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Last Updated on: 11 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Hisar Metal Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 11, 2024, 12:10 am

Market Cap 107 Cr.
Current Price 198
High / Low235/154
Stock P/E19.3
Book Value 111
Dividend Yield0.50 %
ROCE11.2 %
ROE11.3 %
Face Value 10.0
PEG Ratio1.44

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

View Share Price Target for Hisar Metal Industries Ltd

Competitors of Hisar Metal Industries Ltd

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

All Competitor Stocks of Hisar Metal Industries Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales46.7052.2546.8555.2568.1866.3182.2875.6259.5758.5562.1965.2353.24
Expenses41.4847.0142.8051.0162.5158.8275.3068.8654.2055.2057.8160.5949.30
Operating Profit5.225.244.054.245.677.496.986.765.373.354.384.643.94
OPM %11.18%10.03%8.64%7.67%8.32%11.30%8.48%8.94%9.01%5.72%7.04%7.11%7.40%
Other Income-0.010.110.031.270.070.490.070.11-0.170.800.010.220.05
Interest1.291.111.231.251.351.131.251.591.411.281.451.471.38
Depreciation0.480.540.560.500.500.570.530.530.560.550.560.580.57
Profit before tax3.443.702.293.763.896.285.274.753.232.322.382.812.04
Tax %25.29%35.68%24.89%25.27%25.19%26.43%25.24%25.05%25.39%55.17%25.21%25.27%25.00%
Net Profit2.572.381.722.812.914.623.943.562.411.041.782.101.53
EPS in Rs4.764.413.195.205.398.567.306.594.461.933.303.892.83

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
Sales197202211224176161231208178153237276246
Expenses187193201213167151215195166138215253228
Operating Profit1110101191016131215212218
OPM %6%5%5%5%5%6%7%6%7%10%9%8%7%
Other Income0000010100211
Interest8768657555566
Depreciation3332222222222
Profit before tax0022147758161611
Tax %44%94%27%35%45%31%32%24%22%30%26%30%
Net Profit001103554512117
EPS in Rs0.330.022.282.460.724.899.199.877.2410.0222.3320.2813.58
Dividend Payout %200%3,600%29%27%92%20%11%10%14%10%4%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%-100.00%66.67%0.00%-20.00%25.00%140.00%-8.33%
Change in YoY Net Profit Growth (%)0.00%-100.00%166.67%-66.67%-20.00%45.00%115.00%-148.33%

Hisar Metal Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 8 years from 2014-2015 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:1%
5 Years:3%
3 Years:16%
TTM:-5%
Compounded Profit Growth
10 Years:18%
5 Years:4%
3 Years:6%
TTM:-37%
Stock Price CAGR
10 Years:30%
5 Years:33%
3 Years:16%
1 Year:16%
Return on Equity
10 Years:19%
5 Years:19%
3 Years:20%
Last Year:11%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital444455555555
Reserves8910101014192227384955
Borrowings565270586465636362656881
Other Liabilities1223109822281042282229
Total Liabilities7987948087106115100136137145170
Fixed Assets191615202022242221191925
CWIP026201000063
Investments000000001121
Other Assets6069735867849178114116119140
Total Assets7987948087106115100136137145170

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 812-620710124961510
Cash from Investing Activity 5-3-5-1-6-3-3-1-21-8-5
Cash from Financing Activity -12-811-191-7-8-6-7-6-7-5
Net Cash Flow200-02-01-3011-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow11.00-46.00-42.00-59.00-49.00-54.00-49.00-50.00-51.00-47.00-44.00-46.00

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 Days566068606761715998726476
Inventory Days4752415466709111520711994132
Days Payable1735973324812116412541
Cash Conversion Cycle867810010712999113161190149133166
Working Capital Days7873989812392102135169133125165
ROCE %11%12%13%9%11%17%14%12%14%20%18%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters56.49%56.49%56.49%56.49%61.02%61.02%61.02%61.02%61.02%61.02%61.02%61.21%
FIIs0.01%0.00%0.00%0.00%0.06%0.00%0.24%0.24%0.24%0.24%0.36%0.25%
Public43.50%43.51%43.51%43.51%38.93%38.97%38.74%38.74%38.75%38.74%38.61%38.54%
No. of Shareholders4,5534,3775,0344,9404,4514,4095,1235,1925,4744,8775,1725,266

