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Last Updated on: 15 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

I G Petrochemicals Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 15, 2024, 11:23 pm

Market Cap 1,799 Cr.
Current Price 582
High / Low727/402
Stock P/E45.6
Book Value 402
Dividend Yield1.29 %
ROCE5.38 %
ROE3.05 %
Face Value 10.0
PEG Ratio1.17

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

View Share Price Target for I G Petrochemicals Ltd

Competitors of I G Petrochemicals Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
I G Petrochemicals Ltd 1,799 Cr. 582727/40245.6 4021.29 %5.38 %3.05 % 10.0
Industry Average1,799.00 Cr582.0045.60402.001.29%5.38%3.05%10.00

All Competitor Stocks of I G Petrochemicals Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales315424387471507517660569518605555502488
Expenses218280304374395404540484469541496476494
Operating Profit9614584971121131208549645926-6
OPM %31%34%22%21%22%22%18%15%9%10%11%5%-1%
Other Income1223324666777
Interest5152344597678
Depreciation8101111111212121212121312
Profit before tax8513570881011001097534514814-20
Tax %25%25%25%25%25%26%25%26%26%25%26%28%24%
Net Profit6310052667574815525383610-15
EPS in Rs20.5332.6216.9621.3524.3923.9126.4017.988.2612.4111.583.27-4.95

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
Sales8869701,2041,1879531,0371,1441,3041,0591,1241,8832,3522,180
Expenses8439141,1441,1068398698771,0789878251,4762,0341,983
Operating Profit4357618011316826722672299407318198
OPM %5%6%5%7%12%16%23%17%7%27%22%14%9%
Other Income3-22-8-14434-26492227
Interest15173038231815111615132428
Depreciation15141816182126263034444749
Profit before tax1744117713223118632254359269147
Tax %20%21%20%21%21%23%37%37%34%25%26%25%
Net Profit133396010214711621190267200109
EPS in Rs4.321.001.022.8919.6033.1047.5937.826.8361.5486.6165.0535.52
Dividend Payout %0%0%0%35%10%9%8%11%29%12%12%15%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-76.92%0.00%200.00%566.67%70.00%44.12%-21.09%-81.90%804.76%40.53%-25.09%
Change in YoY Net Profit Growth (%)0.00%76.92%200.00%366.67%-496.67%-25.88%-65.21%-60.81%886.66%-764.24%-65.62%

I G Petrochemicals 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:6%
5 Years:10%
3 Years:23%
TTM:-5%
Compounded Profit Growth
10 Years:6%
5 Years:-21%
3 Years:-42%
TTM:-74%
Stock Price CAGR
10 Years:26%
5 Years:32%
3 Years:-13%
1 Year:12%
Return on Equity
10 Years:18%
5 Years:15%
3 Years:15%
Last Year:3%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital313131313131313131313131
Reserves2272262082613624975986037871,0301,2001,209
Borrowings1722091531168254161197129137217337
Other Liabilities192298212171184245323299337416501517
Total Liabilities6227646045796598271,1131,1301,2841,6141,9492,094
Fixed Assets1723763273223244033894717027367171,030
CWIP172114112621626741182323
Investments000019901135558123269252
Other Assets279387276252305308395336483737731809
Total Assets6227646045796598271,1131,1301,2841,6141,9492,094

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 29287470951981478414510923437
Cash from Investing Activity -134-36-24-6-43-129-234-99-52-98-249-115
Cash from Financing Activity 1091-61-64-50-675835-80-192148
Net Cash Flow5-6-10-122-302012-85-30

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow43.00-115.00-148.00-73.00-3.0086.00213.0065.00-125.00170.00270.00101.00

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 Days475345425344514965675059
Inventory Days364932454747524281453442
Days Payable81100727783759289124877679
Cash Conversion Cycle2251017161132125821
Working Capital Days13918211920320341627
ROCE %14%12%16%25%34%46%30%6%30%35%22%5%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters68.74%68.74%68.74%68.74%68.73%68.73%68.73%68.73%68.73%68.74%68.74%68.74%
FIIs2.98%3.02%3.22%3.44%3.45%3.56%3.71%3.81%3.74%3.42%3.00%2.50%
DIIs1.98%1.87%1.86%1.97%2.05%2.03%1.95%1.69%1.80%1.79%1.79%2.16%
Public26.30%26.38%26.18%25.86%25.75%25.69%25.61%25.78%25.74%26.05%26.47%26.61%
No. of Shareholders37,04538,62336,76536,18338,02637,01036,50136,62537,08637,39837,72636,045

