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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
Stock Ticker - BSE: 509152 | NSE: GRPLTD

GRP Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:15 pm

Market Cap 1,749 Cr.
Current Price 3,280
High / Low4,840/956
Stock P/E65.1
Book Value 315
Dividend Yield0.28 %
ROCE15.5 %
ROE15.6 %
Face Value 10.0
PEG Ratio1.82

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

View Share Price Target for GRP Ltd

Competitors of GRP Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Eastern Treads Ltd 21.8 Cr. 41.751.4/31.0 22.80.00 %0.62 %% 10.0
Dolfin Rubbers Ltd 204 Cr. 204290/11438.6 31.10.00 %19.1 %17.9 % 10.0
Vikas Ecotech Ltd 585 Cr. 3.325.65/3.0037.1 3.100.00 %4.53 %2.07 % 1.00
Modi Rubber Ltd 290 Cr. 116157/79.115.5 2620.00 %3.72 %1.97 % 10.0
Harrisons Malayalam Ltd 527 Cr. 286302/142 77.80.00 %5.39 %0.10 % 10.0
Industry Average897.67 Cr617.5739.04116.690.24%8.91%8.07%7.57

All Competitor Stocks of GRP Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales84.6488.3383.08100.7093.42111.23124.14117.03114.2995.5499.34114.41109.69
Expenses78.0380.8478.9095.2587.81103.26118.01111.05107.4489.7092.83103.3399.27
Operating Profit6.617.494.185.455.617.976.135.986.855.846.5111.0810.42
OPM %7.81%8.48%5.03%5.41%6.01%7.17%4.94%5.11%5.99%6.11%6.55%9.68%9.50%
Other Income0.321.200.290.280.040.550.116.401.841.160.520.430.48
Interest1.380.930.931.011.381.201.611.481.631.781.801.881.91
Depreciation3.213.092.963.023.193.233.253.283.052.932.762.983.28
Profit before tax2.344.670.581.701.084.091.387.624.012.292.476.655.71
Tax %29.91%-0.86%224.14%-98.82%27.78%43.28%21.01%19.16%1.50%-20.09%20.65%29.32%24.52%
Net Profit1.644.71-0.723.370.792.321.096.153.952.751.974.694.31
EPS in Rs12.3035.33-5.4025.285.9317.408.1846.1329.6320.6314.7835.1832.33

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
Sales244274309339315304300357349280388451419
Expenses200242273317286278281332330263364426385
Operating Profit45323622292618251917242534
OPM %18%12%12%7%9%9%6%7%5%6%6%6%8%
Other Income5318-0310120103
Interest4675444585567
Depreciation7101215141414131413121312
Profit before tax39181811101117-2171517
Tax %33%34%39%19%24%35%197%26%232%-127%23%9%
Net Profit261211987-153261414
EPS in Rs194.3387.9081.3866.5359.3351.68-5.6339.9822.2812.5343.20104.63102.92
Dividend Payout %17%17%20%17%17%19%-22%20%25%20%21%16%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-53.85%-8.33%-18.18%-11.11%-12.50%-114.29%600.00%-40.00%-33.33%200.00%133.33%
Change in YoY Net Profit Growth (%)0.00%45.51%-9.85%7.07%-1.39%-101.79%714.29%-640.00%6.67%233.33%-66.67%

GRP 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:4%
5 Years:5%
3 Years:18%
TTM:19%
Compounded Profit Growth
10 Years:8%
5 Years:35%
3 Years:224%
TTM:85%
Stock Price CAGR
10 Years:28%
5 Years:74%
3 Years:138%
1 Year:222%
Return on Equity
10 Years:6%
5 Years:7%
3 Years:10%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital111111111111
Reserves96105111118125123128126130135146165
Borrowings90856768675765867210189113
Other Liabilities495253505148525644595063
Total Liabilities237242233237244230247269248296287342
Fixed Assets139136130132134126122122110122103160
CWIP2462221220111
Investments00111111015162
Other Assets9510297102107100123144135158156180
Total Assets237242233237244230247269248296287342

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +132832182122872522527
Cash from Investing Activity +-32-14-8-13-16-7-9-111-38-5-42
Cash from Financing Activity +6-14-24-5-6-1548-2023-1915
Net Cash Flow-131-10-21345-130-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow45.00-58.00-49.00-45.00-39.00-41.00-39.00-40.00-67.00-55.00-77.00-64.00

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 Days645954635863676883815784
Inventory Days9284628212191741001171078186
Days Payable524742464242465043502742
Cash Conversion Cycle10595749913711295118158138111127
Working Capital Days59604964827882931181048899
ROCE %14%14%8%8%8%3%6%3%2%6%9%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters41.75%41.58%41.49%41.51%41.26%40.61%40.51%40.41%40.36%40.36%40.30%40.29%
FIIs0.00%0.03%0.01%0.12%0.01%0.13%0.00%0.00%0.00%0.00%0.00%0.05%
Public58.25%58.39%58.50%58.37%58.71%59.24%59.50%59.58%59.64%59.64%59.69%59.66%
No. of Shareholders2,8263,1433,1223,0062,8023,0913,0742,9972,9453,1513,8949,097

