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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Grindwell Norton Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:12 pm

Market Cap 22,887 Cr.
Current Price 2,065
High / Low2,960/1,850
Stock P/E61.1
Book Value 186
Dividend Yield0.82 %
ROCE24.6 %
ROE19.0 %
Face Value 5.00
PEG Ratio3.89

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

View Share Price Target for Grindwell Norton Ltd

Competitors of Grindwell Norton Ltd

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

All Competitor Stocks of Grindwell Norton Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales458509439513502559638635604665668667660
Expenses360396353412412435510513485536534536532
Operating Profit981138710189124128122119129135131128
OPM %21%22%20%20%18%22%20%19%20%19%20%20%19%
Other Income512141017121115921152314
Interest1111121142222
Depreciation14141413131314161615171718
Profit before tax88110869793120125120108133130135122
Tax %26%28%26%26%25%25%26%25%26%26%26%24%25%
Net Profit658064727090939080989710292
EPS in Rs5.967.275.806.506.308.108.358.137.248.968.769.208.32

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
Sales9069479661,1351,1511,2631,4311,5981,5801,6382,0132,5412,604
Expenses7457948219549661,0701,1831,3261,3151,3141,6122,0402,091
Operating Profit161153145181184193248272265324400501513
OPM %18%16%15%16%16%15%17%17%17%20%20%20%20%
Other Income11101217223126354051535368
Interest33332222434810
Depreciation21243242434245455854536064
Profit before tax148136122154161180227260243317396486507
Tax %31%28%31%32%34%33%34%35%24%25%25%26%
Net Profit1039784104106121151169184238295362378
EPS in Rs9.308.797.589.329.5110.7813.5315.1016.4821.6026.7032.6934.16
Dividend Payout %35%37%43%35%34%37%37%40%46%44%45%44%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-5.83%-13.40%23.81%1.92%14.15%24.79%11.92%8.88%29.35%23.95%22.71%
Change in YoY Net Profit Growth (%)0.00%-7.58%37.21%-21.89%12.23%10.64%-12.87%-3.04%20.47%-5.40%-1.24%

Grindwell Norton 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:11%
5 Years:11%
3 Years:18%
TTM:6%
Compounded Profit Growth
10 Years:16%
5 Years:19%
3 Years:18%
TTM:-1%
Stock Price CAGR
10 Years:22%
5 Years:29%
3 Years:5%
1 Year:-2%
Return on Equity
10 Years:17%
5 Years:19%
3 Years:20%
Last Year:19%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:38 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital28282828555555555555555555
Reserves4895305887358389351,0431,1321,3091,5131,7502,0002,002
Borrowings2216151580001215518380
Other Liabilities245259309311309349347404485532549628703
Total Liabilities7848339401,0891,2101,3391,4451,5921,8622,1162,4062,7662,840
Fixed Assets327375360350368342345385370386586756855
CWIP6267146254329246712412826
Investments313535135145171183583713531642689726
Other Assets3644185385906908028755957551,1331,0541,1931,234
Total Assets7848339401,0891,2101,3391,4451,5921,8622,1162,4062,7662,840

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +10410610613917013485318331187393368
Cash from Investing Activity +-81-26-30-38-40-41-54-442-230-54-251-184
Cash from Financing Activity +-41-51-46-1023-60-68-95-95-114-140-175
Net Cash Flow-182929-013332-37-22071919

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow161.00131.00129.00166.00169.00185.00248.00272.00265.00312.00385.00450.00

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 Days373442423745474745434049
Inventory Days140163171190162159169155163184146148
Days Payable526267621091149311615813488110
Cash Conversion Cycle12513514517189901238750929886
Working Capital Days344044605154745037524750
ROCE %27%22%25%22%20%23%23%20%23%26%28%25%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters58.32%58.08%58.08%58.08%58.08%58.08%58.04%58.04%58.04%58.04%58.04%58.04%
FIIs4.57%4.99%6.10%7.05%7.44%7.52%8.41%8.28%8.34%8.40%8.42%8.31%
DIIs17.43%17.24%16.03%15.69%15.48%15.58%14.89%15.32%15.38%15.31%15.45%15.90%
Public19.68%19.69%19.79%19.18%19.00%18.82%18.66%18.37%18.24%18.25%18.09%17.76%
No. of Shareholders30,24632,57847,29145,70946,47756,40653,59251,99649,45751,24052,19947,954

