJ1962PLC001171 and registration number is 001171. Currently Company is involved in the business activities of Manufacture of other special-purpose machinery. Company’s Total Operating Revenue is Rs. 814.82 Cr. and Equity Capital is Rs. 2.92 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - HeavyVithal Udyognagar, Anand- Sojitra Road, Karamsad Gujarat 388325investorservices@gmmpfaudler.com
http://www.gmmpfaudler.com
Management
NamePosition Held
Mr. Prakash ApteChairperson
Mr. Tarak PatelManaging Director
Mr. Nakul ToshniwalDirector
Ms. Bhawana MishraDirector
Mr. Vivek BhatiaDirector
Mr. Ashok PatelDirector
Ms. Shilpa Divekar NirulaDirector

FAQ

What is the latest intrinsic value of GMM Pfaudler Ltd?

The latest intrinsic value of GMM Pfaudler Ltd as on 14 November 2024 is ₹2656.89, which is 106.60% higher than the current market price of ₹1,286.00.

What is the Market Cap of GMM Pfaudler Ltd?

The Market Cap of GMM Pfaudler Ltd is 5,782 Cr..

What is the current Stock Price of GMM Pfaudler Ltd as on 14 November 2024?

The current stock price of GMM Pfaudler Ltd as on 14 November 2024 is ₹1,286.

What is the High / Low of GMM Pfaudler Ltd stocks in FY 2024?

In FY 2024, the High / Low of GMM Pfaudler Ltd stocks is 1,731/1,143.

What is the Stock P/E of GMM Pfaudler Ltd?

The Stock P/E of GMM Pfaudler Ltd is 59.1.

What is the Book Value of GMM Pfaudler Ltd?

The Book Value of GMM Pfaudler Ltd is 229.

What is the Dividend Yield of GMM Pfaudler Ltd?

The Dividend Yield of GMM Pfaudler Ltd is 0.16 %.

What is the ROCE of GMM Pfaudler Ltd?

The ROCE of GMM Pfaudler Ltd is 19.1 %.

What is the ROE of GMM Pfaudler Ltd?

The ROE of GMM Pfaudler Ltd is 19.6 %.

What is the Face Value of GMM Pfaudler Ltd?

The Face Value of GMM Pfaudler 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 GMM Pfaudler 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