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.)11.9820.2822.3310.017.24
Diluted EPS (Rs.)11.9820.2822.3310.017.24
Cash EPS (Rs.)16.2024.3026.2713.9811.52
Book Value[Excl.RevalReserv]/Share (Rs.)111.43100.4681.1859.8550.84
Book Value[Incl.RevalReserv]/Share (Rs.)111.43100.4681.1859.8550.84
Dividend / Share (Rs.)1.001.001.001.001.00
Revenue From Operations / Share (Rs.)447.09511.17438.13282.97329.34
PBDIT / Share (Rs.)31.5243.0943.1727.5023.16
PBIT / Share (Rs.)27.3039.0839.2323.5318.87
PBT / Share (Rs.)15.4828.8330.0414.369.29
Net Profit / Share (Rs.)11.9820.2822.3310.017.24
PBDIT Margin (%)7.048.439.859.717.03
PBIT Margin (%)6.107.648.958.315.73
PBT Margin (%)3.465.646.855.072.82
Net Profit Margin (%)2.673.965.093.532.19
Return on Networth / Equity (%)10.7520.1827.5016.7214.24
Return on Capital Employeed (%)17.6127.6732.0023.1919.99
Return On Assets (%)3.817.558.823.973.89
Long Term Debt / Equity (X)0.320.330.430.600.75
Total Debt / Equity (X)1.341.261.471.912.26
Asset Turnover Ratio (%)1.531.961.731.291.66
Current Ratio (X)1.611.711.641.391.56
Quick Ratio (X)0.830.910.810.610.71
Inventory Turnover Ratio (X)3.083.762.972.153.26
Dividend Payout Ratio (NP) (%)0.004.934.479.9813.80
Dividend Payout Ratio (CP) (%)0.004.113.807.158.67
Earning Retention Ratio (%)0.0095.0795.5390.0286.20
Cash Earning Retention Ratio (%)0.0095.8996.2092.8591.33
Interest Coverage Ratio (X)2.674.214.703.002.42
Interest Coverage Ratio (Post Tax) (X)2.012.983.432.091.76
Enterprise Value (Cr.)169.76131.24126.69119.1680.59
EV / Net Operating Revenue (X)0.700.470.530.770.45
EV / EBITDA (X)9.975.645.448.026.45
MarketCap / Net Operating Revenue (X)0.380.240.280.390.12
Retention Ratios (%)0.0095.0695.5290.0186.19
Price / BV (X)1.551.251.511.890.78
Price / Net Operating Revenue (X)0.380.240.280.390.12
EarningsYield0.060.160.180.080.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hisar Metal Industries Ltd as of October 11, 2024 is: ₹243.29

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 11, 2024, Hisar Metal Industries Ltd is Undervalued by 22.87% compared to the current share price ₹198.00

Intrinsic Value of Hisar Metal Industries Ltd as of October 11, 2024 is: ₹275.90

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 11, 2024, Hisar Metal Industries Ltd is Undervalued by 39.34% compared to the current share price ₹198.00

Last 5 Year EPS CAGR: 13.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (207.69 cr) and profit (6.08 cr) over the years.
  1. The stock has a low average ROCE of 13.50%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 115.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 125.92, which may not be favorable.
  4. The company has higher borrowings (63.92) compared to reserves (22.58), which may suggest financial risk.

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 Hisar Metal Industries Ltd:
    1. Net Profit Margin: 2.67%
      • 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: 17.61% (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%: 10.75% (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): 2.01
      • 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: 0.83
      • 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: 19.3 (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: 1.34
      • 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

Hisar Metal Industries Ltd. is a Public Limited Listed company incorporated on 14/05/1990 and has its registered office in the State of Haryana, India. Company’s Corporate Identification Number(CIN) is L74899HR1990PLC030937 and registration number is 030937. Currently Company is involved in the business activities of Manufacture of basic iron and steel. Company’s Total Operating Revenue is Rs. 236.59 Cr. and Equity Capital is Rs. 5.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - GeneralNear I.D.C., Delhi Road, Hissar Haryana 125005info@hisarmetal.com
https://www.hisarmetal.com
Management
NamePosition Held
Mr. M P JindalChairman
Mr. Abhiram TayalManaging Director
Mr. Karan Dev TayalWhole Time Director
Mrs. Anubha TayalDirector
Mr. Shital Parshad JainDirector
Mr. Sajjan SinghDirector
Mr. Sharat JainDirector
Mr. Anuj KumarDirector

FAQ

What is the latest fair value of Hisar Metal Industries Ltd?

The latest fair value of Hisar Metal Industries Ltd is ₹243.29.

What is the Market Cap of Hisar Metal Industries Ltd?

The Market Cap of Hisar Metal Industries Ltd is 107 Cr..

What is the current Stock Price of Hisar Metal Industries Ltd as on 11 October 2024?

The current stock price of Hisar Metal Industries Ltd as on 11 October 2024 is ₹198.

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

In FY 2024, the High / Low of Hisar Metal Industries Ltd stocks is 235/154.

What is the Stock P/E of Hisar Metal Industries Ltd?

The Stock P/E of Hisar Metal Industries Ltd is 19.3.

What is the Book Value of Hisar Metal Industries Ltd?

The Book Value of Hisar Metal Industries Ltd is 111.

What is the Dividend Yield of Hisar Metal Industries Ltd?

The Dividend Yield of Hisar Metal Industries Ltd is 0.50 %.

What is the ROCE of Hisar Metal Industries Ltd?

The ROCE of Hisar Metal Industries Ltd is 11.2 %.

What is the ROE of Hisar Metal Industries Ltd?

The ROE of Hisar Metal Industries Ltd is 11.3 %.

What is the Face Value of Hisar Metal Industries Ltd?

The Face Value of Hisar Metal 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 Hisar Metal 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