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Midcap Fund1,522,1171.49326.41,018,8222024-11-2149.4%
UTI Flexi Cap Fund1,477,4591.3316.831,018,8222024-11-2145.02%
SBI Small Cap Fund1,441,3991.46309.091,018,8222024-11-2141.48%
Axis Small Cap Fund1,133,9831.49243.171,018,8222024-11-2111.3%
Nippon India Small Cap Fund1,083,2720.62232.31,018,8222024-11-216.33%
SBI Magnum Global Fund1,073,7943.76230.261,018,8222024-11-215.4%
HSBC Small Cap Fund - Regular Plan1,018,8221.89218.481,018,8222024-11-210%
Sundaram Mid Cap Fund830,6422.1178.121,018,8222024-11-21-18.47%
Sundaram Mid Cap Fund - Institutional Plan830,6422.1178.121,018,8222024-11-21-18.47%
SBI Magnum Midcap Fund824,7041.34176.851,018,8222024-11-21-19.05%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)34.6532.6926.7021.6016.48
Diluted EPS (Rs.)34.6532.6926.7021.6016.48
Cash EPS (Rs.)41.1238.2531.5726.3921.83
Book Value[Excl.RevalReserv]/Share (Rs.)186.36163.79142.40124.36108.46
Book Value[Incl.RevalReserv]/Share (Rs.)186.67164.10142.70124.36108.46
Revenue From Operations / Share (Rs.)242.66229.53181.79147.93142.66
PBDIT / Share (Rs.)53.0850.1941.0533.8727.54
PBIT / Share (Rs.)46.6844.7636.2228.9622.32
PBT / Share (Rs.)45.9544.0535.8428.6621.91
Net Profit / Share (Rs.)34.7232.8226.7421.4816.61
NP After MI And SOA / Share (Rs.)34.6532.6926.7021.6016.48
PBDIT Margin (%)21.8721.8622.5722.8919.30
PBIT Margin (%)19.2319.4919.9219.5715.64
PBT Margin (%)18.9319.1919.7119.3715.36
Net Profit Margin (%)14.3014.2914.7014.5111.64
NP After MI And SOA Margin (%)14.2714.2414.6814.6011.55
Return on Networth / Equity (%)18.6920.0718.8817.5215.37
Return on Capital Employeed (%)23.5026.1324.5822.4319.72
Return On Assets (%)13.8515.0013.9812.8211.44
Total Debt / Equity (X)0.010.010.000.000.00
Asset Turnover Ratio (%)1.041.071.010.941.03
Current Ratio (X)2.762.672.862.862.89
Quick Ratio (X)1.901.771.932.122.00
Inventory Turnover Ratio (X)1.861.931.871.731.95
Dividend Payout Ratio (NP) (%)41.8436.7135.5734.7136.39
Dividend Payout Ratio (CP) (%)35.3231.4830.1228.2827.64
Earning Retention Ratio (%)58.1663.2964.4365.2963.61
Cash Earning Retention Ratio (%)64.6868.5269.8871.7272.36
Interest Coverage Ratio (X)75.7571.24110.30109.7268.23
Interest Coverage Ratio (Post Tax) (X)50.5947.5872.8670.5742.15
Enterprise Value (Cr.)20843.3520648.4919658.6810427.175085.36
EV / Net Operating Revenue (X)7.768.139.776.373.22
EV / EBITDA (X)35.4637.1643.2627.8016.68
MarketCap / Net Operating Revenue (X)7.838.179.906.443.22
Retention Ratios (%)58.1563.2864.4265.2863.60
Price / BV (X)10.2511.5212.737.734.28
Price / Net Operating Revenue (X)7.838.179.906.443.22
EarningsYield0.010.010.010.020.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Grindwell Norton Ltd as of November 24, 2024 is: 2,176.98

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 24, 2024, Grindwell Norton Ltd is Undervalued by 5.42% compared to the current share price 2,065.00

Intrinsic Value of Grindwell Norton Ltd as of November 24, 2024 is: 2,518.64

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 24, 2024, Grindwell Norton Ltd is Undervalued by 21.97% compared to the current share price 2,065.00

Last 5 Year EPS CAGR: 15.69%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 23.67%, which is a positive sign.
  2. The company has higher reserves (1,143.38 cr) compared to borrowings (24.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (217.85 cr) and profit (256.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 49.42, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 107.58, 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 Grindwell Norton Ltd:
    1. Net Profit Margin: 14.3%
      • 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: 23.5% (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%: 18.69% (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): 50.59
      • 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: 1.9
      • 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: 61.1 (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: 0.01
      • 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

Grindwell Norton Ltd. is a Public Limited Listed company incorporated on 31/07/1950 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L26593MH1950PLC008163 and registration number is 008163. Currently Company is involved in the business activities of Manufacture of refractory products. Company’s Total Operating Revenue is Rs. 2005.62 Cr. and Equity Capital is Rs. 55.36 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Abrasives And Grinding Wheels5th Level, Leela Business Park, Andheri-Kurla Road, Mumbai Maharashtra 400059sharecmpt.gno@saint-gobain.com
http://www.grindwellnorton.co.in
Management
NamePosition Held
Mr. Keki ElaviaChairman
Mr. B SanthanamManaging Director
Mr. Aakil Anand MahajanDirector
Mr. David Eric MolhoDirector
Mr. Jean-Claude LasserreDirector
Mr. Sreedhar NatarajanDirector
Dr. Archana HingoraniDirector
Mr. Subodh NadkarniDirector
Mr. Venugopal ShanbhagDirector

FAQ

What is the latest intrinsic value of Grindwell Norton Ltd?

The latest intrinsic value of Grindwell Norton Ltd as on 24 November 2024 is ₹2176.98, which is 5.42% higher than the current market price of ₹2,065.00.

What is the Market Cap of Grindwell Norton Ltd?

The Market Cap of Grindwell Norton Ltd is 22,887 Cr..

What is the current Stock Price of Grindwell Norton Ltd as on 24 November 2024?

The current stock price of Grindwell Norton Ltd as on 24 November 2024 is 2,065.

What is the High / Low of Grindwell Norton Ltd stocks in FY 2024?

In FY 2024, the High / Low of Grindwell Norton Ltd stocks is 2,960/1,850.

What is the Stock P/E of Grindwell Norton Ltd?

The Stock P/E of Grindwell Norton Ltd is 61.1.

What is the Book Value of Grindwell Norton Ltd?

The Book Value of Grindwell Norton Ltd is 186.

What is the Dividend Yield of Grindwell Norton Ltd?

The Dividend Yield of Grindwell Norton Ltd is 0.82 %.

What is the ROCE of Grindwell Norton Ltd?

The ROCE of Grindwell Norton Ltd is 24.6 %.

What is the ROE of Grindwell Norton Ltd?

The ROE of Grindwell Norton Ltd is 19.0 %.

What is the Face Value of Grindwell Norton Ltd?

The Face Value of Grindwell Norton 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 Grindwell Norton 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