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Pure Value Fund518,8790.4523.16518,8792024-10-130%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)12.8364.9485.8861.086.78
Diluted EPS (Rs.)12.8364.9485.8861.086.78
Cash EPS (Rs.)29.7580.34100.2872.1516.49
Book Value[Excl.RevalReserv]/Share (Rs.)404.87400.96344.86266.90205.44
Book Value[Incl.RevalReserv]/Share (Rs.)404.87400.96344.86266.90205.44
Revenue From Operations / Share (Rs.)681.56763.79611.33364.83343.72
PBDIT / Share (Rs.)44.13110.28134.2798.0325.35
PBIT / Share (Rs.)27.2194.88119.8786.9615.64
PBT / Share (Rs.)17.3487.12115.6982.0310.36
Net Profit / Share (Rs.)12.8364.9485.8861.086.78
NP After MI And SOA / Share (Rs.)12.8364.9485.8861.086.78
PBDIT Margin (%)6.4714.4321.9626.877.37
PBIT Margin (%)3.9912.4219.6023.834.54
PBT Margin (%)2.5411.4018.9222.483.01
Net Profit Margin (%)1.888.5014.0416.741.97
NP After MI And SOA Margin (%)1.888.5014.0416.741.97
Return on Networth / Equity (%)3.1616.1924.9022.883.29
Return on Capital Employeed (%)5.3119.5029.3226.925.55
Return On Assets (%)1.8510.0416.0114.201.79
Long Term Debt / Equity (X)0.180.130.100.100.23
Total Debt / Equity (X)0.290.200.140.150.29
Asset Turnover Ratio (%)1.021.311.280.910.92
Current Ratio (X)1.511.641.811.331.11
Quick Ratio (X)1.151.311.430.890.78
Inventory Turnover Ratio (X)9.5911.288.345.547.26
Dividend Payout Ratio (NP) (%)0.0015.398.733.2758.99
Dividend Payout Ratio (CP) (%)0.0012.447.472.7724.25
Earning Retention Ratio (%)0.0084.6191.2796.7341.01
Cash Earning Retention Ratio (%)0.0087.5692.5397.2375.75
Interest Coverage Ratio (X)4.4714.2032.1020.744.89
Interest Coverage Ratio (Post Tax) (X)2.309.3621.5313.962.32
Enterprise Value (Cr.)1505.601323.012186.971328.04422.81
EV / Net Operating Revenue (X)0.710.561.161.180.39
EV / EBITDA (X)11.083.905.294.405.42
MarketCap / Net Operating Revenue (X)0.630.531.151.140.26
Retention Ratios (%)0.0084.6091.2696.7241.00
Price / BV (X)1.061.032.031.550.45
Price / Net Operating Revenue (X)0.630.531.151.140.26
EarningsYield0.020.150.120.140.07

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of I G Petrochemicals Ltd as of October 15, 2024 is: ₹565.07

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 15, 2024, I G Petrochemicals Ltd is Overvalued by 2.74% compared to the current share price ₹581.00

Intrinsic Value of I G Petrochemicals Ltd as of October 15, 2024 is: ₹785.80

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 15, 2024, I G Petrochemicals Ltd is Undervalued by 35.25% compared to the current share price ₹581.00

Last 5 Year EPS CAGR: 39.06%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 22.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 15.92, which is a positive sign.
  3. The company has higher reserves (600.67 cr) compared to borrowings (163.67 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (217.00 cr) and profit (132.54 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 11.75, 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 I G Petrochemicals Ltd:
    1. Net Profit Margin: 1.88%
      • 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: 5.31% (Industry Average ROCE: 5.38%)
      • 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%: 3.16% (Industry Average ROE: 3.05%)
      • 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): 2.3
      • 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: 1.15
      • 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: 45.6 (Industry average Stock P/E: 45.6)
      • 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: 0.29
      • 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

I G Petrochemicals Ltd. is a Public Limited Listed company incorporated on 18/10/1988 and has its registered office in the State of Goa, India. Company’s Corporate Identification Number(CIN) is L51496GA1988PLC000915 and registration number is 000915. Currently Company is involved in the business activities of Manufacture of organic and inorganic chemical compounds. Company’s Total Operating Revenue is Rs. 1882.77 Cr. and Equity Capital is Rs. 30.80 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Chemicals - Organic - Maleic AnhydrideT-10, 3rd Floor, Jairam Complex, Panaji Goa 403001igpl@igpetro.com
http://www.igpetro.com
Management
NamePosition Held
Mr. M M DhanukaNon Executive Chairman
Mr. Nikunj DhanukaManaging Director & CEO
Mr. Sagar JadhavExecutive Director
Mr. Rajesh MuniIndependent Director
Dr. A K A RathiIndependent Director
Dr. Vaijayanti PanditIndependent Director

FAQ

What is the latest fair value of I G Petrochemicals Ltd?

The latest fair value of I G Petrochemicals Ltd is ₹565.07.

What is the Market Cap of I G Petrochemicals Ltd?

The Market Cap of I G Petrochemicals Ltd is 1,799 Cr..

What is the current Stock Price of I G Petrochemicals Ltd as on 15 October 2024?

The current stock price of I G Petrochemicals Ltd as on 15 October 2024 is ₹582.

What is the High / Low of I G Petrochemicals Ltd stocks in FY 2024?

In FY 2024, the High / Low of I G Petrochemicals Ltd stocks is 727/402.

What is the Stock P/E of I G Petrochemicals Ltd?

The Stock P/E of I G Petrochemicals Ltd is 45.6.

What is the Book Value of I G Petrochemicals Ltd?

The Book Value of I G Petrochemicals Ltd is 402.

What is the Dividend Yield of I G Petrochemicals Ltd?

The Dividend Yield of I G Petrochemicals Ltd is 1.29 %.

What is the ROCE of I G Petrochemicals Ltd?

The ROCE of I G Petrochemicals Ltd is 5.38 %.

What is the ROE of I G Petrochemicals Ltd?

The ROE of I G Petrochemicals Ltd is 3.05 %.

What is the Face Value of I G Petrochemicals Ltd?

The Face Value of I G Petrochemicals 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 I G Petrochemicals 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