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Last Updated on: 26 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hindustan Composites Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 25, 2024, 11:45 pm

Market Cap 667 Cr.
Current Price 451
High / Low670/370
Stock P/E20.6
Book Value 730
Dividend Yield0.44 %
ROCE4.80 %
ROE3.86 %
Face Value 5.00
PEG Ratio0.87

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

View Share Price Target for Hindustan Composites Ltd

Competitors of Hindustan Composites Ltd

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

All Competitor Stocks of Hindustan Composites Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales51.2758.2949.2550.4066.2766.7273.3061.9869.4377.9875.7071.7271.69
Expenses43.3050.4043.5143.7852.8259.5659.3956.7160.6865.3061.1958.2260.67
Operating Profit7.977.895.746.6213.457.1613.915.278.7512.6814.5113.5011.02
OPM %15.55%13.54%11.65%13.13%20.30%10.73%18.98%8.50%12.60%16.26%19.17%18.82%15.37%
Other Income0.010.000.080.180.070.050.540.040.030.240.060.640.01
Interest0.060.040.020.010.020.030.040.050.020.020.040.040.01
Depreciation2.182.172.122.152.162.132.182.242.252.062.222.322.53
Profit before tax5.745.683.684.6411.345.0512.233.026.5110.8412.3111.788.49
Tax %9.76%3.52%5.71%21.34%11.11%12.87%19.22%11.92%16.59%12.36%18.44%15.62%23.91%
Net Profit5.185.483.473.6510.084.409.882.665.439.5010.049.946.46
EPS in Rs3.513.712.352.476.832.986.691.803.686.436.806.734.37

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
Sales11593107143153166199197178185233283295
Expenses8499110107123127162172158155195239245
Operating Profit30-6-336303937252030374449
OPM %26%-6%-3%25%20%23%18%13%11%16%16%16%17%
Other Income324330010204-4-21
Interest2010000000000
Depreciation56767899109999
Profit before tax28122230243228181025253341
Tax %24%16%20%13%13%22%10%-4%-17%15%13%16%
Net Profit21101726212525191221222735
EPS in Rs14.146.8911.6217.4314.0016.8217.1812.868.1514.2114.6318.6023.64
Dividend Payout %5%5%6%2%2%2%3%16%25%14%14%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-52.38%70.00%52.94%-19.23%19.05%0.00%-24.00%-36.84%75.00%4.76%22.73%
Change in YoY Net Profit Growth (%)0.00%122.38%-17.06%-72.17%38.28%-19.05%-24.00%-12.84%111.84%-70.24%17.97%

Hindustan Composites 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:9%
3 Years:17%
TTM:3%
Compounded Profit Growth
10 Years:10%
5 Years:14%
3 Years:28%
TTM:-7%
Stock Price CAGR
10 Years:5%
5 Years:22%
3 Years:13%
1 Year:-1%
Return on Equity
10 Years:3%
5 Years:3%
3 Years:3%
Last Year:4%

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 Capital5555577777777
Reserves5035195446306887337557648129129169811,072
Borrowings8765554600100
Other Liabilities2831296283888984103837692111
Total Liabilities5445625847027818338568619231,0031,0001,0811,190
Fixed Assets115114115120124122125122116113111138136
CWIP1000000000001
Investments341363386473541613617625687796807872971
Other Assets8785831091169811311312094827281
Total Assets5445625847027818338568619231,0031,0001,0811,190

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +541181153549221640
Cash from Investing Activity +-12-1-8-6-9-54-330-13-21-35
Cash from Financing Activity +-1-3-3-1-1-1-3-1-9-3-2-4
Net Cash Flow-8-0111-2-1617-81

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow30.00-14.00-10.0030.0025.0034.0032.0021.0014.0030.0037.0043.00

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 Days749159635963637083595146
Inventory Days585444515853546659483841
Days Payable838575101166164154166198151110128
Cash Conversion Cycle49602814-49-48-36-31-55-44-21-42
Working Capital Days12813110681109103101108143394225
ROCE %2%4%5%4%5%4%2%1%3%3%4%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%74.97%
FIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.04%0.03%0.00%0.00%
DIIs0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public25.01%25.01%25.01%25.01%25.01%25.01%25.01%25.00%24.97%24.98%25.01%25.00%
No. of Shareholders14,51414,66414,98615,11515,16014,86114,69514,97515,32915,48315,40615,573

