Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 26 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

GTN Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:49 pm

Market Cap 63.0 Cr.
Current Price 35.9
High / Low63.0/29.4
Stock P/E
Book Value 49.6
Dividend Yield0.00 %
ROCE2.98 %
ROE6.69 %
Face Value 10.0
PEG Ratio0.00

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

View Share Price Target for GTN Industries Ltd

Competitors of GTN Industries Ltd

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

All Competitor Stocks of GTN Industries Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales78.8288.11101.2195.76114.69142.27128.19169.0558.4942.5443.8149.6048.40
Expenses75.4080.2187.3287.4694.12117.6498.31142.6752.6443.2644.5250.9347.46
Operating Profit3.427.9013.898.3020.5724.6329.8826.385.85-0.72-0.71-1.330.94
OPM %4.34%8.97%13.72%8.67%17.94%17.31%23.31%15.60%10.00%-1.69%-1.62%-2.68%1.94%
Other Income0.770.200.170.52-17.02-0.76-0.520.950.100.280.900.490.40
Interest5.435.408.694.632.641.781.763.161.571.261.591.191.25
Depreciation2.262.262.152.151.940.910.880.960.890.900.820.910.92
Profit before tax-3.500.443.222.04-1.0321.1826.7223.213.49-2.60-2.22-2.94-0.83
Tax %21.43%34.09%30.43%43.63%24.27%35.84%26.24%27.88%32.38%14.62%40.54%21.43%24.10%
Net Profit-2.750.292.241.15-0.7813.5919.7116.742.36-2.22-1.32-2.31-0.63
EPS in Rs-1.570.171.280.66-0.447.7511.249.541.35-1.27-0.75-1.32-0.36

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
Sales380422562409280284296357344310481314189
Expenses365400529396258264277339325286397283191
Operating Profit152232132219181819248431-2
OPM %4%5%6%3%8%7%6%5%6%8%17%10%-1%
Other Income2-524-7142101-1722
Interest172324211819232325251185
Depreciation1615159199999644
Profit before tax-15-21-4-13-5-7-9-13-5-85022-8
Tax %39%24%80%4%11%31%28%36%-11%25%31%29%
Net Profit-9-16-1-13-4-5-6-8-5-63516-6
EPS in Rs-5.23-9.30-0.47-7.15-2.52-2.69-3.56-4.76-3.10-3.5519.758.87-3.52
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-77.78%93.75%-1200.00%69.23%-25.00%-20.00%-33.33%37.50%-20.00%683.33%-54.29%
Change in YoY Net Profit Growth (%)0.00%171.53%-1293.75%1269.23%-94.23%5.00%-13.33%70.83%-57.50%703.33%-737.62%

GTN Industries 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:-10%
5 Years:-12%
3 Years:-16%
TTM:-4%
Compounded Profit Growth
10 Years:%
5 Years:5%
3 Years:0%
TTM:35%
Stock Price CAGR
10 Years:12%
5 Years:42%
3 Years:21%
1 Year:-7%
Return on Equity
10 Years:1%
5 Years:11%
3 Years:23%
Last Year:-7%

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 Capital18181818181818181818181818
Reserves983833414840342863797070
Borrowings20520916217514818418017217289314131
Other Liabilities644535254053454951149271818
Total Liabilities296280252251246302282274268318155146136
Fixed Assets14413615115614917016714613754515452
CWIP0100000003600
Investments00000000000012
Other Assets1521431019597131115128131261999271
Total Assets296280252251246302282274268318155146136

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +1734252521122383517197
Cash from Investing Activity +-7-8-8-6-2-30-622-05847-2
Cash from Financing Activity +-17-20-24-16-2016-14-29-33-78-673
Net Cash Flow-86-63-0-2212-3-08

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow15.00-183.00-177.00-149.00-153.00-129.00-166.00-162.00-153.00-148.00-5.000.00

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 Days381814141940282632353326
Inventory Days996872124122123839911014571107
Days Payable663337425573616657561923
Cash Conversion Cycle70525096869050598512486110
Working Capital Days6344375252614558737878112
ROCE %4%8%3%10%6%5%4%5%8%41%20%-3%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.34%74.34%74.34%74.34%74.33%74.33%74.33%74.33%74.33%74.33%74.33%74.33%
DIIs0.08%0.08%0.01%0.01%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Public25.59%25.59%25.66%25.66%25.67%25.66%25.66%25.66%25.66%25.66%25.66%25.66%
No. of Shareholders13,91313,77413,81713,94914,98614,90614,83514,65014,78814,74215,19114,972

