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Last Updated on: 08 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Goodluck India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 7, 2024, 11:35 pm

Market Cap 3,483 Cr.
Current Price 1,064
High / Low1,345/710
Stock P/E25.5
Book Value 315
Dividend Yield0.56 %
ROCE18.3 %
ROE16.3 %
Face Value 2.00
PEG Ratio1.15

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

View Share Price Target for Goodluck India Ltd

Competitors of Goodluck India Ltd

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

All Competitor Stocks of Goodluck India Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales420481571635706701822779706765858886878
Expenses388453532592658648772732658707788814804
Operating Profit32284044475251474858707274
OPM %8%6%7%7%7%7%6%6%7%8%8%8%8%
Other Income1411112452121
Interest12141514141418151715221921
Depreciation7777788889999
Profit before tax15101923273228282836404646
Tax %28%21%27%25%25%24%27%27%34%23%29%24%31%
Net Profit1181417202420201828293532
EPS in Rs4.813.345.536.547.769.347.787.836.7510.2410.4912.7311.20

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
Sales6779499711,0569801,0931,2701,6571,6361,5722,6133,0723,214
Expenses6388999279988891,0061,1721,5301,5081,4562,4302,8682,967
Operating Profit39504458918799127128117183204248
OPM %6%5%5%5%9%8%8%8%8%7%7%7%8%
Other Income14242727115214641410
Interest19343537394856616055576673
Depreciation57811151820242628293334
Profit before tax28332836482725444540101120151
Tax %28%33%37%24%31%26%41%31%25%25%25%28%
Net Profit202218283320153134307587110
EPS in Rs10.7511.738.8912.5315.098.976.4113.2914.7312.2628.8531.8840.21
Dividend Payout %4%3%3%12%10%0%0%0%0%0%12%14%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)10.00%-18.18%55.56%17.86%-39.39%-25.00%106.67%9.68%-11.76%150.00%16.00%
Change in YoY Net Profit Growth (%)0.00%-28.18%73.74%-37.70%-57.25%14.39%131.67%-96.99%-21.44%161.76%-134.00%

Goodluck India 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:14%
5 Years:16%
3 Years:31%
TTM:15%
Compounded Profit Growth
10 Years:22%
5 Years:33%
3 Years:63%
TTM:43%
Stock Price CAGR
10 Years:36%
5 Years:85%
3 Years:53%
1 Year:47%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:17%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: September 15, 2024, 3:36 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444445555556
Reserves115140177206227249280339379461593995
Borrowings278284310352411451504510534590598616
Other Liabilities729879108131158165145180197274287
Total Liabilities4695265706717738629549991,0981,2531,4701,904
Fixed Assets117124193227256252333341325362401505
CWIP012484575112313772
Investments2255111001445
Other Assets3503873684315125526156577608601,0281,283
Total Assets4695265706717738629549991,0981,2531,4701,904

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 2249825323755858437767-3
Cash from Investing Activity -29-28-75-53-36-66-51-29-22-84-80-209
Cash from Financing Activity 8-21-3-113-8-8-28-23613212
Net Cash Flow114-1-00-11-2-100

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow39.00-228.00-240.00-252.00-261.00-324.00-352.00-377.00-382.00-417.00-407.00-394.00

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 Days707152646558545355404236
Inventory Days57666798109938998115838586
Days Payable203118314338292132202119
Cash Conversion Cycle107107101131131112115130137103106103
Working Capital Days1001029411912310894110132959498
ROCE %18%15%16%17%12%12%14%13%11%16%16%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters61.55%61.55%61.55%61.55%61.55%58.73%58.73%58.73%58.73%56.45%54.44%55.78%
FIIs0.10%0.25%0.03%0.01%0.39%0.63%0.07%0.05%0.11%1.24%5.20%3.93%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.04%0.00%0.00%1.18%1.85%1.81%
Public38.35%38.20%38.42%38.43%38.06%40.64%41.17%41.22%41.16%41.12%38.51%38.47%
No. of Shareholders17,17414,78713,77413,32913,37214,37713,50115,73822,09230,16133,24636,313