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
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)23.3018.6014.6313.357.09
Diluted EPS (Rs.)23.3018.6014.6313.357.09
Cash EPS (Rs.)29.7524.5120.4220.2214.58
Book Value[Excl.RevalReserv]/Share (Rs.)668.06623.50621.07553.18515.30
Book Value[Incl.RevalReserv]/Share (Rs.)668.06623.50621.07553.18515.30
Revenue From Operations / Share (Rs.)201.56191.41157.52124.98120.56
PBDIT / Share (Rs.)35.3528.0722.5922.9213.57
PBIT / Share (Rs.)28.9122.1616.7916.927.13
PBT / Share (Rs.)28.8422.0716.7316.796.98
Net Profit / Share (Rs.)23.3018.6014.6314.218.15
NP After MI And SOA / Share (Rs.)23.3018.6014.6313.357.09
PBDIT Margin (%)17.5414.6614.3318.3411.25
PBIT Margin (%)14.3411.5710.6513.535.91
PBT Margin (%)14.3111.5310.6213.435.79
Net Profit Margin (%)11.559.719.2811.376.75
NP After MI And SOA Margin (%)11.559.719.2810.685.88
Return on Networth / Equity (%)3.482.982.352.411.37
Return on Capital Employeed (%)4.143.432.592.851.30
Return On Assets (%)3.182.742.152.141.23
Total Debt / Equity (X)0.000.000.000.000.01
Asset Turnover Ratio (%)0.280.280.240.200.20
Current Ratio (X)2.162.402.313.503.02
Quick Ratio (X)1.882.122.033.222.71
Inventory Turnover Ratio (X)9.429.838.356.015.90
Dividend Payout Ratio (NP) (%)8.5810.7513.6714.9728.20
Dividend Payout Ratio (CP) (%)6.728.159.7910.3314.78
Earning Retention Ratio (%)91.4289.2586.3385.0371.80
Cash Earning Retention Ratio (%)93.2891.8590.2189.6785.22
Interest Coverage Ratio (X)582.77327.17427.64172.8289.83
Interest Coverage Ratio (Post Tax) (X)385.06217.83277.94108.1554.94
Enterprise Value (Cr.)571.89360.36388.94389.08157.92
EV / Net Operating Revenue (X)1.921.271.672.110.88
EV / EBITDA (X)10.958.6911.6611.497.88
MarketCap / Net Operating Revenue (X)1.931.281.682.120.89
Retention Ratios (%)91.4189.2486.3285.0271.79
Price / BV (X)0.580.390.420.470.20
Price / Net Operating Revenue (X)1.931.281.682.120.89
EarningsYield0.060.070.050.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hindustan Composites Ltd as of November 26, 2024 is: 583.02

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, Hindustan Composites Ltd is Undervalued by 29.27% compared to the current share price 451.00

Intrinsic Value of Hindustan Composites Ltd as of November 26, 2024 is: 721.41

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, Hindustan Composites Ltd is Undervalued by 59.96% compared to the current share price 451.00

Last 5 Year EPS CAGR: 23.74%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Cash Conversion Cycle of -14.58, which is a positive sign.
  2. The company has higher reserves (756.08 cr) compared to borrowings (3.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (180.54 cr) and profit (25.23 cr) over the years.
  1. The stock has a low average ROCE of 3.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 93.00, 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 Hindustan Composites Ltd:
    1. Net Profit Margin: 11.55%
      • 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: 4.14% (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%: 3.48% (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): 385.06
      • 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: 1.88
      • 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: 20.6 (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
      • 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

Hindustan Composites Ltd. is a Public Limited Listed company incorporated on 01/07/1964 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29120MH1964PLC012955 and registration number is 012955. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 232.64 Cr. and Equity Capital is Rs. 7.38 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Dr. Trans & Steer - ClutchPeninsula Business Park, Mumbai Maharashtra 400013investor@hindcompo.com
http://www.hindcompo.com
Management
NamePosition Held
Mr. P K ChoudharyManaging Director
Mr. Vinay SarinNon Exe.Non Ind.Director
Mrs. Preeti AgrawalIndependent Director
Mr. Rajan DalalIndependent Director
Mr. Lalit Kumar BarariaIndependent Director
Mr. Deepak SethiIndependent Director

FAQ

What is the latest intrinsic value of Hindustan Composites Ltd?

The latest intrinsic value of Hindustan Composites Ltd as on 26 November 2024 is ₹583.02, which is 29.27% higher than the current market price of ₹451.00.

What is the Market Cap of Hindustan Composites Ltd?

The Market Cap of Hindustan Composites Ltd is 667 Cr..

What is the current Stock Price of Hindustan Composites Ltd as on 26 November 2024?

The current stock price of Hindustan Composites Ltd as on 26 November 2024 is 451.

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

In FY 2024, the High / Low of Hindustan Composites Ltd stocks is 670/370.

What is the Stock P/E of Hindustan Composites Ltd?

The Stock P/E of Hindustan Composites Ltd is 20.6.

What is the Book Value of Hindustan Composites Ltd?

The Book Value of Hindustan Composites Ltd is 730.

What is the Dividend Yield of Hindustan Composites Ltd?

The Dividend Yield of Hindustan Composites Ltd is 0.44 %.

What is the ROCE of Hindustan Composites Ltd?

The ROCE of Hindustan Composites Ltd is 4.80 %.

What is the ROE of Hindustan Composites Ltd?

The ROE of Hindustan Composites Ltd is 3.86 %.

What is the Face Value of Hindustan Composites Ltd?

The Face Value of Hindustan Composites 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 Hindustan Composites 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