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.)-0.368.8719.75-3.55-3.11
Diluted EPS (Rs.)-3.608.8719.75-3.55-3.11
Cash EPS (Rs.)-1.5010.9023.091.522.11
Book Value[Excl.RevalReserv]/Share (Rs.)50.1654.7445.8726.0729.55
Book Value[Incl.RevalReserv]/Share (Rs.)50.1654.7445.8726.0729.55
Revenue From Operations / Share (Rs.)105.63178.86274.03176.78196.12
PBDIT / Share (Rs.)-0.1518.8248.5614.5511.44
PBIT / Share (Rs.)-2.2716.7945.229.486.23
PBT / Share (Rs.)-4.7212.4728.59-4.71-2.80
Net Profit / Share (Rs.)-3.618.8719.75-3.55-3.10
PBDIT Margin (%)-0.1510.5217.728.235.83
PBIT Margin (%)-2.149.3816.505.363.17
PBT Margin (%)-4.466.9610.43-2.66-1.42
Net Profit Margin (%)-3.424.957.20-2.00-1.58
Return on Networth / Equity (%)-7.2016.1943.04-13.60-10.49
Return on Capital Employeed (%)-3.4723.5353.6314.118.80
Return On Assets (%)-4.3310.0410.88-2.31-1.98
Long Term Debt / Equity (X)0.210.200.671.561.37
Total Debt / Equity (X)0.460.321.103.383.14
Asset Turnover Ratio (%)1.231.331.641.141.24
Current Ratio (X)2.683.011.490.810.81
Quick Ratio (X)1.441.530.830.420.40
Inventory Turnover Ratio (X)2.912.203.122.903.61
Interest Coverage Ratio (X)-0.064.367.881.030.80
Interest Coverage Ratio (Post Tax) (X)-0.473.055.900.750.41
Enterprise Value (Cr.)74.7869.92163.80162.67162.88
EV / Net Operating Revenue (X)0.400.220.340.520.47
EV / EBITDA (X)-267.082.121.926.378.11
MarketCap / Net Operating Revenue (X)0.280.130.170.060.02
Price / BV (X)0.590.441.070.430.18
Price / Net Operating Revenue (X)0.280.130.170.060.02
EarningsYield-0.120.360.40-0.31-0.55

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of GTN Industries Ltd as of November 26, 2024 is: 50.77

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 26, 2024, GTN Industries Ltd is Undervalued by 41.42% compared to the current share price 35.90

Default values used*: Default value of 15 for Stock P/E is used

Intrinsic Value of GTN Industries Ltd as of November 26, 2024 is: 47.33

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 26, 2024, GTN Industries Ltd is Undervalued by 31.84% compared to the current share price 35.90

Default values used*: Default value of 15 for Stock P/E is used

Last 5 Year EPS CAGR: -6.77%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
    1. The stock has a low average ROCE of 9.25%, which may not be favorable.
    2. The stock has a high average Working Capital Days of 62.75, which may not be favorable.
    3. The stock has a high average Cash Conversion Cycle of 79.83, which may not be favorable.
    4. The company has higher borrowings (138.38) compared to reserves (43.15), which may suggest financial risk.
    5. The company has not shown consistent growth in sales (356.00) and profit (-2.77).

    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 GTN Industries Ltd:
      1. Net Profit Margin: -3.42%
        • 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: -3.47% (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%: -7.2% (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): -0.47
        • 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: 1.44
        • 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: 0 (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: 0.46
        • 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

    GTN Industries Ltd. is a Public Limited Listed company incorporated on 02/08/1962 and has its registered office in the State of Andhra Pradesh, India. Company’s Corporate Identification Number(CIN) is L18101TG1962PLC054323 and registration number is 054323. Currently Company is involved in the business activities of Preparation and spinning of cotton fiber including blended* cotton. Company’s Total Operating Revenue is Rs. 480.91 Cr. and Equity Capital is Rs. 17.55 Cr. for the Year ended 31/03/2022.
    INDUSTRYADDRESSCONTACT
    Textiles - Spinning - Cotton BlendedChitkul Village, Patancheru Mandal, Sangareddy Dist. Telangana 502307sharedept@gtnindustries.com
    http://www.gtnindustries.com
    Management
    NamePosition Held
    Mr. M K PatodiaChairman & Managing Director
    Mr. C George JosephDirector
    Mr. M R VikramIndependent Director
    Mrs. Rajul KothariIndependent Woman Director

    FAQ

    What is the latest intrinsic value of GTN Industries Ltd?

    The latest intrinsic value of GTN Industries Ltd as on 26 November 2024 is ₹50.77, which is 41.42% higher than the current market price of ₹35.90.

    What is the Market Cap of GTN Industries Ltd?

    The Market Cap of GTN Industries Ltd is 63.0 Cr..

    What is the current Stock Price of GTN Industries Ltd as on 26 November 2024?

    The current stock price of GTN Industries Ltd as on 26 November 2024 is 35.9.

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

    In FY 2024, the High / Low of GTN Industries Ltd stocks is 63.0/29.4.

    What is the Stock P/E of GTN Industries Ltd?

    The Stock P/E of GTN Industries Ltd is .

    What is the Book Value of GTN Industries Ltd?

    The Book Value of GTN Industries Ltd is 49.6.

    What is the Dividend Yield of GTN Industries Ltd?

    The Dividend Yield of GTN Industries Ltd is 0.00 %.

    What is the ROCE of GTN Industries Ltd?

    The ROCE of GTN Industries Ltd is 2.98 %.

    What is the ROE of GTN Industries Ltd?

    The ROE of GTN Industries Ltd is 6.69 %.

    What is the Face Value of GTN Industries Ltd?

    The Face Value of GTN Industries 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 GTN Industries 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