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
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)169.78104.6143.2012.5222.26
Diluted EPS (Rs.)169.78104.6143.2012.5222.26
Cash EPS (Rs.)263.31198.41136.20107.44124.59
Book Value[Excl.RevalReserv]/Share (Rs.)1250.591105.681021.70986.88954.00
Book Value[Incl.RevalReserv]/Share (Rs.)1250.591105.681021.70986.88954.00
Revenue From Operations / Share (Rs.)3460.433382.582913.252098.352615.30
PBDIT / Share (Rs.)392.48257.31182.67140.94146.80
PBIT / Share (Rs.)298.95163.5189.6746.0244.46
PBT / Share (Rs.)226.37114.7955.815.52-16.91
Net Profit / Share (Rs.)169.78104.6143.2012.5222.26
NP After MI And SOA / Share (Rs.)169.78104.6143.2012.5222.26
PBDIT Margin (%)11.347.606.276.715.61
PBIT Margin (%)8.634.833.072.191.69
PBT Margin (%)6.543.391.910.26-0.64
Net Profit Margin (%)4.903.091.480.590.85
NP After MI And SOA Margin (%)4.903.091.480.590.85
Return on Networth / Equity (%)13.579.464.221.262.33
Return on Capital Employeed (%)19.4511.706.523.733.79
Return On Assets (%)6.614.861.940.671.10
Long Term Debt / Equity (X)0.130.160.210.110.09
Total Debt / Equity (X)0.670.590.730.510.63
Asset Turnover Ratio (%)1.471.551.421.071.34
Current Ratio (X)1.261.611.501.581.25
Quick Ratio (X)0.901.151.031.070.83
Inventory Turnover Ratio (X)4.484.123.992.984.33
Dividend Payout Ratio (NP) (%)10.018.605.780.0060.65
Dividend Payout Ratio (CP) (%)6.454.531.830.0010.83
Earning Retention Ratio (%)89.9991.4094.220.0039.35
Cash Earning Retention Ratio (%)93.5595.4798.170.0089.17
Interest Coverage Ratio (X)7.195.285.393.482.39
Interest Coverage Ratio (Post Tax) (X)4.443.152.281.311.36
Enterprise Value (Cr.)978.43431.00284.94159.40155.89
EV / Net Operating Revenue (X)2.120.950.730.560.44
EV / EBITDA (X)18.7012.5611.708.487.96
MarketCap / Net Operating Revenue (X)1.880.760.470.370.23
Retention Ratios (%)89.9891.3994.210.0039.34
Price / BV (X)5.192.331.360.800.65
Price / Net Operating Revenue (X)1.880.760.470.370.23
EarningsYield0.020.040.030.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of GRP Ltd as of November 14, 2024 is: 3,207.97

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, GRP Ltd is Overvalued by 2.20% compared to the current share price 3,280.00

Intrinsic Value of GRP Ltd as of November 14, 2024 is: 4,356.60

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, GRP Ltd is Undervalued by 32.82% compared to the current share price 3,280.00

Last 5 Year EPS CAGR: 35.81%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (125.67 cr) compared to borrowings (80.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (333.00 cr) and profit (11.77 cr) over the years.
  1. The stock has a low average ROCE of 8.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 81.33, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 114.08, 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 GRP Ltd:
    1. Net Profit Margin: 4.9%
      • 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: 19.45% (Industry Average ROCE: 8.91%)
      • 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%: 13.57% (Industry Average ROE: 8.07%)
      • 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): 4.44
      • 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: 0.9
      • 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: 65.1 (Industry average Stock P/E: 39.04)
      • 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: 0.67
      • 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

GRP Ltd. is a Public Limited Listed company incorporated on 29/06/1974 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L25191GJ1974PLC002555 and registration number is 002555. Currently company belongs to the Industry of Rubber Processing/Rubber Products. Company’s Total Operating Revenue is Rs. 388.13 Cr. and Equity Capital is Rs. 1.33 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Rubber Processing/Rubber ProductsPlot No 8, G.I.D.C. Estate, Bharuch District Gujarat 393002investor.relations@grpweb.com
http://www.grpweb.com
Management
NamePosition Held
Mr. Rajendra V GandhiExecutive Chairman
Mr. Harsh R GandhiManaging Director
Mr. Hemal H GandhiExecutive Director
Mr. Saurabh S ShahIndependent Director
Mr. Vivek G AsraniIndependent Director
Mr. Anshul D MittalIndependent Director

FAQ

What is the latest intrinsic value of GRP Ltd?

The latest intrinsic value of GRP Ltd as on 14 November 2024 is ₹3207.97, which is 2.20% lower than the current market price of ₹3,280.00.

What is the Market Cap of GRP Ltd?

The Market Cap of GRP Ltd is 1,749 Cr..

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

The current stock price of GRP Ltd as on 14 November 2024 is ₹3,280.

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

In FY 2024, the High / Low of GRP Ltd stocks is 4,840/956.

What is the Stock P/E of GRP Ltd?

The Stock P/E of GRP Ltd is 65.1.

What is the Book Value of GRP Ltd?

The Book Value of GRP Ltd is 315.

What is the Dividend Yield of GRP Ltd?

The Dividend Yield of GRP Ltd is 0.28 %.

What is the ROCE of GRP Ltd?

The ROCE of GRP Ltd is 15.5 %.

What is the ROE of GRP Ltd?

The ROE of GRP Ltd is 15.6 %.

What is the Face Value of GRP Ltd?

The Face Value of GRP 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 GRP 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