Hindustan Copper 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:
1%
5 Years:
-1%
3 Years:
-1%
TTM:
8%
Compounded Profit Growth
10 Years:
1%
5 Years:
15%
3 Years:
39%
TTM:
27%
Stock Price CAGR
10 Years:
16%
5 Years:
60%
3 Years:
38%
1 Year:
113%
Return on Equity
10 Years:
6%
5 Years:
6%
3 Years:
17%
Last Year:
14%
Last Updated: Unknown
Balance Sheet
Last Updated: September 15, 2024, 3:32 pm
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity Capital
463
463
463
463
463
463
463
463
463
484
484
484
Reserves
1,189
1,367
1,399
948
1,004
1,065
1,174
498
627
1,428
1,599
1,802
Borrowings
0
0
0
207
472
657
1,070
1,564
1,137
409
156
222
Other Liabilities
461
434
371
1,181
597
630
636
802
819
844
956
971
Total Liabilities
2,113
2,263
2,233
2,799
2,536
2,814
3,344
3,326
3,046
3,164
3,194
3,479
Fixed Assets
206
212
202
178
354
332
316
337
322
282
1,326
1,430
CWIP
587
691
851
733
279
660
1,022
1,232
1,179
683
731
917
Investments
89
29
71
76
0
0
0
0
1
1
10
29
Other Assets
1,231
1,331
1,108
1,812
1,903
1,822
2,005
1,757
1,544
2,199
1,127
1,102
Total Assets
2,113
2,263
2,233
2,799
2,536
2,814
3,344
3,326
3,046
3,164
3,194
3,479
Reserves and Borrowings Chart
Cash Flow
Month
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Cash from Operating Activity
215
331
237
262
-260
372
252
86
832
1,052
674
292
Cash from Investing Activity
-114
-259
-209
-451
-258
-558
-587
-430
-364
-404
-337
-476
Cash from Financing Activity
-112
-111
-109
183
-8
-96
445
42
133
-251
-339
-39
Net Cash Flow
-11
-38
-80
-7
-526
-282
110
-302
601
397
-3
-222
Free Cash Flow
Month
Mar 2012
Mar 2013
Mar 2014
Mar 2015
Mar 2016
Mar 2017
Mar 2018
Mar 2019
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Free Cash Flow
534.00
303.00
505.00
128.00
-97.00
-249.00
-386.00
505.00
-243.00
410.00
103.00
336.00
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.
Fair Value of Hindustan Copper Ltd as of October 5, 2024 is: ₹282.43
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 October 5, 2024, Hindustan Copper Ltd is Overvalued by 14.42% compared to the current share price ₹330.00
Intrinsic Value of Hindustan Copper Ltd as of October 5, 2024 is: ₹451.75
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 October 5, 2024, Hindustan Copper Ltd is Undervalued by 36.89% compared to the current share price ₹330.00
Last 5 Year EPS CAGR: 59.95%
*Investments are subject to market risks
Strength and Weakness
Strength
Weakness
The stock is trading at a low valuation with an average P/B ratio of 1.88 and average Dividend Yield of 4.60%.
The company has higher reserves (1,175.00 cr) compared to borrowings (491.17 cr), indicating strong financial stability.
The company has shown consistent growth in sales (64.92 cr) and profit (202.38 cr) over the years.
The stock has a low average ROCE of 10.25%, which may not be favorable.
The stock has a high average Working Capital Days of 129.83, which may not be favorable.
The stock has a high average Cash Conversion Cycle of 170.83, 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 Copper Ltd:
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.
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.
ROE%: 12.92% (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.
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.
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.
Stock P/E: 88.4 (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.
Total Debt / Equity: 0.09
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 Copper Ltd. is a Public Limited Listed company incorporated on 09/11/1967 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L27201WB1967GOI028825 and registration number is 028825. Currently Company is involved in the business activities of Mining of copper ore. Company’s Total Operating Revenue is Rs. 1821.93 Cr. and Equity Capital is Rs. 483.51 Cr. for the Year ended 31/03/2022.
INDUSTRY
ADDRESS
CONTACT
Metals - Non Ferrous - Copper/Copper Alloys - Prod
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 Copper 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
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