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Last Updated on: 23 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 509152 | NSE: GRPLTD

Fundamental Analysis of GRP Ltd

About the Company - GRP Ltd

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 GandhiChairperson & Managing Director
Mr. Harsh R GandhiJoint Managing Director
Mr. Hemal H GandhiExecutive Director
Mr. Saurabh S ShahIndependent Director
Mr. Rajeev M PandiaIndependent Director
Mr. Vivek G AsraniIndependent Director
Mr. Anshul D MittalIndependent Director

Basic Stock Data of GRP Ltd

Last Updated: June 17, 2024, 8:32 pm

Market Cap 1,394 Cr.
Current Price 10,479
High / Low10,799/3,375
Stock P/E57.0
Book Value 1,251
Dividend Yield0.16 %
ROCE15.4 %
ROE15.6 %
Face Value 10.0
PEG Ratio1.59

Competitors of GRP Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Modi Rubber Ltd 246 Cr. 98.2120/59.015.8 2620.00 %4.43 %2.40 % 10.0
Vikas Ecotech Ltd 720 Cr. 4.075.65/2.80109 2.710.00 %4.51 %2.15 % 1.00
Industry Average483.00 Cr51.1462.40132.360.00%4.47%2.28%5.50

GRP Ltd Quarterly Results

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: May 6, 2024, 4:51 pm

GRP Ltd Quarterly Chart

GRP Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales244274309339315304300357349280388451424
Expenses200242273317286278281332330263364426393
Operating Profit45323622292618251917242530
OPM %18%12%12%7%9%9%6%7%5%6%6%6%7%
Other Income5318-0310120104
Interest4675444585567
Depreciation7101215141414131413121312
Profit before tax39181811101117-2171515
Tax %33%34%39%19%24%35%197%26%232%-127%23%9%
Net Profit261211987-153261413
EPS in Rs194.3387.9081.3866.5359.3351.68-5.6339.9822.2812.5343.20104.63100.22
Dividend Payout %17%17%20%17%17%19%-22%20%25%20%21%16%

GRP Ltd Profit & Loss Yearly Chart

GRP Ltd Growth

Compounded Sales Growth
10 Years:4%
5 Years:5%
3 Years:18%
TTM:2%
Compounded Profit Growth
10 Years:8%
5 Years:35%
3 Years:224%
TTM:81%
Stock Price CAGR
10 Years:22%
5 Years:60%
3 Years:120%
1 Year:186%
Return on Equity
10 Years:6%
5 Years:7%
3 Years:10%
Last Year:16%

Last Updated: June 17, 2024, 3:02 pm

GRP Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1111111111111
Reserves8796105111118125123128126130135146150
Borrowings769085676867576586721018995
Other Liabilities47495253505148525644595059
Total Liabilities211237242233237244230247269248296287305
Fixed Assets107139136130132134126122122110122103117
CWIP1624622212201115
Investments0001111110151616
Other Assets889510297102107100123144135158156157
Total Assets211237242233237244230247269248296287305

GRP Ltd Reserves and Borrowings Chart

GRP Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 261328321821228725225
Cash from Investing Activity -42-32-14-8-13-16-7-9-111-38-5
Cash from Financing Activity 276-14-24-5-6-1548-2023-19
Net Cash Flow11-131-10-21345-130

GRP Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-31.00-58.00-49.00-45.00-39.00-41.00-39.00-40.00-67.00-55.00-77.00-64.00

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.

GRP Ltd Free Cash Flow Chart

GRP Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days636459546358636768838157
Inventory Days7592846282121917410011710781
Days Payable615247424642424650435027
Cash Conversion Cycle7710595749913711295118158138111
Working Capital Days47596049648278829311810488
ROCE %31%14%14%8%8%8%3%6%3%2%6%9%

GRP Ltd Financial Efficiency Indicators Chart

GRP Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters41.74%41.71%41.75%41.58%41.49%41.51%41.26%40.61%40.51%40.41%40.36%40.36%
FIIs0.00%0.00%0.00%0.03%0.01%0.12%0.01%0.13%0.00%0.00%0.00%0.00%
Public58.26%58.29%58.25%58.39%58.50%58.37%58.71%59.24%59.50%59.58%59.64%59.64%
No. of Shareholders2,8492,9872,8263,1433,1223,0062,8023,0913,0742,9972,9453,151

GRP Ltd Shareholding Pattern Chart

No. of GRP Ltd Shareholders

This stock is not held by any mutual fund

GRP Ltd ROCE Trend

GRP Ltd EPS Trend

GRP Ltd 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 (%)1.471.561.421.071.34
Current Ratio (X)1.261.611.501.581.25
Quick Ratio (X)0.901.151.031.070.83
Inventory Turnover Ratio (X)4.484.173.992.984.33
Dividend Payout Ratio (NP) (%)0.008.605.780.0060.65
Dividend Payout Ratio (CP) (%)0.004.531.830.0010.83
Earning Retention Ratio (%)0.0091.4094.220.0039.35
Cash Earning Retention Ratio (%)0.0095.4798.170.0089.17
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 (%)0.0091.3994.210.0039.34
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

GRP Ltd Profitability Ratios (%)

GRP Ltd Liquidity Ratios

GRP Ltd Liquidity Ratios (%)

GRP Ltd Interest Coverage Ratios (%)

GRP Ltd Valuation Ratios

Fair Value

Fair Value: 11,141.69

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.

Undervalued: 6.32% compared to the current price 10479

Intrinsic Value: 15,131.01

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 44.39% compared to the current price ₹10479

Last 5 Year EPS CAGR: 35.81%

*Investments are subject to market risks

Strength and Weakness of GRP Ltd Stock

StrengthWeakness
  1. The company has higher reserves (121.54 cr) compared to borrowings (78.31 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 9.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 77.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 109.92, which may not be favorable.

Should I Buy GRP Ltd Share Now?

  • 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: 4.90%
      • 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: 9.92%)
      • 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: 9%)
      • 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: 0.90
      • 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: 57.0 (Industry average Stock P/E: 35.8)
      • 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:

FAQ

What is the latest fair value of GRP Ltd?

The latest fair value of GRP Ltd is ₹11141.69.

What is the Market Cap of GRP Ltd?

The Market Cap of GRP Ltd is 1,394 Cr..

What is the current Stock Price of GRP Ltd as on 23 June 2024?

The current stock price of GRP Ltd as on 23 June 2024 is ₹10,479.

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

In FY 2024, the High / Low of GRP Ltd stocks is 10,799/3,375.

What is the Stock P/E of GRP Ltd?

The Stock P/E of GRP Ltd is 57.0.

What is the Book Value of GRP Ltd?

The Book Value of GRP Ltd is 1,251.

What is the Dividend Yield of GRP Ltd?

The Dividend Yield of GRP Ltd is 0.16 %.

What is the ROCE of GRP Ltd?

The ROCE of GRP Ltd is 15.4 %.

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