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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Himadri Speciality Chemical Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:10 pm

Market Cap 24,101 Cr.
Current Price 488
High / Low689/249
Stock P/E50.0
Book Value 69.1
Dividend Yield0.10 %
ROCE19.1 %
ROE15.7 %
Face Value 1.00
PEG Ratio5.55

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

View Share Price Target for Himadri Speciality Chemical Ltd

Competitors of Himadri Speciality Chemical Ltd

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

All Competitor Stocks of Himadri Speciality Chemical Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4675665406457728341,0471,0591,0371,0299511,0051,053
Expenses426525504616728790975962932903817847879
Operating Profit4140363044447297105126134158174
OPM %9%7%7%5%6%5%7%9%10%12%14%16%17%
Other Income43134-232-22811101010
Interest778891113202013131621
Depreciation12121212121313131312121213
Profit before tax2624171227-3484279111119139150
Tax %38%6%17%24%11%-163%20%15%18%31%28%28%28%
Net Profit162314924-93936657686101109
EPS in Rs0.390.550.350.220.58-0.170.920.861.551.761.962.292.47

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
Sales1,1441,3531,3951,4371,1821,3412,0222,4221,8061,6792,7914,1724,022
Expenses9651,2471,3071,3131,0361,1071,5691,8631,5251,5492,6353,7733,500
Operating Profit17910688124146233452560280131156399522
OPM %16%8%6%9%12%17%22%23%16%8%6%10%13%
Other Income1831131396128814-17-238
Interest76801181031118270715533366663
Depreciation46555859673333343947505150
Profit before tax752-75-24-231253614621946553280448
Tax %24%-312%22%49%19%34%31%30%-6%27%27%23%
Net Profit579-58-13-19822483242054739216328
EPS in Rs1.480.24-1.48-0.32-0.441.985.917.754.911.130.984.997.56
Dividend Payout %7%41%-7%0%-11%5%2%2%3%13%20%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-84.21%-744.44%77.59%-46.15%531.58%202.44%30.65%-36.73%-77.07%-17.02%453.85%
Change in YoY Net Profit Growth (%)0.00%-660.23%822.03%-123.74%577.73%-329.14%-171.79%-67.37%-40.34%60.05%470.87%

Himadri Speciality Chemical 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:12%
5 Years:12%
3 Years:36%
TTM:14%
Compounded Profit Growth
10 Years:25%
5 Years:5%
3 Years:106%
TTM:47%
Stock Price CAGR
10 Years:32%
5 Years:48%
3 Years:118%
1 Year:85%
Return on Equity
10 Years:10%
5 Years:10%
3 Years:11%
Last Year:16%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:35 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital39393942424242424242434949
Reserves8487577508379881,3731,5901,6921,7511,8262,1342,9963,360
Borrowings1,2751,3621,124887774660476505729587842605348
Other Liabilities256339329296308341680323269999659798720
Total Liabilities2,4182,4972,2422,0622,1122,4162,7882,5622,7913,4543,6784,4494,477
Fixed Assets9261,2211,2281,1801,1741,1781,1701,4751,4681,5461,5151,5341,560
CWIP3195914311322133158160779467105
Investments1121682353872731794766113132478543
Other Assets1,0611,0489777988389431,3058821,0981,7181,9382,3712,269
Total Assets2,4182,4972,2422,0622,1122,4162,7882,5622,7913,4543,6784,4494,477

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-11149212296205258476283-4033154405
Cash from Investing Activity +-6-99128-610-50-224-214-114-28-397-405
Cash from Financing Activity +69-109-348-278-233-200-257-41165-1823777
Net Cash Flow51-58-712-188-62811121347

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow179.00105.0087.00123.00-741.00-541.00-208.0084.00-225.00-598.00-431.00-443.00

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 Days6692826360495561100664457
Inventory Days1381341221381641121241211001256185
Days Payable16363650743910068451273969
Cash Conversion Cycle18819116815115012279113155656673
Working Capital Days190145138105117957673153637083
ROCE %3%2%3%5%11%22%25%11%4%5%14%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters45.43%45.43%45.39%45.39%45.38%45.61%44.96%44.86%44.79%50.29%50.20%50.78%
FIIs1.21%1.66%1.61%1.97%2.38%2.36%2.96%5.12%5.39%5.13%5.16%5.24%
DIIs0.36%0.00%0.00%0.01%0.50%0.48%0.53%0.50%0.63%2.12%2.27%3.59%
Public53.01%52.91%53.00%52.64%51.74%51.54%51.54%49.53%49.18%42.47%42.36%40.39%
No. of Shareholders3,38,6053,42,9713,49,5853,08,1662,94,2342,80,9853,06,3464,40,4154,38,4144,36,7004,35,6284,47,666