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
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)46.4133.3129.4813.0114.72
Diluted EPS (Rs.)46.4133.3129.4813.0114.72
Cash EPS (Rs.)21.6844.1739.9823.4826.17
Book Value[Excl.RevalReserv]/Share (Rs.)148.94219.88179.15156.46150.42
Book Value[Incl.RevalReserv]/Share (Rs.)148.94219.88179.15156.46150.42
Revenue From Operations / Share (Rs.)456.141127.071004.83641.51710.16
PBDIT / Share (Rs.)38.2080.4171.8649.9357.14
PBIT / Share (Rs.)33.6368.4560.7238.7145.68
PBT / Share (Rs.)23.6144.4138.6716.4019.53
Net Profit / Share (Rs.)17.1232.2128.8412.2614.72
NP After MI And SOA / Share (Rs.)17.0732.2128.8412.2614.72
PBDIT Margin (%)8.377.137.157.788.04
PBIT Margin (%)7.376.076.046.036.43
PBT Margin (%)5.173.943.842.552.74
Net Profit Margin (%)3.752.852.871.912.07
NP After MI And SOA Margin (%)3.742.852.871.912.07
Return on Networth / Equity (%)11.4614.6516.097.839.78
Return on Capital Employeed (%)20.0524.8825.4217.3023.02
Return On Assets (%)6.495.965.982.733.39
Long Term Debt / Equity (X)0.080.150.250.330.21
Total Debt / Equity (X)0.530.991.161.311.36
Asset Turnover Ratio (%)2.012.262.221.501.65
Current Ratio (X)1.931.421.351.371.20
Quick Ratio (X)1.100.690.670.730.62
Inventory Turnover Ratio (X)4.684.904.923.463.74
Dividend Payout Ratio (NP) (%)0.0012.130.000.000.00
Dividend Payout Ratio (CP) (%)0.008.840.000.000.00
Earning Retention Ratio (%)0.0087.870.000.000.00
Cash Earning Retention Ratio (%)0.0091.160.000.000.00
Interest Coverage Ratio (X)3.813.353.262.242.18
Interest Coverage Ratio (Post Tax) (X)2.712.342.311.551.56
Enterprise Value (Cr.)7159.981746.601243.53653.18517.51
EV / Net Operating Revenue (X)2.030.560.470.410.31
EV / EBITDA (X)24.267.976.655.343.94
MarketCap / Net Operating Revenue (X)1.920.370.270.100.03
Retention Ratios (%)0.0087.860.000.000.00
Price / BV (X)5.871.941.540.420.16
Price / Net Operating Revenue (X)1.920.370.270.100.03
EarningsYield0.010.070.100.180.58

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Goodluck India Ltd as of October 8, 2024 is: ₹1,316.63

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 8, 2024, Goodluck India Ltd is Undervalued by 23.74% compared to the current share price ₹1,064.00

Intrinsic Value of Goodluck India Ltd as of October 8, 2024 is: ₹1,609.50

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 8, 2024, Goodluck India Ltd is Undervalued by 51.27% compared to the current share price ₹1,064.00

Last 5 Year EPS CAGR: 22.24%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (276.23 cr) and profit (55.85 cr) over the years.
  1. The stock has a low average ROCE of 14.83%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 105.75, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 115.25, which may not be favorable.
  4. The company has higher borrowings (453.17) compared to reserves (346.75), 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 Goodluck India Ltd:
    1. Net Profit Margin: 3.75%
      • 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: 20.05% (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%: 11.46% (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): 2.71
      • 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: 1.1
      • 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: 25.5 (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: 0.53
      • 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

Goodluck India Ltd. is a Public Limited Listed company incorporated on 06/11/1986 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L74899DL1986PLC050910 and registration number is 050910. Currently Company is involved in the business activities of Manufacture of tube and tube fittings of basic iron and steel. Company’s Total Operating Revenue is Rs. 2613.21 Cr. and Equity Capital is Rs. 5.20 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/Pipes509 Arunachal Building, New Delhi Delhi 110001investor@goodluckindia.com
http://www.goodluckindia.com
Management
NamePosition Held
Mr. M C GargChairman
Mr. Nitin GargWhole Time Director
Mr. R C GargWhole Time Director
Mr. Rajiv GoelInd. Non-Executive Director
Ms. Rajni AbbiInd. Non-Executive Director
Mr. Madhur GuptaInd. Non-Executive Director
Ms. Charu JindalInd. Non-Executive Director

FAQ

What is the latest fair value of Goodluck India Ltd?

The latest fair value of Goodluck India Ltd is ₹1316.63.

What is the Market Cap of Goodluck India Ltd?

The Market Cap of Goodluck India Ltd is 3,483 Cr..

What is the current Stock Price of Goodluck India Ltd as on 08 October 2024?

The current stock price of Goodluck India Ltd as on 08 October 2024 is ₹1,064.

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

In FY 2024, the High / Low of Goodluck India Ltd stocks is 1,345/710.

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

The Stock P/E of Goodluck India Ltd is 25.5.

What is the Book Value of Goodluck India Ltd?

The Book Value of Goodluck India Ltd is 315.

What is the Dividend Yield of Goodluck India Ltd?

The Dividend Yield of Goodluck India Ltd is 0.56 %.

What is the ROCE of Goodluck India Ltd?

The ROCE of Goodluck India Ltd is 18.3 %.

What is the ROE of Goodluck India Ltd?

The ROE of Goodluck India Ltd is 16.3 %.

What is the Face Value of Goodluck India Ltd?

The Face Value of Goodluck India 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 Goodluck 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