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Motilal Oswal Nifty Microcap 250 Index Fund230,9831.25.515392024-11-2042753.99%
Groww Nifty Total Market Index Fund5390.040.015392024-11-200%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)9.165.130.981.134.91
Diluted EPS (Rs.)9.165.130.981.134.91
Cash EPS (Rs.)9.356.162.112.255.84
Book Value[Excl.RevalReserv]/Share (Rs.)61.7752.6444.5142.7841.40
Book Value[Incl.RevalReserv]/Share (Rs.)61.7752.6444.5142.7841.40
Revenue From Operations / Share (Rs.)84.9696.4166.6240.0943.12
PBDIT / Share (Rs.)13.969.873.903.466.88
PBIT / Share (Rs.)12.958.702.712.345.95
PBT / Share (Rs.)11.656.481.281.544.64
Net Profit / Share (Rs.)8.344.990.931.134.90
NP After MI And SOA / Share (Rs.)8.344.990.971.134.91
PBDIT Margin (%)16.4310.235.848.6315.96
PBIT Margin (%)15.239.024.075.8313.79
PBT Margin (%)13.716.711.913.8410.75
Net Profit Margin (%)9.815.171.392.8111.37
NP After MI And SOA Margin (%)9.815.171.462.8211.37
Return on Networth / Equity (%)13.489.472.192.6411.84
Return on Capital Employeed (%)19.6415.485.575.0213.68
Return On Assets (%)9.235.871.181.708.01
Long Term Debt / Equity (X)0.010.020.040.040.01
Total Debt / Equity (X)0.190.360.300.370.19
Asset Turnover Ratio (%)1.031.170.900.630.68
Current Ratio (X)1.921.511.181.251.13
Quick Ratio (X)1.331.070.630.840.58
Inventory Turnover Ratio (X)4.924.994.303.132.76
Dividend Payout Ratio (NP) (%)2.633.8815.3413.230.00
Dividend Payout Ratio (CP) (%)2.343.146.946.650.00
Earning Retention Ratio (%)97.3796.1284.6686.770.00
Cash Earning Retention Ratio (%)97.6696.8693.0693.350.00
Interest Coverage Ratio (X)10.776.474.584.345.25
Interest Coverage Ratio (Post Tax) (X)7.434.722.792.414.74
Enterprise Value (Cr.)14725.343988.713425.682287.011527.52
EV / Net Operating Revenue (X)3.520.951.231.360.84
EV / EBITDA (X)21.429.3420.9815.785.30
MarketCap / Net Operating Revenue (X)3.550.901.121.040.68
Retention Ratios (%)97.3696.1184.6586.760.00
Price / BV (X)4.881.661.670.970.71
Price / Net Operating Revenue (X)3.550.901.121.040.68
EarningsYield0.020.050.010.020.16

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Himadri Speciality Chemical Ltd as of November 23, 2024 is: 542.98

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 23, 2024, Himadri Speciality Chemical Ltd is Undervalued by 11.27% compared to the current share price 488.00

Intrinsic Value of Himadri Speciality Chemical Ltd as of November 23, 2024 is: 591.93

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 23, 2024, Himadri Speciality Chemical Ltd is Undervalued by 21.30% compared to the current share price 488.00

Last 5 Year EPS CAGR: 9.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,607.85 cr) compared to borrowings (782.62 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (1.69 cr) and profit (149.46 cr) over the years.
  1. The stock has a low average ROCE of 10.33%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 109.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 126.75, 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 Himadri Speciality Chemical Ltd:
    1. Net Profit Margin: 9.81%
      • 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: 19.64% (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%: 13.48% (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): 7.43
      • 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: 1.33
      • 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: 50 (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: 0.19
      • 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

Himadri Speciality Chemical Ltd. is a Public Limited Listed company incorporated on 28/07/1987 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27106WB1987PLC042756 and registration number is 042756. Currently Company is involved in the business activities of Manufacture of other non-metallic mineral products (includes asbestos yarn and fabric, and articles of asbestos yarn and fabric such as clothing, headgear, footwear, cord, string, paper o felt; friction material with a basis of asbestos or other mineral substances or of cellulose including unmounted articles such as friction material; mineral insulating material (slag wool, rockwool and similar mineral wools, exfoliated vermiculite, expanded clays and similar insulating material); products of glass wool for heat-insulating; articles of asphalt or of similar material (e.g. coal tar pitch), gypsum and articles of other mineral substances). Company’s Total Operating Revenue is Rs. 2791.31 Cr. and Equity Capital is Rs. 41.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Speciality - OthersFortuna Tower, 23-A, Netaji Subhas Road, Kolkata West Bengal 700001info@himadri.com
http://www.himadri.com
Management
NamePosition Held
Mr. Anurag ChoudharyChairman & M.D & CEO
Mr. Shyam Sundar ChoudharyExecutive Director
Ms. Rita BhattacharyaIndependent Director
Mr. Santimoy DeyIndependent Director
Mr. Girish Paman VanvariIndependent Director
Mr. Gopal Ajay MalpaniIndependent Director

FAQ

What is the latest intrinsic value of Himadri Speciality Chemical Ltd?

The latest intrinsic value of Himadri Speciality Chemical Ltd as on 23 November 2024 is ₹542.98, which is 11.27% higher than the current market price of ₹488.00.

What is the Market Cap of Himadri Speciality Chemical Ltd?

The Market Cap of Himadri Speciality Chemical Ltd is 24,101 Cr..

What is the current Stock Price of Himadri Speciality Chemical Ltd as on 23 November 2024?

The current stock price of Himadri Speciality Chemical Ltd as on 23 November 2024 is 488.

What is the High / Low of Himadri Speciality Chemical Ltd stocks in FY 2024?

In FY 2024, the High / Low of Himadri Speciality Chemical Ltd stocks is 689/249.

What is the Stock P/E of Himadri Speciality Chemical Ltd?

The Stock P/E of Himadri Speciality Chemical Ltd is 50.0.

What is the Book Value of Himadri Speciality Chemical Ltd?

The Book Value of Himadri Speciality Chemical Ltd is 69.1.

What is the Dividend Yield of Himadri Speciality Chemical Ltd?

The Dividend Yield of Himadri Speciality Chemical Ltd is 0.10 %.

What is the ROCE of Himadri Speciality Chemical Ltd?

The ROCE of Himadri Speciality Chemical Ltd is 19.1 %.

What is the ROE of Himadri Speciality Chemical Ltd?

The ROE of Himadri Speciality Chemical Ltd is 15.7 %.

What is the Face Value of Himadri Speciality Chemical Ltd?

The Face Value of Himadri Speciality Chemical Ltd is 1.00.

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 Himadri Speciality Chemical 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